Tag Archives: Budgeting

What are the mistakes that can break your pockets while implementing HRMS Software?

Time and again we have spoken about the importance of planning before any software implementation. Planning carefully equates to a job half done. The race always lasts for a few seconds, but the training behind it lasts for months. The same applies for software implementations. The preparation and planning should be given enough time so that the final result is close to what you had in mind. However, one common mistake is to focus so much on planning minute details and technicalities of the implementation that they overlook the monies involved. Once you take your eyes away from the budget, expect the foundation to start crumbling. Every web based HRMS software requires you to avoid some planning budgeting mistakes in order to see the light of day. Let us see some of them.

Common Budgeting Mistakes During the Planning Stage

These are four common mistakes that companies can make while planning that can cost them greatly, figuratively and literally.

–          Avoiding long-term planning

Planning should always incorporate short and long-term goals. Most companies opt for the short-sighted plans because they seem faster to implement and the resources required may be limited. While it may seem like a good idea, in the long run you pockets will run dry because of the unaccounted budgets costs that will line up. The best HRMS software in India can give you fruitful results when you budget it well right from the beginning and not maintaining a casual attitude about it.

–          Allocating funds in the wrong places

It is always tempting to incorporate functionalities that look good and ‘MAY do some wonders for the company’ when in reality it might hold no value at all. Plan your budget for all the essentials first and then spend on ‘extras’ if you have amount of money left. Going the other way round will eat into your pockets. Focus on what you absolutely need and what you can require no matter what, see which additional costs would be required to support those functionalities and other training programs. Place the horse-blinders in the initial stages and overlook all the elements that you do not need immediately. The momentary lapse of temptation during the planning stage will undoubtedly save you lot of money and resources which can be invested later on in the implementation stages if required.

–          Not accounting for IT, HR or similar project resources

Planning the implementation of web based HRMS software requires focus on more departments than one. Do not forget to include HR costs such as salaries of employees and other similar costs of an HR department. The IT department has budget requirements of its own. When you do not account for such variables right from the beginning, it might hit your budget hard when a critical situation suddenly arises. Consider all the potential situations and be prepared with different solutions on how to tackle them while keeping the budget in check.

–          Separating the HR and IT tasks

HR and IT teams need to work in sync for a successful implementation. They bring unique contributions to the table that makes the best HRMS software in India function efficiently. Don’t make the mistake of separating the two teams while planning as some of their requirements may match, thus giving you an idea beforehand on where exactly you need to spend and how much. Keep the two departments separate is a common mistake that most companies make which cost them dearly.

Invest smartly and you will get beyond the planning stage with success. Smart investment surely does not mean that you cut corners and look for cost cutting methods at every turn. You don’t have to take inspiration from Uncle Scrooge and accumulate all the wealth in a tower at the end of the town. If you have pocketful of money but a non-functioning software solution, it’s a no-brainer that you have failed at what you started out to do. Avoid making the mistakes that are mentioned above and keep an eye out for similar mistakes that have the potential to bring your project down. Simple preventive steps would take you a long way and ensure a successful implementation.

What budgeting problems that can Jeopardize your HRMS Training?

Training sessions. For the management they mean a time when their employees can learn something new. For the employees, it can mean a time-off from their usual work and spend some time with their colleagues trying to figure out a new solution. Whether they like it or not, the importance of training sessions cannot be questioned. Training is a crucial part of the launch but improper planning can jeopardize your HRMS project.

How to Avoid HRMS Project Overruns

Every company should keep a check on the costs of their web based HRMS software to avoid overruns. Each enterprise may face a difficulty of its own but these are some of the most common issues that companies face. Avoiding them would save you money and more importantly, time. Budgeting can be tricky and is not everyone’s cup of tea but it cannot be dodged. The following pointers may help you if you struggle to handle the financial aspect of the best HR software..

–          Not committing to a coherent training plan

Most companies do not plan well when it comes to allocating the budget and time required for training. It is very important that the concerned management sits down and spends time thinking over crucial questions such as how many employees should participate in the training session, what kind of equipment is required for the training, do they need to outsource trainers or not, how can the consultants help with designing the training module etc. Tending to all these matters initially would help you plan your budget smartly. Approaching the issue with ‘let’s handle them as and when problems crop up’ would be the end of your bulging pockets. Every aspect of training will cost you differently so it would be better if you had an idea of where you money would go. Don’t fall prey to not committing to a coherent training plan.

–          Miscalculating the required training time

The training time required for different stages of HRMS implementation would be different. If it’s a new project altogether, the training time would be quite considerable as the employees need to learn everything from scratch. They would need to learn numerous unfamiliar functionalities before one gets completely confident of using it. The total time required could amount or days or even weeks. Having a skilled trainer who understands the exact scope of the training schedule is of utmost importance. On the other hand, if it is just an upgrade or an addition of a new functionality, the training time required would be much lesser. You do not want to miscalculate the required training time and allocate funds inappropriately. Over-budgeting and under-budgeting both would be problematic in their own way, so avoid doing either of them. Only way that is possible is through critical planning prior implementation or going live.

–          Frequency of updates of different applications

One advantage of having the best HR software is that it has the ability to evolve with the ever-changing and demanding HR needs. This comes with one issue that the training requirements also change accordingly. Higher the frequency of updates, more the training sessions required. It would be wise to get in touch with your consultants and get an idea of how many updates you would require to keep the HRMS relevant. Too many updates can meddle with your budgets and throw the plans off the track. Do not compromise on upgrades, but at the same make sure you don’t go over-board unnecessarily.

These three problems can hound you at different stages of an HRMS project, either during implementation or upgrades. Don’t let them stick out a tongue at you and tease incessantly with a challenge to bring your project down. Get in touch with your vendors and ask as many questions as you want, even if you think it will annoy them. As long as you save some money, you can keep others happy by rewarding them later on. Ensure that your training sessions are well planned and budgeted for every project that rolls out of your company. Make the best of the web based HRMS software, which can be achieved only by designing effective training plans.