5 PITFALLS OF HRMS & HOW TO OVERCOME THEM

Human Resource Management Systems (HRMS) can be a valuable tool for organizations in managing their HR operations. However, organizations should be aware of, and avoid the pitfalls associated with, the shortsighted adoption and implementation of HRMS. Organizations must plan and execute the implementation appropriately, ensure data accuracy, improve the user experience, ensure integration with other systems, and avoid over-reliance on
technology. By avoiding these pitfalls, organizations can maximize the benefits of HRMS and streamline their HR operations effectively.

MAKHUBELA MPUME
CEO, EASY TALENT SOFTWARE

Mpume Makhubela is the CEO of Easy Talent Software with over 25 years human capital leadership experience across various sectors. The last 10 years have seen her build a consulting business as well as a Tech Business invested in designing HRMS.

OVERCOME HRMS PITFALLS

Human Resource Management Systems (HRMS) are software applications that assist organizations in managing their employee information and automate key HR processes such as payroll, employee reports, talent acquisition, performance, training and other HR-related tasks.

HRMS have become an essential part of HR operations, as they offer numerous advantages such as increased efficiency, accuracy, and data security.

Whether we consider HRMS, HR Information Systems (HRIS) or Human Capital Management (HCM) all can have a profound effect on delivering greater value to the HR function. Even more importantly, i4cp researchers found that “the effectiveness of an HRIS can have a correlation to the performance of an organization” (Dawn Kawamoto, Mar 1, 2023).

Despite their benefits inherent in the use of HRMS, a recent survey of more than 400 HR leaders by i4cp HRC research firm, they found that 17% of human resources leaders find that their HRIS ineffective and required workarounds, while 12% were unhappy and planning to replace their HRMS.

In this article, we will explore 5 key pitfalls of HRIS and how they can be proactively dealt with for maximum benefit to organisations.

1. POOR IMPLEMENTATION

One of the major pitfalls of HRMS is poor implementation. Poor implementation can lead to numerous problems such as data inaccuracies, slow processing, and system crashes. Implementing an HRMS involves several stages such as planning, change management, training, and deployment. An organization’s failure to plan adequately and execute these stages could derail a well intentioned HRMS development program.

TO OVERCOME THIS…

Before starting, the implementation team should prioritize the following as a proactive measures that will facilitate better implementation

Planning: A well thought out roll out plan should include details on how the technical configuration of the new HRMS will be integrated into existing systems, data migration, quality control and parallel system “runs” must be factored into the plan.
Deployment: Change management and communication will need stakeholder mapping, a communication plan, stakeholder support mechanisms and stakeholder impact assessments. You should prioritise change management across the HRIS cycle to ensure continuous enablement of service updates and release of new features.
Training: Provide key stakeholder and user training, and create an HRIS centre of excellence (COE) using the implementation team for skills transfer into the COE.
Service: Post deployment support and SLA management

2. DATA INACCURACIES

HRMS are only as effective as the data they contain. If the data within an HRMS is inaccurate, it can lead to numerous problems such as incorrect leave days, incorrect reports, delays in processing, misaligned org structures etc. Data inaccuracies can occur for various reasons such as errors during data entry, unclear company policies, incorrect system workflows, lack of employee updates, and system glitches.

TO OVERCOME THIS…

Organizations must ensure that the data within their HRMS is accurate and up-to-date to avoid these issues. This will be further enhanced by:

Clear workflows and key processes will help to reduce data inaccuracies
Establishing clear protocols for data quality controls will help to mitigate data error risks
The appropriate delegation of authority for data inputs will create nodal responsibility and also provide more safety checks in your data processes to further reduce this risk

3. POOR USER EXPERIENCE

The user experience of an HRMS is essential in ensuring the desired positive employee experience that systems have the potential of generating. A poor user experience can lead to employee frustration, mistakes, and resistance to HRIS adoption. HRMS with complex user interfaces, slow processing times, and limited functionalities can negatively impact an organization’s HR operations.

TO OVERCOME THIS…

Consult as broadly as possible, including key cross-functional stakeholders and various users in different layers within the organisational hierarchy. Armed with a broader sense of the current frustrations, and user wish-lists, you may find it simpler to scope the project internally, and to brief your provider.

This should lead to:
HRIS-Business process harmonization with clear alignment of the HR operating model, frameworks, policies and processes with the user interface Sourcing of HRIS service providers with a Sourcing of HRIS service providers with a Human Centered solution-design ethos Dedicated internal ‘super user capability’ and a COE

4. LACK OF INTEGRATION

An HRMS that does not integrate with other systems can be a significant pitfall. Integration is necessary to ensure that the HRMS can effectively communicate with other systems such as payroll, time and attendance, independent modular HR solutions and benefits administration. The lack of integration can result in inefficiencies, data inaccuracies, and reduced effectiveness.

TO OVERCOME THIS…

Seek to identify:

Cloud based solutions with API integration capability and flexibility
HRIS with end-to-end talent functionality with few integration requirements
Solutions that cater for the future potential enhancements in line with HRM practice evolution and business growth
A solution that functions optimally without the need for an implementation consultant (or the cost!)

5. OVER-RELIANCE ON TECHNOLOGY

Both the customer/client and HRIS solution provider have some work to do when it comes to the successful adoption and realizing the full benefits of HR technology. Over reliance on technology is increasingly commonplace, and is a pitfall that organizations must avoid when implementing an HRMS. Technology is an enablement tool and it is not a substitute for human input and decision-making. It is essential to strike a balance between the use of technology and human input to ensure that the
HRMS is effective and efficient.

TO OVERCOME THIS…

Decision Making: the decision to procure the solution should have strategic importance for all role players in the business to be invested in the success of the system
User Benefit: it should be of clear benefit for the user or department to use the system effectively to ensure that the data entered is accurate and up-to-date.
The cost: of not using the solution optimally should be significant enough to be a motivator for driving the right behavior

CONCLUSION

HRMS offers numerous benefits to organizations, including increased efficiency, accuracy, and data security. However, HRMS also have their pitfalls that organizations must avoid to ensure their effectiveness and efficiency. These pitfalls include poor implementation, data inaccuracies, poor user experience, lack of integration and over-reliance on technology.

Organizations must ensure that they plan and execute the implementation of their HRMS appropriately to avoid poor implementation.

Data accuracy is essential, and organizations must ensure that the data within their HRMS is accurate and up-to-date. Organizations must ensure that the HRMS can be customized to accommodate their unique HR processes, and the user experience must be smooth and efficient. Integration is necessary to ensure that the HRMS can communicate with other systems effectively, reducing inefficiencies and data inaccuracies.

Finally, organizations must avoid overreliance on technology and strike a balance between the use of technology and human input to ensure that the HRMS is effective and efficient. The HRMS must support HR staff in their roles, and employees must be trained to use the system effectively to ensure data accuracy.

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