Is Core HR a product or a concept? Do all companies need it? Is it really a long and complicated process to set up?
A large number of CEOs have had to answer such questions over the last ten years. Experience has shown that Core HR is indeed complex, but it is also greatly misunderstood. Core HR comes from the US and has brought with it a great deal of confusion. It is a key offering but is often used poorly or incorrectly.
With all the many HR projects focusing on Core HR, we need to get some perspective on what Core HR really is.
Core HR is a process, not a product. It isn’t a type of software, but rather a set of HR data, HR processes and HR applications allowing companies to reach their targets. Even if Core HR often ‘glocalizes’, meaning that it is deployed globally, but also adjusted to accommodate the specific local needs, it still requires a great deal of change in the daily activities of the HR teams. We, therefore, need to ask a key question: can Core HR be tailored to any company?
The unassisted development of Core HR over the past few years has created a single ubiquitous model. The structure of the company interested in the project and the specific needs of the countries in which the company is located are hardly taken into account. This is, in my opinion, a mistake and the main reason Core HR fails. Core HR cannot be deployed the same way in every company. A successful implementation of Core HR requires customization.
There are currently four types of companies:
- Companies with a single site in just one country
- Countries with multiple sites in one country
- Multinationals, for which the different markets are independent
- Global companies
Based on this, how do we make Core HR the center of your HR transformation? First lesson: adaptability. Don’t rush your project. It must be tailored to the specific requirements of your company.
To deploy Core HR, you need to talk with an expert consultant, whose job it is to understand and audit your company, your objectives and the challenges you face. An expert consultant will make observations and then offer recommendations on whether or not to set up Core HR, how it will be set up in your company and, above all, provide the teams in charge of deployment with the necessary information for a successful integration, which will require a great deal of customization.
You should, therefore, take your time and not rush things! Consult, analyze, adapt and customize!
Now in practice: Let’s take two very different companies. An international corporation and a small company located in just one country. Their specific and more or less complex organizations will have an effect on the Core HR’s implementation and its scope. The international corporation’s Core HR will ensure the implementation of shared HR rules within an international context with multiple companies in multiple countries, while the small companies will include the HR processes for all the employees.
Core HR has most often been used to meet the HR challenges required by international economic growth. Companies can no longer ignore foreign markets. This requires them to be global and consistent in their development strategy. Companies will, therefore, need to be able to implement this transformation by redefining their organization tasks and resources.
It is currently easy to transfer an employee from one site to another in the same country, but when transferring from one country to another, companies face specific problems and challenges, particularly regarding the legal aspects. Core HR is the ideal ally because it allows you to share HR data among several different countries thus meeting the requirements of an international corporation.
Before attempting a Core HR project, it is essential that you analyze the company’s situation, organization, objectives and priorities beforehand And then decide whether or not to use Core HR and if so, then customize it as much as possible.
This will help HR to avoid implementing a long and costly project and ensure profitability.