Human resources information systems (HRIS) have seen numerous advancements in recent years. However, there are many HRIS implementations risks to consider.
Are you hesitant to implement a new HRIS system because of all the stories of failure (such as this Workday lawsuit)? Well, fear no more! We have lessons learned from HRIS failures, and we’ve outlined them here. Read on to learn why HRIS implementation can fail.
Why HRIS Implementation Can Fail: 5 Reasons
Though purchasing HRIS software can be beneficial, many businesses make this decision without considering all the risks. If your organization is considering buying new HRIS software, you must have an understanding of why HRIS implementation can fail. Below are some significant errors companies make when selecting and implementing a new HRIS system. We’ve seen these challenges within organizations throughout our software expert witness experience.
1. Lack of Clear Goals
Businesses often falter when implementing a new HRIS system because they don’t go into their purchase with specific business goals in mind.
Before investing in HRIS software, you should ask a few crucial questions:
- Why do you need new HRIS software, and how will it benefit your organization?
- What is your ultimate goal with this HRIS software upgrade?
- What is your human resources strategy?
- What are your organization’s weaknesses, and what are some ways that new software will help you solve those problems?
- What kind of work culture do you hope to foster in your organization?
- Will the new software help you in the long term, or is it only a temporary solution?
A Failed Payroll System Implementation
Panorama’s Expert Witness team was retained to provide a forensic analysis and written report to the court regarding the failed implementation of a major software developer’s ERP/payroll system.
2. Lack of Clear Business Requirements
If you don’t define what software functionality you need, you might select software that doesn’t make a significant difference to your business.
Selecting new HRIS software requires an understanding of your business processes. In most cases, you will need to improve your processes before software selection, so be sure you understand your future state before diving into requirements gathering.
3. A Lack of Resources and Budget
A new HRIS system will fail to help your organization if you don’t have sufficient resources and budget to support the implementation.
For one, you need a dedicated project team that is fully focused on the project. This will include some of your HR team members.
Additionally, you need to ensure you have a sufficient budget for the project. Your budget should go beyond the initial purchase of HRIS software and include allocation for business process management, organizational change management, ongoing maintenance, HRIS team members, and more.
4. Poor Senior Leadership Support
New HRIS software will fail to benefit your organization if you don’t have sufficient management and leadership support. Any successful HRIS strategy requires executive buy-in, so we recommend developing a business case to convince them to invest in the project.
If the project is already underway, you still need executive support because they can provide strategic direction and make important project decisions. They can even increase employee buy-in by demonstrating their own enthusiasm for the project.
5. Poor Communication With the Project Team
No business can get anywhere without open communication. A lack of communication is especially troubling when implementing new HRIS software and building a project team.
Before implementing HRIS software, you need to understand that one of the reasons why HRIS implementation can fail is a lack of defined roles and responsibilities. Your HR and IT teams, as well as other departments, must understand their role in the selection and implementation process.
The Bottom Line
With a thorough understanding of HRIS implementation risks, you can make smart decisions and avoid the typical pitfalls businesses often fall into.
However, understanding why HRIS implementation can fail is only the first step. Expert help from enterprise software consultants is crucial to selecting the right software for your organization and effectively implementing it. Contact us below for a free consultation.
