Three things that happen when you rush your HRMS purchase
There are many reasons why an HRMS purchase decision may be hurried. A vendor’s pricing model can radically shift or a supplier can be acquired causing a strategy adjustment. A change of management can cause a review of an HRMS portfolio with fast decisions needed. There are many business reasons to expedite the procurement of an HRMS but keep in mind these possible outcomes if you rush your HRMS purchase decision.
1. High rework costs due to poor selection decisions
This is the worst possible outcome but it happens more often than you may think. When a decision is rushed due diligence and functionality reviews do not get enough time or attention. As the implementation kicks off and design decisions begin, an HRMS mismatch becomes obvious. A limited understanding of an application can result in a long-term budget overrun as additional resources are required to become operational as the HRMS was not fully understood during the selection process.
If everything truly is wrong, I have seen companies pull the plug on an implementation - some a year or more into the project with a million dollars plus as a sunk cost. I’ve seen an 11th hour halt literally one week before the go live of a full suite HRMS with payroll. The wrong HRMS does not only cost you at the onset but potentially you’re looking at choosing a new software and starting over again.
2. Reduced credibility from system users
HRMS core users and super users who are logged into the HRMS all day depend on a robust system to accomplish their tasks. They are also the ones who need to sell it to their internal customers such as directors who will utilize analytics from it and downstream systems who will receive HRMS data. Employees and managers interact with an HRMS on a frequent basis so will also feel the pain of a rushed system decision.
A poor HRMS decision will reflect badly across the organization. When your purchase decision is hasty and you have not consulted with any of these populations the credibility of the HR team to deliver comes into question.
3. Lack of system cohesion and strategic direction
I have seen a number of quick HRMS decisions that were summarized as, ‘we chose vendor B as we did not want vendor A.’ The lack of vision and a disregard for a strategic roadmap is disastrous. A potential HRMS should be reviewed for an overall fit into the company culturally and technically. A bargain HRMS may not be cost advantageous if it requires extensive technical efforts to make it available to employees and managers. An HRMS that does not integrate easily with your other systems will end up costing you more in the long run.
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