Is your HR software falling behind with the times? Without modern-day must-haves like automation, data encryption and real-time analytics, you face time-consuming tasks, security risks and insufficient reporting capabilities. Implementing an HR solution is a strategic move for enhancing productivity, ensuring security and streamlining workflows.

If your current HR method lacks the latest features and functionalities or you’re just looking for a way to enhance user experience, it’s time to learn the key considerations for a new HR system implementation.

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Article Roadmap:

• Why Implement a New HR System?
• Key Considerations During Implementation
• Implementation Process
• After Implementation
• Tips for Selecting an HR System
• Next Steps

Why Implement a New HR System?

A new HR system is a significant investment for any organization. Before delving into the implementation process, it’s crucial to understand the reasons behind the decision to implement a new HR software solution.

Benefits of implementing an HR system include:

• Save Time: Automate routine tasks, reduce manual workload and enhance overall operational efficiency. Allows HR professionals to focus on more strategic and value-added activities with automation capabilities.
• Centralize Data: Integrating a new HR system enables the consolidation of employee data in a centralized platform. Ensure data accuracy and facilitate easier access and analysis of critical HR information.
• Navigate Compliance: Adapting to evolving labor laws, compliance standards, and industry regulations is crucial. A new HR system can incorporate features that help in ensuring compliance, reducing the risk of legal issues.
• Enhance the Employee Experience: A user-friendly HR system can significantly improve the overall employee experience. Self-service functionalities, accessible information, and efficient communication channels contribute to a positive workplace environment.
• Simplify Talent Management: Many HR systems offer features for talent acquisition, onboarding, and performance management. Implementing such a system can streamline these processes, helping attract, retain and develop your top talent.
• Improve Analytics and Reporting: Advanced HR systems come with robust analytics tools that enable data-driven decision-making. By leveraging insights from employee data, organizations can make informed choices regarding workforce planning, performance assessments, and strategic HR initiatives.
• Cut Costs: While there is an initial investment in implementing a new HR system, the long-term benefits often outweigh the costs. Automation, streamlined processes, and improved efficiency contribute to cost savings over time.

An all-in-one solution saves time and reduces frustration (especially when it comes to going from site to site). For example, in 2022, the Harvard Business Review found that employees in a Fortune 500 consumer goods company switched between 22 applications and websites around 350 times for a single supply-chain transaction.

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Key Considerations

From boosting efficiency to unlocking the full potential of your workforce, let’s explore the key considerations when implementing HR software for your organization. Let’s dive in!

1. Time and Budget

Avoid missing important deadlines and going over budget by setting proper expectations upfront. Create a change management plan highlighting your needs for a new system, what specific changes employees can expect and your ideal outcome (helping overcome employee resistance to change).

A recent Indeed article explains,

Change management plans serve as an anchor for teams while organizations implement change. Since change can sometimes take a long time to implement, having a document that your team can refer to can help everyone stay on track throughout a project’s lifecycle. Change management plans can remind you why a change is necessary, who is responsible for supporting change processes, how progress is monitored and what new training strategies will be used to enforce change.”

Learn effective strategies to stay on time and within budget by accounting for variables like labor, technical issues and infrastructure adjustments. Additionally, incorporate a small contingency budget as a protective buffer.

Along with knowing the price of the existing system, consider the following variables impacting your budget and timeline:

• Labor
• Technical issues
• Infrastructure adjustments

Keep everyone on the same page and avoid last-minute surprises with a written plan detailing your project scope, objectives, budget and timeline. Include all functionalities, workflows and reporting requirements.

Engage key stakeholders early in the planning process, empowering them to work towards the same goals, limiting miscommunications and settling disagreements. Don’t forget to finalize the required features beforehand to prevent last-minute budgeting-impacting setbacks.

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2. Implementation and Feedback Team

According to The Importance Of Employee Feedback by Jeffrey Fermin,

Employee feedback is essential as a guiding beacon for performance and professional development. It operates as a mirror for employees, reflecting the quality and impact of their work from multiple perspectives, including peers, subordinates, and management. Constructive criticism, when delivered thoughtfully, highlights specific areas where an employee can improve, allowing for targeted personal development. Simultaneously, affirming feedback acknowledges and reinforces an employee’s strengths, boosting confidence and fostering excellence.”

Start the implementation process by getting your team on board and informed right away. Include critical departments, including IT, payroll, finance and recruiting, so you’ll get essential perspectives from management and individual contributors.

Ensuring alignment across various departments is crucial, given the upcoming changes that will require communication to all employees within the company. Include teams outside your HR team and upper management to assist in maintaining other vital considerations. For example, your financial teams will oversee the budget, and the IT department will handle security and technical issues.

The system you choose affects your employees. Gathering feedback from your team is like a compass leading you to the best user experience.

Use the following tips to ensure constructive feedback:

Request Regular Feedback Surveys with Actionable Questions

Conduct regular feedback surveys at key milestones during the implementation process. These check-ins should be weekly to ensure everyone is on the same page, then dropped down to either a monthly or quarterly basis (based on your preference).

Design surveys with specific, actionable questions, like “On a scale of 1-10, how user-friendly do you find the new HR software?” or “What specific challenges have you faced in using the system?”

Then, use the feedback to make targeted improvements. For instance, if respondents consistently rate a certain feature low, focus efforts on refining that aspect.

Plan Feedback Sessions and Q&A Forums

Host feedback sessions (or Q&A forums) where employees can openly share their experiences with the new HR software. Encourage your staff to explain the positive aspects and areas for improvement. Consider having HR experts or software implementation specialists present to address concerns in real-time, like a monthly meeting.

Enable Anonymous Feedback

Implement anonymous channels for feedback to create a safe space for employees to express concerns without fear of being reprimanded. Set up an anonymous email address or an online suggestion box for HR software feedback. For example, create an online form where employees can submit their feedback anonymously, focusing on aspects like system performance, training effectiveness, or usability issues.

Also, consider stakeholder feedback throughout the implementation phases. Alter the rollout as needed, and see how you can improve the functions or employees’ understanding of them.

To enhance the post-launch training process, involve departmental leaders as liaisons between employees and the HR team in the feedback process. These leaders play a crucial role in collecting valuable feedback from employees regarding the training experience.

Managers facilitate effective communication by updating their teams on the implementation status and gathering input directly from employees. In addition to keeping everyone in the loop, this inclusion contributes significantly to the end-user’s satisfaction by fostering communication with each implementation step.

3. Phased Implementation

When implementing an HR system, proceed step-by-step, allowing your team to assess and evaluate each phase.

Benefits of this approach include:

• Help HR managers, employees, and others better understand the system with a piece-by-piece introduction.
• Design, test and approve each module to prevent unnecessary back and forth, minimizing rework and costly re-engineering.
• Share updates about wins and completed phases builds confidence within the project team and keeps employees updated.
• Ensure regular communication for change management and keep track of issues as they arise.
• Reduce “scope creep,” where stakeholders can request extra functionality, leading to a delayed timeline and over-budgeting.

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4. Data Security

It’s no secret that HR departments house most, if not all, of the sensitive data at a company, including employee contact information, salary, insurance information and job history.

With over 300 million people working remotely and storing data on the go, businesses face an annual average cost of $7.5 million due to data breaches, from human error to significant insider threats. Ensuring safety measures during the transition phase is an absolute must.

Work with IT throughout the implementation process and employ their expertise to secure sensitive data. Formulate a plan for backing up and safely transferring employee data. Also, take the time to ask critical questions about the security features of each potential system to evaluate how the new software aligns with your existing infrastructure.

During this phase, prioritize data accuracy by conducting a thorough audit of existing HR data. Migrate relevant information to the new system and use this opportunity to clean up any inconsistencies or inaccuracies.

Also, contact your vendor for its security and data backup features to ensure the seamless transfer of information.

5. Risk Management

HR plays a major role in managing and mitigating various risks associated with your organization’s workforce.

The process of implementing a new HR system has several additional difficulties other than timing, budget and security. Key questions for identifying and anticipating potential risks include:

• What potential disruptions might occur during the transition to the new HR system?
• To prevent human error, what employee training is available and what are the potential learning challenges?
• How much support is senior management providing?
• Could any upcoming projects within the company push this to the back burner?
• Which departments within the company may be more resistant to this change than others?
• What data security and privacy capabilities will the new system have?
• Do infrastructure changes or adjustments need to be made to aid implementation?
• How can we monitor and measure the success of the new HR system post-implementation?

Common Risk Types and Preventative Measures

Data Security and Privacy Risks: Unauthorized access, data breaches or non-compliance with privacy regulations.

Prevention: Implement encryption, access controls and compliance measures. Regularly update security protocols and conduct audits to identify vulnerabilities. Regularly update the HR software to meet evolving compliance requirements and conduct periodic audits.

Integration Risks: Incompatibility with existing systems, leading to data inconsistencies or workflow disruptions.

Prevention: Prioritize software solutions that offer seamless integration or plan for custom integration if necessary. Conduct a thorough assessment of the HR software’s compatibility and integration capabilities with existing payroll and employee management systems.

Involve key stakeholders from each department in the selection and implementation process to guarantee alignment. Regular communication and joint testing sessions can help identify and address potential integration challenges before full implementation.

User Resistance Risk: Employees may resist the change, leading to underutilization of the HR software.

Prevention: Provide comprehensive training, communicate the benefits of the software, and involve employees in the decision-making process. For example, host webinars to familiarize employees with the new system and address concerns.

Your company might have unique risks, too and being aware of these risks is key to a smooth implementation. Time, budget and security are critical as unexpected issues lead to delays, overruns, or compromised company info. Evaluating all risks and having a plan for every scenario is essential.

Consider hiring an HR implementation consultant. Having an experienced HRIS expert on board during the implementation process can save your business time, money and resources and help troubleshoot issues as they arise.

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Implementation Process

Following the proper procedure is another crucial aspect of a successful HR software implementation.

Remember, HR implementation isn’t dependent on hard and fast rules. And finding the best HR solution depends on your company’s scale and requirements.

For a seamless implementation, follow these steps:

Determine Requirements

Before you dive into exploring what the HR market has to offer, take a moment to reflect and consider the perspectives of everyone involved. Use these guiding questions to ensure a smoother HR implementation process:

• What are your current and long-term goals and objectives as a business?
• What’s your budget? What ROI are you expecting shortly?
• How many employees will use the HR system in their daily operations?
• What mode of deployment works best for the scale of your business?
• What challenges are you facing that new HR software would help overcome?
• What are your must-have features and capabilities?
• How much time can you provide employees to learn the new system?
• What training and support do you need, and can your vendor meet those expectations?

The idea here is to get everything sorted out within the team before reaching out to vendors and getting into negotiations. Think of it as your go-to guide whenever things get a bit tricky in the process.

Start Planning

Now that you’ve mapped out your requirements, it’s time to create a plan to put your new HR system into action. Remember, this affects your entire organization and operations, so in-depth planning is pivotal, including considering possible risks and unforeseen challenges.

The planning phase helps minimize the risk of inaccuracies and miscommunication while ensuring implementation aligns with your business goals. Develop a comprehensive plan outlining the step-by-step process for implementation, including timelines, milestones and responsibilities assigned to different team members.

Tips during the planning phase:

• Conduct a needs analysis: Evaluate your current HR processes to identify areas that need improvement. Engage with key stakeholders to gauge their requirements and potential challenges.
• Set clear objectives and goals: Whether it’s streamlining processes, improving employee engagement, or enhancing data accuracy, having well-defined goals will guide the implementation process and help measure success.
• Keep all stakeholders informed: Communicate the reasons for the change, expected benefits, and the timeline for the transition. Address concerns and gather feedback from employees to foster a positive attitude towards the upcoming changes. Effective communication is key to a smooth HR system implementation.

Set Design and Scalability Expectations

Before you dive into picking a vendor for your HR system, it’s crucial to take a good look at what’s going on in your current HR setup. Figure out the nitty-gritty details first before moving on to the next step in the process.

Some design and scalability considerations include:

• Integrated Solutions: Integrate multiple HR processes in a single platform with help from a vendor.
• Best-of-Breed Solutions: These systems focus specifically on one HR function like recruitment or payroll. Deploy a best-of-breed solution in one of the following ways:
  • On-premise: Purchase hardware and software and install them on internal systems with help from internal IT staff.
  • Hosted: The company rents an application on the vendor site, and external IT staff provides technical support.
  • Software as a Service (SaaS): These solutions utilize a subscription basis, and you can deploy them remotely through a web browser.

So, how do you know which type of HR solution is best for your business? The choice depends on your company’s requirements, size, budget and preferences. SaaS and hosted solutions are ideal for smaller to mid-sized organizations with budgetary constraints. In contrast, on-premise solutions are typically more efficient for larger businesses with robust infrastructure and skilled internal IT support.

Consider adding features based on your business needs, like an HR portal and self-service options to enhance HR functions. Finalize these requirements after considering their additional cost and your implementation budget.

Be flexible and ready to make adjustments to the implementation plan based on ongoing assessments and feedback. If certain tasks take longer than anticipated, consider redistributing resources or adjusting subsequent timelines to maintain overall project efficiency.

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Shortlist and Select a Vendor

Narrow down vendors by keeping these points in mind:

• Vendor Reputation: Research and evaluate the reputation of potential vendors. Look for customer reviews, testimonials, and case studies to gain insights into their track record in delivering reliable and effective HR solutions.
• Data Security and Compliance: Prioritize vendors that adhere to industry-standard security protocols and comply with data protection regulations. Ensure the software supports secure data storage, transmission, and access controls to protect sensitive employee information.
• Vendor Support and Training: Evaluate the level of support and training provided by the vendor. Choose a vendor that offers comprehensive onboarding and ongoing support to assist your team in using the software effectively.
• Vendor Updates: Inquire about the vendor’s future development plans and commitment to software updates. Choose a vendor that demonstrates a proactive approach to staying current with industry trends and technology advancements, ensuring your HR software remains relevant and up-to-date.
• Functional and Technical Requirements: Evaluate how closely the software’s features and capabilities align with your needs.

After carefully considering key aspects, develop a request for proposal and send it to shortlisted vendors. On receiving proposals, narrow your list to the top five most suitable ones and review demonstrations.

Implement Software

The central part of the implementation stage involves rigorous system testing, data configuration and migration. In this phase, technical staff tests specific module functionality, verifying it meets expectations while also maintaining data integrity.

Some organizations immediately switch to a new system when they finalize the vendor, lock down solutions and sign contracts. You can also run the old and new systems simultaneously for a smooth changeover process.

Other key components of this stage include:

• Integrations: Introduce the system to your existing employees and integrate it with communication channels.
• Communications: Conduct frequent training sessions to ensure a comfortable transition for employees and HR administrators.
• Tracking: Keep track of how well end-users accept the platform. Also, provide supplementary training as and when required.

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What To Expect After Implementation

Successful HR system implementation doesn’t end after you roll out the system. It’s an ongoing process, as the solution requires iterations in your workflows according to your scale and requirements.

Post-implementation, focus on these key aspects to ensure ongoing success:

• Performance Monitoring and Evaluation: Continuously monitor the performance of the HR software. Collect feedback from users, assess system utilization, and address any emerging issues promptly.
• User Support and Training: Provide ongoing support and additional training as needed. Keep users informed about system updates and improvements and encourage them to explore new features that can enhance their workflow.
• Data Security and Compliance: Regularly review and update security protocols to safeguard sensitive HR data. Stay informed about changes in regulatory requirements and ensure compliance with relevant laws and regulations.
• Optimization: Periodically assess the system’s performance and explore opportunities for improvement, like customizing workflows, integrating new features, or incorporating user feedback to enhance overall functionality.
• Future Planning: Anticipate future HR needs and ways the system can evolve to better meet demands. Stay informed about emerging HR technologies and consider how integrating them can improve processes and efficiency further.

Ongoing support from the IT department, management and even the service provider helps employees optimize the platform. Encourage regular workshops and open space for employees to voice concerns and provide feedback for continuous improvement.

By scaling, ensuring reliable training and support, and maintaining employee engagement through check-ins and pulse surveys, your HR system will yield a return on the resources invested in its implementation.

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Tips for Selecting an HR System

Now that you know the key considerations during and after implementation, you’re ready to move forward with choosing the best HR software provider. It’s important to note that HR systems aren’t plug-and-play, meaning you need to get it right the first time — luckily, we’ve got the tips to help.

1. Determine Your Organization’s Needs

Consider factors like:

• The size of your business
• Your preferred deployment method
• Challenges and goals
• Key features and functionalities
• Analytics and reporting capabilities

During this first step, check out our free requirements template for added guidance and support.

2. Set Your Budget

Evaluate the total cost of ownership, including not just the initial implementation costs but also ongoing maintenance, training, and support expenses. A clear understanding of the overall costs will help you make a more informed decision based on your budget constraints.

Trial Period: Before committing to a long-term contract, explore whether the HR software offers a trial period. Allow your team to test the system’s functionalities, assess its compatibility with your organization, and ensure it meets your expectations before making a final decision.

3. Analyze Scalability and Flexibility

Scalability is vital to accommodate changes in the size of your workforce and evolving business needs. Ensure that the system is flexible enough to adapt to future developments, technological advancements, and modifications in HR policies. Ensure a long-term investment that can meet your organization’s requirements as it expands and develops.

• Customization: Look for HR software that offers customization options to tailor the system to your organization’s specific workflows and processes. A one-size-fits-all approach might not meet all your unique requirements.
• Mobile Accessibility: Choose a system that offers mobile accessibility, allowing employees and managers to handle HR tasks from anywhere, promoting flexibility and efficiency.
• Integration Capabilities: Select an HR system that seamlessly integrates with other existing software and systems within your organization, like payroll, time and attendance and performance management tools. Integration enhances data accuracy, reduces redundancy and provides a holistic view of your organization’s operations.

4. Evaluate Training and Support

Assess the level of training and support provided by the vendor. Adequate training is crucial for the successful adoption of the system, and responsive customer support can address any issues or questions that may arise during usage.

Demos or trial periods help assess how easily your team may navigate through the system. A system that minimizes the learning curve not only saves time but also reduces the risk of errors in manual data entry and processing.

5. Ensure Compliance and Security

Prioritize HR software that complies with relevant regulations and ensures data security. Compliance features help your organization adhere to industry standards and legal requirements while robust security measures protect sensitive employee information.

In a recent article for Security Intelligence, technology writer Michelle Greenlee explains,

Good cybersecurity starts with employees. Human resources is often a resource for employees to improve job-related skills, which can include specialized training for internal systems. Not all employees have the same experience or knowledge about the technologies they use every day. This can leave an organization open to threats. As a result, HR departments should make an effort to bring employees up to speed on any company system that could pose a risk.”

Regular updates and maintenance to address security vulnerabilities are equally important. Prioritize a system prioritizing compliance and security to protect your organization and your employees.

6. Account for Updates and Request Feedback

Regular updates ensure your HR processes stay current and aligned with industry standards and best practices.

Gather feedback from potential users within your organization. Involving key stakeholders in the decision-making process can provide valuable insights and help address any concerns or preferences specific to your workforce.

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Next Steps

Embarking on the journey of implementing an HR software solution is no small task — demanding meticulous planning and testing. It’s worth the investment to boost productivity, ensure compliance and better your employee experience.

So, as you go forward with finding your ideal HR solution, keep these key considerations for implementing a new HR system handy, ensuring your plan encompasses your budget, timeline, stakeholders, security measures and potential risks.

If you’re feeling lost in the vast HR software market? Kickstart your search with our free HR software comparison guide.

Which of the five considerations resonated most with your organization’s current HR challenges? What steps are you taking to ensure a smooth transition? Let us know in the comments!