Relax, take a deep breath, and keep your eyes off the bright, shiny ball. This is one of the best pieces of advice an employer can receive when shopping for HR technology[2]. It’s easy to get hypnotized by the “bright, shiny objects” associated with the vast amount of technology available to support organizational strategy, automation, and compliance.
Most basic technology is not particularly interesting. Functional? Yes emphatically! Fun and exciting? Not a chance! So, it’s easy to understand the allure of the growing number of attention-grabbing features included with new solutions. Many of these flashy elements are helpful and deliver significant value…if needed.
And there’s the rub. Frequently, employers find themselves charmed into purchase decisions based on how the software looks or performs rather than on the problems it solves. This approach lies in mistakenly thinking of technology as an outcome instead of a tool. Following is an abridged version of the advice Gallagher consultants offer employer clients looking to purchase HR technology.
Technology is a tool, not an outcome.
First, define “what” you’re trying to accomplish before looking for the “how.” Take the example of time-tracking software. What’s your goal? You may be looking to automate time tracking. At the same time, comply with regulatory reporting or determine if hiring another person is cheaper than paying overtime. You should use the time to understand worker productivity or if employees spend time on activities supporting business goals.
These are particular and different objectives. While there are tools to accomplish each, without first defining your needs, it can be easy to make a purchase decision based on a far less strategic basis—including attraction to a bright, shiny ball.
Defining your “what.”
Sometimes, your “what” gets defined for you, e.g., a new state or federal law regarding time reporting. More often, however, it will require critical thinking about the challenges you’re trying to solve in your business. Your employees are your most important asset, but don’t approach this exercise as solving HR challenges. Think about the company’s objectives and the CEO’s agenda. Employees will figure out largely any strategy to deliver on that agenda.
The following is a list of core workforce management areas and examples of “related outcomes.” These may not match your organization’s needs. However, they should spark your thinking about your organization’s strategic objectives and how HR technology (the tool) can support those objectives.
- Talent acquisition: Hire faster or hire better. Meet diversity, equity, and inclusion goals. Avoid discrimination traps.
- Onboarding[4]: Shape new hires’ experience during the first three months of employment to increase the rate of retention.
- Core HR[5]: Monitor compliance reporting such as EEO-1, visa expiration, or Americans with Disabilities Act.
- Performance: Change the performance management process[6] from an annual review to continuous feedback.
- Succession planning[1]: Identify future positions and create a pipeline of qualified people.
- Compensation: Understand whether you have a pay equity problem.
- Benefits administration: Offer plans that meet the needs of your workforce profile and provide decision-support tools that help employees make wise choices.
- Learning: Determine the need for re-training or upskilling associated with increased automation.
Getting to the “how”
Defining what you want to accomplish will lead you to the tool to help achieve that goal. The increasing sophistication of industry technology and ease of integration[3] with existing or other new tools mean it’s possible to identify technology solutions that address multiple goals. Further, many of these solutions likely include bright, shiny balls you can now look at and enjoy.
The process of identifying internal candidates for leadership or other key roles within a company.
Technology solutions and software applications specifically designed to support and automate various HR functions and processes.
A process concerned with joining different subsystems or components as one large system. In HR, integration allows organizations to combine the various applications relating to the management of their workforce and their core business so they work effectively together for the best results. The term that describes what happens when two applications are able to communicate with each other and exchange information.
The process of hiring, orienting and immersing new employees into their roles and into the organization’s culture.
