HR Information Systems case study

HR Information Systems case study

HR Information Systems case study

You are a new HR employee at BETTER AG. Karin, the head of corporate HR, informs you about the idea to plan a project for the selection and implementation of a group-wide HR software solution. The aim is to prepare a document, which should be the basic for the project approval by the company’s board of directors. This sounds easy – but it is not.

The company is a major player for banking and insurance services. Its headquarters is in Vienna and it has 27 subsidiaries across Europe. The largest OPCO’s are located in AT, DE, NL, SK, CZ, HU, PL, HR and RU. 3,552 employees and around 400 temporary workers are employed at the Austrian location. In total, the company employs over 25,000 people. The majority of the staff works in asset management and in the sales department for insurance products. Some corporate functions are located in Austria, including corporate Finance, HR and IT but there are local departments in every subsidiary, too.

The strategy of BETTER AG is geared towards strong growth by 2030 (doubling of sales) on existing markets through innovation that leads to new banking and insurance services and through the acquisition of other companies. Another important strategic issue is to become ONE COMPANY. The CFO would like to add at the point that the whole group needs to focus on efficiency and profitability due to increased regulatory requirements in the industry.

But back to the HR project… Karin mentioned, that the search and selection process for a new HR software solution was planned to start early 2020. Because of the COVID-19 pandemic the management board decided to postpone the start of the project until September 2020. Karin knows the organization for years and is aware of the fact, that it has always been a huge challenge to convince the CFO and the board to get the budget for projects like this. Needless to say, that there are some other departments who need financial resources for their projects, too.

While Karin is telling you this, your thoughts orbit around ONE COMPANY. When asked about ONE COMPANY Karin told you, that it is critical for the future success of the company to collaborate and operate seamlessly and fluidly on a global level. “We need to align core HR processes on group level. The way in which we work within HR, how we provide our services and how we interact with our customers has to be developed to the next level. Parts of our company are becoming more agile. Project teams become more international. We do not know what skills we do have where in the organization. With regard to HR reporting and controlling we urgently need more transparency and a single source of data. To be honest, sometimes this is a nightmare and it does not look professional when I am not able to provide basic data about our workforce, costs, etc. without starting a global research project.”

During the conversation you note the following additional topics: HR Information Systems case study

There is a strong works council that is very concerned about data protection.

The administration of master data and applicant management takes place via Excel and reaches the limits of its capabilities in many countries. This led in particular to the creation of “shadow personnel files” by managers who also question the data quality of the Excel tool. As a result, different departments have different information about employees. You are right when you are thinking of missing reporting functionalities on a group level and poor data quality.

The turnover rate in the sales area, but also in the central corporate areas, has increased noticeably in recent years. Good sales people are hard to find on the job market. Direct contact based on former applications is hardly possible, since old applications are only saved in one folder and cannot be searched.

There is no referral program in place for hiring new employees.

In the area of health insurance, there are increasing standards with regard to the professional qualifications of employees. A new platform to provide learning content and to administer trainings is urgently needed. A history of which courses have been attended by which employees can only be obtained after extensive research.

Some OPCO’s still conduct their performance appraisals on paper.

Employee and manager self-services are very limited and are not accessible via mobile devices such as smart phones or tablets.

Many open positions at team leader and managerial level are filled by external people. A disproportionately large number of young aspiring employees and “high performers” leave the company after a few years. This is a tragedy because the company loses precious expertise.

COVID-19 memo to myself!!!! We should check how the pandemic and the new “hybrid” way of working

changed the way how we hire new employees, how we onboard them, how we develop them and how we manage their performance and careers, …

From a technological point of view, the HR-IT landscape is historically grown, highly heterogeneous and characterized by different HR solutions from country to country as well as missing interfaces between systems and media breaks along the processes.

What happens next? HR Information Systems case study

Due to the extraordinary circumstances, Karin does not have time to plan the project in detail. She knows that the topic of HR Software is part of your studies at the college and is convinced that the planning of the project is in good hands with you. As Karin mentioned at the beginning, the aim is to prepare a decision paper, which should be the basis for the project approval by the company’s board of directors on November 20th. Therefore, Karin needs your concept for the board presentation until November 11th.

Where do you start?

HR Information Systems case study

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