e-HRM Strategies

Experience suggests that there is no ‘one size fits all’ for introducing e-HRM. Organisations typically follow one of three strategies

❐ Replication: This approach involves simply recreating the content and functions of the existing system(s). It is typically an IT ‘refresh’ activity, a strategy often followed because older technology becomes non-viable or is simply out of date. There is usually no desire to improve HR/Payroll processes or service quality – its intention is simply to reduce costs or avoid system obsolescence. Projects are relatively unambitious, with little vision and a focus only on technology, simplifying IT support and lower maintenance costs, rather than creating long-term business value. The main advantage of this approach is that it can be undertaken relatively quickly using technical resources. However, because there is no focus on business processes, it may result in missed opportunities to create business benefits and there is a risk that old processes will not work effectively under the new technology - end-users may have the same frustrations they had with the old system. It should only be undertaken in circumstances where old technology will absolutely fail if nothing is done and there is no time to take a more strategic approach. 

❐ Enhancement: This approach can take several forms and it is shaped by intention and ambition - even when an entirely new system is purchased, organisations may decide that there should be only an incremental, evolutionary impact on HR service delivery and operations. There is often little appetite to use technology to drive through major changes; it may be that the organisation does not believe that radical change is possible, perhaps because it expects resistance, lack of resource or cost issues that prevent a full transformation. It may be that a strategy of ‘change by stealth’ is more appropriate, where the technology platform is developed over a period of time. However, by playing safe, organisations may not achieve the Return on Investment needed and the lack of a technology champion or adequate resource means that projects may not get beyond the initial implementation phase; it may have the same impact as if a pure Replication strategy had been pursued. 

❐ A Transformational approach: Technology is part of a wider strategy, enabling highly devolved HR services, making managers more accountable, where the HR function takes on a more substantial role. It involves a revolutionary restructuring of HR service delivery, including the use of service centres, outsourcing and the Business Partnering model. For an organisation under cost pressure to transform HR services, this is a better strategy. The vision often includes giving on-line access to processes, policies and procedures and extensive self-service. Technology has a truly transformational role under this approach, with a major impact on the organisation, changing the roles of HR, managers and perhaps even employees. It is not an easy option and requires a large investment in infrastructure and resources to make it work, with an emphasis on managing the changes. However, the business case typically offers a good payback.  

Organisations have a choice as to which technology strategy to pursue and the approach typically depends on factors such as culture, expectation, previous experience, an awareness of what is possible and the strength of the business case.