A Human Resource Information System (HRIS) is one of the best technological investments an organization can make. Typically offering a variety of features and capabilities including payroll, training, recruiting, benefits, and compliance solutions, HRIS systems can greatly improve operational efficiency and reduce risk by automating key HR processes, keeping important data centralized and up-to-date, and fostering employee empowerment by offering more self-service options.
But although HRIS systems can be hugely beneficial when they’re up and running, they don’t always get off the ground successfully during the implementation phase. As with any new technology, implementing an HRIS system is not without challenges, and careful planning and preparation is critical to avoid making mistakes that could compromise the system’s overall benefits.
Some of the biggest mistakes to watch out for when implementing an HRIS system include the following:
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Not considering the end goal
Too many organizations decide to adopt an HRIS system without really considering the specifics of why they need one or what exactly they want it to do; this is a surefire way to end up with a system that doesn’t properly support the organization’s needs or that has too many unnecessary functions and features. To avoid this, an organization’s very first step in setting up an HRIS system—before it even starts to look at products or talk to vendors—should be to figure out how the system should align with broader HR and business strategy, what critical services it needs to provide, and what a successfully functioning system should be able to help the organization achieve.
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Inadequate resources
Implementing a new HRIS system (or upgrading an existing one) takes a significant amount of resources—including time, money, and effort—but organizations routinely underestimate what it will take to get the job done. When planning a budget, firms need to consider not only the upfront costs of the system itself, but also what the additional costs will be for specific implementation duties, the project team, and ongoing maintenance and upgrades. Similarly, when setting out timelines, organizations should work with the vendor to get clarity on the estimated time for an implementation, and be sure to increase that projection if this is a new process for the company. Finally, businesses should remember that implementing an HRIS system is not a side project and cannot be done effectively off the side of someone’s desk. To be successful, implementation requires dedicated staff who are able to focus on the HRIS system and not worry about their other existing duties.
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Poor project manager selection
When it comes to project management, many organizations rely solely on the vendor, but this can be problematic as vendor priorities and the priorities of the business are not necessarily the same. Therefore, organizations need to take charge of appointing their own project manager to oversee the implementation process; it’s best if this person already has experience with HRIS systems and is a practiced change management leader.
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No executive or stakeholder buy-in
It’s important to remember that an HRIS system is not just an HR project. The implementation of an HRIS system will have business-wide benefits and impacts that will affect the entire organization, so it’s important to get key stakeholders from other departments involved and on board early in the process. The same goes for buy-in at the senior management and executive levels. Without sponsorship from this level, it can be very difficult to ensure that the project will have sufficient resources to be successful. To encourage greater executive buy-in, it’s always a good idea for organizations to develop a well-researched and well-consulted business case for the system.
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Not taking employee needs or preferences into account
One of the big benefits of a successfully implemented HRIS system is that employees can use self-service options to carry out important HR processes independently. However, this means that organizations must take these users into account when designing the system. If a company chooses a system that employees find difficult to work with or that doesn’t meet their priorities, this will seriously limit the extent of its benefits. Therefore, firms should consider holding company-wide meetings at different stages of the selection and implementation process to gather valuable feedback and insight from employees. If people feel like their employer has heard them and considered their preferences, then their engagement with the chosen HRIS system will be that much stronger.
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Not ensuring data accuracy and protection
An HRIS system is only as good as the data it contains. Unfortunately, in their eagerness to get the system up and running, many companies rush through the data transfer phase without proper checks or safeguards—a mistake that can lead to disaster as inaccurate data, once in the system, can be very difficult to spot and remove. Similarly, organizations must implement adequate security measures for the new HRIS system, as it will contain a great deal of sensitive personal information about the company’s personnel, as well as proprietary company information.
Jason Hanold 