Here is a recent statistic that probably will not surprise you: The rate of change we face in business has increased 184% in the last four years. Yes, the Accenture Group actually measures the rate of business disruption each year in their Pulse of Change Index. Not surprising and equally disturbing is that the percentage of employees supporting organizational change has dropped from 76% to 43% in the recent survey. And what is the number one cause of business change? Technology, followed by talent, climate, economic, and geopolitical.
I have written and spoken frequently about how the availability of talent is shrinking, causing employers to figure out how to do more work with fewer people. Obviously, the smart deployment of technology is one way to achieve that end. However, there seems to be an endless sea of [expensive] options facing the HR leader, and many struggle to get their hands around it. I will attempt to provide an orderly framework to assist your journey to a more successful technology enabled future. For a deeper dive, I would encourage you to watch our recent Thinking Differently webinar on this topic.
Getting our hands around technology requires first that we break it down into its logical components.
The first major component is the HCM platform. HCM, or Human Capital Management system, includes all of the system-wide technologies you use to run HR, such as payroll, HRIS, learning management (LMS), benefits, compensation, recruiting / Applicant Tracking (ATS), etc. The second component would be the technologies we use at our organizations to improve productivity. And finally, the technologies we use to literally change how work is done. Let’s now spend a few minutes considering how to maximize the use of technology in these three areas.
The first major decision point to be made around your HCM system is whether you utilize one system or a myriad of systems/vendors. Historically, the majority of organizations utilized a “best-in-breed” approach to HCM, utilizing different vendors for payroll, HRIS, benefits, recruiting/ATS, performance management, etc. While this approach offered the option of having the best or most appropriate system for your organization, it brought many issues around integrations, multiple logins/apps, etc. I’ve heard horror stories from members where benefit information entered in the benefits system didn’t synch up with the payroll system or with the carriers, and we only found out when an employee needed their insurance for a health issue.
Our recent polling on this topic shows an increase in the number of employers migrating towards an all-in-one platform for their HCM needs. This move is due in part to the rise in features and capabilities of the all-in-one platforms, or at least in the name-brand systems. In the past, there was a noticeable decrease in capabilities between a best-in-breed approach and an all-in-one system. Today, many vendors are owned by private equity firms who have pumped millions into the platforms. Also, with the advent of the “employee experience” movement, employers are simplifying the employee technical experience. Having one login/app to do all HR-related things is a good step in that direction.
I frequently get calls from members looking for an HRIS and LMS or a performance management/goal-setting application. Their first instinct is to look to a separate vendor. My first question to them is why they aren’t using that functionality included with their payroll system (assuming it’s a good name-brand system). Many times, this included functionality is more aligned with how the company will actually use the software versus a Cadilac version from a stand-alone technology that includes many bells and whistles that won’t be used.
As an aside, what do I mean by a “name brand system?” The HCM industry broadly contains three very different segments. There are payroll-only vendors at the low end, large enterprise systems at the high end (think Workday, SAP, UKG Pro, etc.), and then the large middle that includes solid all-in-one platforms (ADP, Paychex, Paylocity, Paycom, Paycor, UKG ready, etc.). Other than the payroll-only vendors, all of these platforms offer a similar all-in-one experience. Some are all on one platform, and others have built-in integrations, but they offer a similar “one login” experience.
The other frequent calls I get are from members who are frustrated with their current “name-brand” system and looking to change. I quickly attempt to talk them out of that decision. In fact, employers who move between these platforms typically find their overall experience doesn’t really change, or at best, they solve some problems and create new ones. In fact, many times, the original problem isn’t the technology. It’s either how it was implemented, the modules being used (or not used), or, frankly, the skill set of the users. Maximizing the current experience before taking the painful and risky leap to another platform is always my first choice.
If you are one of the employers who still uses a best-in-breed approach, you may want to consider an all-in-one system. I hear often from organizations using many systems the pain points they encounter, such as manual/duplicate input of data, lack of or inconsistently working integrations between systems, multiple logins/confusion for employees, inaccurate reporting, and unreliable support. The all-in-one’s have come a long way and deserve a look if you aren’t there. And again, your current payroll vendor may already offer an all-in-one solution.
The second technology area deserving HR’s attention is all the technologies we use at our organizations to improve productivity. I believe this area is one in which HR should play a more active role. I mean, it is “human” resources, right? At many organizations I see this entire area being the purview of the IT department. HR should be concerned that all employees are equipped with the latest time-saving/productivity-boosting technologies, particularly in light of the talent shortage and the move to hybrid/virtual. Fortunately, there is a wide range of tools that can assist employees in the areas of task management, time management, automation and AI tools, communication, project management, productivity, continuous learning, etc. Please see our recent technology webinar that goes into more detail on recommended apps and sites.
As an example, think about how much time is wasted by employees surfing through the myriad of office systems at your organization. There is a phone system, an intranet/social area, a file server, email, productivity apps like Word and Excel, etc. At Catapult, we recently went “all-in” with Office 365, and it now covers all of these areas, including our phone system. This move gave us a common platform and language to use and has made it much easier for our employees. In fact, Office 365 can be described as an all-in-one approach. I receive no royalties from Microsoft, and I realize there are limitations, but overall, our experience has been positive.
Our technology journey concludes with the technologies we use to literally change how work is done. The inescapable reality for most employers, given the growing talent shortage, is that we must find ways to get more work done with fewer people. This reality requires HR leaders to start a discussion at their organizations about how work is actually done. The what, when, how, who, and where of work. Where can we deploy automation? Where can we use AI to accomplish transactional work, freeing up our people to do more value-added activities? Where can we outsource non-core functions to outside vendors? Where can we allow virtual work to attract employees from around the globe? Where can we re-tool existing employees to prepare them for the jobs of the future? Such conversations will be challenging for leaders stuck in the status quo, but ultimately, if our organizations are going to survive, we must find creative answers to the future of work.
To wrap up, I believe this is a critical moment for HR to help their organizations navigate the future of work, how the actual work will transform, and how people and technology will combine to deliver it. A successful, technology-enabled future requires we maximize not just the HCM or “HR” technologies but also help our employees become more productive and actually rethink how the work is done. HR should lead the way!
Think about it, and as always, if we can assist you on your technology journey, please call us at (866) 440-0302.
