Starting a Human Capital Management (HCM) Implementation can be an exciting and transformative time for an organization. With promises of streamlining HR or payroll processes, enhancing employee engagement, utilizing AI, and improving data analytics, the allure of modernizing HCM systems is undeniable. However, the journey through the implementation process can be challenging. Organizations make common pitfalls and missteps that can result in delayed projects and clunky or inefficient systems. In fact, according to a study by Josh Bersin, 42% of those surveyed rated their HCM implementation to be either unsuccessful or failed within two years after implementation. In this blog post, we touch on some all-too-familiar HCM implementation mistakes, the consequences of making them, and preventions and solutions to help you navigate any project confidently and maximize the benefit of your HCM platform.
Common HCM Implementation Mistakes
Mistake: Insufficient Planning
Arguably, the planning phase is one of the most important aspects of any HCM implementation. We have found that it is easy for clients to get overwhelmed (understandably so) when we ask them to provide us with all the requirements for how they need to run their business from an HR/Payroll perspective. When rushing or not prioritizing this process, you can miss essential requirements, leading to headaches later in the project.
Prevention / Solution:
The simplest solution to this mistake of insufficient planning is to ask many questions. It is better to ask what could be considered too many questions than not to gather enough information. It’s also essential to ensure you have all relevant stakeholders engaged in the project’s planning phase. We recommend getting “boots on the ground” insights. This means you gain feedback on new requirements from the C-suite and leadership to front-line and essential workers. Gaining insights from all aspects of your organization from the start can be invaluable. If you miss this step or the feedback is considered later in the project, it can be too late to be addressed. While this process can feel overwhelming, you’ll ultimately save a lot of time and money in the long run by starting a project on the right foot.
Mistake: Rushed Testing Phase
In the pressure to complete a project, clients often want to rush through the testing process. This big mistake can lead to issues during go-live that should have been realized during testing. The last thing you want to do is end up with a poor user experience, security vulnerabilities, incomplete functionality, or the increased costs of fixing issues you discover down the road.
Prevention / Solution:
Allocating sufficient time and resources to the testing phase of your HCM implementation is crucial to preventing these issues. Our project managers build ample time in project timelines to allow the client team to test and ask questions. We are incredibly hands-on in testing and help our clients identify exactly what they should be testing for. Implementing a new system can be daunting, but we encourage our clients to ask questions during the testing phase and not to put off testing until the last minute. A detailed testing phase is essential for the success of an HCM implementation.
Mistake: Inadequate Change Management
So often, people focus on the technology side of HCM implementation when they also need to pay attention to the people side of the project. Not focusing on the people side of the project could mean ignoring the system’s introduction to employees, managers, and other stakeholders or not taking proactive steps to ensure a smooth transition to the new system. Lack of communication, insufficient training, ignoring feedback, and inadequate support can wreak havoc on a new implementation.
Prevention / Solution:
At Covalence Consulting, we pride ourselves on being a people-focused consulting company. We focus on more than just technology; we focus on the people utilizing the technology we implement. Effective change management in an HCM implementation involves careful planning, clear communication, training, ongoing support, and a focus on engaging and addressing the needs of all stakeholders. We help organizations throughout the process by offering training, guidance, and continued support. Effective change management will ultimately lead to the successful realization of a system’s full benefits.
Mistake: Choosing The Wrong HCM Platform
Choosing the right HCM platform in a sea of choices can be challenging. Organizations often rely on selecting the most popular platform rather than taking extra time to find one that aligns with their needs and goals.
Prevention / Solution:
We suggest thoroughly evaluating available HCM solutions, considering scalability, customization, integration capabilities, and user-friendliness. Things like compliance and security, integration capabilities, mobile accessibility, and vendor support services should all be considered during the selection process as well. Selecting the right platform for your organization is a decision that can have a lasting impact on your HR operations and employee experiences, so take the time to make an informed choice. If you’re unhappy with your current platform, it’s okay to make a switch, and we help organizations make that transition often.
Mistake: Lack of Ongoing Maintenance
A prevalent mistake we see is when an HCM project is seen as a “one-and-done” project. Optimizing your HCM platform is essential for maximizing its benefits and ensuring it remains aligned with your organization’s evolving needs. You must continually assess your HCM platform to avoid data inaccuracies, low employee engagement, ineffective talent management, inefficient processes, and increased costs.
Prevention / Solution
Many of our projects at Covalence Consulting involve optimizing HCM platforms that are already in place. We’ve seen organizations transformed simply by updating their employee experience, reporting, or compliance requirements, to name a few. Optimizing your HCM platform is a strategic investment that can have a positive ripple effect throughout your organization and positions you to thrive in a competitive business environment.
In Conclusion
Navigating the complexities of HCM implementation can be tricky, and the consequences of common mistakes can be costly. Partnering with a reputable HCM consulting company can be the key to avoiding many of these errors. At Covalence, we bring years of experience and in-depth knowledge, helping you avoid common missteps and more. We help you harness the full potential of your HCM platform, streamline HR processes, and empower your organization. Don’t let common mistakes hold you back. Contact us today to learn how we can help your organization thrive.