5 Practical Reasons to Upgrade Your HCM Software

5 Practical Reasons to Upgrade Your HCM SoftwareLet’s face it. New software is expensive. Just because there are new gadgets and tools on the market doesn’t mean you have the budget to replace your current system—even if those new tools would genuinely benefit your company. Sometimes good enough is good enough.

So how do you know when it’s the right time to consider a new software solution? How do you know when it’s a need versus Shiny Object Syndrome? And just as importantly, how can you convince your boss to agree? Let’s look at some practical reasons to upgrade (and some tips for making your business case):

 

You’re ready to expand your HR function to include analytics or data-based decision-making.

HR analytics can tell you a lot about your workforce, including:

  • Whether your employees are satisfied in their work
  • Which employees present the highest flight risk
  • Which candidates will fit best in the culture of your company
  • What actions you need to take to reduce employee churn 

If you are ready to dive deeper into the data pool so you can learn more about engagement, productivity, and talent acquisition, new software will give you the tools you need. The key, however, is to start with good, clean data and a solid infrastructure. Don’t spring for new software until you have the right foundation to support it.

You don’t have sufficient security protocols in place.

Cybersecurity risks have mushroomed over the past decade, especially as more information resides in the cloud and our networks have more access points (i.e., devices) for hackers to target. Europe’s new GDPR guidelines are one example of how companies will be held responsible for employee data, but don’t think that operating your business in the U.S. means you’re off the hook. Employees still want their data to be safe and may not be willing to trust you with personal information if they don’t think you have strong security protocols in place.

If your security consists of firewalls from last century, it’s time to upgrade.

You’re scaling your company and your current HCM software can’t meet your new needs.

Maybe you’ve been operating a small business using spreadsheets and paper files, or maybe you have a larger organization that has been functioning on legacy software for the past two decades. As your business grows, you need increased capabilities to stay on top of compliance regulations, store and retrieve information, and keep your HR personnel from quitting in protest. New software can help you with needs like:

  • Performance management
  • Data storage
  • Document management and storage
  • E-signatures
  • Training and development
  • Scheduling
  • Succession planning

You want or need a mobile solution to better serve your employees.

Maybe you have employees working remotely and you need mobile clock in/clock out capabilities. Or maybe your managers need more efficient ways to handle alerts and notifications. Maybe you just want to give your employees the flexibility of logging into the employee portal on their phone or tablet. Mobile apps are great solutions for all these needs.

There’s just one caveat. Today’s employees increasingly expect the tech they use at work to match the functionality of tech they use everywhere else. Look for software that takes a mobile-first approach with a well-designed app rather than simply using a responsive website and calling it mobile functionality.

You need functionalities that your current software can’t provide. 

This is admittedly a catch-all point, but it’s really the bottom line. When it’s time to make a business case for HR software, you’ll have to demonstrate need using a cost/benefit analysis. Here are some tips from SHRM for convincing your boss: 

  • State the problem clearly and succinctly.
  • Include supporting information such as budget, cost, and analytics.
  • State the objectives of the purchase.
  • Demonstrate how the software will affect current processes.
  • Enumerate resources needed to purchase the software, including the cost of the software itself as well as any hardware upgrades.
  • Identify and compare alternative solutions.
  • Propose an action plan

If you’ve reached the point where it makes sense to invest in new HR software, don’t go it alone! Researching all of your options manually will require many, many hours of your time. That’s why we created our HRIS Comparison Tool. Simply input your requirements and receive a customized list of vendors who can meet your needs.

 

Our HRIS Comparison Tool is free, easy, and fast—check it out!

 

HRIS Comparison Tool