System issues are among the most common and time consuming obstacles for HR professionals. There is so much sophisticated technology available that, at first glance, it seems simple to find an option that fits your company’s individual needs. But matching a system to your needs usually proves to be easier said than done.
Many companies select systems that lack necessary capabilities, such as integration with payroll systems, or self-service options. There is also the obstacle of being able to foresee the future growth and needs of a system. Older systems may become outdated and vendors no longer continue to offer in-depth support.
There is a lot to consider when selecting the right Human Resource Information System (HRIS) or Human Resource Management System (HRMS). As businesses evolve, their systems often don’t stand the test of the changing times. Many companies are eventually forced to consider the expensive option of purchasing a new system to better fit their needs.
Here are some of the common challenges faced by companies with HR system frustrations:
- Inability to get data
- Inability to report on data
- Create roadblocks to day-to-day tasks
- Lack of self-service options
Using manual workarounds to fill the gaps in current systems drains time and resources. Payroll resources often get burned out over time because they must work extra hours just to get minimal tasks done. Other important HR and payroll projects are often put aside because of the amount of work it takes just to complete simple, everyday tasks.
In this white paper, we will discuss the most common HR system pitfalls, provide insight on how to evaluate your current system, and offer insight on how to effectively determine and meet your HRIS needs.
Top 4 HR System Pitfalls
An HR system that isn’t serving your needs creates a snowball effect. What happens in the deadline-driven HR and payroll world ends up affecting the flow of the entire organization.
Here are the four most common ways HR systems are missing the mark on efficiency.
1. Manual Workarounds
Manual workarounds are the most common way that companies go about bridging the gaps in their HR processes, needs, and system capabilities. For some, workarounds are created because the system was never fully understood at implementation. In other cases, workarounds are introduced to accommodate changing business requirements.
Workarounds not only take up valuable time, but also create a vast margin of error. Eventually the time-intensive processes associated with this extra work start affecting a company’s bottom line, for example, by necessitating overtime every pay period just to get paychecks out on time.
2. Misunderstood Functionalities
Systems often have self-service capabilities that are misunderstood or go unused from the start. These ghost features and capabilities essentially stay hidden away in the system. In this case, many functions that would normally be funneled through self-service options get turned over to email communication, and the flow of these emails is difficult to manage time-wise, let alone with accuracy.
3. Systems that Don’t Communicate
Multiple systems are often used by HR, payroll, and accounting to execute daily operations. But if these systems aren’t communicating directly, the challenge of maintaining data integrity between multiple systems comes to the surface. Once again, manual workarounds, such as emails and spreadsheets, often become a requirement to merge the information into one place.
This lack of integration leaves companies wide open for the possibility of making important decisions based on outdated or inaccurate information. To maintain data integrity, you need a system that can pull data from multiple sources so there is no need to go outside of the system for reporting.
4. Vendor Support Isn’t Cutting It
One of the most common reasons companies begin searching for a new HR system is that they are frustrated with their current vendor support. Unfortunately, this is often a result of misguided expectations. Most vendor support agents do not have the detailed expertise on each company’s specific configurations and capabilities to provide meaningful help—only the company will know enough to dive this deep.
Whether this expertise comes from an HRIS position in-house, or a consultant, it ultimately must come from someone who truly understands the capabilities of your system. That’s rarely going to be vendor support.
Do You Really Need a New Vendor?
When your HR system isn’t working the way you need it to, it’s common to feel that it’s time for an entirely new system. But you must first explore the reasons why your existing systems are not working. Sometimes system issues are actually system issues that started at implementation and have never been resolved.
Not all systems need to be replaced with something new. Some simply need to be updated or better understood by users. And having multiple systems isn’t always a problem. Sometimes it’s actually a best practice given that it is executed accurately and does not create redundant data.
Here are some questions to ask before you consider a new system:
- Why do we think we need a new system?
- Can we make better use of what we have?
- How is our system not working?
- Does our system have capabilities we are not using?
- Is our vendor providing the support we need?
- Does the system satisfy the needs of all users?
These questions must be asked at all levels of your organization for an accurate and holistic needs analysis. Implementing a new system takes time, money, and other valuable resources. You want to be sure it’s the right decision before jumping to the conclusion that a new system will instantly solve all of your issues. Accurately analyzing your needs boils down to having the right resources to understand your current system and how to make it do more of what you need.
The optimal approach to your HR system analysis is to work with your system, not against it. Visit the Wise Consulting website to read the full whitepaper for advice on changing your human resource management system.
With more than 20 years of experience, Wise Consulting has long-term relationships that can facilitate any HR system changes you are considering. As your consulting partner, they can take the time to understand your needs and dive deep into your system capabilities. They can help you bridge the gap between what is important to your organization and how technology can meet those needs—now and in the future.