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)