This useful article by Phil Albinus in HR Executive provides the following insights:
“HR technology solutions often promise the moon, but the reality is that many HR tech projects are likely to crash to Earth. The numbers don’t lie: An estimated 42% of HR tech projects fail after two years, according to industry experts.”
He reports what Steve Brink, President and CEO of digital rewards solution provider uFlexReward, told his audience on why platforms fail and how to avoid the problems.
- The overall digitization strategy often lacks a comprehensive or holistic view of the problems to be addressed, meaning the process can become reactive instead of forward-thinking.
“A goal without a plan is just a dream,” he says.
- The vendors demonstrating the HR technology highlight what makes their solution different from their competitors’ tech when they need to focus instead on the organization’s goals and expectations. “This leaves out the details that HR really needs,” says Brink. “We need a more detailed vendor process.”
- Tradeoffs are made during implementation after HR and IT discover what the vendor’s solution cannot accomplish. Although portions of the project can still succeed, Brink said that at this point HR and IT leaders need to focus on the project’s high-priority goals. “With the tradeoffs, you still want to reach your ultimate objective,” he says.
- Vendors may not be ready yet with their technology and competing priorities among HR and IT and the vendor could hurt on the project.
We at Jetruby have learned another key failure: the lack of focus on engaging the employees whose involvement is needed for the platform to succeed.