As managing a global workforce has become more common, companies must deal with a disparate set of compliance regulation and local laws. The problem has fueled the rapid growth of Human Capital Management (HCM) solutions. New HCM vendors appear every day and it can be difficult to choose the right solution for your organization. Here are the six biggest mistakes companies make in selecting a global HCM solution.
One size fits all. Organizations are unique, and so are their challenges. So, just because your competition is using a certain solution doesn’t mean it will be right for you. HR managers should look for versatility and experience in their vendors rather than a quick-fix solution.
US laws and regulations are the only ones that matter. Most HR solutions perform with flying colors when navigating US laws and regulations. But the system falls apart as soon as a company faces global complexity. Only a handful of vendors have the capacity and expertise to handle global problems.
Customer service should be at the headquarter level. If you operate in multiple cities around the world, you want the best customer service for all of your customers. Does the vendor have in-country customer service or just in their HQ city? How long does it take for a customer to speak to a support person? What is the response rate in resolving customer inquiries? What time do they operate? These are some critical questions HR managers must ask before choosing an HCM vendor.
There are always hidden ownership costs. Often HR vendors that present vague figures and hidden costs are gimmicks. HR managers must look for solutions that present a clear cost structure and consider direct and indirect costs of installing an HR solution as well as any maintenance costs in the future.
These solutions provide limited business insight. It is true that most solutions do not provide business insight or analytics, however some do. Solutions that lack in this area can handicap companies in making good strategic decisions. In the long term, this could affect the bottom line and mean losing your competitive edge.
Every system has good security. It is easy to assume that because HR departments have to handle personal data and confidential information all the time, all HCM solutions would come with excellent security. Yet, with legislation like GDPR it is important to evaluate the security parameters of a global HR solution.
Selecting a right HCM solution is a complex process. Given the long-term impact that it can have on an organization, it becomes vital for HR manager carefully assess before deciding on a product. Avoiding these six mistakes is the first step towards success.
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