Every larger organization should have a Human Capital Management (HCM) system at their disposal. It makes HR operations more efficient and allows for designing impactful employee experiences. Bringing all employee data into one place makes analytics easier and strategic decisions quicker. The success of software providers such as SAP’s SuccessFactors or Workday speaks volumes.
However, any human resources system (also coming under the names of Human Resources Management System (HRMS), Human Resources Information System (HRIS) or Human Capital Management (HCM)) is built around individual data. They are designed to connect and manage all data points of employees. They do not offer though (or very few) functionalities to manage your organizational structure as a whole. But why would this be relevant for you?
There are hidden issues
Organizations have to take care of their structural data before implementing any HCM system. Only then they will be able to achieve all they hope to achieve and derive larger benefit from their investment. Typical issues which are standing in the way are:
- The job profile data is outdated.
- The various sources of job profile data provide differing content.
- There are many jobs in the organization which only exist once.
- There is no structured job catalogue in place.
- Job descriptions are not aligned with each other or with the structure.
- Employees are not mapped to jobs.
- Grades or levels of positions are not defined.
- Career paths are not reflected in the organizational structure.
- The job data format differs from the target HCM system data fields.
Ignoring these points raises chances for a messy implementation of any HCM system. Requirements will not be met and converting the data and the migration will take considerably longer. You will likely not be able to meet the implementation time. Also, job data in the new HCM system will be of low quality and it will probably become necessary to re-design the entire job architecture later on, an expensive adventure in an advanced stage of the software implementation.
The best way to solve all issues at once and make sure that you get the maximum benefit from your HCM system, is to take care of your job architecture before you begin with the implementation.
What a job architecture provides you with
A job architecture is an enterprise-wide framework for the alignment of employees. With specific jobs based on requirements, skills, competencies, training requirements and responsibilities. It provides a sound, easy-to-use system for determining the value of each job based on talent drivers, business needs, and market practices.
As it is based on a consistent methodology, it serves as a decision aid for assigning job levels and titles that are based on enterprise-wide criteria, which eliminates guesswork and promotes trust and confidence in the organization’s job assignments and rewards practices.
A job architecture not only serves as the foundation of effective pay program design but also provides the infrastructure for the human capital and financial practices that drive the business including total rewards, career paths, recruiting practices, learning and development, and succession planning.
The relation between HCM implementation and job architecture
As you invest effort in building your job architecture, you will automatically focus on data quality and data structure – that’s what the architecture is made of. You can use a software that helps you to map, level and grade all employees quickly. Any tool will also allow you to process data in bulk and match precisely the data fields which you need for your HCM system. Some of them will provide you with pre-written content for writing job descriptions.
You will not only prepare all necessary data for the HCM implementation in high-quality and in a fraction of the time. Above all you will create a structured, single point of truth for all data which empowers your strategic workforce management for years to come.
An immeasurable tool for a world in which your company needs to stay agile and flexible.