• Skip to primary navigation
  • Skip to main content

HRMorning

  • FREE RESOURCES
  • PREMIUM CONTENT
  • HR DEEP DIVES
  • PODCASTS
    • VOICES OF HR
    • WOMEN’S LEADERSHIP TODAY
  • LOGIN
  • GET STARTED
  • Employment Law
  • Benefits
  • Recruiting
  • HR Technology
  • Payroll
  • Management
  • Women’s Leadership
  • More
    • Talent Management
    • Performance Management
    • Leadership & Strategy
    • Compensation
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans
  • HR Technology

What Happens When Technology Fails? 4 Tips for HR

Michele McGovern
By: Michele McGovern
Read it on Beacon
  • Share on

About the Author

Michele McGovern writes. A lot. These days, she covers HR, digging deep into company culture, DEI, leadership, management and the everchanging world of work. In the years between getting a BA in journalism from a state school and writing about HR, she wrote about big-city crime for a wire service and small-town life for local newspapers. She’s a mediocre mom, decent wife, wannabe athlete and consummate pursuer of fun - on land, snow and water. Find her on LinkedIn @michele-mcgovern-writer.

Show Less
Last Updated: July 23, 2024
6 minute engagement
What Happens When Technology Fails? 6 Tips for HR
You read HRMorning's newsletter. Beacon's Daily Brief is the version tuned to you: it skips what you've already read and leads with what you've asked Beacon about. Get your Daily Brief →

What happens when technology fails — and leaves companies and employees in the dark?

From a major IT global outage or local internet glitch to a cyber attack or data breach, many HR pros and their companies aren’t prepared for a technology standstill.

Consider the recent global tech outage — prompted by a single update from cybersecurity software company CrowdStrike, which is supposed to thwart malware and virus attacks — and its effects on business. It halted airlines, caused outages for millions using the most basic software and messed with major media outlets.

Those were the obvious interruptions. The outage touched almost every industry, bleeding down into smaller organizations, interrupting operations, processes, protocols and work in general.

In fact, there was a 5,000% increase in searches for the meaning of “Blue Screen of Death” within 24 hours of the outage, according to data from Cartridge Save!

“Employee concerns during unexpected outages stem from uncertainty,” says Andrew Considine, Chief Technology Officer of Helios. “As technology dependence grows, advance preparation becomes crucial.”

Cost of Technology Fails

Were you affected and ready for that? Are you ready for something similar in the future?

Truth is, most companies are unprepared for technology issues such as cyber risks and outages. Nearly half can’t handle ransomware attacks against one of their vendors, according to data from Viking Securities. Many more aren’t prepared for phishing or ransomware attacks against themselves.

But it’s not just about being prepared, it’s about the cost of being a victim of cyber risks and outages. IBM found the average cost of a data breach in 2023 was $4.5 million. Depending on the size of your company, the cost of IT downtime could range from $1,670 (for very small businesses) to $16,700 (for large corporations) per minute, according to an ITIC analysis.

While the numbers speak volumes, a businessperson who already had to trudge through a major software outage for nearly three weeks can really explain how bad it can be.

Real-Life Software Outage Story

Dean Hesser, President of Tom Hesser Auto Groups, was one of about 15,000 car dealerships affected by a software outage early this summer. They had software supporting practically everything they do at a car dealership — sell, fix, buy and support automobiles and customers.

On the first day, they waited patiently for recovery, thanked customers for their understanding and joked about the inconvenience. By the second day, it became apparent they weren’t going back to business as usual anytime soon.

So they grabbed paper and pens. And more paper and pens.

“No one ever worried about where ‘their pen’ was before this,” says Hesser. “All of a sudden, you didn’t let anyone just walk away with your pen!

“Now, I’m old enough to remember what it was like doing business on paper. And some people on my staff are, too. So we adapted more easily,” Hesser says.

But, with no way to electronically handle documents, deals and communication, progress moved at Yugo speed, not the BMW speed they were used to. It took longer to find parts, schedule appointments and sell cars. In some cases, they reverted to handshake deals and estimates based on experience, not exact numbers.

“Loyal customers were good with estimates,” Hesser says. “But newer customers were understandably a little less confident and went elsewhere for work.”

All in all, the group of dealerships and all the employees did about 50% of the work they’d normally do in the three-week outage.

“In the end, I hope my staff appreciates the tools they have now,” Hesser says now.

Be Prepared for Software Setbacks

Whether you hit a glitch because of the recent global software outage — or something bigger like Hesser’s experience — there’s good reason to heed advice on being prepared for an outage or cyber risk.

“Every incident is an opportunity for learning,” says Christabel Ebrill, Head of Risk & Compliance at Helios. “Use this latest example to test your companies readiness for such an event. Work with your employees to review business continuity plans. Are they up to date? Are they accurate? Are employees familiar with them? Make sure your organization is prepared for an outage like this through planning, communication and training.”

To that, here are four tips to prepare for, or work thorough, the times technology fails.

1. Lock in Security

“Despite this recent outage not being a data breach, it is unanticipated scenarios like these that can impact processes and security,” says Considine.

In fact, nearly a third of HR pros are concerned their companies lack robust security measures for storing employee data, according to a BambooHR survey.

“That highlights the urgent need for improved data security practices within HR departments,” says Considine.

You likely have a security measures in place through your internal IT protocols and/or vendors. But what’s most important is training employees to keep data secure and maintaining safe HR data management.

2. Keep a Continuity Plan

HR and general business disruptions come in many forms — not just software outages. Ideally, you have a continuity plan that includes:

  • the top work priorities when everything can’t get done
  • who oversees the work
  • expectations, and
  • how you’ll communicate with employees, customers and stakeholders.

“Communicating your business continuity plans and regular testing of these plans helps employees and
organizations build readiness for such events and incidents so there is less uncertainty and panic if they occur,” says Ebrill.

“Such events and incidents can be very stressful so having a clear plan to follow can really assist in keeping leaders and employees calm and focused on recovering business critical systems and processes.”

3. Communicate Before, During, After

So let’s say you prepare people and systems for outages or cyberthreats. Then what? Communicate early and often.

“Once employees are prepared through communication and training — including outage procedures and working offline — the IT department’s backup systems and remote work setups kick in,” says Considine. “However, it’s crucial for the HR department to lead communication and updates. Clear, calm communication ensures employee safety and minimizes stress and errors during such situations.”

4. Share the Lessons

IT and your software vendors will likely take the lead on fixing software outages and/or cyber risks. HR and department heads will likely work hardest at maintaining workflows and communication. Hopefully employees will do all they can throughout interruptions to keep operations afloat.

So, when the disruption or threat has passed, take time to review, document and share:

  • what happened
  • how you responded
  • what went well
  • what didn’t go well
  • lessons learned from the things that went well and things that didn’t go well
  • next steps, and
  • what you’ll do differently if it happens again.
Read it on Beacon
Open this article in Beacon, from HRMorning, and ask how it applies to your company. Every answer names its source.
Read it on Beacon
Get HRMorning's newsletter tuned to you every morning: your Daily Brief on Beacon →
Filed under
  • HR Technology
  • Share on

Get the HRMorning Newsletter

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Get it free with a Beacon account. Beacon keeps your company's HR context at hand, and every answer names its source.
Create my free account

Free Training & Resources

Webinars

Beyond Compliance: Building Trust Through AI Governance in HR

Provided by Paycom

White Papers

The New Rules of Engagement: Rethinking How Employees Connect to Work

Provided by Inspirus

White Papers

Still Managing Leave in Spreadsheets? It’s Costing You More Than Time

White Papers

Managing Your Salary Structure and Pay Ranges with Confidence

Provided by Marsh

SPONSORED CONTENT

Performance Management

Talent Management

sponsored content
Employee Recognition Program: What the First 6 Months Reveal About Whether It Will Last

Courtesy of INSPIRUS

Compensation

Recruiting

sponsored content
Salary Benchmarking: 6 Choices That Decide Whether Your Pay Data Holds Up

Courtesy of MARSH

Employment Law

Policy & Procedures

sponsored content
Policy Rollout: 4 Checkpoints That Show Employees Got the Message

Courtesy of NAVEX

Further Reading

  • HR Technology
Who Owns It When Your AI Hiring Tool Gets Sued? 4 Critical Points to Accountability

A few recent court cases raise a question that almost nobody inside companies using AI hiring tools has asked before the filings arrived. W...

  • HR Technology
DOL Releases Groundbreaking AI Literacy Framework: 5 Early Best Practices

Most organizations have come to terms with this: Artificial Intelligence (AI) has or will change how their employees work. Now there ar...

  • HR Technology
Will tech push older workers out? 7 critical ways to retain and train them

Like the stability, loyalty and institutional knowledge your Gen X and older workers bring to the table? Then you’ll want to take...

  • HR Technology
8 Common Bad HR Data Management Practices to Avoid

Data management is crucial in the human resources sector, acting as the backbone of informed decision-making and strategic planning. Effect...

  • HR Technology
How to Evaluate HR Tech Vendors for Cybersecurity

HR data – including CVs and payroll info – appeared in four out of five cyber breaches, a recent study found. That’s a wake-up ca...

  • HR Technology
  • Leadership & Strategy
Choosing the Right Workforce Management Software: 8 Priorities for HR Leaders

Buyer’s remorse is common in HR tech. According to a recent Capterra tech trends report, HR software ranks third among all B2B softwa...

Get the latest from HRMorning in your inbox PLUS Beacon, free. Check it before you say it.

GET STARTED FREE
HR Morning Logo
  • Facebook
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans
  • DEI

HRMorning provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day's headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy | Terms of Service
Copyright© 2026 HRMorning
HRMorning Logo

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.