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How to guarantee HRIS autonomy in a spin-off context?

Three industrial giants, GE, Johnson & Johnson, and Toshiba recently announced their spin-offs, a fundamental move demanded by the financial markets (

The growing success of spin-off operations reflects the companies’ struggle to get investors to understand their real value and potential for growth. By separating a division from the rest of the activities of a diversified group, and by introducing its shares to the market, one increases the visibility of the related assets (Habib et al. 1997) and forces the new entity into generating resources/means to finance its own growth (Gertner et al. 2002).

Spinning off a company may serve different financial or strategic interests, but this new autonomous management of the subsidiary has its own set of complexities, especially in terms of HRIS standalone set up.

The period by when subsidiaries shall be fully autonomous, i.e., after the effective date of the spin-off, during which the subsidiaries are, in a way, orphans, is called the “spin-off effect”.

Prior to this deadline, the companies will have to capitalize on this upstream phase to fully adapt their new HR strategy and their payroll management.

During this pre-spin-off phase, they may be confronted with different challenges such as:

  • A short and non-extendable time frame to fully spin-off from the parent company. It is therefore necessary to “reinvent” and implement an HRIS during this period to ensure a smooth transition and to maintain continuity in the administration of employees but also in their “e-experience”.
  • New needs linked to an evolving payroll management. When a subsidiary separate from a parent company, it often loses the software suite used to manage several thousand employees. The subsidiary must therefore find a new technology suite that is better adapted to the new number of employees, including from a budget point of view.
  • The need to rebuild autonomous HR processes that cover all “HR experience suite” needs; CoreHR, Onboarding, Talent, Performance, Payroll and Time & Attendance while maintaining a good user experience.

Implementing and maintaining a successful HRIS solution while adapting it to new challenges can be a real headache. Therefore, it is necessary to seek support in order to identify and qualify these new needs and to understand how to meet them.

There are pre-packaged solutions such as NUBO, an SAP SuccessFactors suite that covers all the needs below and can be implemented in as little as 6 weeks:

The NUBO solution has many advantages:

  • Proven technology based on the SAP SucessFactors suite
  • A pre-configured system that can be integrated in only 6 weeks including a set of HR processes,
  • A scalable approach that allows you to fully adapt to your basic needs for
  • Transparent and affordable recurring costs for EMS based on your HR needs (especially for companies with 200-5000 total employees in multiple countries)
  • Low implementation costs that allow you to capitalize on user adoption
  • The possibility to have a complete solution including payroll (with a coverage of more than 130 countries)

Finally, if you wish to to know more about our NUBO solution, do not hesitate to contact us directly via this form.

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