Avoiding poisonous HR technology

Employment Today, June 2010
By Philippa Youngman

My neighbour recently bought a flash new weed sprayer to assist with controlling his garden, and save all that time using a watering can. Unfortunately during his first use of the tool, the technically-challenged fellow pumped the pressure up too high and blew the top off the sprayer, covering himself and his garden with a good dose of poison.

Technology is great for achieving efficiencies, but badly applied it can be disaster. As Microsoft founder Bill Gates once said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”

The same is true when applying technology to managing HR. These systems offer huge potential to improve staff engagement, but organisations need to be careful not to assume technology is the best solution to an HR problem.

HR is an essentially ‘human’ management function. It is about maximising a company’s investment in people, but also about relationships, communication, respect and lots of other human values. Too often people forget this when applying information technology to HR. It is not the same purely analytical process as an accounting or production management system.

Using HR software can actually create more problems than it solves if not used properly.  An  example is some types of performance management software.

Performance discussions between a manager and staff member are a critical element in the engagement of the workforce. Too often these important interactions are undermined by systems that take away much of the human interaction, or make it so onerous for managers to participate they don’t bother.  Effective performance management systems enhance the process and make the engagement a smooth and productive one. The focus remains on supporting the human interaction not replacing it.

So how do you avoid ineffective HR technology implementations?

The best way to start is taking a complete view of systems supporting your HR processes. By having some basics in place you will have a platform for improving your application of technology, including:
 
1. Deciding on one “database of HR truth”: a core system that retains all base employee data and is treated as the latest and most accurate record.

2. Systemising your key processes: recruitment, performance management, development planning/talent management and salary reviews. Work with the key parts of the business to ensure this is standardised and documented.

3. Ensuring all of these processes receive and provide information to the “database of truth”, even if that is a manual process in the beginning.

4. Replicating information in multiple places only if it is necessary in order for users of the data to gain better visibility of it – and make sure it is reconciles back to your key database.

Once you have that foundation in place, you can start assessing options for adding HR technology. It is critical as an HR professional that you put yourself n a position to take a lead role in purchasing decisions rather than leave it to other parts of the business to drive them.

To do this you must really understand what data your management needs are and what decisions need to be made using this data; be able to build a business case strong enough to get past the CFO; and have a strong grasp of basic technology speak and what the options are for building or buying software.

What are your options for implementing new HR systems, and what are some of the key considerations for each?

1. Have a system built in-house by your IT team: this requires involving a skilled business analyst that can translate HR speak for programmers. It typically has a five year life span so needs to be costed accordingly. Products available commercially are likely to have more experience in building software for this business problem, so think carefully before adopting this approach.

2. Customise an add-on to an existing system: evaluate the role of the existing system – is it complimentary (i.e does it use similar data to that required for the process in question?) Again you’ll need a business analyst. Avoid the knowledge of this extension residing in one or two staff members, which can leave you vulnerable.

3. Purchase a product and customise: again ensure you understand the risks and costs of customisation, and where the knowledge of customised code resides. Good business analysis skills are crucial.

4. Purchase the “right to use” software as a service: these are usually configurable (as opposed to more expensive customisable) solutions. The risk is choosing a vendor that will keep the product updated. Understand the origins of the product and how regularly the supplier updates, supports and gathers feedback from customers. Check out customer references – ask to talk to customers not on the referral list.

The bottom line is applying the right solution to your specific business needs, while understanding the trade-offs for each approach. If you can build that knowledge, as an HR professional you are in the best position to judge whether new technology will help employee engagement grow or be a poisonous disaster like my neighbour’s sprayer.