Whenever a new technology disrupts an industry, there is a huge wave of optimism around the immense possibilities and innovations brought about by the technology. It’s only when the excitement settles down that we begin to see through the possibilities and look at the challenges that will arise either while implementing the technology or in the post-implementation phase. In the current business landscape no one can deny the importance and impact of HR technology as far reaching. However, we must also keep in mind the various risks, and hurdles involved in the path of its successful implementation. We already know what drives the HR technology adoption.
Here are the top 5 HR Technology Implementation Challenges
- HR Digitization is a Key HR Technology Implementation Challenge
- Customization is a key HRIS Challenge
- Utilizing Reports and Analytics is an HR Technology Challenge
- One of the key HR Technology Challenges is Managing Multiple Vendors
- Resource Constraints also results in HRIS Implementation Failure
HR Digitization is a Key HR Technology Implementation Challenge
The biggest challenge while implementing a new HRIS or ATS are people, not the system itself. Unless all key stakeholders are sure that change is necessary, HR technology implementation will continue to face resistance. The adoption will be mired with fear, insecurity and confusion. Educating the key players and leaders about the functioning and benefits of HR tech will help bring about a consensus that digitization of HR is inevitable. Planning for people to accept the change is as important as planning for new processes and systems. If you want to make the best case for HR tech implementation you need to complete various steps such as:
• Define the success of HR tech implementation and measure it at regular intervals
• Assign specific responsibilities to stakeholders, and measure their levels of commitment
• Assess the skills and willingness of people to make the HR tech adoption successful. Conduct regular surveys and hold discussions to figure out the knowledge and views of people over the course of implementation of the project.
Also Read: Need for HR Digitization
Customization is a key HRIS Challenge
There is no straightjacket solution for businesses looking to implement HRIS in their organization, as they have various needs that keep on changing as the business evolves. Finding a solution that can scale with the growing business is one of the challenges that companies experience. You would want to spend as much time as possible focusing on the bigger business problems rather than complaining to your HR technology vendor about a missing feature, or waiting for it to scale the system as per your requirements. Besides every organization have different employee policies, recruitment workflows and HR processes. Can HR technology vendors provide a customized solution as per the organization’s requirement without much hassle?
Utilizing Reports and Analytics is an HR Technology challenge
Each HR tech tool generates a lot of data based on your organization’s workflow. Is your HR team equipped to handle such huge amount of data? Many of the current HR solutions are equipped with advanced reports and analytics. But if the business intelligence provided by them is not used for evolving the process and making it more productive, the whole point of having a HR tech solution implemented is lost. Only one of three HR managers describe their proficiency with data analytics as either good or excellent. In this scenario, even HR technology adoption will not be able to provide its maximum benefit.
One of the key HR Technology Challenges is Managing Multiple Vendors
Another challenge that comes in the way of HR technology acceptance is the need to implement different solutions to manage different aspects of HR processes. Unless you are implementing a comprehensive HRIS, which covers HR management, Recruitment automation, referral automation, Payroll processing and other HR tasks through one solution, you will most probably have to deal with multiple HR software. However, this is far from the ground realty. Enterprises often have two or more HR tools managing their HR processes. Seamless integration of these tools with each other is a challenge. Also, each tool generates its own data, and unifying this data for an accurate analysis and then performing an analysis is again a tough task to accomplish.
Resource Constraints also results in HRIS Implementation Failure
In a survey conducted by Mercer, 29 % of respondents cited Resource constraints as major challenge in implementing HR technology. These internal resource constraints include, “not having enough people to pull it off.” In addition to human capital, there might be budget constraints as well. Most startups that have less than 100 employees but want to automate their HR tasks in order to focus on business problems have very less choice of HR solutions. Barring a few, majority of HR vendors focus on SMEs and Enterprises as their target audience. Thus, small companies are often left with no choice but to either handle HR processes manually or pay a premium to get a customized solution.