Choosing the Right HR System: A Step-by-Step Guide (Part 3)

Summary

In this blog post, we delve into Step 4 of the HR system selection process, which involves prioritizing the most critical areas to focus on for your HR technology evaluation. After conducting a gap analysis, you should have identified areas for improvement that need to be prioritized based on the organization’s goals, employee impact, and potential ROI. To effectively prioritize, assess each area through the lenses of Urgency, Impact, and Feasibility. Engage in a collaborative process involving HR and key stakeholders to identify the top priorities using a scoring system. Avoid potential pitfalls like short-term focus, neglecting stakeholder input, and overlooking existing resources. By thoroughly understanding your organization’s priorities, you can make informed decisions about HR systems that boost efficiency and promote a positive work environment, ultimately setting the stage for growth and success.

Introduction

After naming the gaps and redundancies in your HR systems in the earlier steps, it’s time to prioritize and determine the most critical areas to focus on for your HR technology evaluation. This part of the series will focus on Step 4 of the HR system selection process.

Prioritization Methodology

With the information gathered from the gap analysis, you should have a list of potential areas for improvement. It’s important to prioritize these areas based on the organization’s goals, the level of impact on the employees, and the potential return on investment (ROI). You want to make sure you are focusing on a project that is needed, will improve the organization, and is implementable. To prioritize, I recommend looking at each of the gaps you identified through the lens of Urgency, Impact, and Feasibility as defined below:

• Urgency – How time-sensitive or pressing is the issue? Areas like legal compliance, contract requirements, and executive priorities could drive elevated levels of urgency. Unfortunately, in many HR organizations, this is often the only criterion considered. We end up jumping from one “urgent” project to the next without making meaningful progress or impact. Urgency is important but should be balanced by the next two criteria.
• Impact – This factor refers to the impact improving this area will have on the organization. Impact can be assessed in terms of employee satisfaction, efficiency, cost savings, or competitive advantage. A high impact area has the potential to significantly improve organizational performance, while a low impact area will have a smaller effect or even negatively impact the organization.
  • I can’t stress enough the importance of thinking about organizational impact, not HR impact, when evaluating these initiatives. It is easy to get narrowly focused on what would help your HR organization but may not have as much benefit for the organization.
  • For example, if we chose to focus on digitizing our employee files, this may supply a benefit for HR but potentially have minimal impact on the organization. However, focusing on digitizing new hire paperwork would improve the new hire experience for the entire company and benefit HR. In addition, this would be a critical first step in digitizing all employee files.
• Feasibility – Can we do this with the time, money, and people we have available? Your team may have grand aspirations but that’s all they will be if you can’t bring it to fruition. In addition to the items above your team will need to consider things like technological constraints and organizational support. When scoring, consider the practicality of implementing the necessary changes and the likelihood of success.

You can see how these three factors work together to holistically choose a project. For example, you could choose something with a high feasibility (easy to achieve), but it may do little to help the organization (impact).

To prioritize, use a simple scoring system based on the criteria above. Assign a score from 1 to 5 (1 being low and 5 being high) for each criterion and calculate the total score for each area. The areas with the highest scores should be considered the top priorities. This should be a collaborative process involving stakeholders from the earlier steps. Those outside of HR will be essential in scoring the Impact of a process or project. Follow-up with the focus groups you interviewed in the earlier step and get their input in this process.

Example

Let’s look at how some of the gaps we identified in step 3 were scored by the team at Wizard Technologies:

Area of Focus	Urgency	Impact	Feasibility	Total Score
New Hire Onboarding	4	5	4	13
Improve Hiring Process	4	5	3	12
HR Communications	3	3	5	11
Compliance	5	3	2	10

For New Hire Onboarding, there is an elevated level of urgency due to the company’s focus on digitalization. However, there is not a clear deadline. This initiative will have a significant impact on the organization due to the ability to hire people more efficiently and improve the experience for those new hires. The team believes they have the team and resources available to implement an Onboarding system so feasibility is high as well. The other three areas scored slightly lower – both hiring process and compliance have many unknowns and the compliance pieces will be integrated into other projects the team takes on. Communication will be easy to implement but there is not a regulatory component nor is it part of the company’s major goals, so it scored lower in Impact and Urgency.

Based on this exercise, the HR Team at Wizard Technologies has decided to focus on New Hire Onboarding with a secondary focus on Hiring Processes. Compliance will be weaved into both of those projects and HR Communications is put on the backburner for now.

Potential Pitfalls

• Focusing on short-term needs: It’s crucial to consider the long-term goals and objectives of your organization when determining an area of focus. Prioritizing short-term needs may lead to suboptimal solutions and cause problems in the future.
• Neglecting stakeholder input: Not involving key stakeholders, such as HR staff, managers, and employees, can lead to an incomplete understanding of the organization’s needs and priorities. Be sure to include diverse perspectives to ensure a well-rounded decision.
• Overlooking existing resources: Before deciding on an area of focus, it’s essential to review existing resources and systems to identify any that can be repurposed or enhanced to meet the organization’s needs. Ignoring these resources may result in unnecessary costs and duplicate efforts.
• Analysis paralysis: Spending too much time analyzing and deliberating over which area to focus on can delay progress and decision-making. While it’s essential to conduct a thorough analysis, be mindful of the need to make timely decisions.
• Insufficient data or information: Basing your decision on incomplete or outdated information can lead to an inaccurate assessment of your organization’s needs. Ensure you have the most up-to-date and relevant data available to make informed decisions.
• Relying solely on quantitative data: While quantitative data is vital, it’s essential to also consider qualitative factors such as employee satisfaction, user experience, and company culture. These factors can significantly affect the success of any HR system implementation.
• Resistance to change: Implementing a new system or changing an existing one may cause some resistance among employees. Be prepared to address these concerns and communicate the benefits of the new system effectively to gain buy-in from your team.

Conclusion

Understanding your priorities as an organization is essential in deciding if a) you need a new system or b) what system to choose. Without this step, you may focus time, effort, and budget on a process that will add minimal value to the organization. Remember to involve key stakeholders, consider long term goals, and stay updated on the latest trends and technologies in the HR technology space. With a well-rounded approach, your organization will be better positioned to implement HR systems that not only improve efficiency but also foster a positive work environment. By taking these steps, your organization can create a solid foundation for its growth and success.