In-House vs. Off-the-Shelf e-HRM Applications

Abstract

Companies new to the e-HRM technologies are overwhelmed by the dilemma of choosing either the ready-made, off-the-shelf e-HRM systems, or develop their own e-HRM systems in house in order to implement the e-HR transformation. Therefore, this research was done to shed some light on the differences and similarities between off-the-shelf e-HRM systems and in-house developed ones, with regards to some elements developed in a preliminary framework, such as the implementation and development approaches, e-HRM activities they facilitated, application types and characteristics, and e-HRM outcome and benefits. This comparison provided insightful information that could help companies make the most effective choice between the two systems. It was found through this research that factors such as continuous user involvement, effective communication, and strong change management are most considered by companies that develop e-HRM in house, while advocates of off-the-shelf e-HRM systems are most affected by success factors such as business process reengineering, planning and vision, and project management. Another finding was that increasing efficiency, providing customer-oriented service excellence, and improving self services were top goals accomplished by companies developing their e-HRM system in house. These findings, beside many other ones discovered in this research, would help companies decide which system best fits their needs and accomplish high levels of effectiveness gained from the transformation of their HR function to e-HR.