10 HCM Technology Challenges & How To
Aligning human capital management technology with your business processes enables each HR function to run effectively and efficiently.
From recruiting to payroll to talent development, HCM technology transforms HR into a strategic function by optimizing workflows, improving employee experience, and increasing the return on investment in human capital.
But systems must be implemented correctly, integrated properly, and supported fully to achieve fundamental change and success. You must approach technology holistically and focus on each aspect of the HR function thoroughly to avoid these ten HCM technology challenges and maximize ROI.
1) Integrating solutions
Best-of-breed solutions are great for getting the best of each type of HCM technology, like talent acquisition, workforce management, or benefits administration applications. But your total return will be less than the sum of your parts if you do not solve common HCM integration problems such as managing multiple updates and ensuring a smooth user experience across all applications.
2) Gaining visibility
Knowing how well-engaged employees perform is essential for measuring how new technology will increase productivity and improve performance. However, companies often lack the HR analytics and reporting needed to glean insights and reach company goals. Training internal employees to extract data from your systems or bringing in outside help could be an investment worth considering.
3) Improving the employee experience
HCM technology should make work easier—and even enjoyable—for employees. Needlessly complex processes and difficult software frustrate employees who expect the same easy-to-use tools and convenient features that they enjoy as consumers.
4) Maintaining data integrity
Relying on different people and apps can cause inconsistencies in data if you do not manage data correctly. Establish a corporate policy on data integrity to help ensure data is managed even during staffing changes.
5) Eliminating manual processes
Manual processes and spreadsheets as the biggest of pains wreaking havoc on HR departments. Using spreadsheets means you’re not taking advantage of a set of business processes; you’re making up rules as you go, which isn’t a sustainable business practice.
6) Connecting HR and IT
HR may own the processes, but IT departments often control the systems. Executing HR processes smoothly and efficiently under constrained resources such as time, staff, technology, and finances are today’s top HR function challenge.
7) Measuring ROI
The ROI for HCM technology is well below that of other technologies because it is hard to measure its benefits, according to a study by Computer Economics. These soft benefits—including a better-equipped and more highly skilled workforce, improved employee satisfaction, and reduced risk of regulatory noncompliance—produce a real return but don’t always find their way into any accounting for success.
With a little effort and strategic planning, it is possible to calculate your total cost of ownership so that you can assess ROI accurately.
8) Migrating to the cloud
Migrating HCM to the cloud produces benefits like security, efficiency, and speed.
9) Supporting new systems
New technology adds new tech support responsibilities to your IT team. This can stretch thin resources even further and pull them from value-adding innovation and transformation. Thus, 44% of companies augment staff with onsite or remote experience through IT service providers, according to a Forrester Consulting thought leadership paper about how innovation leaders need IT Services to drive transformative outcomes.
10) Technology road-mapping
Like your business, HCM technology changes constantly. Today’s needs may be met, but tomorrows are uncertain. Technology road-mapping helps you create an agile plan to support your long-term strategic planning by matching your short and long-term goals with options for specific technology solutions. Properly road-mapping when to make HCM technology changes will allow for positive employee experience and increase company efficiency when it is implemented correctly, configured properly, and supported fully.