This document discusses selecting a HRIS system for Cuts & Curls Beauty School as the company plans rapid expansion. It is currently a single location company with 5 years in business and 150 franchises planned by 2014. The current HR processes are inconsistent across locations. The needs analysis identifies a potential workforce of 10,000 within 10 years, requiring an ERP system as well. Short term needs include resolving payroll, learning, performance and compensation issues. Vendor options like Workday, Oracle, and SAP are presented. Cost justification shows potential revenue increases outweigh new implementation and staffing costs.
1. Cuts & Curls Beauty School
Selecting an HRIS for a Small Business Preparing for Rapid Expansion
Presented by Michele MacDougall, CHRO
October 20, 2012
2. Summary of Company Background
Key Facts:
“Premier urban beauty school” headquartered here in SF
Business model
Five years old, single location, founder CEO
Recently franchised, 150 franchises planned nationwide by
the end of 2014
So – aggressive growth and expansion is on the horizon.
3. GAP Analysis - HRIS
Where is C&C now?
Approximately 30 employees per location
Neither the franchisor nor any franchisee is using a HRIS
Each franchisee does their own recruiting, farm out payroll and
benefits to the company of their own choosing
C&C Corporate has received complaints:
From employees – payroll errors, internal and external
inequities in pay
From students – faculty not properly trained, high turnover
From owners – technicians, not managers – in over their heads
4. GAP Analysis - HRIS
Where does C&C want to be?
Stakeholders - Franchisor, franchisees, employees,
students, salon and spa clients
Information gathering - Interviews, focus groups, surveys
Vision – Branding is the focus
Consistency
Control
Creating value
5. Needs Analysis – Long-term
C&C and their franchisees could employ 10,000 people
within the next ten years
Will need an ERP as well
6. Needs Analysis – Short-term
Around 4500 employees projected within the next 2
years.
Must resolve immediate issues regarding payroll,
learning and development, performance management
and compensation
HANDOUT
7. Vendor Selection
Workday
Saas
No Learning or payroll, yet.
But…mobile, user-friendly interface, embedded analytics, financials
Can add Talent Management or Project and Work Management Modules
Oracle Fusion HCM
Saas
Manager dashboard, “Network at Work” social tools
SAP ERP HCM/Successfactors
Cloud-based Talent, Recruiting, Learning and Social solutions, and
workforce planning and analytics solutions from Successfactors
On-premise core HR data
8. Cost Justification / CBA Matrix
Benefits
Revenue Enhancements – average of $2400 per month in
additional revenue per franchisee, add value to franchisee
opportunity – ultimately over $300k per month
Cost Reduction – reduction in outsourced areas (payroll,
recruiting, benefits) – estimate that each franchise is spending $2k
per month on this now
Costs
New implementation costs of $130,000 (Y2, Y3 will be higher as
we grow, but we’ll also be collecting more fees)
New staff for shared services $435,000 (already have 1 full-time
generalist)
Editor's Notes
Good morning and welcome! Excited to share with you where we are in the process of our HRIS implementation – Planning and Analysis I’m going to share our needs analysis, final three vendors and the cost justification for the new system
Workday Saas No Learning or payroll, yet. But…mobile, user-friendly interface, embedded analytics, financials Can add Talent Management or Project and Work Management Modules Oracle Fusion HCM Saas Manager dashboard, “Network at Work” social tools SAP ERP HCM Cloud-based Talent, Recruiting, Learning and Social solutions, and Workforce Planning and Analytics solutions from SuccessFactors On-premise Core HR data