Five HRMS failure stats to consider when selecting software
Selecting and implementing an HRMS is a major activity. So much can be riding on your choices. When you have the right team and make the correct decisions, you can be pleased with an effective outcome. Not all HRMS projects are successful upon launch. Here are five HRMS failure statistics that drive home the reasons to get it right the first time.
1. It’s estimated that 55-75% of enterprise software projects fail to meet their objectives
Any software replacement project is a major undertaking. Management often expects the software to fix poorly designed business processes or to change corporate culture. While an HRMS can set a foundation for success it’s important that you bring in the right resources and tasks to meet your objectives. When staff expects the software to ‘fix everything’ they will be disappointed.
2. Payroll projects are estimated to have a lower failure rate
Payroll projects occasionally make the headlines for spectacular failures but this is the exception rather than the norm. Payroll projects tend not to fail due to the high prioritization which is set for them. Payroll staff tend to make conservative decisions. They set up the system, perform rigorous testing and implement the bells and whistles at a manageable pace. These basic steps should be replicated in other HRMS implementations.
3. The lack of a postmodern ERP strategy will be felt by 90% of organizations by 2018
Looking at HRMS and how it fits into wider technology strategies: the ERP landscape has been evolving in recent years with companies diversifying to a handful of ERPs rather than one vast system. It increases the complexity due to the enhanced integration that is required. Companies need to define a corporate strategy to manage this landscape but most are not there yet.
4. Resistance to change is the top reason that projects fail
It can be a major heartache when you work hard to choose the best HRMS and define robust business process but your project still fails. The lack of internal support and adoption is a common threat. Fortunately it’s one that is manageable through a carefully planned and executed change management strategy.
5. The cloud alone does not fix all problems
A recent survey found that 95% of respondents had issues with their private cloud. There has been much positive press about the benefits of public and private cloud networks. Cloud technology depends on appropriate business decisions on configuration and usage. If you replace a failing HRMS with a cloud solution without changing poorly designed processes you are destined for failure.
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