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SaaS powered HRO: How to standardize, harmonize, optimize, virtualize and efficiently deliver HR services in your “long-tail” countries?

SaaS powered HRO_Neeyamo

Say “NO” to Long-tail countries HR blues

by Teena Thimothy  on 11 July ’14

Globalization may no longer be the buzzword but it sure has contributed to the new organizational agitator, “long-tail countries”.

Globalization provides varying benefits to multi-national companies and individual economies around the world, by creating markets that are resourceful, even out the competition by decreasing monopoly, and enables increased reach with potential customers.

However, there is also the assumption that the costs associated with globalization outweigh the benefits. Organizations will have to expand their employee reach too. This increases the chance of residual employees in multiple countries. Organizations may not be able to maintain a standardized global HR practice.

For organizations, the need to address HR requirements is always one of the key priorities. It is now about addressing these HR requirements in multiple countries where the chance of making available a local HR team to support the employee population can be very demanding. All the same, local employees require support from the HR organization.

An article by Alsbridge stated, there is no ‘silver bullet’ solution for the ‘Long Tail’, but consideration of the some vital rules will help organisations who are seeking the benefits of global HRO with the best HR Technology support.

The list of challenges and solutions may not seem to be in par, but organizations with presence in long-tail countries; primarily have issues pertaining to IT systems (many times the lack of it or its fragmentation)and lack of standardization. Local regulations are galore. All these combined with lack of proper business case to have local HR hinder HR’s ability to provide local HR support.

The trick to substituting the silver bullet, is to make available to these long-tail countries, a scalable, sophisticated and sustainable SaaS powered HRO.

Case in point: This is about an organization with more than 50,000 employees that operates in more than 50 countries worldwide. It has around 45,000 employees spread across 15 “large” countries, and around 5,500 employees across 35 “long-tail” countries with an employee count ranging from 1 to 500.

Of these, 25 countries had an employee count of less than 100. While large countries have access to local HR and world-class HR service delivered on Tier 1 OnPremise HRIS/ ERP, employees in the long-tail countries have very limited access to both HR, and HRIS!

The company wanted the same class of HR services to its employees across long-tail countries. It wanted to leverage the power of the cloud to make its HR systems universally accessible while aspiring to provide its employees with best-of-breed system and wanted to ensure it had a compelling business case for this as well.

The Challenges faced by global organization in “long tail countries”;

  • Inconsistent and inadequate HR support
  •  Lack of visibility
  •  Compliance risk
  •  Cost vs. service
  •  Fragmentation of HR information and systems

The company embarked on a journey to transform its HR service delivery leveraging SaaS powered HRO, portfolio of discrete HR apps, and a structured process (of course with the help of its partner) to standardize, optimize, harmonize, and virtualize its HR processes. It undertook a massive exercise to map its current processes and then drew global templates to standardize its global HR processes. It leveraged multi-tiered service delivery to ensure round-the-clock availability of HR services to employees worldwide. Multi-tiered delivery also ensured a fine blend of local-remote (centralized) delivery of efficient HR services.

Globalization is simply one of the changes happening in the workplace over the last few decades. The world of technology is opening up new possibilities for organization of all size. Consumerization of technology is not just a random trend but it is the key to achieving HR delivery excellence.

The key to releasing the issues associated with long-tail countries HR service delivery, is making available SaaS powered HRO services. This bundled approach enables minimal capital outlay, and a predictable variable pricing.

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How to localize your “existing” HR technology infrastructure without having to customize it?

by Samuel Isaac  on 21 Jan ’14

The way HR technologies are moving, localization may be outdated in the future – possibly a decade from now. Especially with the advent of global cloud based HR systems. But till such time, localization will continue to be a painful need of HR strategy for Multinational Corporations (MNCs) worldwide.

Technology has been a key enabler and inhibitor of standardization and localization of HR respectively. At Neeyamo, we have observed that the failure rate of HR transformation initiatives go up with excessive thrust on standardization and return on technology dollars go down with increasing flexibility for localization. Local HR seems to be adverse to adopting some global HR processes and vice versa. While standardization does help institutionalize global HR best practices, localization are required to address local statutory requirements and socio-politico-operational-cultural (SPOC) nuances. Given the importance of human capital in a knowledge economy, it becomes a tightrope for global organization and their HR IT units to strike a balance between the right degree of standardization and localization.

There is a constant tug-of-war between the propagators of standardization at the corporate HQ and advocates of localization from the local HR. While the question of standardization vs. localization will continue to be played in the HR transformation war rooms as a part of the internationalization of human resources, it will also be a question of – to what degree? And more importantly – how? Enter – Discrete HR Apps.

The global HR system tries to institutionalize global best practices and “basic tenets” of contingent/ local practices. These components of a global HR system however fail to address nuances of the local HR requirements that calls for higher degree of localization, sometimes as local as only to one business unit in that geography! The Discrete Apps help create a HR technology infrastructure that enables MNCs address inevitable localization requirements without having to go for costly and very-oft self-defeating customizations. Discrete Apps helps address

localized HR requirements that goes beyond certain objective factors such as local labour/ industrial law and regulation and goes ahead to address localized process refinements that are aligned to local business and operational realities.

The non-invasive integrating Discrete HR Apps cater to MNCs’ local demands without having them compromise their HR system’s globalization tenets. Discrete HR Apps – which are highly configurable and can operate in harmony with the local HR processes and global HR systems – allow an organization to be much flexible to their localization needs and celebrate heterogeneity of the global organization.

To know more about HR Discrete Apps and to understand how it can address your localization needs, talk to one of our Discrete Apps specialists today.