HCM Vendor Selection
When selecting an HCM vendor, you have the option of identifying a unified solution that brings all HCM services under one vendor or you can purchase solutions from different providers for each application area, which is known as a best-of-breed approach. ClearCourse Consulting can help you determine which route is best for your organization and then guide you through the process of identifying and assessing the vendors that best meet your needs. ClearCourse is independent and has no proprietary relationship with any solution provider. This affords us the distinct ability to provide our clients with an agnostic approach and unbiased guidance.
Clearly understanding the business needs for identifying an HCM solution and defining the outcomes for your project will help guide the decision-making process. First, determine your HCM business objectives and the challenges that may prevent your organization from achieving those goals.
Once your organizational objectives have been established, developing a clear plan of action is important for project success. Plan considerations may include:
- Project scope
- Organizational and cultural impact
- Current systems and vendors that may be improved, modified, or removed from the HCM solution
- Budget over a defined period of time including total cost of ownership and ROI
- Identify the vendor selection team and internal stakeholders
- Internal and external security requirements
Documenting your current HCM requirements can guide your organization towards a best-fit human capital management solution that covers your key business requirements. Without a structured approach, HCM software selection can be a complex process. A HCM requirements document also serves as a tool that you and key stakeholders can use to complete a gap analysis and then drive an open discussion to identify must-have features to support business requirements and build consensus.
ClearCourse Consulting is well suited to conduct a gap analysis to evaluate your current state, document the challenges and lack of functionality that may exist, understand where practices and policies misalign with industry best practices, and define the key characteristics of the desired future state. The results of this gap analysis can be incorporated into a Request for Proposal (RFP) so vendors can self-report on whether their product functionalities can/cannot meet your requirements.
We can help you develop an RFP that will provide a clear description and nature of your business, your approach to talent management, and how your HCM technology fits your digital strategy. We can assist with defining each functional requirement and use cases as well as prioritize required, should-have, and nice-to-have features.
ClearCourse can help you define scoring tools to help you make an objective, data driven decision as to which solutions would best meet your business needs. Scoring tools are typically developed to support the RFP evaluation process, product demonstrations, and overall vendor scoring.
Develop a list of 3 – 5 vendors that best match your business objectives. ClearCourse Consulting has the knowledge and experience in the industry to help you identify the vendors that most closely match your needs and minimize the amount of time typically spent during the vendor selection process. RFP’s are then distributed and scored accordingly and then select vendors are subsequently invited to provide in-depth demonstrations of their solution.
Formulate a consistent vendor demonstration format including the length of time that will be granted to each vendor to present their solution and the delivery method (on-site or videoconference). Then, schedule each vendor accordingly. Subsequent demonstrations may be required to support in-depth evaluations of specific areas of functionality that are important to your organization.
The final selection process should involve your organization’s vendor selection team and key decision makers to evaluate the vendor’s:
- Product demonstration summary
- Business, financial, and end-user benefits
- Implementation approach and timelines
- Support model
- Contract requirements
- HCM vendor’s customer references
- Policies, processes, and procedures that may need modification