Selecting a new HR system? Then making the typical HRIS software mistakes can lead to some big challenges. For you and your organisation.
A poor choice can lead to wasted time, blown budgets, low employee engagement, and compliance issues. So let’s explore the top 10 mistakes you could make when choosing an HR system. We’ll also share practical tips to help you tackle the selection process with confidence.
In this article
- Getting the research stage wrong
- Failing to involve key stakeholders
- Forgetting to build your business case
- Promising and expecting too much
- Not adopting an end-user mindset
- Focusing on the past, not the future
- Ignoring that the world of work has changed
- Overlooking the power of integrations
- Not developing a project plan
- Making assumptions
HRIS software mistake 1: getting the research stage wrong
HR technology evolves fast, so staying informed is key. Without thorough market research, you risk choosing a system that doesn’t align with your organisation’s goals.
Start with your strategic goals. They should guide your choice. Do you want to enhance employee experience? Streamline HR processes? Integrate the software with other systems? Even if you’ve used an HR system before, it’s important to double-check it’s fit for your current organisation. A system that worked well for a startup might not suit a larger, more complex business.
With so many options out there, comparing vendors’ offerings can make the selection process easier. Your shortlist will depend on your organisation’s size, industry needs, and the features you want.
And remember, no system covers everything. Get key stakeholders involved early and check references from people who’ve been through this recently to manage your own expectations.
HRIS software mistake 2: failing to involve key stakeholders
Leaving key decision-makers out of the HR system selection process can slow everything down. A stakeholder analysis helps you understand who needs to be involved, what their priorities are, and how your plans will impact their goals.
Involve IT, finance, and HR teams early. They’ll be the most affected by the new system. And don’t forget to include employees and managers in the process. After all, the software will be used across your entire organisation. Remember, it’s always easier to get buy-in at the start of the process, rather than later on.
HRIS software mistake 3: forgetting to build your business case
Skipping the business case can mean missing out on a clear understanding of the potential return on investment (ROI) for your new HR software. Without this, you risk overspending or choosing a solution that doesn’t meet your organisation’s needs.
Functionality is important, but your ‘wish list’ should go further. What do you want to achieve with the new system? Think about automation, employee experience, predictive analytics, artificial intelligence (AI), and the value these could bring to your business. And what happens if you stick with your current system? For example, disengaged employees could start leaving, or you could be making poor decisions without the right data.
HRIS software mistake 4: promising and expecting too much
An online HR system won’t solve every problem. Set realistic goals for timelines and deliverables, otherwise you could end up overburdening your team. Do you have the resources in-house to manage selection and implementation? Some organisations bring in temporary external support to get the job done. Consider your existing strengths and where you might need a bit of extra help.
HRIS software mistake 5: not adopting an end-user mindset
Your HR system will be used by everyone, so it’s crucial that your people want to use it. Technology evolves quickly. Not just in the workplace but in everyday life too. Most of your employees are familiar with social media, so they’ll expect workplace software to be just as intuitive. Choose an HR system that allows them to easily self-serve for tasks like booking holidays or accessing payslips.
Think about how this project will impact other teams and their day-to-day work. To drive change effectively, involve your people from the start. Communicate often and clearly, through emails, intranet updates, leadership videos, or notifications. This will boost understanding and engagement.
HRIS software mistake 6: focusing on the past, not the future
When selecting a new system, don’t just replicate what you’ve got – look for ways to improve how you work. Your new solution should move your organisation forward, not just carry over the old processes.
This is a chance for positive change. Your new system isn’t just another spreadsheet or a carbon copy of your current setup. And that’s a good thing. Make sure your business case positions the software as a tool for continuous improvement. It won’t transform your culture overnight, but it will equip you to make long-term change.
Updating your processes alongside the new system means you’ll need a solid change management plan. If you’re shifting certain responsibilities to line managers, for example, ensure that’s built into your business case and communications plan.
HRIS software mistake 7: ignoring that the world of work has changed
Have your needs shifted in the last few years? What are your organisation’s remote capabilities now that we’re post-pandemic? Are you facing new challenges in managing your workforce? As you explore the HR tech market, make sure you and your team are ready for change. Look to the future, not just the present.
The pandemic sped up digital transformation across industries, and HR is no exception. Today’s systems can handle detailed user access controls, automate remote hiring processes, monitor employee wellbeing, and much more. Organisations that adapt to these advancements will be better equipped to nurture a positive culture and a great employee experience.
HRIS software mistake 8: overlooking the power of integrations
Integrations are essential. Not just for connecting your HR and payroll systems but for other business software too. For example, your finance team might need custom HR data feeds, and IT could use the HR system to manage employee access to various tools. At the end of the day, the journey starts with HR.
Engage key stakeholders to map out all the integrations you’ll need. The best HR systems offer various options, such as application programming interface (API), SSH File Transfer Protocol (SFTP), and plugins. APIs, in particular, can save time and resources compared to manual methods like CSV file imports.
HRIS software mistake 9: not developing a project plan
Selecting a new HR system is like any other big business project. You need a clear plan from selection to implementation. Without one, you might struggle to keep things on track and make decisions promptly.
Decide early who’s going to own the project and keep it moving forward. It could be a senior HR leader in your organisation or an external expert like a consultant. Either way, set detailed timelines and goals for each phase, and plan your system demos carefully. A solid plan ensures you’re moving in the right direction.
HRIS software mistake 10: making assumptions
Don’t assume the project will manage itself. The HR tech market evolves quickly, so stay on top of things to avoid wasted effort. Bringing in outside support can help maintain momentum, add accountability, and act as a go-between with vendors. You can lead the project internally but keep asking questions and challenge your assumptions.
Steer clear of these common HRIS software mistakes so you can pave the way for a smoother selection process and a more effective implementation. By following the insights we've shared, you can make informed decisions and set your organisation up for success.
Want to dive deeper? Download our ultimate guide to choosing HR software or watch our webinar on getting leaders on board with your HR tech project. Take the next step toward a smarter HR solution!