7 common HR technology challenges and how to overcome them

Small and mid-sized businesses share many common challenges when it comes to HR technology. In most cases, these challenges can be overcome by using a single human resources management system – sometimes called a human capital management (HCM) system – that is capable of:

• Integrate all HR functions, from employee onboarding to employee exit.
• Capture all HR data in one centralized and secure (cloud-based) location
• Digitize and automate as many HR tasks and processes as possible
• Balance the use of self-service tools on the employee side (allowing employees to enter and manage their own information) with the ability for managers to reduce their HR workload on the employer side
• Grow and scale with the business, adapting to changing needs
• Support advanced, comprehensive reporting and analytics capabilities to make raw data more actionable and insightful
• Incorporate artificial intelligence capabilities that can provide recommendations for future HR tasks
• Change the perception of HR from a behind-the-scenes administrative burden to a means to achieve goals and strengthen the business

So, what are the seven most common HR technology challenges your organization can overcome with a robust, advanced system?

1.Disparate, clunky platforms that result in inadequate data and reporting.

Do you have multiple separate systems, each covering only one aspect of your HR functions? For example, do you have one system for payroll, another for time and attendance, and another for benefits administration?

Surely it’s inefficient for your HR team to deal with multiple systems.

In addition, these individual systems often require manual entry of HR data, which takes a lot of time and can lead to errors and inconsistent or incomplete HR data.

In addition, it is likely that some of these systems do not communicate with each other and therefore do not seamlessly transfer data back and forth. Data may even be calculated differently between systems and not properly synchronized.

When information is siloed and collecting, processing and interpreting data is a cumbersome and time-consuming process, it can lead to gaps in workforce data and inadequate reporting – meaning you don’t get a complete picture of what’s happening in your organization. As a result, you are unable to make the most informed decisions in an agile, timely manner.

A comprehensive, fully automated HR management system can:

• Streamline HR operations
• Free staff from administrative tasks so they can focus on revenue-generating activities
• Reduce the potential for blind spots or inaccuracies in your HR data
• Provide complete and more accessible HR data that you can use for strategic planning and day-to-day management

2.expensive, time-consuming IT support and add-ons.

Piecemeal HR systems may seem cost-effective – at first. Especially if you’re a small business or startup.

But as we mentioned earlier, off-the-shelf software packages that cover only one aspect of HR rarely communicate with your other systems. It takes a great deal of technical sophistication to connect disparate systems and make them work together in a way that benefits your business. This usually requires significant input from an IT specialist, which doesn’t come cheap.

For example, the time and attendance system that seemed inexpensive and easy to use becomes expensive when you factor in the cost of hiring an IT guru to bring the system together with your benefits administration software.

The total price tag skyrockets further when you factor in:

• Regular maintenance
• Repairs
• Upgrades
• Manual transfer of data between software systems
• Other additional services that cost extra

In addition, inefficient or inadequate HR technology can waste valuable employee time and energy. It can also lead to errors that impact your company’s bottom line. If laws are not followed due to HR technology issues, your company can even be fined.

Over time, the actual long-term cost of individual HR systems can easily exceed the initial cost of a more comprehensive HR management system.

3.Manage multiple vendors

If your HR team finds it cumbersome to use multiple different HR systems, this is likely exacerbated by having to deal with multiple vendors. You’ll need to contact and coordinate with multiple third parties every time you have a technical question or need to troubleshoot an issue.

Ideally, support for your HR technology would be easily accessible through a single point of contact.

Also, when software developers deploy upgrades, your organization can lose valuable data and time as you have to re-integrate and re-sync your various systems.

4.Lack of scalability

What worked well in a new or smaller business – like paper forms and more manual labor – becomes increasingly difficult and time-consuming to manage as your business grows.

As the number of employees and complexity of your business grows, you want to spend as much time as possible managing your business to better serve your customers and increase your profits. Examples of what you probably don’t want to do manually anymore:

• Tracking and approving PTO and other leave.
• Scheduling and rescheduling work shifts.
• Managing employee benefits
• Processing payroll
• Updating employee forms

These things will feel like unnecessary distractions that hold you back and slow down your productivity.

Unlike a comprehensive HR management system, piecemeal HR systems are inherently limited in scope and functionality. That’s not helpful as your business grows and evolves – especially if your company enters the middle market during its lifecycle.

As your business grows, you may face new issues. For example, will your business be subject to new laws due to a larger workforce? Will your company open new locations in other states or communities? A comprehensive human resources management system can help you successfully manage this without having to hire additional human resources specialists. Such a system can:

• Inform you of relevant HR laws and prompt you to comply with them
• Automatically make any changes or updates to the system to bring it into compliance with the law without you having to do anything
• Provide you with access to a team of professionals or on-demand resources for guidance and best practices

A larger organization leads to a larger amount of HR data to manage. Unlike a comprehensive HR management system, incomplete HR systems may not have the data storage capacity to keep up with the demands of your business. If your HR system fails, it can lead to devastating data loss and business disruption. If you store data offsite in a cloud environment and decide to expand storage capacity, it means additional, significant costs.

Implementing a workforce management system that grows with your business can not only save you time and hassle, but also help you transition from a tactical to a more strategic mindset. When your company moves from a reactive to a proactive mindset, you give your employees the opportunity to take on new initiatives that support your company’s vision and mission, rather than spending all day putting out fires.

And as your company grows or shrinks, consider this: paper-based or incomplete HR software that relies heavily on manual effort requires multiple employees to process benefits, payroll, taxes, and hiring and onboarding paperwork. In comparison, a cloud-based, fully integrated, comprehensive HR system with automated processes requires fewer employees to perform the same functions. It’s very likely that your company can actually spend less per employee on HR.

5.compliance issues

Companies face a dense forest of federal, state and local laws and regulations that impact employment. To make matters worse, these regulations change frequently.

Even for a dedicated HR professional, staying informed and up-to-date on regulatory changes is a full-time job, especially across multiple locations.

Outdated, non-integrated HR systems typically do not provide timely, on-demand resources or real-time guidance from HR professionals on employment law changes per location. They also don’t automatically fix compliance issues – such as a change in percentages for certain payroll deductions – before you even notice them, as a cloud-based, comprehensive HR system can.

However, a robust HR management system can take care of these tasks and help your company avoid them:

• Complaints
• Lengthy investigations
• Fines
• Litigation

6.insecure data storage or transmission.

We’ve all heard of cases where employees’ personal data has been exposed because a company laptop was accidentally left out in public. Or that hard copy data was lost in a natural disaster. Storing employee data on a single PC or in a filing cabinet can lead to disaster.

A robust cloud-based HR management system can store all your data securely in the cloud, reducing the risk of theft or destruction.

But what about cybersecurity? When it comes to this issue, you may be tempted to think that splitting data across different HR systems might be a smart move. After all, there are more systems for a hacker to get into. Doesn’t consolidating data in one place make your company more vulnerable to attack?

No, actually it doesn’t.

Comprehensive HR systems must meet industry standards and are required by cybersecurity and privacy laws to maintain certain levels of security to protect sensitive data. Industry standards certifications can:

demonstrate that an organization follows generally accepted security principles and processes
indicate that an external body has confirmed a company’s compliance with certification principles
ensure that a company not only meets certification requirements, but also that your human resources information is in safe hands

7.inability to view information on any device

Few people are still tethered to a PC at their desk. This is especially true as more and more employees work remotely – a trend that is likely to continue. To facilitate access to HR data, you need to give stakeholders in the organization the ability to view data anywhere, anytime.

Therefore, make sure you choose software with mobile capabilities that will keep important HR information safe, no matter where your employees are. Rest assured that any advanced, consolidated, cloud-based HR management system will provide this mobile accessibility.

Summing up

Many companies make the same mistakes when it comes to HR technology adoption. These mistakes:

• Keep companies from achieving their goals
• Consume too much time and money
• Frustrate users
• Slow business growth and productivity
• Put the organization at risk

Fortunately, there is a clear solution that is more cost-effective and beneficial to a dynamic business in the long run: implementing a single, comprehensive, cloud-based workforce management system.

Access he best cloud based digital HR management system icehrm.com for your organization.