What Happens When Technology Fails? 4 Tips for HR

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.