How do we do it?

This section is primarily concerned with elaborating recent research which supports overall theoretical frameworks for e-HR adoption and its associated outcomes, combined with the practical experience of the author in his former role as an e-HR Programme Director.

Linking HR Strategy with e-HR Outcomes

The model (see Figure 3) draws upon the prominent literature for e-HR adoption and shows four central elements – HR strategies, e-HR goals, e-HR architectures and e-HR outcomes. In effect, this creates a ‘line of sight’ between the adopted HR strategies of an organization and the e-HR outcomes. The moderating elements reflect the changing and dynamic nature of e-HR in its varying organizational contexts. Consequently, every organisation enters the e-HR journey at a different point. Some may already have advanced applications or tools in place (see case studies), whereas other organizations may be engaging with more advanced technologies for the first time, as HR seeks to move from a traditional support function to a more strategic partner. These latter characteristics tend to be associated with smaller organizations, which do not have the financial resources or scale of operations to make the necessary investments. The way forward in those cases, and which may represent a sensible approach for smaller local authorities, is through collaborative enterprise.

Deciding on the Technical Architecture

It is important to understand that any e-HR implementation requires a “core” HR system. This is often referred to the Human Resource Information System (HRIS) system and is the primary transaction processor, editor, record keeper, and functional application system that lies at the heart of all computerised HR work.

Figure 4 highlights the factors that influence the overall technical solution, which will comprise the core HR system and other functional elements. How each factor impacts on the various elements of the programme depends on the importance that an organisation applies to each. However, all these factors will have a significant impact on the overall cost of the e-HR project (see Mark Williamson’s guide).

Essentially, there are four options:

• Option 1 - HR core system with integral modules that can be “switched on and configured” to create a “single” HRIS
• Option 2 - HR core system with modules bought, configured and hosted separately (still on internal networks) and connected back to the core system
• Option 3 - HR core system with modules hosted and managed externally and connected back over the web to a core system – also known as Application Service Provision (ASP)
• Option 4 - Outsource of all systems including the core HRIS.

The benefits and disadvantages of these options are briefly outlined in Table 1. The decision on which option to take is most important because it affects the complexity of the build, architecture and cost.

Planning the elements of the e-HR Project

The timing and sequencing of the different elements of the e-HR programme is key to a successful implementation. To realise an integrated solution, it is important to understand the technical and data requirements for each stage of the development. Figure 5 highlights the underlying system architectural requirements within the context of a four-stage e-HR road map. This sequencing of the development is equally important when considering the change and training requirements at the implementation stage of the project.

The timing and sequencing of the different e-HR elements allows the HR function to articulate its vision for the project and forms the basis of a more detailed business case with which to persuade the organisation to make the investment decisions (see Mark Williamson’s Guide on Business Case). To assist practitioners with these considerations, Table 2 sets out some key factors that shape the e-HR architecture and associated outcomes.

Case Study - London Stock Exchange

The case shows how the line-of-sight between corporate business goals, HR strategic goals and e-HR architectures was achieved at the London Stock Exchange, one of the world’s leading international equity exchanges and provider of associated services. The e-HR project specific goals were to:

• Support the transition to a Business Partner model;
• Increase the range and quality of services;
• Reduce overall cost of HR to the business;
• Allow the existing HR resource to engage in “value add” work;
• Create the tools for managers and employees to take responsibility for HR related employment life cycle events;
• Better allocate HR resource;
• Develop commercially focused management information.

As a direct response to the strategic goals of the LSE, the e-HR goals were broken down into work-streams, which in turn were further broken down into specific deliverables – see Figure 6. The e-HR deliverables were then arranged in a road map, showing the sequencing and connectedness between the different e-HR elements – see Figure 7.