3 reasons HR is hesitant to adopt new technology

Investing in HR technology can give HR pros more time to focus on higher-value tasks. So what's stopping them?

Small HR departments in particular are reluctant to adopt technology not because it won’t help them automate manual tasks but because it causes too much pain to conform to a new system. (Image: Getty)

It’s no surprise that 85% of businesses reported in a recent McKinsey survey to have somewhat or greatly accelerated the implementation of technologies like HR tech since the start of COVID-19. The task of acceleration, however, has not come without major roadblocks for HR departments — especially within smaller teams. In fact, PwC’s Human Resource Technology Survey finds that 8 out of 10 HR leaders still struggle with tech adoption challenges. Learning a new tech solution is a lot to ask of one-person or small HR teams.

Related: Technology, human talent key to future-ready business operations

Nir Leibovich is the CEO and Co-Founder of Houston-based GoCo.io, whose mission is to empower HR to grow happier, healthier, and more productive teams. Nir is passionate about building flexible, easy-to-use solutions that automate and streamline HR processes, so People Ops can focus on making work a better place.

If the implementation of Human Resource Information Systems (HRIS) and BenAdmin technology show promising time and cost savings, why are small HR departments still hesitant to adopt technology? Here are three key reasons and how you can address them.

1. Lack of flexibility

Each business has its own unique processes and goals around HR functions, such as employee onboarding, benefits administration, payroll, and time tracking. Small HR departments are reluctant to adopt HR technology for these processes, not because it won’t help them automate manual tasks but because it causes too much pain to conform to a new system (i.e., force them to change their existing processes and rethink business decisions). Some of the variables that impact organizational needs include:

HR professionals likely already have customized spreadsheets and/or paper processes that fit their business structure and fear that adopting HR software won’t align with their goals.

How to overcome this challenge: Look for technology that molds to your way of working. A strong HRIS is an extension of your HR team, built with flexibility and customization in mind, and only fills in the gaps where it’s needed.

You can and should start automating HR processes without having to make a major decision around functions that are already working well.

Understanding your starting point can help you visualize ways in which flexible tech can help you better track employee status, progress, and results. A few helpful questions to ask might be:

2. Competing priorities

Though HR is inundated with large amounts of compliance, paperwork, and other manual tasks, these administrative components are only one part of a successful HR strategy. In addition to hiring, onboarding, and setting up payroll, HR managers are expected to take on strategic people initiatives, respond to ever-changing pandemic guidelines, improve employee retention, and encourage engagement. Between heightened attention to DEI efforts and improved mental health support, employees are demanding more and more from their employers. These demands may cause businesses to delay HR tech adoption, as they fear there is not enough time or money to do all of the above.

How to overcome this challenge: Investing in carefully selected HR technology will actually give HR pros more time to focus on higher-value tasks and revenue-generating activities. Sticking to paper-based processes or disparate systems reduces the time that could be spent on strategic initiatives like scaling the workforce and identifying top talent. Once you’ve streamlined day-to-day HR tasks like employee onboarding, benefits enrollment, and payroll, you’ll have more time to expand engagement, retention, and culture-focused strategies. A modern HRIS solution will help you orchestrate and deliver a more delightful employee experience in the long run.

With the right HR technology in place, HR departments will benefit from:

3. Building a convincing business case

Leadership approval is a common roadblock for HR departments when it comes to adopting or investing in HR technology. Even though HR and People Ops may immediately see the value in automating and digitizing processes, key decision-makers and stakeholders will need more information on ROI and tangible benefits to get on board. Without a proper business case, concerns around flexibility, business alignment, cost, and lack of specialized knowledge may stall efforts.

How to overcome this challenge: Do the research required to build a convincing business case. Key decision-makers will have the same concerns around the rigidity of HR technology and whether the technology can conform to your existing methods. Create a mock organization to illustrate benefits and time savings. Tailor the case to fit your specific business needs. While building your business case, answer the following questions:

More often than not, the numbers are on your side. Building the case for improved employee performance and increased strategic work, based on your specific organizational needs, creates an offer that will be hard to say no to.

HR is in the driver’s seat when it comes to defining processes, policies, and workflows and these needs should be outlined before adopting new technology. The proper solution recognizes your investment in your current checklists, processes, and documents — and simply takes all of your existing work and brings it to life digitally. By strategically working past obstacles for adopting HR tech, small HR teams can drive efficiency, create better experiences, and collect new business insights for their organizations.

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