Avoiding HCM Technology Adoption Mistakes
Efficiency, data-streamlining, recovered time and resources—all promises of a fully integrated Human Capital Management Technology.
What happens when a year goes by and your still waiting on your ROI?
If you are a new HCM technology adopter, and are still waiting for the promised return of your bright shiny and new technology, then you might fall into the near 80%, according to People Matters HR Technology Study, of new HCM tech adopters that have not yet realized the success and efficiencies they’d hoped for in their new system. When implemented correctly, HCM technology can aid employers in achieving a new competitive advantage through people.
The reason for the shortfall may have to do with limitations of the new technology, but often times it has moren to do with a failure to adapt former business processes to utilize the new system. CEO Brian Rupar of HR tech-consulting firm, HR Data Systems and Solutions, has gone through countless HCM technology implementations, and the ones that fall short share a common pitfall. Brian shares,
“If you don’t have a plan when integrating a new HCM system beyond the technical setup you are setting your company up for failure. The most important exercise to do when integrating a new HCM is to review your HR processes and build them into the new system. If you do not do this exercise your users will most likely not use the system and revert back to manual processing—what they know. In order to see the benefit and get the ROI from a new HCM system you have to build it to fit your needs and be sure to train your users on how to do their day to day job within it.”
HCM technology solutions have far reaching implications within an organization, impacting operations far beyond the reach of Human Resources alone. In order to fully realize the ROI of an HCM technology investment, buyers need to maximize adoption across the organization. Depending on company size and a possible change-averse culture, this could take some time.
Therefore, in order to find your organization amongst the 19% of businesses reporting success in their HCM technology adoption, consider the following best practices to set conditions for victory!
- The faster your adoption rate, the quicker you achieve ROI. So often we can balk at extra implementation costs, but don’t underestimate the benefit of on-site implementation training. It can be hard enough to learn a new system, and even more difficult to train the masses.
- Train an expert in every department. Through a little Train-the-Trainer (T3) you can have a point person accountable for transitioning each department to the new system.
- Keep a pulse on system adoption: With a higher inspection frequency earlier on in the implementation cycle. Use a little focused affirmation to build a new company culture around the new HRM system.
- Phase in your HCM technology adoption over time: Funtionality and practices essential to HR survival, such as payroll, time-tracking, and employee scheduling, need to be working first before things like Performance Management, Recruiting and Onboarding, and online benefits enrollment. The latter items will require both technology setup and new written processes before rolling out the functionality.
- Slow is smooth and smooth is fast. If your system rollout outpaces the competency and willingness of your staff, you run the risk of creating a negative experience that further delays adoption. Consider making a deliberate campaign on how you will introduce the new technology to the organization.
The education efforts will be a painful process up front, that’s a guarantee, but the 19% club will unanimously concur it was worth it. For those who have the system and never put the education in place, it’s not too late to back up the tracks and rescue your technology investment from devolution to an expensive paperweight.
About Benetech HCM
Benetech is a business administration and management firm specializing in employee benefits and human capital management. Located outside of Albany, NY Benetech helps mid-market employers simplify employee benefits and HCM through a unified service team and integrated technology.
To learn more about Benetech’s unique appraoch to Benefits and Human Capital Management, contact us for a free assessment.
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