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How do you build the ideal HR ecosystem? Make the right software choices

Good preparation is essential when designing your digital HR landscape. Do you opt for a best-of-breed strategy that brings together the best tools for each task in an integrated ecosystem? Work thoughtfully and in phases. A plan of action, a well-thought-out budget, and a clear timetable are essential for success.
As an HR professional, is it best to choose an all-in-one software package or a best-of-breed architecture? Read about it here.
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Ideaal HR ecosysteem

1. Define your needs and establish your processes

What is the goal of your digital HR strategy? Do you want to reduce administration? Save time? Which new technological opportunities are you focusing on? Map out the needs of your company. Think future-oriented and take into account the opportunities and challenges of tomorrow.

Before you design the IT landscape, map out your processes. Examine them critically. Are they still essential and efficient? What could be improved? Digitalization leads to more efficiency, but your process must be fundamentally correct. That means: it must make sense to achieve your goal. Ensure that your processes are established and clearly defined before you start the (re)construction of your IT landscape. How do you measure performance? What tools do you use for learning and development? How do you plan to allocate rewards?

It is perfectly feasible to integrate your payroll or time registration system into your ecosystem, but a standardized approach across divisions is important for correctly exchanging data in the future digital landscape. It is a prerequisite for creating a more efficient and simpler-to-manage IT landscape.

Consult the teams in the preparation phase, so that the technological changes are supported and driven by them from day one. They will use the technology in practice every day. It is important that they are convinced of the quality and usefulness of the technology they work with.

2. Make Smart Choices After a Thorough Market Scan

Compiling a best-of-breed landscape takes time. The selection process to choose the right tools requires extensive research. Take the time to ask each team member about the way they work. Involve all departments. Choose the best HR tool for the task. If different team members use different tools for employee engagement or analytics, then investigate which tool is the best and eliminate the rest.

Ask peers for recommendations. Which combination of tools do they use to their satisfaction? Seek insights in the academic world. Which tools are breaking through? Research whether your preferred tools are future-proof.

Be critical of the software you choose. Does a tool that allows employees to assemble their own compensation package lead to higher retention? To what extent does a self-service tool for booking holidays help to reduce central administration? What reports does management really need? How much time is saved with a digitized onboarding process or an automated bonus program? Ideally, the vendor should present concrete figures from previous clients. Our reward program Youbo is relatively new to the market, but we can already demonstrate impressive results. International HR service provider SD Worx accelerated its compensation process from two months to just three weeks thanks to Youbo.

Think carefully about how vendors and partners fit into your ecosystem. The best-of-breed strategy only succeeds if your systems are well connected, so that your data is always up-to-date, no matter which tool you look at. When choosing a tool, it's important to investigate how it connects and fits into the whole. What are the integration possibilities? Can the developers demonstrate a track record of successful integrations? How does a new tool fit into the overall picture? What is the workload for the IT department when integrating? Our reward tool Youbo is built as open as possible, so it integrates smoothly with the most diverse systems.

Evaluate the tools not only on what they can do in terms of service or integration. Security and the safety of your data are paramount. Investigate how the tool protects data and ensures security. Security and data protection at Youbo are ISO certified. The servers are located in Europe, in accordance with GDPR requirements. Investigate this for all tools you would like to plug in.

3. Be Meticulous in Determining a Budget

In a best-of-breed strategy, you combine the best SaaS (Software as a Service) tools for each task. SaaS tools usually operate on a subscription model. The cost of this can be easily mapped out.

Don't forget to budget for customization. For critical processes, it may be advisable to develop custom software. This could be because it offers a competitive advantage, or because you can't find a tool that fully meets your needs or operational style. Custom development is a significant investment, but it can also provide exceptional added value. Customization may also be necessary to integrate tools. Don't forget to include this in your budget.

You must also consider the cost of training. Ask your vendors about the duration and modalities of the training for each tool. Youbo is an intuitive tool. Following the train-the-trainer principle, we train key users who then introduce the tool within the organization.

4. Define an Action Plan with Clear Timing

Don't rush into decisions. Develop an action plan with well-considered timing. Ask the tool vendors for an implementation plan and integrate it into the larger scheme. Is it necessary to appoint a project manager to steer things in the right direction? Prior to the implementation of our reward tool Youbo, an analysis phase is conducted where we examine the salary policy and existing HR processes. We then translate these into software and configure them in the tool, making it ready for use.

Interrupting processes and changing technology can significantly disrupt daily operations. Help your teams gradually make the switch. Avoid rush jobs and provide good training so employees can smoothly transition to the new technology. Communication is crucial: ensure that every employee is always informed about the plans, the purpose, and the timing.