1975 Called and Asked for Their HR Solutions Back
How did we get here?
We fell asleep in HR and Corporate Recruiting and watched the last 30 years fly by us. I think it happened when we had our heads down wearing turtlenecks writing corporate policies that no one cares about. When we finally looked up, we had standard operating practices and systems that are excel sheets with fancy exteriors. These solutions were going to reduce our risk, improve our turnover, make us more compliant..and save the world too.
Using advertising platforms disguised as Job Boards, applicant tracking systems, human resource management systems, and payroll systems to protect and serve the companies that we work for and the people in them. But a lot has happened since those second-generation HR solutions. If you are wondering, first-generation was the green screen data entry systems (let’s not go back there). If you aren’t getting with the times, it will cost you – in hard and soft costs.
Second Generation Software Solutions
Hard costs for second-generation software solutions include implementation fees, multi-vendor service fees, bracketed per employee per month price models, internal administrative burdens that your company will pick up, the communication costs to educate employees about the change to name a few. The soft costs are the leap of faith you take that the product that is sold to you, previewed and tested with you hoping it actually does what they say it will do. The recommendation here – don’t do this unless you are a jumbo employer. Jumbo employers with more than 10,000 lives can, and should create their own custom technology pipeline to capture the Talent lifecycle from the introduction to retire. Jumbo employers would benefit from third generation solutions but their ability to do so depends on the mentality of leadership, agility, decision-making processes (and let’s face it relationships to third-party vendors).
Third Generation Solutions
Third generation solutions, live in the cloud and require zero implementation. A true cloud solution contains your hard costs by being fee-based either on use or results. No gray areas, contracts, or sales process. It’s built to be self-service to let employers make decisions quick and receive the benefits of those services the same day. Yes, I said the same day. They have to be about results because they only flourish based on whether or not they have users. Some have more complex fee arrangements than others. Third generation solutions focus on the direct value of the solution to their customers and expand and contract with you. There is really no reason that you need to overcomplicate things, especially in the people space.
Examples of third generation solutions are pepelwerk, a matching platform and talent management system, Gusto, benefits and payroll, Bambee – HR compliance. If you have already decided to ship back your HR solutions from 1975, I’m proud of you. You being the financial person, operations manager, business owner- decision maker for the purse strings. Welcome to the 21st century.