5 Biggest Challenges for HR Tech Deployment
In the current economic scenario, the world of enterprise SaaS platforms have seen exponential growth over the last 5 years.
Apart from the 1,000+ HR Tech start–ups in existence across the globe, bigger players like Oracle and Microsoft are also in this space. Hence, it has become important for organisations to continuously evolve with respect to their product development and deployment.
Despite the industry’s steady trajectory towards the USD 1 Billion-dollar mark, less than 30% of businesses have successfully implemented and launched cloud-based HR Tech platforms.
This has been one of the driving forces behind low adoption ratios across industries and organisations. HR Technology requires a seamless integration between IT and HR departments for increased agility.
Also, these tools are relatively new and require professionals to be skilled. The inability of HR personnel to adapt and progress towards the future has come as the first crack in the foundation stone of success for cloud-based SaaS tools.
Individuals need to be trained and simultaneously upskilled to be able to handle the innovative tools that are entering the workplace. This has proved to be very costly, often yielding negligible results. Because of the burdening cost associated with the acquisition of the technology, deployment, maintenance and training, a SaaS enterprise software tool is often abandoned within months.
The irony behind this conundrum is that HR Tech tools usually take a few months to display variable results.
Multiple processes require multiple tools
In an ideal situation, a single HR platform should be able to service the entire Human Resources vertical. The reality is that most organisations employ an array of tools to handle diverse operations such as People Management, Payroll, Recruitment and On-boarding.
The presence of multiple tools has made it cumbersome for HR personnel to quantify and assess the value added to the organisation, through the utilisation of these tools. Furthermore, each tool displays its own set of data and analytics, and the unification of these data points has turned into a management nightmare.
The User Experience
Behavioural analysts have stated that an employee functions like an internal customer, which in hindsight means they are perceptive off the bat as to whether a tool is friendly to use, or as complicated as a RBMK nuclear reactor.
Despite all the noise and clamour a SaaS enterprise software tool makes, its success depends on the personnel who are operating it. Most tools have failed to meet expectations and have been highlighted as difficult to comprehend or understand.
Rate of adoption is key, for the survival of an enterprise software tool within a company.
Comfort v/s Disruption
One of the biggest inhibitors to the advent of HR Tech is pinned on the debate between need and comfort.
Most organisations have functioned systematically with their age-old platforms and service providers. Hence, they are often hesitant to invest in new ideas or technologies.
However, an organisation cannot be agile unless their systems and processes are updated with respect to the need. This can only be achieved if HR personnel and professionals are involved in the decision-making process regarding the buying of enterprise SaaS HR tools.
The cost of the platform overall has been established as a contributing factor towards bottlenecks in adopting HR Tech solutions. Yet, the cost incurred due to failure of performance has rarely been regarded in this context.
Organisations battle with stringent timelines and their success factor is dependent on results. Failure to deliver requisite outcomes within stipulated time-frames can cost a company millions of dollars.
The possibility of failure to deliver is often associated with new technologies, which further deters organisations from plunging into the HR Tech universe. It is important for tools to be scale-able to deliver results for organisations, based on size, service and number of resources.
As the conversation rages on from micro to macro effects, trends ultimately point towards a phase where institutions adopt specific and intrinsic SaaS HR tools. These tools need to be acquired keeping in mind the demands, as well as the challenges of the organisation. HR departments and personnel will need to effectively utilise these SaaS cloud–based tools for the success of the business.