The growth of HR technology has been the most disruptive trends that has impacted the human resources function in the last decade. In 2016 alone, investors pumped in 2 billion dollars into HR tech systems and platforms. According to Everest group, the current HR tech market size in India of $ 0.5 billion is expected to grow by at least 25 percent in a year, indicating an unprecedented rise in the use of HR technology systems.
The principal characteristic of this new era is the pace of this change which is redefining the rules of the game of business in HR. Technologies such as AI, Cloud, Digital, Collaborative systems, etc. have revolutionized the way we work. Amongst the plethora of options for technologies, platforms, and product offerings, it becomes difficult and time consuming to zero down on the right application for your business use. On the other hand, implications of a failed technology implementation are very costly.
Here are the ten considerations to help shortlist your next HR technology to manage your talent effectively:
1. Business Case:
Creating a business case is a critical first step in selecting a technology to manage your processes. Start by assessing the needs of the organization and people at your organization. Align those requirements with the business benefits of using an HR technology solution. Make sure you have an answer to the following questions:
• Will the technology maximize your people’s potential?
• Will the technology help in the quicker execution of business strategies?
• Can it help in deriving business benefits?
With the evolving business models, there is immense pressure on HR to cut costs. To execute a technology, there is a need to articulate how investment in technology can help expedite the execution of business processes which will derive better productivity and employee experience
3. HR Technology Product Approach
Decide on the functionality of the HR technology you seek to implement. There are a number of ways of approaching HR technology; one can have an integrated solution approach or get best of breed applications for different HR modules. A number of organizations are also developing custom applications to take care of their specific business needs.
Another key consideration while shortlisting a technology is understanding whether you need a customizable product or you can work with a standard solution. Technologies based on cloud apps are best when one thinks of Zero customization. It has its own benefits in terms of low cost of maintenance, operations and upgrades to technologies that most of the organizations use.
Alternatively, you can go with on-prem applications as well, as these offer more flexibility in terms of customization as per your need.
The HR technology you are shortlisting to efficiently manage your processes should be robust enough to deploy for changing business scenarios, Organization structure and people processes, etc
6. User Experience: HR Technology should provide a great user experience to the employees who will be the end users of that technology. The top three determinants of a good technology are:
• Ease of use
• On the go apps
7. Time to Deploy:
Based on the business needs and objectives, prioritize each technology implementation step. Identify the right timelines to deploy the technology and make the overall implementation process effective. One can deploy standard products in a very time efficient way.
8. Data Security:
Assess the technology on its ability to safeguard organization’s and employees’ information. The application should have the ability to provide information to users by Role access restrictions. It is essential that you perform a risk assessment test before selecting a technology.
9. Ease of Maintenance:
A hallmark of any great technology is its ease of maintenance and upgradation. Ensure the technology that you will buy is easy to maintain and the technology vendor has a proactive approach towards keeping your technology operational as long as possible.
To attain maximum value out of HR Technology, there is a need to integrate various HR functions in the same platform to avoid silos and keep the communication flowing. Also, this will allow people to migrate and retrieve data quickly. HR Tech platforms do not operate in isolation. These work in tandem with Finance and SCM ERPs. Hence, the HR platform should be able to provide the necessary details to these applications as well.
Undoubtedly, HR technology solves the critical issues of efficiency, productivity, costs, etc. However, HR leaders should understand that HR technology alone will not transform the business. The transformation journey is about orientating people strategy to the business strategy using technology and bringing about a cultural shift. Transformation is a shift which impacts everyone at every level, and HR needs to make sure they support everyone on this journey of technology transformation.
This article is curated by Anushree Sharma based on a webinar on the same topic.