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Buying HR Technology? Top 5 Mistakes to Avoid

Buying HR Technology? Top 5 Mistakes to Avoid

As technology opens the door to a whole new world of possibility for human capital management, we are bound to see more businesses thrive as more HR professionals shift focus from administrative tasks to the strategic issues that drive organisations forward

However, the benefits of technology can only be fully actualised if you choose the right software or platform for your business. This begs the question: How do you choose the right technology for your business?

What must you bear in mind? What are the vital considerations to keep at the top of your mind, and what criteria must remain on the back burner? 

In this article, we help to simplify your selection process by sharing five common mistakes to avoid when selecting your HR technology.

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5 Common HR Technology Mistakes

HR Technology Mistake #1: A fixation on price

While staying within budget is a worthy criterion in the selection process, it must never be the sole determiner for walking away from an ideal technological solution for your organisation.

Instead, consider the amount of time your organisation can save when deploying the technology. Decreasing the number of hours your HR team spends on HR admin tasks each month frees up their time and allows them to dedicate more energy to growing your revenue and your business.

A comprehensive, best-in-class tech solution will automate and integrate your processes and increase the productivity of your HR team. 

HR Technology Mistake #2: Neglecting to ask strategic questions 

Before selecting any HR technology, it’s essential to have invested time in getting a feel of the software from others who have used it.

When you take the time to think through and draw up several strategic questions about the software and service before committing to one, the chances of you going wrong will diminish significantly.  

Here are a few questions to ask before selecting: 

  • First, what’s the total cost, and what does that include?
  • How is the technology priced? Is it a flat fee that covers everything, or will it be necessary to pay extra for additional services after implementation? 
  • Is the software or platform scalable as the business needs change
  • What’s the average run time of the system? What percentage of the time is it down? 
  • Will we have access to a dedicated service team we can contact directly, or will a random call-centre agent handle our issues? 
  • How often does the software need to be upgraded, and is this included in the price? 

It’s essential to avoid getting swayed by vendors who promise the sun and the moon for a low upfront price. Be sure that you understand what’s being offered in the proposal and any hidden costs before you reach an agreement. 

HR Technology Mistake #3: Unrealistic expectations and getting lost in non-essentials

Unrealistic expectations and getting lost in non-essentials

Considering that you’ll be spending significantly on the technology, it is understandable to expect a one-size-fits-all deal. However, you will be hard-pressed to find an all-encompassing integrated HR technology solution.

The important thing is to establish your must-haves and nice-to-haves and know the difference between the two.

For instance, if your pressing issues are payroll and new hire paperwork, your priorities should include automated payroll processing and paperless onboarding. Additional features might include performance management or retirement services.

Remaining laser-focused regarding the challenges you’re trying to overcome with a potential HR technology solution is crucial to getting the best fit for your organisation.

Anything extra is simply that – extra. Getting the big things right is always most crucial. 

HR Technology Mistake #4: Making hasty decisions

Buying the right HR technology is like hiring the right candidate; it takes time and a tested process to find the best solution for your business. 

Rushing through the selection process will only lead to more headaches and expenses down the line. The last thing you want to do is fail to get it right the first time.

If that happens, you’ll end up spending more time and money looking for another solution. The best way to avoid painful mistakes like this is to take your time and do your due diligence.

For instance, invest some energy in finding out what current technology users are saying about the vendors you’re considering. Don’t feel pressured to decide before you’re ready. Compare a variety of options and then narrow them down to a few that meet your criteria.

Afterwards, you’ll need to narrow your options down on the features and benefits of each system and measure how they stack up against all your organisational needs. 

HR Technology Mistake #5: Monopolising buying decisions without buy-in from employees 

It’s a mistake to buy a technology solution without the employees’ buy-in who will ultimately be using it.

Considering that they are at the frontline when it comes to your business’s HR pain points, no one is better than them to assess whether or not a proposed solution will resolve them.

Without the input of these primary stakeholders, you risk being blindsided to the subtle needs that only those that deal with the pain points know about

In Conclusion,

As the HR technology space continues to attract much attention and a growing level of investment, it’s essential to get the best advice when considering making purchases for your business.  

Knowing what to avoid when making a choice will equip you to move forward with your search for the ideal HR technology solution for your organisation