Learn how to overcome the barriers to Human Capital Management (HCM) adoption at your company and reduce turnover, improve employee satisfaction, and jump-start productivity.
However, HCM implementation isn’t always easy.
In this article, we look at the barriers to HCM system adoption as identified by the recent HCM and SAP S/4HANA – Benchmark Report, sponsored by Rizing and produced in partnership with WorkForce Software and SAP Insider.
Barriers to HCM Adoption
According to the report, the top three reasons companies put off HCM implementations are:
1. Cost
38% of respondents identified cost as the primary barrier.
2. Competing Priorities
35% of respondents highlighted competing priorities.
3. Transitioning Complexities
25% expressed concerns about transitioning from their existing people management to an HCM system.
Tackling the Cost Conundrum
The expenses usually associated with implementing a Human Experience Management (HCM) are:
- The required technology infrastructure, including hardware, software licenses, and cloud services
- Customization and integration efforts required for users to be satisfied and productive with the system
- Data migration and cleanup
- Change management initiatives
- Ongoing support and consultation
Another issue identified by the report was the sunk-cost fallacy, wherein a company doesn’t want to abandon a strategy or course of action because they have invested heavily in it, even when abandonment would be more beneficial.
“We have invested significantly in our legacy HCM system, so changing systems isn’t on our horizon.”
Aligning Priorities for Success
It’s easy to stay busy when your work is mainly manual.
Add in short-term cost-cutting projects, putting out other internal “fires,” and technology updates going on elsewhere in the company, and it’s no surprise that companies would put the implementation of an HCM system on the back burner.
Navigating the Transition
Change is hard.
New systems require data migrations. New processes need to be mapped. Employees need training. Functionality gaps need to be addressed with configuration changes or custom code. Both systems need to run in parallel for a while.
It’s no wonder that the complexities of implementing a new system pose significant barriers to companies considering the move.
Overcome the Barriers to HCM Adoption for Success
Companies can overcome these challenges with careful planning that includes estimating the savings of lower employee turnover rates, higher employee satisfaction rates, and the savings represented by automating currently manual tasks.
Time and Attendance: A Catalyst for Change
One of the revelations from SAPinsider’s research is the role of time and attendance management within the HCM landscape.
For 27% of responders, implementing a cloud-based HCM system with time and attendance management led to a positive ROI, outperforming their peers. Time and attendance management was the only HR technology to attain over 80% adoption rate, demonstrating its critical role in today’s mixed work environments.
Dig Into More Detail
Download the complete HCM and SAP S/4HANA – Benchmark Report, written in partnership with WorkForce Software and SAP Insider.
Your HCM Future
HCM system adoption is a transformative path that promises to revolutionize how organizations manage their human resources. Organizations can enhance employee experiences and improve organizational success by understanding and addressing the barriers head-on.
If you are thinking about taking the HCM leap, please contact us. Rizing experts are ready to guide you through these challenges and ensure a seamless transition.
