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Choosing HR tech: 4 must-haves that drive ROI

New HR technology, apps and platforms pop up every day – one with even more bells and whistles than the other. Options galore, making it a daunting task to choose just the right HR tech for your business. Before paying big bucks on a tech stack that won’t stick, look out for these 4 must-haves and invest wisely in HR tech.

    It's not the right time for HR tech investments – or is it?

    Volatile markets, raw-material shortages, rising prices and crises of all sorts breathing down our necks … The current business environment is faced with unprecedented challenges. As a result, the timing might feel off to start doubling down on human resources technology right now. You have bigger fish to fry – maybe even running a tight ship just to stay afloat. Right?

    At the same time, the war for talent is still raging ferociously. Supercharging your recruitment efforts, upgrading your applicant flow, getting your payroll & reward systems in check, cultivating learning & development opportunities … Those are vital steps not only to attract new employees, but also to keep the talent you already have.

    In fact, streamlining business processes and grasping opportunities to gain efficiency, quality and productivity should be on top of your priority list, now more than ever. This also – or especially – rings true for your HR cycle. After all, what’s your most valuable asset? It’s still your workforce.

      3 reasons why investing in HR tech is always a good call

      • Continuity

      HR keeps your company running. Essential processes like core HR, payroll and workforce management are indispensable, always.

      • Resilience

      Among other perks, HR tech helps improve operations and collaborations, make data-driven decisions and cut costs. In doing so, it supports your company in navigating a crisis or economic slowdown better.

      • Long-term goals

      If you want to accomplish big things, attracting and retaining the right people with the right talent and motivation might get you there more easily.

        Must-haves of modern HR technology

        1. From end-to-end to means-to-an-end

        Once upon a time, automating business processes was an extravaganza for big-shot companies only. The costs for the required software and hardware were sky high, not to mention the time and effort involved in its implementation. Especially for ERP or HCM systems that managed just about every business process in the book.

        Then, along came the cloud and with it cloud applications, significantly reducing costs, adoption time and usability – lowering the threshold for other companies to jump on the bandwagon of business automation. Were and still are right behind them: savvy start-ups and smaller tech vendors offering a plethora of solutions that manage benefits, learning, performance tracking, applicant assessment and much more.

        Most of them only handle a small piece of the HR puzzle, so you’re probably adding all sorts of applications to your tech stack to fill in the gaps. 

          3 things to keep in mind to build an effective HR Tech Stack

          • Harmonised user experience

          If half of your employees have trouble using your new HR technology and are constantly switching between multiple apps, it harms their productivity and efficiency. Therefore, make sure the tech you choose provides uniform user experiences – this also reduces adoption time.

          • Flawless integration

          Possibly even more important, is that all apps in your HR tech stack should be able to communicate with each other easily. This prevents data silos and manual data inputting and enhances overall usability and visibility.

          • Data exchange

          Being able to automatically combine data from different apps to set up insightful reports is an indispensable time-saver. It’ll be much easier to flag bottlenecks, identify new opportunities and stay on top of your HR activities.

            2. The ability to take on your changing workforce

            When choosing new HR technology, prioritise perfecting payroll & reward, core HR and workforce management processes. In doing so, pay attention to the capabilities to manage the current and future composition of your workforce. With full-time and part-time employees, freelance and remote workers, the workforce has never been as diverse as it is today.

              Your HR technology should be able to handle all employees and contractors smoothly, while taking into account their specific compliance requirements and payment agreements, for instance.

                Next to that, investing in talent management add-ons or apps will prove its worth in sustainably developing your employees’ skills and responding to the fast-changing knowhow needed to thrive in the modern digital society. Leveraging learning & development to upskill or reskill your most prized assets – your talented and loyal employees – boosts retention, confidence and job satisfaction.

                  3. Employees in the driver’s seat

                  While HR professionals once controlled the entire HR cycle, new applications are moving more and more of the responsibility towards the workers themselves. With employee self-service tasks – such as requesting leave, scheduling and attending trainings, or submitting expenses – data accuracy and efficiency increases, while removing much of the administrative burden from your HR staff’s plate.

                    Take the mysdworx app, for example. Gathering all HR functionalities in one place, the user-friendly web and mobile app takes the hassle out of everyday HR processes. With self-service tasks easily accessible and at your HR professionals’, team leads’ and employees’ fingertips, the app simplifies your HR administration and boosts your digital employee experience.

                      Next to these highly useful new functionalities, there’s also a strong surge of fancy employee-focused applications boasting disruptive tech such as AI, robotics and blockchain. The talent intelligence area in particular is white-hot at the moment. You may already have heard of apps defining the future skills your company will need through AI, or bots looking for job candidates on LinkedIn.

                      Although the promised ground-breaking features certainly sound appealing, these types of advanced tech are mostly still in their early development stages, especially when it comes to HR. So, be sure there’s a clear added value for your company, before jumping on any of these hyped-up trends. If you, your HR manager and staff aren’t the most tech-savvy people on the block, you might risk overloading them with technical complexities and confusion, rather than freeing up some precious time.

                        Philippe Tassent
                        Don’t let fancy features, buzzwords or hyped-up disruptive tech trends seduce you. First, master your basic digital HR transformation and wait until advanced HR tech has proven results.
                        Philippe Tassent
                        Philippe Tassent, Portfolio Director, SD Worx

                        4. Tackling rising complexity of legislation

                        Several events are putting a strain on Europe’s geopolitical context: whether it’s the war in Ukraine, the aftermath of COVID or the ongoing energy crisis. In their attempts to face these taxing situations, governments are imposing new regulations on the fly, such as subsidy programmes and unemployment schemes. All of these can potentially affect your HR processes.

                        This means that your HR systems – especially the ones regarding payroll and VAT declarations – should be easily adaptable to meet changing legislation. Not only for your prime business location, but for all countries where your company is active.

                          Check and double-check whether changes can be implemented effortlessly in the HR tech you’re going for, to handle evolving legislation in every one of your business locations. This also applies to GDPR and other country-specific compliance requirements.

                            Looking for HR technology that meets and beats your expectations?

                              Discover how SD Worx can help you
                              Philippe Tassent

                              Philippe Tassent

                              Portfolio Director