How to make your case for new HR technology

According to the Sierra-Cedar 2015/2016 HR Systems Survey, 43% of companies are undertaking a major HR system strategy initiative. Technology can be one of the most valuable tools in an HR leader’s arsenal, allowing them to create more organizational value, deliver better service, and offload administrative tasks. However, for companies that don’t have HR technology in place, acquiring and adopting a Human Capital Management (HCM) suite isn’t without challenges, and perhaps the hardest part is building a strong business case for HCM technology that will garner executive support.

Common reasons for implementing HR technology

While every company is different, there is a common set of reasons for evaluating, selecting, and implementing human capital technology that typically fall into one of these categories:

  • Reduced administrative burden for HR
  • Reduced burden for managers and/or employees
  • Increased compliance

While these are valuable benefits of implementing HR technology, a primary reason for adopting HR technology that will resonate with executives is to improve business outcomes. The issue is the champion for the technology, typically someone in HR, doesn’t always consider deeper business results and organizational performance when building a case for adding technology.

Use our guide to selling your HRMS project to c-suite to gain boardroom support for implementing new HR technology

For a stronger business case that will have better results, let’s examine some avenues that pave the way for the shift from paper to technology.

Taking it a step further

You must start by thinking about what your business strategy is and how you can support that, whether through learning, recruiting or other core HR activities. While it’s important to think about the time savings you will experience, it’s even more valuable to ascertain how the business will ultimately benefit from the technology investment.

For example, if one of your company’s core business objectives is to reduce turnover, your business case should include information and data on how a talent acquisition solution – standalone or part of a broader HCM suite – can help you better identify candidates who meet your company’s unique culture by assessing specific character traits, not just skills. You also can make a case that the amount of time you will save by automating your recruiting, hiring and onboarding processes can be used to develop more effective training and mentoring programs that will increase job satisfaction, helping to reduce turnover.

The key is to translate time and resource savings into something of value for the business. This will help you obtain buy-in at the executive level which will is essential for a successful technology purchase and implementation.

 

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Ben Eubanks

About the author…

Ben Eubanks, SPHR, SHRM-SCP is the principal analyst at human capital services firm Lighthouse Research and Advisory. He works with talent leaders to develop hiring strategies, and with HR tech companies on research, product development, and marketing. In addition, he hosts the popular "We're Only Human" podcast and runs upstartHR, a website dedicated to improving the human resources profession.

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Ben Eubanks