HR technology is a term that is often used to refer to all kinds of hardware as well as software components used for automation of the HR functions and activities. From employee attendance to background verification, employee payroll, workforce analytics and more, technology is disrupting the way these process function across workplaces.
In recent years, HR technology adoption by various organisations across industries has seen an exponential rise. In fact, according to reports by CB Insights, a well-known venture capital database, many investors, in 2016, invested more than a whopping $2 billion in HR technology and platforms alone. With such an impressive breakthrough across many industries, you may have considered jumping on to the bandwagon of HR automation. However, in order to make the most use of HR technology, there are certain things to keep in mind before you buy them.
So, whatever your reason is- whether for talent acquisition or background verification, here is a comprehensive checklist for you if you wish to invest in HR technology. They will help you avoid blindly buying products and services that you may regret later.
1. Business Impact of HR Technology
First of all, you have to think about all the possible impacts the adoption of the HR technology may bring. Technology and automation may have negatives as well. Will it actually increase your company’s efficiency? Will it be accepted or resisted by employees across various departments? Will it bring in monetary profit in the long run? All these are discussed in detail in the following points.
2. HR Technology- a Necessity or Aspiring for Future growth?
Is the HR technology you wish to adopt absolutely necessary in order to resolve a burning issue your organisation faces in the present? Or do you wish to invest in it for future growth? If you do not need it right now, it may be better to wait for when you have enough resources and capital.
3. Change Management process- What you will have to adopt after integrating HR technology into your organisation
The adoption of new HR technology will obviously be a huge change for your organisation. The thing with automation is that it almost always leads to loss of jobs for current employees. If this is going to be the case with you, you may want to consider the change management process you will have to adopt.
4. Return On Investment (ROI)
Is this new HR technology really worth the money you have to spend on it? Will it yield a profitable return on investment (ROI)? Do your research thoroughly and carefully consider how much the money equivalent of its benefits are. If it is not really profitable in the long run, you may want to give it a second thought.
5. Immediate and Long Term Benefits
Automation of such kind will surely bring a ton of benefits (for example, improving productivity and efficiency), whether direct or indirect, to employees as well as the organisation itself. It can even affect your brand reputation. Consider all these first before buying HR technology.
6. Underlying Technology and possible side effects
As mentioned before, automation has some negatives too. Therefore, carefully consider how safe and secure the underlying technology is, and if there are any potential side effects that may hurt your company.
7. Risks associated with the HR technology and how you can mitigate or correct it
After considering all risks associated with the HR technology, the next step is to think about how you can mitigate or prevent such risks or correct them. You may have to introduce changes in your organisation for this.
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