If your HR software is causing either of these 2 pain points, you’re overdue for an upgrade

Whether it’s an HRIS or a human capital management system, most organizations are happy with their HR software. But there are enough HR pros out there who are unhappy with their tech to keep Patrick Sayers busy.

Sayers is the president of Newcastle Research, a research and advisory company specializing in the human capital management market. In an episode of HRMorning‘s podcast “Voices of HR,” he said the most common HR software pain points his clients are experiencing are:

• Inconsistent customer support, and
• Time and attendance, payroll, talent management and other systems that are so disparate that it takes a spreadsheet to bridge the gaps.

And that lack of integration among various HR functions can lead to compliance issues if HR software isn’t regularly updated to keep up with rule changes, he said in an episode titled “Time for an HR Tech Upgrade? How to Get Relief From Your HR Software Troubles.” It’s why the prevailing trend is more unified HR systems.

“If it’s not working efficiently, if it’s not working effectively, that creates more work for you. And then at some point you might recognize that … we need to make a change. But then you have another job on top of that still, which is to look for a new system. And so what a lot of folks do (instead of looking for a new system) is they do nothing and they just suffer,” he said, explaining why organizations call him in.

HR software strategy

The variety of HR technology options on the market is comparable to the variety of available automotive choices. So shopping around for an HR software vendor should be approached like shopping for a car, according to Sayers. This includes making informed decisions and developing a short list of vendors that align with your needs and budget.

“It’s not as easy as just saying, ‘Well, what’s the right car to buy?’” Sayers said. “What are you going to do with it? Are you camping on the weekends? Are you driving 200 miles a day? Because those are different use cases. … It’s about finding the right fit.”

And if a vendor rep presents satisfaction statistics that suggest excellent customer service, ask to see the company’s customer retention metrics, he said.

“Focus in on … your pain point and don’t lose sight of that through your (software change) process. Because what happens a lot is a lot of folks, they start to talk to vendors and (they get distracted by) the shiny toy (the latest product the vendor is promoting) and … they lose sight of why they began the process in the first place,” he said.

Making the business case

Because your executive team ultimately has to green-light investing in new HR technology, Sayers said the key for building a compelling business case is identifying areas of cost savings – such as consolidating system vendors and eliminating payroll errors – and quantifying those savings.

In addition, be prepared to identify and quantify how these platforms can improve productivity because, for example, a new system may enable employees to more easily clock in/out and eliminate the time your HR team dedicated to using spreadsheets for tracking time and attendance.