The importance of HR technology in today’s remote and hybrid workforces is evident. But, HR Software has been in continuous evolution for decades. In 1987, the first HR platform was created. Recent years have seen HR solutions become affordable enough for all businesses. HR software is expected to grow by 12% in 2027.
Software for HR can be beneficial to small businesses as well as large corporations. HR professionals can use this software to manage thousands or hundreds of employees. It can also be used to manage the HR functions of a small HR staff.
How do you choose the best one among all of these options? Let’s talk about the important factors that will assist you in making the right choice.
The Top 6 Reasons You Should Use HR Software
According to PwC, the following are the top drivers for HR software upgrades:
- Attracting and retaining talent
- Development of employees’ potential
- Enhancing employee experience
- Boosting collaboration .
- Engaging in workforce planning
- Promotion of wellbeing and inclusion
Many remote workers will adopt HR software to manage their performance in 2020. According to Stacey Harris, this increased their remote work capabilities. She also mentions that it helped managers with flexible scheduling and different pay models.
Let’s now look at the main benefits of HR Software.
Increase retention and develop talent
Most companies are now faced with the challenge of retaining and recruiting talent. Their loyalty will be earned by committing to their development. The software can be used to track and manage performance. The software allows you to track KPIs, prepare for appraisals, and more easily. This reduces oversights and saves time. The software can also be used to provide data that can be used in workforce decisions.
HR software can be used to communicate with employees. You can share your input instantly, regardless of where you are working. Some solutions even allow peer feedback to be shared instantly. This increases collaboration among teams.
Improve the employee experience
The software can automate mundane tasks and improve employee satisfaction. The software can be used to automate repetitive tasks such as filling out endless forms for HR.
Shawn Farshchi, Forbes, writes that employees today expect a simpler digital experience. This allows them to use the most efficient tools for routine tasks and focuses more on doing meaningful work.
Plus, it improves the team culture by staying in touch with their managers and peers. This creates a positive work environment that is more engaging and enjoyable for employees.
Enhance Decision-Making
Anna Johansson, an Entrepreneur, writes, “with the volume of data coming through an HR department these days, it’s practically impossible for any individual or group of people to process everything.” This is where HR software comes in. It analyzes performance data to aid in smart decision-making.
For example, companies can make better promotional decisions. They can also determine where they should be more inclusive.
Overcome Logistical Problems
Finally, HR software can assist with many logistical functions. It streamlines the onboarding process as well as benefits administration. It can help with scheduling and time-off requests. It can also be used to store data about employees securely.
These benefits can have a huge impact on the company. Let’s now talk about some pitfalls that should be avoided when adopting HR tech.
There are potential pitfalls to adopting HR software
An excellent HR system will improve performance and efficiency. There are many pitfalls, so make sure you avoid them. These challenges can be easily overcome by choosing the right system.
Potential pitfalls:
The investment in the software will be lost if employees don’t quickly adopt it. Human resources systems face the greatest challenge in ensuring user adoption. Even if technological advances are clearly in their best interest, employees may resist them. PwC’s survey found that more than 80% struggle to adopt HR solutions. It will make a big difference if they are trained in a hands-on manner.
Software adoption can cause HR fragmentation. This can lead to the use of different HR systems for different tasks. Tasks become more complicated if they are not synchronised in one platform. Farshchi also says that too many HR tools can make it difficult to use. He asserts that app overload can lead to productivity loss and frustrating experiences for HR professionals looking for more efficient and streamlined ways to manage routine tasks.
People won’t buy into the mission if they don’t get it. This applies to both employees as well as managers. Summarise in one sentence how the product will help them. It should be about how the product will help them achieve their goals. This will inspire enthusiasm for new technology.
In the next section, we’ll discuss how to avoid these problems. Planning is key to ensuring that new technology is introduced smoothly.
What makes a great HR software platform?
These essential characteristics will help you select the best system.
- A cloud platform. Cloud software is crucial for hybrid and remote teams, according to Johansson. It allows team members to access the software from any global location.
- An intuitive user interface. Even after the first week, you should be able to navigate the software easily.
- Scalability. Johansson suggests that you choose software that is adaptable to your needs. If your team grows, ensure that the software can still work smoothly.
- Solid tech support. It would help if you considered whether the provider would provide tech support. They will be available to help you with any questions arising during your system’s implementation. It’s not worth spending days trying to track down a tech person.
- Data security. Data security is a must. It is important to ensure that the company you buy it from has a demonstrated commitment to data security.
Let’s now look at some important points you should consider before you implement HR solutions. These key points will help launch your software.
How to Implement a New HR Software
Leaders, and managers at the mid-level, should be on board. PwC found that half of the senior leaders believe that HR tech has increased productivity. Only 22% of middle managers agree. Companies could benefit from these tools more efficiently if they provided more support for their managers.
Show managers how it will help them do their jobs better. Explain how it will simplify their lives. For example, employees won’t have to struggle to recall their achievements before appraisals.
What problems do you need the software to address?
It all depends on what problems it is trying to solve. Many companies need assistance with onboarding. Others need help in implementing a performance review system throughout the organisation. Discuss your challenges with managers.
Next, identify which problems you can solve with a software solution. You don’t necessarily need an all-purpose HRMS system, so it is worth narrowing your requirements to save money.
How do you invest in this software program?
It is important first to highlight the benefits it will bring users. It would help if you focused on its positive aspects – how it will enhance their lives and abilities.
To increase investment, you should create a group of focused employees. Get their feedback by gathering them all together. Ask them for their suggestions on how to bring their colleagues aboard. You’ll create employee advocates by making them part of the implementation team.
Provide clear instructions on how to use it. This will help increase support, even if the system is intuitive. Some people may be afraid of new technology. They may not be able to use these tools effectively. Training will increase their confidence. SHRM suggests that you might start with a PowerPoint presentation and then move on to hands-on training.
Video tutorials are a great way to keep the information easily accessible. Training sessions do not need to be complex, especially if the system is user-friendly.
PwC suggests, fourth, offering incentives to managers and employees for bringing them onboard; for example, they could earn points for using certain system elements. These points could be exchanged for a reward. They suggest that you could even “gamify” the adoption of new technology by creating fun challenges. You can give a quiz on how to use the software and offer a small prize. Ask the team questions at random times during the first week.
Five, share your success stories. Share success stories with the team about how managers and employees have benefited.
How can you prevent system fragmentation?
You should ensure that you can use multiple types of HR systems. BambooHR and Primalogik, for example, can be used together seamlessly. This allows you to combine the best HR specialities such as payroll and performance management.
SHRM also advises that you should not keep an old system running if you are changing systems. To avoid confusion, make a clean shift.
What can you do to provide the right support?
Before the rollout, test the product in your HR department. It is important to understand it so you can answer any questions fully. This will leave a lasting impression on your employees. To coach their teams, managers must be trained first.
Ensure that everyone has easy access to support during their workday. This will prevent frustrations as they learn the system. With flexible work hours, this may prove not easy. However, employees will likely become proficient in a matter of weeks.
The key to a successful rollout is investing in your HR software. It is important to understand the problems your employees are facing so that you can address them. It is important to provide follow-up support. You should regularly check in with employees and managers when introducing new technologies.
You must ensure they are using the software only for its intended purpose. Focusing on the benefits it offers them will get everyone up to speed.
