What happens in Human Resources when companies grow

From Rock to Mountain

Most companies start off as small businesses with the owners doing most, if not all, of the hiring and firing of employees. Performance reports are not much of a concern because owners and key managers can quickly spot poor performers and take appropriate actions. Payroll is of little concern from a management perspective and is often carried out by the very people closing the deals. Firing is also carried out in much the same small scale, personal manner.

As businesses are fortunate enough to experience substantial growth, growing into the hundreds of employees range and becoming big companies, the processes that used to work well, become hindering. Piles of paperwork, hundreds of phone calls, mounting piles of resumes and a haphazard performance analysis process, taxes at all levels, benefits of all types, it becomes a veritable maelstrom of chaos. Because of this, it behooves companies of this size to upgrade and change their system of employee management and payroll to meet the challenges of growth; however, knowing which way to go can be as confusing as a maze.

Hundreds of solutions exist offered by an almost equal number of different companies. The solutions range from the highly specialized to the highly customized, with features of every type. The costs and target market also differ, some solutions cost thousands, while others millions, and both (for the purposes of a given business) may do the exact same thing. This all presents companies with the painful headache of making the right choice the first time, since the consequences of the wrong one can be so dire. 

Because the consequences can be so dire, it is crucial for businesses considering an HRMS make the right choice the first time. Many companies faced with this reality don’t know how to handle the process of selecting the right HR solution for themselves so they seek outside counsel. Many blindly hire “consultants” who often times have little tangible experience working with a variety of solutions. The consultants may advise a system based on a cheaper price but all too often these budget HR software companies have little or no experience implementing their own products.  A bad implementation can cost a company thousands, if not millions, of dollars and cause chaos within their organization. 

Despite the challenges in selecting a system that fits the needs of their business, many companies do get it right and select a system that fits them well and have it implemented properly. But selecting a system and having the implementation go off without a hitch isn’t the end of the road; updates, support, and ongoing system maintenance are all part of the package. Some HRMS vendors do better than others, and while the majority do the job, many don’t do it well and in the end it is their clients who are faced with the agonizing questions.

While growth in your company is a beautiful thing, the old saying ‘growth doesn’t come at no expense’ rings true today as ever; the growing pains associated with human resources can be the worst. Taking the time to make wise choices and thinking ahead to the future are one part of the process, always keeping an eye on the ball is the other part; never losing sight of the severity of impact a good or bad HRMS system can have.

About the author

Michael Grabriele is the President and CEO of Perfect Software, an industry leading HRMS and Payroll software company with over twenty years experience in the domain of human resources. Perfect Software offers industry leading HR and Payroll solutions using state of the art .Net technology and takes a consultative approach to client relations.

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