Digitization is a vital step forward in managing company human resources activities. Modern employees are comfortable working and playing with digital devices as a part of their daily lives. A workplace that does not engage with them on these terms is a drag on retention as frustrated workers seek other environments that are more familiar to them; this extends to the administrative and talent management assets of a company.
Fortunately, the process of shifting to digital now easier than in past decades. However, a few things impede IT upgraded decisions for HR departments. There are many reasons that companies have delayed in implementing digital human resources management systems (HRMS). Three common causes are a lack of awareness, conservatism, or just having been burned before.
You Can’t Fix What You Can’t Define
How can you determine what the benefits will be if there is not enough information to determine how badly or well you are doing presently? If your IT system is too disconnected to give you the data that tells you that it is urgent to change you might not decide to change until it is too late. If you have no current metrics on the return that you get from your expenditure in HR and talent management, then you cannot design a plan to improve.
It is usually the top of the company that sets IT resource allocation and priorities and that priority often goes to digitizing the customer-facing elements, often neglecting the back-end. An HR department that does not have the measurements to show the value they generate is not a priority to decision-makers.
Convincing Skeptical Senior Managers
If the senior managers and directors are not convinced of the need to digitize HR, it is the toughest challenge to overcome. In any change initiative, the most difficult part is the first push to get moving on the path to transformation. While bosses and business owners have been understandably reluctant to take on new and unfamiliar business processes, younger workers have been living in digital.
The millennial generation has arguably grown up with digital and is comfortable with technology in all aspects of their lives. Your staff is moving over to digital in their personal lives, and they expect it in the workplace. If you don’t have an integrated solution of your own, the digital generation is likely to use free digital resources piecemeal instead; this sets up informal back channels that can divide employees into opposing digital and traditional factions.
Digitally initiated employees are much more receptive to a cloud-based HRMS and frustrated by a lack of accessible digital resources from their employers; in that sense, going digital is a good tool to retain the most tech-savvy employees. Somehow you need to convince the top managers that this is to the company’s advantage.
Memories Of Past Integration Failures Leaves Scars
The ability to put results into a shared context that provide measurements of ROI is a valuable asset. The capacity to measure results across all departments shows where the value lies and what proportions of investment balance best for maximal performance for the entire organization.
Additionally, change initiatives based on the previous generation of IT solutions that used dedicated on-site hardware had a high rate of failure. A company that has attempted to integrate HR into its IT systems in the last decade or more, and failed, gets by operating on outdated processes and procedures.
Managers justify it as not being directly customer facing and though it might be slow and cumbersome to use paper and scratch-built spreadsheets. Having a failed IT integration as a reference has a chilling effect on all levels of a company.
The Cloud Changes Everything
HRMS as SaaS it provides an opportunity to digitize that does not require the levels of capital or commitment of even five years ago. Unified software systems built to specifications defined by the needs of the users has much more success than adapting standard components that and may have wasteful redundancies. The low-cost and simplicity of a unified approach is a strong argument to convince reluctant executives to choose a cloud-based change initiative.
A unified HRMS solution enables continuous improvement with little risk. You need to have buy-in at the top to start the change process, and a cloud-based subscription service will be an easier sell than an integrative system that requires software and hardware investment but might not even work. SaaS and a unified HRMS is the best way make your human resources go digital.
SurmountHRM is a San Diego based company that specializes in cloud-based solutions for human resources management. Contact us to find out how HRMS can help you take better care of your most vital asset, your people.