4 Considerations Before Making an HCM or Payroll Technology Investment

Has implementing a new HCM or payroll technology been an item on your ever-growing to-do list that has finally made its way to the top for 2023 priorities? Implementing a new HCM or payroll technology is a massive undertaking with many moving pieces, like the multitude of vendor choices, the complexity of organizational structures, budget, integration with other enterprise systems, regulatory requirements and payroll compliance – a daunting task to say the least. As you begin the process, here are the top four considerations to keep in mind.

1. Keep Your Goals Front and Center

In fact, print them on T-shirts for your team to wear. Jokes aside, don’t lose sight of what your main goals and business objectives are for implementing new HCM or payroll technology. The more specific the goals, the better. Are you seeking more automation from your HCM or payroll technology to free up team members’ time? If so, what valuable projects will the team have time to do now that administrative tasks have been automated? Not only will specific goals help tell a compelling story for your leadership team, but it will also help determine which vendor solution is right for your organization.

There are hundreds of solutions available, complete with all the bells and whistles, which can distract you from honing in on what solution best matches your needs. This is especially apparent in product demonstrations, during which vendors often describe the system features they believe are best, rather than focusing on those that will specifically help your organization. Don’t be afraid to take the baton during these demos and ask the representative to demonstrate how the product can meet your organization’s requirements. Long story short: keep your goals front and center and pursue the best fit technology for your organization.

2. Capabilities, Compatibility and Support

Make a list of the specific capabilities you want in a new HCM or payroll system and rank or prioritize them. Identify the areas you are not willing to compromise on; for example, the system must have proven success in your industry; the system must guarantee strong data protection; the system must support unique compliance efforts. As mentioned before, once you see your first demo of a solution complete with all the bells and whistles, it can be tempting to throw your newly organized list out the window. On the other hand, don’t discount a solution if it has capabilities that are more “future state” for your organization. Use your capabilities list as your compass and let it guide you to the best solution for your organization now and where you want to be.

Be sure to include on your list the other programs your organization utilizes that your HCM or payroll technology needs to work with, and confirm compatibility with vendors. Are there certain items that need to be customized for your unique business needs? That answer is usually an emphatic ‘yes.’ Take stock of those items and make sure you understand what is involved with syncing systems and transferring data.

In the excitement of finally getting a new system, it can be easy to overlook the critically important topic of support and training. Be sure to inquire about how easy it will be to get in contact with the vendor’s support team once the implementation team has left. At the end of the day, if a system is too difficult to use, people won’t use it. Make sure the solution is as user-friendly as possible, or at the very least, ensure that employees can be easily trained.

3. Get Buy-In from Leadership

Each leadership team is different; you know your team best and what will appeal to them the most. Speaking from experience, most HCM or payroll technology investments don’t get approved because leadership does not fully understand the value the technology brings to your organization. This is where specific and clearly defined goals come in handy: they will help tell the story of how a new HCM or payroll technology will drive your organization forward.

4. Work with Trusted Advisors

Implementing a new HCM or payroll technology is a massive undertaking. All steps involved in the process are usually expected to happen in tandem with keeping the lights on in your department. Trusted advisors can be your go-to guide throughout the entire process; creating detailed work plans and roadmaps; bringing items to the table that you haven’t yet considered; navigating complicated conversations with vendors; keeping your goals at the center.

From evaluating your current needs to vendor selection and post-implementation support, Sikich’s HCM and payroll technology consultants work as an extension of your team. At Sikich, we are vendor-agnostic, meaning that we will help find the best-fit solution for your organization (not push a specific solution on you!). If your organization could benefit from neutral, third-party support in implementing new HCM or payroll technology, contact us today:

Resources:

https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/09/30/what-to-consider-before-investing-in-hr-tech

https://www.ceridian.com/blog/10-things-consider-when-choosing-hcm-software

https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/guide-choosing-new-hcm-system.aspx