How to Reduce Costs While Implementing New HR Technology

March 2, 2017 Andrew Larsen

HR technology is a must for any business, because effective utilization of data though a Human Resources Management System (HRMS) is a superior tool for HR professionals looking to support company goals. Despite the benefits that come from an HRMS, some companies might hesitate to make the switch because of the high cost of implementation. These costs are realized in many areas: training, workplace adjustments, hiccups in the system, not to mention, the actual price of the technology. While technology is portrayed as a way to save time and resources, the first few months may feel like the complete opposite.

CEOs and other business leaders are looking to HR departments to be strategic business partners. But with all the challenges associated with implementing new technology, how can HR get access to the data that will make it the strategic partner its organization needs? The key is to reduce the costs of implementation by using strategies to engage the workplace with the technology as quickly as possible.

Inform Relevant Stakeholders Early
As soon as the first demo ends, inform stakeholders who will be invested in system utilization. It will be vital to ensure that the new HRMS is cross-functional and provides support to all users and departments. A lack of transparency or disparate operations will lead to increased costs and a longer implementation. “When the stakeholders help with implementation, they can identify unexpected problems and find solutions,” says Bert Markof, business writer in the Houston Chronicle. “A collaborative implementation is an effective way of gaining acceptance of new technology.”

Create a Plan for Transition
According to the Harvard Business Review create an implementation team with members who can take on the following roles:

  • Sponsor: to provide resources needed for a successful implementation.
  • Champion: to function as salesperson, diplomat, and problem solver for the technology.
  • Project Manager: to oversee administrative details.
  • Integrator: to manage conflicting priorities and communicate to the group.

With a team in place, focus on an agenda that supports the needs of the organization and start by mapping out the different responsibilities of both the company and the technology provider.

Have Data Ready
Have employee information ready, and make it easy to extract any data from the previous solution. Whether you are changing systems or are implementing an HRMS for the first time, you will need to have data and other information ready in a moment’s notice. If bits of data are not provided in a timely matter, it could delay a complete implementation for weeks. 

Training Meetings
Another cost cutting method during implementation is to schedule hands-on training early in the implementation process. It will be important to note when a specialist from the vendor will be needed to come and provide assistance to your organization. Depending on circumstances it might be more cost effective and time efficient to have one of your own employees be an in-house specialist.

Transitioning into new HR technology will always come at a price. No business will be entirely free of the costs associated. However, how much the bottom line is impacted depends greatly on a quick and efficient implementation. With business leaders expecting HR to be more data driven, having access to an HRMS is becoming more important than ever. Reducing the costs of implementation can improve the ROI of technology reinforcing HR as a strategic partner.


About the Author

Andrew Larsen

Andrew is the Marketing Communications Specialist for Zuman, the one solution for HR, payroll, and benefits administration that supports growing small to midsize businesses.

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