4 Ways Your Legacy HRMS Is Stifling Business Growth

Technology never stands still, especially in markets such as HR Technology where customers are continually pushing for more and better solutions. While an HRMS can last you for many years and be perfect for your needs, it is easy to miss the subtle transition from being the latest and greatest to old news. Here are some telltale signs to watch for when you’re running an older system and it begins to stifle your business growth.

1) Manual Workarounds and Cutting Corners Rather than Moving Forward

Often, when your HRMS is on its last legs, your HR staff will become creative and do what it takes to get the job done. I’ve seen some strange business processes during HRMS upgrades, such as a reporting analyst running five reports and manually combining them into one via Excel because ‘the system always times out these days’. Or worse, I’ve seen an HR practitioner who doesn’t log out of the HRMS when she goes away to lunch as ‘it takes too long to get back into the system’. Inefficient processes and sloppy work habits are often the result of the system not being adequate, and back office operations will begin to suffer.

2) Competing Systems Start to Take Root

hese days, there’s a lot of great technology that can be easily utilized by HR staff to fill in process gaps to improve their daily work. It becomes dangerous, however, when small, shadow systems start to grow legs and run, especially when staff ignore your HRMS in the favor of their homegrown solution. If someone is requesting functionality in your HRMS but you are unable to accommodate it, then business growth is stifled, or worse the business may decide to build its own system, resulting in duplicated efforts and money wasted.

Recommended Reading: HRMS Software Guide - Find the right HRMS software to replace your legacy system

3) Inability to Integrate Easily with More Current Systems

Integrations are a way of life, especially as so many downstream systems like to consume HRMS data as ‘the true source’ of employee information. Some of these systems use cutting-edge technology or a completely different way of processing data, such as newer cloud-based solutions. If your HRMS cannot ‘talk’ to these systems, it’s probably time to look for one that can.

4) You Can No Longer Meet Statutory Requirements

Government rules change every year, from tax legislation through to government-mandated leave options. While most HRMS systems will deliver fixes and patches, there comes a point where a vendor ends such support options. I’ve seen many systems continue on, however, with the businesses delivering their own customizations to meet these legal requirements. However, this can be a risky business and ultimately consumes excessive staff time.

As much as your legacy HRMS may be ‘part of the business’ it will probably become a hindrance to business growth rather than an accelerant. If your business has began to adopt any of these telltale signs it may be time to find a new HRMS software system.