Human Resources Goes Global

May 12, 2008

Implementing technology for human capital management is paramount among those operations that companies must streamline to ensure their global competitiveness. Managing a global workforce is complicated by a range of factors that are often unique to each organization. Every related function—from maintaining a human resources (HR) database to determining compensation—becomes more complex when each one must be managed and administered on a global scale. Of course, this is where technology comes into play. However, in many organizations, there is a communication disconnect between HR and IT. This communications divide often negatively impacts the implementation and ongoing administration of technology solutions that are vital to the success of an organization—especially for global companies competing in an increasingly flat business landscape.

The seemingly disparate goals and responsibilities of HR and IT seem to lie at the heart of this communications disconnect. HR is typically tasked with evaluating and implementing solutions that will streamline processes and improve operational efficiencies. IT, on the other hand, is often focused on keeping applications running and platforms functioning. HR is dependent on IT for ensuring that new solutions integrate and function within the existing infrastructure and, in some cases, with legacy systems. Oftentimes, HR’s requests are not at the top of IT’s list. In turn, HR has transferred this experience to the purchase of new solutions. In other words, HR has come to accept “out-of-the-box” applications and adapt its needs to fit within the confines of the solution. However, while global companies may share some common ground, no two have identical needs—especially when it comes to global compensation administration and management.

Elevating HR’s IT Knowledge

One option is for HR to view its solutions provider as a technology partner that can address individual needs and customize applications accordingly. This alleviates the burden on IT, allowing them to intervene when their resources are critically necessary. In addition, a technology partner can provide assistance for a much broader range of technology-related issues—oftentimes outside of the scope of their solution. For example, these issues might include assisting clients to configure their Internet browser settings to best meet their needs.

On another front, HR is under the misconception that requesting customization to technology from vendors, especially in the area of compensation, benefits, and payroll, is costly based on past experiences. In some cases, after a significant application purchase, management may indicate to HR that no other changes (customizations) can be requested for a set period because of cost concerns, integration issues, and so on. Undoubtedly, extra costs can be difficult to justify after a company and its decision-makers have green-lighted an initial, often substantial, investment.

The truth is that many modifications can be made easily and cost-effectively during the implementation process and throughout the partnership. In addition, HR should elevate its knowledge of applications in general, and of its needs in particular, to work more effectively with a technology partner to discuss and request modifications up front. Again, this ensures that HR requests support from internal IT when assistance is most needed.

A Changing Paradigm

A solution for global compensation management and administration offers an especially dramatic example of the need to repair the communications disconnect between HR and IT. It highlights the increasing pressure that is placed on both functions—indeed the entire organization—to support a complex and growing global workforce. By elevating its knowledge of IT, HR can take the lead on implementations and upgrades and know what to expect a solutions provider to deliver in terms of support and service. Undoubtedly, IT will come to view HR as a strategic partner that prudently utilizes its resources.

About Thomas Shelton: Shelton is Founder and Chief Executive Officer of HRToolbox (Atlanta), which provides HR professionals with a complete and efficient solution to address the challenges of managing and administering payroll, benefits, and compensation for a global workforce. His primary responsibilities include the overall management of HRToolbox, business development including strategic partnerships and alliances, as well as continuous client interaction and customer service.

Prior to founding HRToolbox, Thomas was employed as acting Vice-President of Technology for Coolsavings.com, an Internet start-up delivering targeted coupons to individuals via the Internet. His role was to develop an organization capable of meeting the demands of the sales and marketing teams in an environment where deadlines were crucial. Here, Thomas put into place general guidelines with respect to the overall development process. As his team became more familiar with the development process, each step was closely scrutinized to ensure a more efficient process and consequently, a higher quality product. This project lasted for approximately six months at which time the position was successfully transitioned to the new, full-time Vice-President of Technology.

Thomas graduated in 1993 from the University of Central Florida with a Bachelor’s degree in Management Information Systems. He concentrated his efforts on the benefits of object technologies in developing business solutions.

For more information, e-mail twshelton@hrtoolbox.com, call 877-HRTOOLBOX, or visit www.hrtoolbox.com.

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