HRTech: Selecting the Ideal HRIT Software and Vendors
The first step in the digital transformation of HR is the selection of the right HRIT software and vendor. But how do you choose the best package, the right vendor, and the ideal implementation partner? SuccessDay’s team provides organizations with independent advice and shares tips to make the selection process more effective.
The software and vendor selection for complete Human Resources Information Systems (HRIS) or Human Capital Management (HCM) remains a challenge for many organizations. Bas Eggelaar, the founder and Managing Director of SuccessDay, emphasizes that there is no reason to be ashamed, as they have faced the same pitfalls in the past. SuccessDay is ready to assist organizations in making informed decisions.
A Rapidly Changing Landscape
Selecting an HRIT software package and implementation partner is not an everyday task; it typically happens once every ten to fifteen years. Furthermore, the IT landscape is evolving rapidly. Therefore, it is essential to enlist experts. Bas notes that many organizations still follow the traditional approach in their selection process.
“This means that organizations often do not know how to select properly. They create a list of requirements for everything they think they need, from the recruitment process to the evaluation cycle, and even – in the most extreme cases – in Chinese. The result is often a long list of questions to which software vendors routinely answer ‘yes.'”
HR Processes Are Not Rocket Science
HR processes are not rocket science. All players in the HCM software industry essentially support the same processes, such as recruitment and selection, talent development, employee retention, and workforce flow. “The fact that all processes are covered simplifies the selection process considerably. However, what is much more important is aligning with the strategic question. What is the HR strategy? How does HR contribute to the entire organization? How do you contribute to an improved employee experience?
For this reason, SuccessDay approaches the selection process differently. Software is not an end in itself but a means to an end. The team looks at the organization’s objectives and how HRIT can support them.
“There are many vendors that can do a lot, but only a few that can do everything. However, you don’t always have to choose the most expensive option to get from A to B,” says Bas.
“There are many vendors that can do a lot, but only a few that can do everything. However, you don’t always have to choose the most expensive option to get from A to B”
You don’t need a Ferrari to get from A to B
Bas explains, “In other words, what is the HR strategy? Have you thought about a future target operating model? Do you want to implement software to improve the employee experience or to obtain better data? Is it purely a cost consideration, or does the organization want to work fundamentally differently? The answers to these questions determine the direction of your future selection process.”
Only after the direction is clear, the scope and key requirements are determined. SuccessDay calls this the “5 Principle Elements.” These elements serve as a guide throughout the entire selection process.
“There are many vendors that can do a lot, but only a few that can do everything. However, you don’t always have to choose the most expensive option to get from A to B. Honestly, we usually end up with the same companies for our (international) clients, such as Workday, Oracle, Ceridian Dayforce, SuccessFactors from SAP, and Cegid (formerly Talentsoft). We help our clients make the right choice. Completely agnostic,” says Bas.
From Longlist to Shortlist
Subsequently, SuccessDay organizes speed dates in which vendors must demonstrate what they have to offer in a maximum of 45 minutes. Based on the “5 Principle Elements” and in consultation with the client, a shortlist of two to a maximum of three vendors is drawn up for further evaluation.
Scores are assigned to these elements in collaboration with the client, and the weighting is determined. The result may be that the most expensive option is not the best for the client, or that the most functional option turns out to be the most expensive. If the client insists on functionality, internal lobbying for a budget extension can be considered, and SuccessDay is happy to assist with that as well.
SuccessDay always ensures that the total cost of ownership is taken into consideration. This includes not only license and implementation costs but also personnel costs, post-go-live management costs, and any data analysis costs. Bas explains, “We look at the whole so that the client can confidently make an informed decision.”
“Use Cases Work Optimally”
To prevent vendor presentations from becoming smooth sales pitches, they are informed of specific use cases they need to address a maximum of 48 hours in advance. These use cases describe how the software package solves certain problems.
The most important consideration is how well an application aligns with the specific needs of the client. SuccessDay has a clear understanding of the strengths and limitations of various HRIT packages, which enables them to offer clients a well-rounded perspective. Vendors often highlight the impressive performance of their solution—like showing off how fast their ‘Ferrari’ can go—without fully explaining the ongoing maintenance and practical implications that come with it.
According to SuccessDay, working with concrete use cases is a faster and more effective way to gather the necessary insights. This approach is far more valuable than compiling thousands of detailed criteria that may never be relevant in practice. Each organization has its own frame of reference, and SuccessDay deliberately avoids getting caught up in overly specific requirements that add little value.
Package Integration
An example of a use case that is always relevant, according to SuccessDay, is how the software package handles changes in personnel policy. Suppose a hiring freeze is announced after substantial investment in new software and an implementation partner. How can this process be adjusted in the software package, and who is responsible for it? Such questions are answered during the selection process.
Another aspect that stands out in SuccessDay’s approach is the importance of good governance. Bas points out that this often goes wrong in practice. “These are costly and time-consuming processes. We often see that organizations conducting the project themselves forget to involve key stakeholders. That’s why we want to ensure that all key decision-makers are involved and represented in the steering group from the beginning.”
According to SuccessDay, a team with the Chief Human Resources Officer (CHRO), Chief Financial Officer (CFO), Chief Information Officer (CIO), and a representative from the business should form the core. It is not just an HR or IT matter; it also requires Finance’s involvement in creating a business case, as well as Procurement and Legal Affairs. Finally, business involvement is essential to make the project a success because managers ultimately form a crucial user group.
The Importance of Preparation
SuccessDay approaches the vendor selection process holistically and integrally, with strong involvement of all stakeholders from the beginning. According to Bas, this is crucial for making progress.
“The selection process takes time. Some organizations think they can complete the HRIT software selection process in two months, but that is really unfeasible. We have found that it takes at least four months. If you take the time, it will pay off later in the project. We or the vendors are rarely the problem. We can step up or work on weekends. The challenge lies in preparing the organization and the availability of people. This always takes more time than expected.”
Time to get the job done
After selecting a software package and an implementation partner, SuccessDay always conducts an Organization & Readiness Scan. This assessment evaluates whether the organization has the right people in place for the project and whether they are sufficiently available. It also reviews data quality and the standardization of processes. Taking the time for this step is crucial. There is typically no room during the project to define what an FTE is or to create a job catalog from scratch.
According to SuccessDay, thorough preparation is essential. If you don’t think ahead about your HR technology roadmap and the selection of software and vendors, you often encounter unpleasant surprises. This can lead to higher costs, delays, unmet expectations, or a lack of buy-in within the organization. No one wants to face such challenges.
