Posted: 12 Apr. 2021 10 min. read

Size doesn’t matter

Mid-sized companies can also transform HR with a Tier 1 cloud solution

For many HR teams, the last 12 months have highlighted the need to deliver more with the same – or usually fewer – resources. COVID-19 also challenged many organisations’ ability to cater for a digital workforce (Deloitte Tech trends 2021). Here in Australia, many businesses are thinking about how they can leverage HCM Cloud technology to help find efficiencies, support a remote workforce, improve the employee experience, and generate workforce insights and more.

Some misconceptions about Tier 1 cloud solutions

You hear all sorts of stories from people who remember that time, early on in their careers (or their friend’s or colleague’s careers) when they went through a rather painful, large scale on-premise implementation. To boot, it was also “expensive”, “resource heavy”, “took years to deliver”. Naturally, many people assume that this is how Tier 1 projects work.

Some HR leaders feel the same way. In our regular conversations with them we hear similar sentiments and common misconceptions – that Tier 1 solutions are too big, complex, and expensive. This view is particularly dominant within the middle market – made up of organisations that employ between 500-2,000 people.

End users expect more from their technology interactions

The digital revolution we find ourselves in today not only requires organisations to pivot quickly to adjust to changing markets, but technology end users also expect their experience with business apps to align with the technology they interact with outside of the workplace. Closing the gap between these two experiences is something Tier 1 platforms can do exceptionally well.

However, many organisations still adopt the view that a standalone point solution (or integrated solutions) will deliver the same business benefits. While some benefit is realised – think efficient capability – there are still a lot of gaps. For example, integrated reporting and workflow, 360-degree views of employees through the employee lifecycle; and let’s not forget the multiple vendors which need to manage the various work arounds and complexity that come with system integration. 

Let’s change perceptions of Tier 1 solutions among small-medium sized businesses

Based on our experience delivering for the middle market, we believe there are three key  factors that make these applications scalable and affordable:

1. HR teams need to leverage leading practices: This means adopting leading practices as defined by the technology, and adapting current busines processes

2. Process takers, not process makers: Select a partner with a clear point of view and proven accelerators. The idea is not to design the future state functionality and business processes from scratch, rather leverage a predefined scope that will meet 70 - 80% of your requirements

3. Minimum Viable Product: Take the view that an investment in cloud is an iterative journey; the initial project should meet your immediate business needs. Enhancements and new functionality should be road mapped and reviewed in line with changing business needs and expectations.

In our experience, considering these factors in relation to technology transformation programs for the middle market helps HR teams realise the value of their investment more quickly than originally anticipated for a Tier 1 platform.

We support the middle market with DNA packages

At Deloitte we have delivered hundreds of successful Tier 1 HCM cloud projects for middle market organisations in Australia over the last five years. Through continuous innovation we have refined what we call our DNA packages. Each package contains a collection of tools, IP, aligned digital change / adoption frameworks and accelerators based on leading practice. Our DNA package provides HR teams with:

  • A clearly defined view of leading practice functionality
  • A project and governance framework, documentation, and collateral to modify rather than create
  • Aligned IP to support knowledge transfer
  • Tools for transparent project management
  • An established support framework to assist your transition to the new operating model (from the project, to BAU and beyond).

And we don’t forget about the employee experience!

This approach doesn’t magically negate the requirement to communicate with and engage your employees through the project. As part of our DNA package we have developed a digital approach to change management. This is designed to support internal efforts, providing communications and messaging aligned to the functionality, project, and employee personas. We have seen our approach deliver far greater employee engagement and adoption at go live.

Find out more

Interested in finding out more about the Deloitte’s DNA offerings and our approach to middle market HR technology transformation? Please contact me.

More about authors

Mike Beresford

Mike Beresford

Director, HR Transformation

Mike works within Deloitte’s Human Capital practice, with a focus on supporting organisations transform with HR and Payroll Technology. Mikes experience ranges from leading HR Consulting businesses through to working with Enterprise HCM technology vendors. He has an entrepreneurial mindset with a focus on customer outcomes, communications, and cultural change.