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Understanding the HR Core, the fundamental pillar of human resources management

Understanding the HR Core, the fundamental pillar of human resources management

By Jennifer Montérémal

Published: 9 November 2024

In the professional world, decision-making is increasingly influenced by data... and that's just as well! Managers and supervisors are no longer making decisions on the basis of intuition, but are steering their activities by taking real-life situations into account .

This precious data is not just for the sales and marketing departments. It is also important for human resources to refer to it to find out who their employees really are and how to develop them to meet the company's ambitions.

But how can such information be accessed easily? With the Core HR approach.

What is it and what are its benefits? Find out in this article 🔎.

Core HR: definition

What is Core HR?

Core HR is a database containing all the information relating to a company's employees for administrative management purposes. It is therefore often a module, integrated into more global software (HRIS, HCM, etc.), used to manage, archive and consult this data.

The data in question is commonly divided into two categories:

  • company data:
    • processes,
    • hierarchical and organisational structure
    • internal policies,
    • employee benefits, etc,
  • those associated with employees:
    • administrative information,
    • employment contracts and amendments,
    • remuneration,
    • pay slips
    • job descriptions,
    • CVS,
    • qualifications and training history,
    • skills repositories,
    • time sheets,
    • leave and absence requests,
    • schedules, etc.

☝️ But more than just a set of data, the HR Core also includes :

  • analysis and reporting tools, giving managers a clearer view of the information they need to make the right decisions quickly;
  • a self-service HR portal through which employees can access their data and make changes as required (reporting a change of address, for example).

💡 Worth knowing: the HR Core is based on the more general concept of the Core Model. Similar to a standardised framework, it makes it possible to determine the procedures, data and best practices needed to standardise operations.

What is it used for?

The HR Core Model was originally designed for groups with several entities, some of which may be located abroad. In such a context, it simply serves to unify data and processes within a single platform.

However, this database has gradually won over companies with less complex structures, who are keen to streamline their operations. All the more so in a context where software and applications are multiplying, without all the information they contain communicating with each other.

The HR Core therefore helps to harmonise HR management, so that human resources become more relevant and efficient, and employees can develop their potential.

Who is the HR Core aimed at?

The HR department is, of course, the primary target of Core HR. It has to be said that this tool greatly simplifies its day-to-day tasks and makes it possible to set up a good employee career path!

However, other departments also have to manipulate or consult this database. These include the IT team, which is responsible for implementing the HR Core, integrating it with the company's other systems and ensuring data security.

The sales and marketing teams also see the HR Core as a valuable aid. By consulting certain information, such as staff numbers and skills, they can gain a better understanding of the resources available to plan strategic actions effectively.

Why set up an HR Core? The 5 main benefits

# 1 Making better decisions

The HR function is becoming increasingly strategic.

With easy access to reliable, up-to-date information, you can be more reactive (or even proactive) and relevant when making decisions.

👉 For example, is your company due to launch a decisive new project? Thanks to Core HR, you can accurately measure your resource requirements by analysing data relating to staffing levels and skills.

That's why Core HR provides reporting tools to help human resources monitor their key indicators.

# 2 Developing talent

At a time when employee retention has become a major issue, Core HR plays a crucial role in talent development and career management.

Thanks to this database, human resources can monitor the development of each employee's skills and identify any gaps, with the aim of drawing up truly personalised development plans.

# 3 Promoting the employee experience

While Core HR helps employees to progress within the company, they also appreciate this tool on a day-to-day basis... quite simply because it makes their lives easier!

We're thinking in particular of the benefits associated with the self-service employee portal.

Employees like to use this feature to declare their holiday entitlements, so that they can get approval from their managers more quickly. They can also use it to consult their files and documents, such as pay slips or employment contracts.

# 4 Gaining productivity in HR tasks

Over and above the purely strategic benefits, the HR Core also (and above all!) saves HR employees a great deal of time. Gone are the long hours spent collecting and searching for information. Everything - data and electronic documents- is centralised in one place!

At the same time, Core systems automate many operations, particularly data entry and modification.

Ultimately, by reducing the administrative burden, HR can concentrate more on their core business and put people back at the centre of their concerns.

# 5 Securing employee data

Finally, the HR Core secures employee data. This is a major advantage in an environment where legislation is becoming increasingly strict about the confidentiality of personal information!

More specifically, Core HR :

  • has robust security protocols, in particular data encryption ;
  • is backed up regularly, to prevent the loss of valuable information;
  • incorporates rights and access management functions (who can consult what, and when?).

How do you set up the HR Core in your company? 4 things to remember

Know the prerequisites for implementing the Core

For your HR Core project to work, you need to obtain the approval of all the stakeholders involved, starting with General Management. Without this, it will be impossible to align the HR strategy perfectly with the company's overall objectives... and of course to obtain the financial support needed to develop the system 🤑.

However, this project also concerns employees. Implementing such a tool will inevitably change day-to-day processes. It is therefore important to provide employees with the level of knowledge they need to make good use of the HR Core, and to support them through this change. Why not consider a little training?

Choosing the HR Core architecture: top-down or bottom-up model?

Here's a point that needs your full attention 🧐.

To deploy your HR Core correctly, you need to understand the two possible models, top-down or bottom-up, in order to identify which one is best suited to your organisation.

Top-down model

Here, it is the common HR Core that feeds the local tools.

This approach is best suited to companies wishing to standardise their processes and represent all employees in a similar way within the tool.

On the other hand, the deployment of this model has a more significant impact on the overall architecture of the HRIS and often involves adjustments to existing processes.

Bottom-up model

In this case, data from local HRIS systems flows upwards to the general HR Core. As a result, this model is best suited to groups that want to leave autonomy to their various subsidiaries.

Often easier to implement, the main challenge of this architecture lies in establishing a common database.

Adopting a glocal approach

Enabling global management of human resources while taking into account the specific local characteristics of each entity (differences in employment law, for example)... this is the main challenge of the HR Core!

This major challenge has given rise to a new concept: the "glocal" approach. But how do you rise to the challenge?

As well as adapting the company's policies accordingly, you need to find a tool that is flexible enough to incorporate all these specificities. In other words, opt for a Core HR system that includes configuration functions without compromising the integrity of the overall solution.

Opting for the right software

As a general rule, Core HR is included with more comprehensive software packages, often :

  • HRIS, designed to centralise and automate human resources operations ;
  • HCM (Human Capital Management), which focuses more on human capital management and talent development.
    👉 For example, Cegid Talentsoft is an open platform designed for SMEs and large groups. Its unified, adaptable HR Core not only improves the management and analysis of employee data (whatever the structure of thestructure), but it also equips employees as well as managers with dedicated portals, so that everyone has easy access to key information.

💡 In all cases, choosing the right tool requires :

  • accurately defining your company's unique needs, taking into account the specific features of each entity ;
  • assessing its compatibility with existing systems, so as not to hinder the smooth flow of data;
  • involve all the stakeholders in the project, from HR managers to management and employees. Don't forget that the solution you select needs to have collective support if you want it to be properly deployed and operated!

The HR Core in a nutshell

Companies of all sizes stand to gain a great deal from Core HR. And with good reason: adopting a data-driven vision means greater efficiency in the performance of day-to-day tasks, as well as more intelligent management of strategy.

Of course, such an approach cannot be separated from the use of software. HRIS or HCM, whatever your choice, you need to assess your needs and the way you structure your activities beforehand. This will tell you whether you should opt for a top-down or bottom-up architecture.

Finally, let's not forget the key role played by employees in the success of the HR Core, which helps to improve their experience and therefore their commitment to the company! That's why it's so important to get them excited about this new tool, which will support them in their professional development.

Article translated from French