Updating your HRIS or other HR technology can be difficult and expensive, and change projects can disrupt workflows within your Human Resources team. Perhaps it's no wonder that so many organizations try to delay upgrades for as long as possible.
However, waiting too long to upgrade can be a business risk in its own right. Your HR team needs the right tools to help them source talent, manage the employee experience, and produce vital HR data insights. Without those tools, your organizational capacity is severely limited.
So, how do you know when it's time to invest in an upgrade? In this blog, we'll take a look at seven common warning signs that suggest your current HRIS has reached its expiry date.
7 red flags for your HR systems
First, it's worth pointing out that there's often scope to maximize your current software capabilities. You may be paying for features and services that your team doesn't use or that require some additional configuration. It's worth talking to your software vendor and IT team to see if you can realize extra value from your current solution.
When you've optimized your current systems, things should run smoothly. You shouldn't experience any problems, and if you do, then it might be time to consider an upgrade.
1. Your team is unhappy
Is your HR team satisfied with the existing software solutions? Listen to employee feedback and use pulse surveys to get a more detailed insight. By listening, you'll learn about day-to-day issues that might impact productivity, such as poor user interfaces or limited functionality.
It's also helpful to talk to any end-users of your HR software. For example, ask employees about the employee self-service portal, and ask job candidates about their interactions with automated Talent Management tools. You could also ask HR how often employees ask them to complete tasks that should be done through ESS. This could be a sign that the HR system isn't user-friendly or poorly designed for the end user.
2. You still have a lot of manual processes
HR technology doesn't eliminate manual processes, but it should greatly reduce this type of workload. Speak to HR leaders about their current processes and identify tasks that could be automated. If your current HRIS can't automate those tasks, it might be time for an upgrade.
It's also worth focusing on errors and rework, which can add to manual workloads. If recurring errors are the result of your HR software, then it's worth looking deeper into the root causes.
3. Your growth has hit a bottleneck
When a company grows, the HR team also needs to grow. There are more employees, which means more hiring, more training, more payroll and benefits, and more effort required to create a positive employee experience. If your HR software can't scale up easily, then your HR team might not be capable of processing the additional workload.
Integration issues can also cause a bottleneck, so it might be worth looking at your overall HR IT structure. For example, you might be using an all-in-one solution for HR tasks, but it could be worth investing in standalone solutions for different responsibilities, such as an Applicant Tracking System and a Learning Management System.
4. Your bills are too high
Growth can also impact how much you pay for HR software, especially if you rely on cloud-based solutions. These platforms charge subscription fees based on usage, and sudden growth could push you up to the next pricing tier. When you change tiers, it's always worth reviewing options and looking for cost-effective alternatives.
Pricing can also be a factor if you have an on-premises solution. Running your own software involves costs for servers, maintenance, and regular upgrades. These bills can increase over time, so it's worth comparing that cost to alternative options.
5. You have security concerns
Digital security is a growing concern, with 72% of organizations reporting an increase in cyber risks over the past year. HR teams are especially vulnerable, as they store a great deal of valuable personal information. If your IT team highlights any security concerns, it might signal that it's time for an upgrade.
Remember, certain processes can have implicit security risks. For example, if your team doesn't have remote access to core systems (via a Cloud interface), then they might be tempted to bring sensitive data home with them on a laptop or USB device. If that device is lost or stolen, your organization's data could be at risk. Features such as Multi-Factor Authentication can help mitigate those risks.
6. You're not getting the insight you need
HR is a rich source of organizational data. HR leaders can provide in-depth reports about productivity, engagement, resource utilization, and other core aspects of the business. However, it's only possible to produce such reports if you have the right tools.
Each HR tech platform offers different analytics capabilities. If the leadership team is unsatisfied with the available data insights, then this could be a sign that it's time to look at alternatives.
7. You can't deploy Artificial Intelligence
AI can help with most HR tasks, from scheduling candidate interviews to analyzing performance reports. However, your current HR technology might not allow your team to use these cutting-edge functions. This holds your team back and reduces your ability to meet future challenges.
AI is still an evolving technology, so it's worth exploring every alternative. You may find that your current HRIS is rolling out AI features in the near future or that you can integrate with a third-party AI tool. Look at all of your options and choose the one that offers the most flexibility in the future.
Take control of your HR technology
Getting the most out of your HR technology means taking a big-picture view of your organizational requirements. How do you empower your human resources professionals to create an outstanding employee experience? How do you prepare for the next stage in your company's growth?
It's easier when you've got some expert help. Book a call with a Helios HR consultant today and discover how you can take control of your HR technology!
