Would you have known?
HR software projects that get out of hand are known as ‘black swans’; an established term in IT!
The graphic summarises the current dangers in an impressive way:
Author: Christina Haury


Who is to blame for the disaster?
What can we do in HR to protect ourselves from such dangers?
Table of contents
- Hidden costs
- Help – complexity!
- Dependency and no way out?
- Special locks cost money!
- Processes – stumbling block no. 1!
- Internal advertising
- Digital without a strategy?
- How to recognise an honest provider
- Summary
HR software often promises to be the solution to all HR problems. But there are a few aspects that are often concealed when making a purchase! In this newsletter, we highlight the hidden aspects and challenges that HR software providers rarely address.
1. Hidden costs
Definition:
Hidden costs are expenses that are not immediately apparent, but are incurred during the course of implementing and using HR software.
Purpose and importance:
Knowing these costs is critical to realistically estimate the actual budget. Hidden costs can significantly increase the total cost of ownership and jeopardise the return on investment.
Examples:
– Implementation costs: Many providers do not mention that implementation often requires external consultants and additional time resources and that this incurs additional costs of at least 30 %; these are rarely estimated in budgets.
– Training: Employees need to be trained in the use of the new software, which incurs additional costs. This does not just mean HR employees, but all employees, as the introduction of software is often accompanied by other processes (think of self-service).
– Customisations and updates: Software must be regularly updated and adapted to specific company requirements, which entails additional costs.
2. Complexity of integration
Definition:
Integration refers to the ability of new HR software to work seamlessly with existing systems and processes.
Purpose and importance:
Seamless integration is critical to avoid disrupting data flow and operations. Failure to do so can result in significant operational disruptions and data inconsistencies.
Examples:
– Data migration: Transferring existing data to the new system can be complex and error-prone. It is often perceived as quite simple, as the interfaces appear to be the same to laypeople. The trick is in the details, e.g. in fields that are programmed differently. Imagine a blueprint on which individual letters are simply missing. This means that data migration is no longer so easy and requires intermediate steps.
– Interface problems: Not all HR software solutions are compatible with other systems used in the company, which leads to inefficient workflows. Unfortunately, you often only realise this in day-to-day use because you were unable to test this setting as part of a demo.
– User acceptance: The introduction of new systems can meet with resistance from employees, especially if they are not user-friendly. Accompanying the change process at an early stage helps to break down barriers.
3. Dependence on suppliers
Definition:
Vendor dependency means that a company relies heavily on the services and support of the software vendor.
Purpose and importance:
High dependency can lead to problems if the vendor does not provide the expected support or changes its terms and conditions.
Examples:
– Support and maintenance: Many vendors offer limited free support, and additional support can be expensive. Unfortunately, you only realise this after implementation!
– Contract commitment: Long contract periods can force the company into a dependency on one provider, even if they no longer offer the best solution.
– Data access: When changing providers, it can be difficult and expensive to migrate all data completely and securely.
4. Costs of customised programming
Definition:
Custom programming refers to bespoke customisation of HR software to meet specific business requirements.
Purpose and importance:
Although customisations may be necessary to perfectly match the software to the company’s needs, they can significantly increase costs, especially when updates are due, because then special programming is often the result – and these costs are often not included in the calculation!
Examples:
– High initial costs: The development of customised functions can be expensive, as it often requires specific technical expertise.
– Update costs: Every change to the standard software must be taken into account for updates, which entails additional costs and complexity.
– Dependence on developers: Customisation often requires long-term collaboration with developers or service providers, which limits flexibility and increases costs.
5. Necessity of process mapping before implementation
Definition:
Process mapping comprises the detailed analysis and documentation of existing HR processes before new software is implemented.
Purpose and importance:
An accurate understanding of current processes is crucial to ensure that the new software supports them optimally and that no essential aspects are overlooked. It also helps to gain an overview and understanding of local, regional and global HR processes. Rarely does this understanding coincide and so a well-managed change is required.
Process mapping and optimisation:
– Process discovery: Systematic, non-judgemental survey and analysis of existing processes to identify workflows, participants, resources used and potential inefficiencies.
– Process mapping: Simple, graphical representation of processes to create a general understanding and identify bottlenecks and potential for improvement.
– Process modelling: Creation of a detailed model for the optimisation, digitalisation and automation of processes.
6. Early involvement of the HR base and stakeholders
Definition:
The involvement of the HR base and relevant stakeholders in the selection and implementation process of new HR software.
Purpose and importance:
Early involvement promotes acceptance of the new software, reduces resistance and lowers the cost of change management.
Examples:
– Workshops and interviews: Regular workshops and interviews with the HR base and stakeholders to gather their requirements and concerns BEFORE the purchase – even if this is decided top-down it is important to get the HR base on board bottom-up!
– Pilot phases: Test phases with a small user group to gather feedback and increase adoption and train ambassadors.
– Communication and training: Transparent communication about the implementation process and comprehensive training on how to use the new software.
7. Development of a digitalisation strategy
Definition:
A digitalisation strategy comprises the planning and implementation of digital technologies to improve business processes and achieve corporate goals.
Purpose and importance:
A clearly defined digitalisation strategy helps to drive digitalisation forward in a targeted and efficient manner, make optimum use of resources and secure long-term competitive advantages. It is also important to integrate HR digitalisation into the corporate context.
Examples:
– Goal definition: Defining the specific goals of digitalisation, such as increasing efficiency, reducing costs or improving employee satisfaction.
– Resource planning: Identification of the necessary resources, including budget, personnel and technology.
– Roadmap: Creation of a detailed plan with milestones and timeframes for the implementation of digitalisation projects.

8. The Gretchen question:
Who needs to take care of these issues? HR? The provider? IT? Answering this question is crucial to the success of the HR software implementation and the long-term benefits of the new solution.
Don’t just compare the functions and features of the software, but also pay attention to who will communicate openly with you about these issues and provide additional support throughout the process.
9. Summary:
While HR software offers many benefits, companies should also consider the hidden costs, integration complexity, potential vendor dependency, the need for process mapping prior to implementation, early engagement with the HR base and stakeholders, the development of a digitalisation strategy and the cost of custom programming. Careful planning and realistic budgeting are key to overcoming these challenges.
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If you would like to know how you can easily carry out this process independently and digitally, we would be happy to show you our software solution, TraSy
Haury Solutions GmbH
July 2024