Human resources tasks that used to be tedious and time-consuming are now simpler than ever to do with the help of automated software. Nonetheless, there are always difficulties to overcome while adopting new technology. In this blog, we’ll go through typical HR technology hurdles and the solutions available. But before we begin, let’s get a better understanding of what HR tech is.
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What Is HR Tech?
The phrase “HR technology” (short for “human resources technology”) refers to a wide range of applications and devices that streamline business processes involving human resources. It includes payroll and compensation, talent acquisition and management, workforce analytics and performance management, and employee benefits administration.
As a consequence of the fast growth of HR technology, companies all over the globe are adopting basic HR technology solutions from enterprise software giants like SAP and Workday, as well as specialist HR tech suppliers. Many businesses are transitioning from on-premises systems to cloud platforms, such as SaaS, to embrace the second generation of HR technology.
Five HR Tech Challenges & Their Solutions
1. Inadequate data and inadequate reporting
Challenge: Technological Silos
Do you use various systems, each dealing with a certain aspect of human resources? Your HR department will waste time trying to juggle several systems. Manual data input is sometimes necessary to fill in the gaps left by these disjointed systems, but this process is labor-intensive and error-prone. It may lead to misleading or missing information.
Of HR decision-makers who utilize numerous technologies for people-related activities and insights, 24% note that this slows down procedures and creates needless delays, while 25% note that this increases worker discontent.
In addition, not all of these systems can likely exchange information with one another. Even worse, data may be calculated differently across systems, leading to misalignment.
Solution: Integrated human resource technology
You need a fully integrated HR system to prevent the problems that arise from using separate HR apps. When you implement a unified HR platform, your HR department will only need one place to handle everything from employee benefits and payroll to taxes and onboarding.
You may save money on human resources per worker by switching to a cloud-based, all-inclusive HR solution that uses automated procedures.
2. Excessive dependency on IT support
Challenge: Lack of technical knowledge
Piecemeal human resources methods may seem cheap initially, particularly whether you are a new company or a small business.
Nevertheless, as was previously said, most HR software solutions focus on managing only one aspect of the department and need to integrate better with other applications. Integrating several systems to function together as needed by your business involves a high degree of technical expertise. Usually, this calls for the heavy engagement of an IT professional, which might rack up the bill.
A timekeeping system may seem cheap and easy to use. Still, it may quickly become expensive if you need to hire an IT professional to integrate it with your benefits administration software. Individual HR systems’ real, long-term expenses may eventually offset the initial expense of a complete HR management system.
Solution: Democratizing HR technology
Personnel systems should be simple to set up, operate, and expand. Users should not be expected to possess the advanced technical knowledge to utilize the system. Regardless of their familiarity with technology, anybody may perform simple day-to-day operations thanks to low-code and no-code HR solutions backed by real-time artificial intelligence assistance.
3. Inability to scale
Challenge: Piecemeal HR systems cannot be scaled
What was simple and fast when your business was young or tiny, such as paper forms and more physical labor, may become too complicated and time demanding as your firm grows.
As your firm expands, you’ll want to focus more on managing operations, improving customer service, and expanding revenue. Managing your employees’ time off, schedules, shift changes, payroll, and personal information is time-consuming and tedious work you don’t want to do by hand. You may see these activities as unnecessary roadblocks to your progress.
Solution: Money invested in a highly efficient HRMS
If you’re just starting in the business world, consider investing in an HR management system that can grow with your company and help you go from a tactical to a strategic mindset.
Instead of spending all day putting out fires, you and your staff can take on new projects that advance your company’s vision and objective after you shift from reactive to proactive.
4. Issues with Compliance
Challenge: Older HR systems lacking real-time compliance monitoring
Regarding employee policies, businesses must navigate a maze of conflicting federal, state, and local rules. For a company leader with many other pressing responsibilities, keeping up with the latest legislation is a full-time job that may be particularly difficult when spanning many jurisdictions.
HR professionals in regions with new employment laws sometimes need access to timely, on-demand materials because their outdated, non-integrated HR systems need to keep up.
Solution: Make use of a platform that provides automatic compliance management.
Suppose you need help keeping up with the latest HR rules. In that case, cutting-edge HR automation software may assist by resolving any compliance concerns (such as a shift in payroll percentages for certain deductions) before you’re even aware of them.
5. Poor conditions for workers
Challenge: Older HR systems lead to a negative experience for staff.
Many workers would want to be able to do daily tactical tasks on their own, such as clocking in and out or requesting time off and monitoring their leave balance whenever needed. The more people pitch in, the less time your managers spend on HR concerns.
On the other hand, outdated HR systems force workers to rely on the HR department for even minor issues. We learned that human resources managers face several challenges daily. It may be time-consuming to respond to every single question from an employee, and delays in doing so can negatively affect morale.
Solution: Automating your current human resource management system (HRMS)
Adding a layer of automation to your current HR tech stack may do the trick if you already utilize an HR management system, saving you millions of dollars.
It will let you provide workers with information whenever needed and free up your human resources team to focus on revenue-generating activities. The best of both worlds!
Conclusion
Technological advancements have revolutionized the human resources department of today over the last several decades. Yet, when your HR staff employs a variety of solutions to handle various tasks, it may lead to disorganization and low output.
When human resources systems are not integrated, gathering and analyzing information takes more time and effort. When this happens, you may receive an inaccurate picture of what’s happening inside your company because of data gaps and sloppy reporting. You need to work on your ability to make rapid, nimble, well-informed decisions.
What helps is having a comprehensive, all-in-one HR management solution where you can handle everything from payroll to employee lifecycle to recruiting. In addition, it lets you swap out time-consuming, human-intensive procedures with automated workflows that let your HR department focus on what is important.
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