| iv> | | | | laughing for a second and could not type. Okay, I |
| In the February 2009 issue of HR magazine, a | | | | agree that customizing does increase the cost at |
| cover story was written and titled Strategies | | | | the front end of the project but truthfully, with |
| for saving in a down economy. I read the | | | | my prior business, most of the time we |
| article and agreed with much of what was said | | | | customized systems it was to create interfaces |
| until I got to a section on technology and contact | | | | between various systems. This type of |
| management. | | | | customization is likely going to significantly |
| Here’s the section with which I have a | | | | decrease manual input hours and decrease the |
| serious concern. | | | | likelihood of manual entry errors. As far as |
| Technology and Contract Management | | | | customization causing glitches that will |
| Your mailbox probably overflows with ads for | | | | compromise service later on, I am not sure |
| software that vendors say you can’t | | | | what this really means. I would be interested to |
| afford not to buy. But unless a vital system | | | | hear a real life example from the author. |
| hovers on the brink of meltdown, hold out. | | | | Bargain Hard? On the surface, this is |
| Three options to tide you over and limit costs on | | | | good advice but highly unlikely to succeed since |
| new purchases: | | | | terms for support or leased contracts are exactly |
| Open up. Cut back on software license fees by | | | | that, contracts. If you are buying a new system, |
| switching to free open source alternatives. | | | | which the author says you should hold out on, |
| For instance, Google Docs allows users to create | | | | you may be able to bargain for a slightly lower |
| documents and spreadsheets, store them and | | | | cost but I would not expect it to work with |
| collaborate online for free. | | | | existing contracts. Take care in designing an |
| No Special Request. Think twice before asking a | | | | all-inclusive proposal: Add-ons can cost you. And |
| vendor to customize an off-the-shelf product to | | | | involve vendors in proposal development — |
| fit your existing processes. It raises cost at the | | | | they may offer money-saving tips. I would |
| front end and could cause glitches that will | | | | comment on this statement but I have no clue |
| compromise service later on. | | | | what it means. |
| Bargain hard. Establish a policy of rebidding all | | | | Look, if you want to save money on HR |
| vendor contracts and leases. During a recession, | | | | technology, it can be done. Frankly, books could |
| prices, as well as payment terms and schedules, | | | | be written on this exact topic. If your company is |
| become negotiable. Take care in designing an | | | | laying off employees, including those in HR, it |
| all-inclusive proposal: Add-ons can cost you. And | | | | might be important to add technology to allow |
| involve vendors in proposal development — | | | | your department to run more efficiently. There |
| they may offer money-saving tips. | | | | have also been a number of articles and studies |
| February 2009 HR Magazine | | | | showing how HR software does, in fact, save |
| My overall concern with this segment of the | | | | companies money. Here’s one good |
| article is that it is completely lacking in any detail, | | | | example. |
| substance, or value. The article is about 8 pages | | | | I wrote a post recently about saving money by |
| long and barely two paragraphs are dedicated to | | | | looking for alternatives to the national payroll |
| saving money on technology. I think the author | | | | companies. In a real life example, my prior |
| grossly miscalculates the importance of | | | | consulting company saved a 1,200 employee |
| technology for HR. Has the author ever worked in | | | | manufacturing company over $250,000 off their |
| HR? I wonder if they have ever gone from a | | | | payroll processing cost for the next five years. At |
| company that provided HR with needed | | | | the same time, we provided the company |
| technology to one that did not. If you have, I am | | | | increased functionality such as Employee Self |
| sure you know what I am talking about. | | | | Service and custom interfaces between various |
| Open up? Can you please provide me with | | | | applications. We did it all without having to use |
| a list of free open source software | | | | Google Docs. The point I made in that post was |
| alternatives for companies that process time and | | | | that you can increase functionality and decrease |
| attendance, handle recruiting, process reviews, | | | | cost by looking for alternatives to the national |
| handle benefits administration, or process payroll? | | | | payroll processing companies. For this company, it |
| Wait; there aren’t any. I am not sure how | | | | was wise for them not to hold off. I |
| any HR department is going to meet any of | | | | wrote another post on saving money on your |
| these mandatory needs using Google Docs. I have | | | | HRIS tech support fees. One of our vendors |
| also written several other posts presenting | | | | wrote yet another article titled Powerful can |
| arguments against open source HRIS solutions. | | | | be affordable. |
| No Special Request? Sorry, but I was | | | | |