Note: These three identified challenges are not result of any research or survey, this is based on my own experience.
It is very exciting for HR folks to know when management shows interest in automating the HR department. For an HR department working on papers and using Excel and other MS Office applications, it seems exciting. But beware there is always a messed up baby (and a lots of doctor visits) after a really good love!
While it is true that an HR software can ease down the work of HR, unfortunately it can’t do all the magic itself. Expecting an HR software to do a turn around in an organization is a total misconception.
While most HR software have the same features (except small usability and GUI differences), what make the difference are the efforts and the way HR and vendor handle the implementation process.
While HR Technology vendors will be happy to tell you countless benefits of HR automation software, I will discuss what are going to be an HR Managers’ top three challenges during the software implementation cycle. Be ready for these even before you select an HR automation software:
1. Getting the Data (read information) Right: There is a continual flow of employee information in HR, be it employee data or policies or leaves or appraisals or warning letters or etc. While an HR software provides a platform to enable systematic data entry of information and manages various processes, work-flows, etc.; by no means an HR software can ease out the amount of efforts required to enter data into the software and then someone verifying its integrity. Unfortunately without the correct and appropriate data, the software can’t be effective. HR software too follow GIGO principle Garbage In Garbage Out! You must have one dedicated resource that takes care of your HR data!
2. Training your White and Blue Collored Employees: After getting the data right, next biggest challenge is training employees on the HR software. You will find that many employees have never used an HR software, even if they had, it must be significantly different from what you are offering now.
After you install the HR software, your second biggest liability becomes user training. Often it must be vendor obligation to train the users, but with the new SaaS concept, vendors are trying to make the HR software as simple as possible.
But you know we have folks who can’t do even simplest things without training. So before you sign up the HR software contact, do not forget to include the user training as a compulsory condition in your contract, even if you have to pay an extra dime. Believe me, internally, you won’t be able to do it with your internal resources.
3. Internal Marketing and Excitement Building: Unlike CRM or ERP or any other operational software where the business impacts are very high, HR software is not so important immediate business differentiator; and management too thinks it only a good to have assets as it doesn’t really impact a business processes directly.
So the first person to be excited about the HR software is HR itself. Unless HR processes make a big impact on employee’s day to day life, they are not really excited about it. Apart from leave and attendance system, rest of the HR suite is used usually once in a month (leave application) or quarter (performance management etc.) and so on.
So HR automation software is HR’s own baby and you folks needs to create and maintain all excitement bout it. One way is to include the HR software as a part of induction training, where you dedicate 1-2 hours per batch to show the key functionalities and then on a continuous basis keep buzzing about it among employees and management.
Now don’t be scared, all above that I said isn’t very tough, but you need to take care.
Now some free learning stuff: Those HR folks who have never worked on a HR software, I suggest you give it a try. There are many software that offer a free TRIAL (not really free but you have to part with your personal information) are:
Zoho People: Really cool software!, Orange HRM Open Source Software, Employwise User-friendly simple software, Effortless HR still requires some efforts.
Free Trial Cheaters: These guys say Free and Immediate Trial but they just collect your contact details and promises to contact back some times later. They are Halogen, Taleo (Taleo does your right now means 24 Hours! )
No Free Trial Guys: These guys don’t give free trial but still worth a look if you are happy to give them your contact details: Successfactors, EmpXtrack, MyAdrenalin, for rest go search google for many more.
So look before you leap into an HR software! Even the vendors who miss these points end up in messed up installation and long customer calls or poor reviews!

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[...] Top Three Challenges of Implementing an HR Automation Software – Professor Gireesh Sharma of the Grasp e-Marketing blog. [...]
Great post, although companies don’t need to ‘install’ HR software any more if they opt for a more modern and cost effective SaaS solution. I couldn’t agree more with you about data – good data is essential to good decision support. I would also add that if your company does talent management, it’s also important to have access to both talent and core HR/business data. Tracking this data in multiple systems leads to additional challenges.
Also, another problem is some software you get out what you put in, so if you don’t maintain it or make tweaks, it will eventually spit out all wrong info.