HR moving ‘on-demand’

NorthgateArinso’s Denis Tournesac, examines the impact of the economic climate on HR’s technology.

“The average HR manager wants a global view of HR, as well as in-depth knowledge and expertise that's not bogged down in admin. But it is possible to have your cake and eat it?”
-Denis Tournesac, NorthgateArinso

The global economic downturn has brought about interesting times for the HR team. We only need to open a newspaper to see stories of job cuts, pay cuts and recruitment freezes. All this leaves HR dealing with staff cuts, while managing the needs of those people left behind. Keeping staff motivated and managing the talent that will lead the business through the economic storm and out the other side.

When CEOs are looking to cut overheads, justifying the HR team’s time and resources is more important than ever. Reporting is crucial as a means of demonstrating HR’s value to the business and technology can have an important role to play in helping the HR team operate as efficiently as possible.

However, at a time when budgets are stretched, how can HR choose between the myriad of technology delivery models on offer? The average HR manager wants a global view of HR, as well as in-depth local knowledge and expertise that’s not bogged down in admin. But is it possible to have your cake and eat it?

Sign of the times
The recession brings with it fewer opportunities for extensive capital expenditure. The initial layout for a big software project can be huge and updating existing systems is seen as a ‘non-urgent’ task that can wait until more secure financial times. As a result, now is a good time for managers to be looking at alternative models of software delivery, including software delivered ‘on-demand’, which can be well suited to recessionary times.

Going on-demand
On-demand technology is nothing new. Thanks to companies like salesforce.com, it has already proved it can work for applications like CRM and marketing. However, there’s no reason why HR shouldn’t enjoy the same benefits.

Users are much more demanding of workplace technology than they were a few years ago. We go home and happily log in to Google and Amazon, where the interface is easy to use and simple to navigate. It’s no longer acceptable to go into work the next day to use clunky, complex technology for work. A good on-demand system has got to have a good user interface to be successful.

Weighing it up
However, it’s important to remember that when it comes to HR support, one size certainly doesn’t fit all. On-premise software is reliable and scalable, so it is still the model of choice for large enterprises. There was a time when HR modules in large ERP implementations were cumbersome and difficult to use. That’s no longer the case, although there’s still work to be done to shake off this reputation. Another factor to consider when implementing IT to support HR is what you’re actually going to use it for. As well as processes and admin, HR directors also need to look at how IT can support the more strategic part of HR, including talent management and succession planning.

NorthgateArinso launched EuHReka OnDemand, the first application that makes SAP HCM available as a service, to help HR directors manage admin and reporting, as well as the more strategic parts of the business. We wanted a clean, simple user interface and a choice of modules so HR teams could pick and choose the aspects of HR they want to use the product for.

Having it all?
Just because the economy is in a bad way doesn’t mean investment in new systems to improve efficiency should stop. In fact, it’s more important than ever for reporting to be transparent, in order to improve talent management and competence management processes. HR directors should weigh up all the options available to them carefully. Different delivery models suit different companies. What is important is that when the right system is up and running, it helps prove HR’s value to the rest of the business at a time when the team is needed more than ever.

Paris-bassed Denis Tournesac is Executive VP OnDemand at NorthgateArinso. He is responsible for euHReka OnDemand, the first SAP-based Human Capital Management software to be delivered ‘as a service’. He  started his career with NorthgateArinso – at the time ARINSO – as regional director for Southern Europe and Canada. Prior to this, he was the EVP Southern Europe at Control Data Systems.