Today, every company needs software for its human resources management. Gathering information about its employees is an essential task: payroll, recruitments, employee leave, compensation, training, employment contract, working hours, personal information.
Before, all their information had to be stored on separate software related to different HR functions. However, with this kind of setup, it becomes difficult to obtain a global view of the company’s human resources. Finally, this also demonstrates that a lot of the time, HR departments are wasting their time searching for information.
External growth and the internationalization of companies have pushed creators of HR software to develop HR technology solutions that will reunify employee data in one single software via an HR core.
What’s an HR Core?
The HR Core of a company is a system that allows the centralization of all administrative and personnel management information such as employee-related information, talent management, legal information, compensation management, skills management, performance management, etc. This foundation has revolutionized the organization of the HR function, particularly for companies with international operations.
The digitization of the sector and the automation of tasks have enabled the creation of HRIS software. This HRIS aims to gather all the useful data for human resources to have a unique, automated, and centralized information system. This is what we call the HR Core.
HR core centralizes information
It's a fact, the organization of work has evolved. Today, many companies organize themselves around missions or projects. Employees are no longer attached to just a single department; they are multi-skilled and mobile.
In addition, trends tend to show that companies are increasingly outsourcing more through freelancers, temporary workers, or small specialized companies to carry out specific assignments.
These strategic changes increase the workload of human resources managers and their teams. This is where the HR Core can play a strategic role. Indeed, the HR core allows each HR team from different offices, premises, agencies, or subsidiaries to find the same information on a single software.
The HR Core allows deepening in the research. For instance, an HR team can produce search results that correspond to a certain location. This will be of particular interest for companies who are internationally active. Contracts, documents, will automatically adapt to the laws of the country depending on the type of HR Core model used.
Two types of models: top-down and bottom-up
Two types of HR Core exist. Depending on the needs and strategies defined by the company, it will be more judicious to use the top-down or the bottom-up model. But what are the differences between these two models?
Top-Down: This model consists of an HR base, fed via common processes, which is then transferred to so-called "local" HRIS software. Even if this model can be difficult to implement because local entities may have restrictions on its directional deployment, it is very effective for companies with an international dimension. Indeed, Top-Down enables the company's employer brand to be strengthened worldwide.
Bottom-Up: model built out of local processes, via a local HRIS. They are the ones that feed the common HR Core. The Bottom-Up model, more generally deployed in national-scale organizations, enhances the human aspect. Indeed, it requires diligent and organized teams to feed the HR base to keep it updated.
There are no good or bad models. It is up to the company to decide which one it wants to implement within its human resources strategy. Many companies have decided to mix these two models according to subsidiaries, countries, etc. Thus it is possible to say that there is a third model: the hybrid.
What are the advantages of an HR Core?
More than a simple approach, the implementation of an HR Core can prove to be a strategic asset for the company. Here are the main advantages of implementing a unified HR Core within a company:
1. The data location: depending on the country, the legal obligations are not the same. The company must then respond globally to particular issues and sometimes in a more local way for others. The HR Core can link between these different issues. The HRIS software that a company is using must bring together all the so-called "global" information while also adapting to local issues such as regulations or working methods.
2. Better career follow-up: different employees may have different positions in different entities of the company. Standardizing information limits duplication and better identify the expectations and needs of employees during their careers. Finally, by taking into account internal mobility via the HR Core database, the calculation of payroll will be more accurate and more precise.
3. Securing information flows: with a single tool available to all, the risks of information loss and even hacking are reduced. There will be fewer informal exchanges and only one channel for searching for information. As cybersecurity is becoming crucial and has an increasing impact, it is essential to consider it in your HR strategies, and start looking for solutions that are GDPR compliant.
4. A more reliable reporting tool: thanks to the standardization, localization, and centralization of data, reports are based on more reliable data. We can obtain a clear performance review with local or global indicators, allowing more precise monitoring than before. These reports will then be studied more closely and taken into account when making strategic decisions. Reporting within an HRIS equipped with an HR Core takes it to a whole new level. It is visual and dynamic. HR executives can filter their searches, monitor metrics coming from different HR tools. Managers can supervise their team's effectiveness, making sure objectives have been respected under tight time constraints. Finally, employees can also benefit from reporting tools, setting personal goals, and selecting the right set of KPIs to follow. Involving employees reinforces team bonding and employee engagement.
5. Better internal communication: an HR Core brings more connectivity, and employees only have to do one log in to access all their software, the HR Core plays an important role in facilitating internal communications. Indeed, employee satisfaction is optimized and engagement rate increases as it promotes a collaborative workspace.
6. Employee productivity increase: a huge advantage of an HR Core is that it provides a "self-service" experience. What do we mean by that? Well, the employee who benefits from a single platform with all its HR tools can search for any document templates or forms that he needs. Putting formal documents online at the disposal of every employee will not only simplify the task of looking for documents employees want, but also facilitate the approval process from HR executives or managers.
7. Development of the employer brand: The implementation of an HR Core, notably via HRIS software such as PeopleSpheres, enables employees to feel like part of the company. They are no longer part of an office, a subsidiary, etc., but of a whole and unique entity. This promotes employee commitment to the company and therefore increases the company's employer brand.
The implementation of an HR Core is a strategic decision taken by the human resources department. However, it can be a long and demanding project. If poorly defined or set up too hastily, the HR Core will no longer be advantageous. Therefore, to implement an HR foundation correctly, rules must be followed:
Frame the project: the HR database must be defined in a very precise way by writing functional specifications. These specifications will determine how the information will be displayed and organized. Moreover, it will specify the rights of employees to consult or modify the HR database.
Involve the people: we must question the local teams, ask them to participate in the testing process by providing relevant comments. They are the ones who will be at the heart of the action, and their needs are vital. Also, employees must be involved as much as possible so that they can quickly integrate the idea of change, understand its benefits and challenges, and, finally, "retain" them.
Controlling and analyzing the relevance and reliability of the data must be permanently integrated.
Ensure that the connection between the HR Core software and local software is feasible and will work properly.
Think about the user experience: just like software that would be created for your customers, the software in the HR base must be "user friendly", intuitive and ergonomic.
The HR Core is at the heart of modern HR strategies. In the context of globalization, the HR Core allows answering easily and rapidly to economic, cultural, legal, and regulatory concerns. The pandemic situation has pushed companies to rethink their internal strategies. Working remotely has been the daily routine of many employees. Many companies have realized that some jobs do not require the presence of an employee 7 days a week. Hence the necessity to digitize the HR function, an initiative that will drastically simplify the daily life of all collaborators.
Are you interested in setting up a performant HR Core? Discover PeopleSpheres HRIS solution. Build and customize your software according to your needs and the development of your company.