Justifying the cost of a new HRMS

First demonstrate the expense of not having an efficient system.
By Tim Draper
|CHRR, Guide to HR Technology|Last Updated: 06/18/2002

A recent headline in a local newspaper read: “KGH Nurse Shortage”. This announcement was hardly a surprise, especially considering that enrolment in health-care education programs has been dropping by five per cent per year for some time. With more than 70 per cent of the health-care budget allocated to staffing costs, the success of health-care enterprises depends on the qualified staff. With the nurse workforce aging and not enough new nurses being trained, how will health care cope with the growing human resource crisis?

The broader demographic trends in the North American workforce suggest an overall shortage of qualified staff in several professions. To meet their HR needs, companies and organizations are going to unprecedented lengths to recruit new workers.

In the past, it was professional sports employees who received substantial signing bonuses. Now it is the rank-and-file workers, with $5,000 incentive packages not at all uncommon for an employee joining a company facing a staff shortage. All of this in the context of increasingly complex government rules for managing employees, has fundamentally changed the focus of human resource management.