After years of research and practice of management software selection, the enterprise HCM selection model is proposed, including the evaluation index system and selection steps. The selection index includes four modules: leading capability, product capability, service capability and value capability. Under each module, there are two level indicators and weight allocation. Comprehensive evaluation is carried out for software service manufacturers from the perspectives of service manufacturers' industry status, products, services and value to guide users' HCM selection.
This "value-oriented" selection model takes strategy and vision, products and services into consideration, which is conducive to the scientific selection of enterprise user HCM and the digital transformation of enterprise talent management.
Source: China Software Network & Hebi Research
At present, enterprise human capital management (HCM) is a hot field of enterprise talent management digitization and enterprise digitization, but there are four mistakes in its selection.
SaaS insecurity
Although the survey data shows that 80% of enterprises in China are willing to go to the cloud and they have solved the problem of whether to go to the cloud or not, there are still voices of "don't go to the cloud because the cloud is not safe" when it comes to the HCM cloud, especially in the public cloud market.
Some users, especially large and medium-sized enterprises, have concerns: who will guarantee the security of data when they abandon their IT infrastructure and store their data in the cloud?
Concerns about the security of data in the cloud have been reinforced by a growing number of new breaches over the past year. Abroad, surveys show that privacy and security concerns are also the number one reason companies refuse to move to the cloud.
Is SaaS cloud computing really less secure than traditional data centers? The answer is no. In fact, none of the data breaches have anything to do with cloud computing itself.
Many organizations fearful of moving to the cloud actually confuse the definitions of control and security. They seem to feel that the physical visibility and control of on-premises systems offer better security than SaaS cloud computing, even though cloud computing companies are more professional in security issues, have passed various security certification standards, and can provide third-party network security services. However, where data is stored is not the same as security.
IDC believes that enterprises and consumers have more confidence in public clouds and more applications. By 2020, the report predicts, the amount of data stored in the public cloud will exceed the amount stored in consumer devices; By 2022, the amount of data stored in the public cloud will exceed that stored within enterprise systems.
In fact, the most fundamental concern of users for security is whether enterprises choose traditional local deployment or SaaS deployment in the digital transformation of HCM.
HCM SaaS has excellent performance in security, cost optimization and other aspects, which has been fully verified by the market.
On the one hand, HCM SaaS makes enterprise information more secure. Backing up sensitive enterprise data is a huge undertaking, and cloud computing service providers will deploy a unified security solution that is more secure and efficient than internal enterprise collaboration. Especially in the event of an accident, the digital records provided by cloud computing can be more secure than those deployed locally by the enterprise.
On the other hand, many HCM SaaS providers, such as Beisen, make use of the cloud native, completely autonomous and controllable technical architecture to provide integrated solutions for the transformation of enterprise human capital on the cloud and service, so that enterprises have no worries about HCM data security.
Globally, HR SaaS is a high growth area, with multiple companies valued at more than $1 billion. The Gartner report predicts that more and more medium and large enterprises will deploy their human capital management based on the cloud, and the digital era of HCM has arrived. IDC report also believes that HCM SaaS market share is large, fast growth, is expected to become the second largest market in the whole enterprise application SaaS market.
Pursue a single optimal
Enterprise human capital management involves a wide range of content, including human resources planning, recruitment and allocation, training and development, performance management, employee relations, compensation and welfare talent management, labor management, labor compensation management and so on. Therefore, many enterprises believe that it is the best choice to choose the single best product or service in each field during the selection of HCM.
In terms of talent management and procurement, Chinese enterprises often adopt the fragmented purchasing method, which seems to have a low cost for a single item, but in fact will cause segmentation in the use stage, hinder the internal collaborative efficiency, but consume more manpower and time costs, which is difficult to play a positive role in the scale development of enterprises.
Especially in the face of global business development, enterprises need to concentrate their efforts and resources to meet all functions of human capital management through as few suppliers as possible or only through one supplier. Therefore, aggregating a holistic set of solutions is the focus of HCM's future development.
In the face of digital transformation, enterprise human capital management HCM needs a holistic solution. The integration strategy has been embraced by almost all HCM giants, from new HCM SaaS companies like Workday and Beisen to traditional giants like Oracle, SAP, Inspur and Yonyou Networks.
Workday HCM, for example, offers a one-stop HR service and quick response capability, providing customers with powerful and rich HR services. Clients can easily achieve their human capital management goals with a single Workday HCM system.
In the recent fourth Beisen User Ecology Conference of iTalentU2019, Beisen CEO Ji Weiguo also mentioned that "after the digitalization of talents, we found that human resource management or global human resource software ushered in a new trend, called 'integrated talent management', and once it comes to talent management, All the business will revolve around the ability of people. At this time, we will focus on the ability as the center, the talent as the center, the various modules of human resources together, forming an integrated human resources management platform."
In the future, HR software manufacturers all over the world are bound to try their best to close the closed loop of the whole life cycle of employees, and customers will move from the purchase of single software to the purchase of integrated software. They will no longer focus on a certain function point, but on whether the system is complete or not.
One-sided pursuit of cool
With the rapid development of science and technology, more and more enterprises are keen to use the latest technology to develop cool products, and think that cool products must have a sense of science and technology, must be the most top products, but also will improve the satisfaction of employees. Therefore, when choosing the deployment scheme of HCM, many enterprises will put whether the product has a sense of technology and whether it is cool enough in the first place.
In particular, as employees born in the 1980s and 1990s who grew up under the influence of the Internet gradually become the mainstay of the enterprise, and the new generation of employees born in 1995 with strong personality gradually enter the workplace, enterprises gradually realize whether HCM application can bring pleasant experience to employees, and whether it can facilitate interaction on any device and in any place. And collaborating and sharing feedback in familiar social ways is even more important.
However, the new generation of employees value the service experience of HCM rather than the simple pursuit of cool. Many HCM SaaS service providers follow the venture capital, one-sided pursuit of HCM easy to use, cool, and ignore the understanding of user needs, the experience of employees, the deep cultivation of the product, it is difficult to adapt to the user's deep application of the product is increasingly high demand, but also difficult to meet the increasingly strong user experience demand.
Under the digital background, office space is everywhere, talent strategy drives enterprise strategic development, and employee experience becomes the core of HCM management. At the same time, the upsurge of the transformation of human resources into service tends to shift the enterprise human capital from the traditional mode to "employee service", then to "business service", and into "ecological service".
Strong product functionality and good employee experience are important factors for HCM to expand the market. Among them, product functionality is mainly reflected in product diversification, unity, update speed and other aspects, while good employee experience is reflected in people-oriented, focusing on human motivation, cultivation, development and other aspects. Therefore, "people-oriented" has become a primary concept. How to let enterprise employees obtain good experience and interaction in business operation, including enhancing team cooperation atmosphere, is a direction pursued by HCM SaaS.
In the face of enterprises' emphasis on employee experience, HCM SaaS enterprises have put employee experience and usability in the first place, some new technologies have been applied, and some new scenarios have begun to land. For example, employees with Internet-based experience can punch in and out without feeling, complete the entry procedures in half an hour at the speed of entry, one-click salary calculation and automatic tax declaration, 7*24 online HR robot assistant, etc., all bring employees extreme experience.
For socialization, HCM SaaS will not only build a communication platform, but also design a shared platform, so that employees can share skills, interests, successful projects, etc., and easily and quickly connect with all other members of the enterprise.
In the way of service, the establishment of unified service standards and procedures, through professional division of labor, to create a professional team to provide professional services to the sharing of services has been developed. At the same time, providing more intuitive, convenient self-service has become a direction.
In terms of insight, HCM SaaS is committed to extracting useful information for users in the sea of data, and is able to enable real-time analytical insight for decision makers with the help of real-time data provided by employees and others.
In the fierce competition environment, HR in modern enterprises must get out of the trivial daily work, use advanced IT technology to realize the modern management of human capital, obtain the latest insight of the labor market, improve the overall economic benefits of HR work, and provide employees with 7*24 all-round employee experience. Oracle HCM Cloud and Beisen's Core Human Cloud are good in this aspect. They all use "wisdom" to empower every link of HR management.
No platform, no HCM
In the selection of HCM, many enterprises believe that HCM suppliers must have a platform, based on which they can provide different services. There is less concern about whether an enterprise HCM really needs a platform, what kind of platform it needs, and what this platform should include.
The biggest SaaS giants -- Salesforce, Workday, ServiceNow -- all have their own platforms, but they're PaaS. Why have your own PaaS platform?
HCM SaaS is a standardized out-of-the-box software service, which can only meet the general requirements of enterprises, but it is difficult to meet the personalized and customized requirements of enterprises. Therefore, many HR SaaS service providers target users at Msmes with less personalized requirements.
But HCM is a complex business system. Human capital management has not been standardized in most enterprises, and it is difficult to meet the needs of different enterprise users with a standardized set of SaaS services. For large and medium-sized enterprise users, HCM SaaS can meet customers' customized and personalized needs through its PaaS platform without affecting the update and development of its SaaS universality.
What is the real HCM PaaS platform?
There are many enterprises with platforms in the software industry. To evaluate the capability of an enterprise's PaaS platform, it is not only whether it has a platform, but also whether it is a PaaS platform based on cloud computing. Second, whether it has the ability to develop cloud native application system and provide services for business users; Whether there are successful application cases and whether the cloud native applications developed for industrial users have been put into use and recognized by users.
The PaaS platform provided by the traditional integrated application software giants wants to carry too much content, and all kinds of enterprise applications can be rapidly developed through the platform, so the objective effect is often greatly reduced. So, to date, there are only two true PaaS in the global HR SaaS space: Workday in the US and Beisen. At present, based on its own PaaS platform, Beisen has developed many applications for large and medium-sized users and put them into use, such as the university management system for Lianjia and the interview collaboration system for BOE.
Nowadays, choosing a convenient HCM software has become one of the work contents of many enterprises' HR. Regardless of the size and business direction of enterprises, efficient HR management can be achieved through HCM software. For the current HCM market, when choosing products, enterprises must take into consideration their own business pain points and characteristics. Only by finding HCM software suitable for enterprises can they truly improve management benefits, enhance market competitiveness and realize sustained profit growth.
