4 reasons companies refuse getting HR tech

Well, it’s official — HR tech is a must in the workplace ecosystem.  

The legacy HR systems you’re using from 10 years ago are not enough anymore, and working between multiple platforms will affect your work productivity and efficiency from one department to another.  

However, sadly to say, many companies are still reluctant to upgrade or integrate their legacy systems with HR tech.

Let’s deep dive into this problem as we share our insights from working with our clients and partners in the region. Here are the four main reasons we gathered from our HR community:

1. It’s all about money.

Most companies are persistently using outdated computer hardware in their HR system but fail to let it go.  

Simply because they had previously spent a lot of money and staff time in the system.

But, they do not realise the risk they are taking that may be holding the workforce back from performing at its optimum level.

Bad security, poor employee experience, compatibility issues, and you name it.

“The system clearly wasn’t working well for them. They still insisted not to upgrade their existing system because it’s too pricey for them,” one of our solutions consultants shared this when dealing with clients that refused HR tech.  

They only care about saving money but fail to see the value in HR tech that could help add value to workforce planning and crafting a comprehensive HR strategy.  

2. No management buy-in for a new tech.

When the HR department wants to start any new initiative in the workplace, they won’t get anywhere without the leaders’ support.

In a pulse survey from Gallagher, 38% find it difficult to get buy-in, with “leadership doesn’t understand the value of the investment” as the top-cited reason.

This is where the high hopes and grand plans get stuck in the mud.

Especially when it comes to making a big decision like purchasing HR tech, they must communicate their plans in a way that management will respond to.

Present a business case to your management, make sure you tie directly to the organisation’s people strategy for the buy-in.

Define what needs to be changed, have reports prepared, quotes, product details gathered, and all the information you need to answer questions.  

You should be able to get their attention by offering a solution that addresses the issues at the workplace.  

‍3. No right talents for an HR tech project.

This happened to one of our potential customers from the financial sector.

There was no assigned leader to take charge of the implementation process. Their IT and HR departments were inadequately prepared for the change, leading to lots of confusion and delay.  

It doesn’t matter how good the software is. You can get the best product in the market and spend millions on it. But, if you don’t have the right project partner or project plan, it will fail.  

And if a company does not have the right person to work on it, they might take a step or may not even consider purchasing a new HR system.

4. They are too comfortable with the way it is.

“This is the way we do things because it is the way we have always done things.”

You probably hear this often when introducing HR tech to the long-established, large companies.  

In the end, they retract and refuse to take the step out and try it out.  

Once they lose interest in adopting a new system, they naturally return to the old approach and constantly find modern technologies faulty, slow, or overly complex.  

Some concerns over drastic changes in the workplace may not be in favour of the senior employees. It may affect the way they work, or they feel threatened by technological advancement.

“So often, the problem is in the system, not in the people, and if you put good people in bad systems, you get bad results.”

— Stephen Covey, author of The 7 Habits of Highly Effective People

Say goodbye to outdated legacy systems: why it’s time to invest in HR tech?

The truth is, the old HR legacy systems can’t keep up with digital transformation. They have been laden with age-old mechanisms that no longer make sense in the modern era.

The benefits of investing in HR tech couldn’t be clearer. From simplifying business operations to significantly improving employee experience, the reward is uncountable.

Kickstart the HR tech revolution, especially during the pandemic. Your business objectives should guide you in the direction of the new HR strategy.  

We know it is much easier said than done. But we are here to help and give you advice, resources, and solutions to make your business journey smoother and more successful.