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Seven HCM Implementation Mistakes and How to Avoid Them

Seven HCM Implementation Mistakes and How to Avoid Them

By Bryan Hack | ERP Implementation, HCM | Comments are Closed | 27 September, 2022 | 0

Human capital management software (HCM) is a colossal application that helps manage, recruit, train and develop employees. HR departments use the data from HCM applications to understand and manage their whole workforce. HCM software allows HR departments to automate routine and manual processes while streamlining all employee management facets. Doing this gives employees more control over their benefits and records.

This HCM software enables HR leaders to go beyond administration and take a strategic approach that helps them manage talent hiring and employee engagement. It also provides them with analytics and automation that contribute to making their workforce better.

1. Not Identifying HCM Goals

Acquiring clarity on what you want in an HCM system and your short- and long-term goals is critical. Do not skip this step. Don’t assume that HCM is a standalone application that only helps HRs. Modern HCM solutions are integrated with several applications which support all the business leaders define broader goals across the organization. If growing your workforce is a priority, consider how you could leverage a new talent acquisition application by harnessing candidate-relationship management features. Focus on solving exact problems or discovering new opportunities.

2. Lack of Planning

No matter the size of your company, it would be best if you created a map from your starting point to your destination. For example, you may be keen to leave your old payroll system behind but attempting to rush through an implementation may end up repeating the same problems you have with your current payroll provider.

You can avoid these common mistakes by thoroughly evaluating potential human capital management software options and executing a well-planned transition strategy. Proper preparation and consistent communication can make all the difference.

3. Improperly Integrating Systems

Best-of-breed applications like talent acquisition, payroll, or learning management can each provide a strong ROI by optimizing any HR function. But if you do not integrate your HCM systems properly during implementation, they may run poorly overall.

Some common HCM integration problems are disruptions caused by the need to install middleware and patch communications between best-of-breed solutions from different vendors. Incompatibility also causes discrepancies in data that make it challenging for your team to determine what is correct when information is siloed in separate systems.
Consultants like BHC Group offer HCM Support Services to help you avoid disruptions and data conflicts.

4. Not Maintaining Data Integrity

If the data starts incorrect, it may become embedded in the system and result in numerous errors over time. Preparing your data well is critical to steer clear of the dreaded “garbage in, garbage out” scenario. Before switching, take the time to:

  • Audit all your current data.
  • Purge your data of anything you may no longer need (remember that the CRA requires you to “keep all required records and supporting documents for six years from the end of the last tax year they relate to”).
  • Identify any missing payroll fields.
  • Request critical documents from your current provider, such as copies of all Payroll Register Reports and pay stubs, so you have a full set of records for each employee.
  • Although it may seem time-consuming, checking for any inaccuracies or inconsistencies upfront will save you from countless errors down the line.

5. Not Optimizing Workflows

Companies fail to achieve “game-changing benefits” by treating implementations as technology projects instead of “overhauls of business processes. To avoid this, document your current processes, then decide how to best leverage the new system’s capabilities to complete HR processes more effectively and efficiently.

Technology is not a cure-all but a tool to solve your problems.

6. Leaving out the end user

Once you have assembled a core team of leaders, don’t forget the people who use the software daily. Including key employee influencers from central departments in early conversations about projects and goals is wise. Managers are serious users of an HCM platform and engaging with them initially will lead to a smooth transition. Likewise, employees appreciate being heard and having their concerns considered and addressed. Evaluate which employees are department leaders and can be valuable influencers for the new process.

7. Detached feedback loop

After the HCM implementation is completed, it is important to be open to feedback. You can get feedback by conducting regular meetings to help you understand challenging problems to track via the HCM application. Organizations can also conduct a survey to help them understand what the employees feel and where the problem lies.

You can avoid these common mistakes by thoroughly evaluating potential human capital management (HCM) software options and executing a well-planned transition strategy. Proper preparation and consistent communication can make all the difference.

Our Team and BHC Group are experts in this field. Call us to discuss how we can help you get the job done right!

digital transformation, hcm implementation, kpis, leadership

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