More and more businesses across the world are implementing HCM systems to streamline HR processes, gain improved workforce planning and analytics, and ensure compliance. Recent research[1] found the European HCM market grew 17.6% year on year in 2022, and this momentum continued well into 2023, with growth for the first six months of the year reaching 17%.

It’s clear to see why – additional benefits include enhanced talent management, and improved employee experience and engagement. What’s more, HCM systems can make a business more agile, as well as being scalable and flexible, offering cost efficiencies and integration with other platforms.

However, integrating a new HCM system is not without its challenges, as we found out during the implementation process across McBride’s European estate.

HCM implementation

McBride previously had 26 different HR systems in place, which made it impossible to access accurate real time data. As part of our ongoing business transformation, we introduced Workday as our main HCM system to streamline processes and information.

We chose the adopt model, taking a core best practise product and integrating it across all of our European sites simultaneously, in two ‘big bang’ waves. In the first wave we implemented core HCM functionality, with HR data such as onboarding and recruitment. Six months on from this we undertook the second wave of implementation, with additional functionality including talent, learning, performance, and advanced compensation.

Within 12 months we had successfully delivered the project across all our estate, on time and to budget. This was the first part of our digitalisation transformation, and the next stage involved modernising time systems and outsourcing payrolls to a third party, which proved to be a much more challenging process.

Challenges of European time and payroll integration

We selected a provider for our time and payroll management, integrating with our HCM system across all our European sites, and this was where we ran into difficulties. We had done a lot of due diligence when selecting our HCM system, however when it came to choosing the provider for time and payroll, we opted for the platform recommended by our HCM provider.

When we began implementation, it soon became apparent that the recommended system was unable to understand the legal nuances that are unique to each individual country in relation to time and payroll.

For example, maternity and paternity rights and pay differ between each county, rules around overtime and holiday are also different, and there’s also things such as local collective agreements, sector agreements to consider.

All these elements need to be captured within the time system, as HR managers in each country need to generate a code to determine whether an employee would have that time as paid, unpaid, or paid at a percentage.

Rules by country jurisdiction are different, which makes time management extremely complex. This has meant we have had to abort the time and attendance elements of the programme after integrating the time system into just one country.

A country bespoke approach

We are now in the process of finalising the tendering for our time and payroll systems, using a country model partnering with providers that understand the local legal and sector specific nuances. To ensure that the system can fully comply with legal and contractual requirements.

People management and collaboration

It is crucial to look after the team during the process of implementing a HCM system. It takes a lot of time and resource, and you must be very mindful of project fatigue, frustration and dropping energy levels.

We are now being more collaborative, with our HR managers in each country working alongside the plant managers to determine the best time and attendance platform for their country, taking ownership and accountability for their people.

The selection process has involved each country creating a shortlist of potential systems, with colleagues being able to demo the solutions and vote on their preference. This is a far more successful approach from an engagement and adoption perspective, in contrast to the resistance we felt when trying to introduce the previous system which lacked the required capability.

In short, from our experience, due diligence is essential – not just on the HCM system but also on the time and payroll provider, especially if your organisation spans multiple countries. Invest more time in due diligence at the beginning of the programme and take a collaborative approach with colleagues to ensure successful implementation and an engaged workforce.

[1] International Data Corporation (IDC) – https://www.idc.com/getdoc.jsp?containerId=prEUR251817824