As your business grows from 1 employee to 5 and from 5 – 20 how you manage those employees is going to change. Whether you like it or not. The tools you used to manage 5 employees (raise your hands you Excel “power users) are not going to carry you to managing 20 or 50 employees.
You need technology designed for managing people, nurturing growth and tracking performance. There’s a wide range of tools available to you – from big companies of course and also smaller companies.
One companies I’d like to introduce you to is Success Factors.
Since I’m not familiar with this industry, but knew it was important to you, I asked a lot of questions, that Success Factor took the time to answer. Read their answers, to my questions, below
What’s the Background for smaller business using IT for HR
Most small businesses don’t have the HR-related tools and processes to give employees what they need. They also don’t have the resources enjoyed by large companies to maintain a dedicated IT department or HR staff to manage bulky, complex technology and processes that support the management of employees. Yet a small organization’s productivity, profitability and ultimately survival, depend on making sure employees perform at their full potential. The smaller a company is, the bigger impact each employee has on business success.
Address the aspect of web based apps for HR
Performance and Talent Management software delivered in a Web-based, on-demand environment can help small companies engage, motivate and align employee objectives with corporate goals, which will give employers the greatest possible return on their largest investment: people. This is especially important given one of the primary obstacles to the success of many small businesses is the lack of established processes and systems for communicating company vision and goals – according to some industry experts, “A mere 7% of employees today fully understand their company’s business strategies and what’s expected of them in order to help achieve company goals.” (Robert S. Kaplan and David P. Norton).
What are some specific functions that SuccessFactors offers
Specific HR functions provided by SuccessFactors Web-based Performance and Talent Management software for small businesses include:
o Online performance reviews (including 360 degree reviews), built on best practices learned from thousands of successful implementations, to ensure employees are engaged and motivated. Web-based reviews streamline the process to reduce the hassles and expenses of a traditional pen and paper system, making it more efficient without the need for a large HR team.
o A goal setting and goal management solution helps managers and employees set effective (ISMART) goals aligned with the overall corporate vision, ensuring people are working toward clear objectives and focused on the things that matter most to the organization. It also enables managers to measure performance against those goals to truly identify top performers, and conversely those who need additional development.
o A compensation management tool ties financial rewards directly to performance, allowing small companies to quickly and easily establish fair compensation practices and create a “pay for performance” culture.
o And it’s delivered on a highly secure, Web-based architecture, so there is no software to install or maintain. This also benefits employees who work remotely because they can access the tools from anywhere in the world.
o SuccessFactors also allows companies to add a recruiting management module to support talent acquisition. It’s a scalable system that grows as the company needs it to.
Value and Cost Savings of Web-based Performance and Talent Management
SuccessFactors’ small business-focused offering is just as robust as the version used by large Fortune 100 companies, yet its within reach of any small company since it’s priced competitively and easy to implement. This is made possible by advances in Web-based technology that allow SuccessFactors to deliver a solution used by large enterprise customers to any desktop browser. This means small companies don’t have to rely on huge IT resources that are typically only available to large companies.
What about the HR products of large companies such as Orcale and SAP
Large HRMS systems like those provided by Oracle and SAP simply aren’t accessible at the small business level due to cost prohibitions. This is not to say that companies like SAP do not make software for smaller businesses, but because of the technical complexity introduced by these types of systems they often create cost by necessitating a company allocate IT staff and resources to maintain, troubleshoot and update the software. The web-hosted SuccessFactors model can be managed by HR personnel with no IT training, and SuccessFactors handles all software upgrades, making the system is much more cost effective and easily implementable for small businesses. SuccessFactors’ software is fundamentally different in that it focuses on engaging, motivating and rewarding people rather than transactional administrative tasks.
SuccessFactors’ talent management software for large enterprises does differ from the small business option in that it includes add-ons smaller companies may or may not need, depending on infrastructure. These options include succession planning, employee surveys, recruiting management, employee profiles, career and development planning and competency management. Smaller organizations can choose to add these functionalities onto the core software if they deem necessary.
Web-based vs. paper-based or Excel-type HR management tools
Most small business HR processes have historically been confined to the back office, either paper-based or built in a Microsoft application, such as Excel. However, processes that rely on either of these tend to break down, as paper or independent electronic files are easy to misplace and any compliance initiatives will typically rely on a manual process. Consider a typical HR process like the employee performance review. Web-based reviews streamline the process to reduce the hassles and expenses of a traditional pen and paper system, making it more efficient without the need for a large HR team. Major benefits can show up in something as simple as the reduction of labor involved; consider the amount of effort that might go into simply aggregating the scores of an Excel-based review system for presentation to management. It is the speed, efficiency and analytics/business intelligence capabilities of an interconnected cascading system like SuccessFactors that are attracting decision makers at small businesses.