Implementing HR technology: A Q&A with Nataliya Boychenko Stone

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The HR technology landscape is ever-changing and advancing like never before. We are starting to see HR tech companies grow larger as they begin to offer more services. Employees are becoming overwhelmed with the sheer number of different systems and tools they must use.

Today’s HR leaders are always looking for new ways to establish the most efficient procedures and programming for their team. Nataliya Boychenko Stone, senior VP and team lead of Employee Benefits at Holmes Murphy, believes taking a deeper dive into the technology behind HR processes is often the first step in doing so.

What are the main challenges for employers when attempting to implement new HR technology?

Implementing new HR projects require a lot of logistics and moving parts, especially when technology is involved. Ironically, systems designed to make tasks more efficient and streamlined often come with learning curves that require some extra due diligence for HR departments and employees alike.

For example, difficulties involved with implementing new systems can include education of new processes, the data transfer process from the old system to the new one, ensuring employees understand the purpose and rationale of the change. Of course, perhaps most challenging is identifying a system that uniquely fits a company’s needs and growth prospects. Some data points from Deloitte Human Capital Trends highlight the impact these challenges can have:

• 32% of HR projects are over budget.
• 53% missed the implementation deadline.
• 42% stated their HR tech projects were either not fully successful or failed completely after two years.
• 40% felt they did not have enough expertise to properly complete the project.

What is the first thing employers should do when looking into implementing a new HR system?

The first steps of acquiring a new system are, in many ways, the most important. Employers should extensively research which systems are available and compare that to the needs identified by the company as most critical. There are a lot of systems out there that specialize in many functions – payroll, PTO, and onboarding are just a few examples. Without that background information and feedback from differing perspectives of leadership going in, it will be extremely difficult to understand which system will truly work best for you and your employees.

Doing the research ahead of time will also help to ensure you don’t spend too much on unnecessary tools that might not ever be used. After all, HR systems are not just a critical part of a company’s daily operations, but also a major investment. In fact, recent data shows there has been $12 billion annual investment in Human Capital Management (HCM) technology in recent years.

How can employers ensure they are getting the right system?

Being prepared before shopping around for different systems is most important. Employers should know the requirements they have for a system ahead of time to ensure the requirements are met. Employees are overwhelmed with too many systems, and it’s up to the employers to try and find ways to consolidate and simplify their offerings and solutions.

It’s also important to set realistic expectations. If the system’s provider tells you a certain system or tool won’t work for what you are looking for, listen to them. Lastly, do your best not to fall victim to the software sales process. Software sales representatives will try and try to sell you anything even if it isn’t necessary for what your company needs. This can be avoided by entering the sales process as informed as possible about what you really need.

How can employers implement the system effectively?

Now that you have the system that fulfills your company’s needs, you need to be ready to implement that system and doing so can be difficult if you don’t take the time and put forth the effort that is needed. Training in how to use your new system and new tools is extremely important, not just for you but for your employees. Also important is that the training includes not just procedures for onboarding an initial integration of the system, but how the tools provided will continue to serve the company as the organization evolves.

Related: All-in-one HR tech: Why advisors should think twice

For example, as Artificial intelligence (AI) has entered into the picture in almost all facets of business and continues to grow in influence. Some studies suggest you can expect an average increase in budget between 21-25% as the result of AI integration! AI will continue to be used in recruitment, skilling up, and learning leverage. In fact, according to an IBM study, 35% of companies adopted some form of AI in 2022.

You must be sure that your employees are using the system and that they are using it correctly. Data is also an important factor in the success of a new system. If the data you have is not clean, it will not matter how advanced your new system is, it will be ineffective.