Tech Has Taken Hold Of The HR Industry

Here are 7 questions to ask before investing

A wealth of tech-based solutions have flooded the HR industry in recent years, providing efficient, cost effective alternatives to otherwise old and archaic processes. However, with so many tools to choose from, it can be difficult to identify the right platforms to be investing in now.
 

 

Here are seven questions every HR professional or business leader should be asking when considering their next HR tech investment:

1. Is it Business Critical?

Scanning the vast range of software tools, programs and platforms available to the HR industry, and consuming the various marketing materials – such as demo videos, white papers, case studies – that come with each of them, it can be easy to conclude that your organization has fallen behind on the technology front. But, don’t let FOMO – the Fear of Missing Out – be what motivates you to invest in technology. Instead, take a disciplined and methodical look at HR tools, and determine which are absolutely business critical and which are simply ‘nice to haves.’

2. Is it Enterprise Ready?

Hard as it is to fathom in this era of Big Data, a number of software and technology solutions still don’t come close to meeting enterprise-level standards for data protection and security. Often, this is a by-product of the fact that these solutions are operated by early stage start-ups that don’t yet have an appropriate level of expertise to develop true enterprise-ready solutions. Even the most innovative technology solutions are useless unless they can pass the stringent legal, technical and commercial demands placed on them by big business customers.

3. Can It be Deployed Quickly and Easily?

When HR teams and recruiters identify a technology solution, they believe can positively impact their business, the last thing they need is a lengthy delay before the solution can be deployed and tested. Effective and robust software deployment platforms help to get specialized departmental technology up and running as quickly as possible, with the support of an organization's IT department. Key to success is working with technology providers whose platforms are flexible and offer streamlined setup, customization and support functions.

4. Can it Offer Significant ROI?

Measuring ROI is something HR teams have long wrestled with, but the industry is beginning to adopt processes to evaluate and tie together the data that demonstrates the bottom line impact of people management and performance. HR leaders have made huge strides in being able to prove the worth of the efforts of their teams, so any new HR technology must clearly demonstrate its value in a business case assessment.

5. Can It Integrate with Other Systems – Does It Have an HR Standards Open Source API?

The global HR Open Standards Consortium has been around for nearly 20 years now, offering a free and open standards platform. So, a good starting point when assessing any HR technology you are considering adopting is to check whether it adheres to the specifications that have been formulated to enable seamless, secure and error-free data exchanges for HR purposes. The interoperability of HR systems isn’t something that can be taken for granted, though. Not all HR systems play together nicely. However, when they do, the benefits – ease of implementation, time and cost savings and more effective business alignment – add up to deliver significant value.

6. Can the Solution Scale with Your Business?

The ongoing and continuous need to scale your workforce to meet the underlying needs of the business is arguably the most critical strategic priority of any HR leader. HR technology solutions you deploy should have the capability to perform efficiently under potentially widely varying workloads and quickly adapt to scale and meet your rapidly changing needs. Better still when this seamless adaptability can be accomplished at both a global level and within distinct business environments facing different HR circumstances and requirements.

7. Is the Solution Provider on Solid Ground?

If you’ve done all the technical due diligence on a new HR technology and you’re satisfied the tool will help your organization in a tangible and meaningful way, there’s still one more important consideration. How solid is the business footing of the solution provider and are you confident they’ll be around over an extended period of time? While there’s no guarantee any organization – no matter how big – will be around forever, size does matter when it comes to selecting a provider, and a proven track record of growth and success is a must. For ultimate assurance, opt for the platforms that are publicly listed, with accessible records, tenure, governance protocols and regulatory control.
 
As with any investment, taking time to thoroughly assess the pros and cons of an impending venture into HR technology is essential to long-term payback. Taking short cuts may get the ball rolling a little quicker, but if you ask yourself the seven questions above, you’ll go a long way towards cutting through the noise and being able to focus on finding the right solutions for you and your organization.

Author Bio

Derek Smith joined Xref in January 2018 as General Manager for Xref North America. His knowledge of the North American HR market, specifically in relation to candidate screening, coupled with his extensive background in sales, marketing and leaderships roles in high profile, technology companies including Apple and HP, make him the perfect addition to the team in a market that poses significant growth potential for the platform. Connect Derek Smith Visit www.xref.com Follow @xref