The Reasons Why HR Tech Projects Fail [& What to Do About It?

Inspired by the Infrastructure Projects Report by KPMG and PMI, I firmly believe that HR technology needs to be viewed the same way we view physical infrastructure – as the backbone of not just HR but the entire organization, too.

When you start to view HR tech as an infrastructure, it also sets the stage right for us to understand why a lot of HR tech projects fail. And that, too, despite best efforts and intentions!

Often, the problem isn’t the HR technology itself but the time and cost overrun during the implementation.

Let me explain.

Why HR Tech Projects Fail?

Having worked in various capacities on the HR tech landscape over the years, I have identified three key problem areas that repeatedly hinder the successful implementation of HR tech projects.

1. Processes and Capabilities

In my experience, the implementation of HR tech projects hits its first roadblock when it comes to the availability of skilled staff who can understand and work with the latest technologies.?

In a lot of ways, this is understandable because HR hasn’t been a tech-heavy process for the longest time. But now that things have changed, the adoption of technology has become non-negotiable.?

Therefore, you will need to invest in a professionally trained workforce that can leverage technology to manage their routine tasks effectively and ensure that data analysis and interpretation are done accurately for faster strategic decision-making.

Unskilled HR personnel will eventually also mean inadequate technology usage. This can be due to resistance to change, cultural misalignment, or difficulty using complex HR technology, but not utilizing a piece of technology to its fullest capability can mean you’ll soon turn to another tool or system to solve the very same problems that your existing tech could have solved for you in the first place.

Another common issue that I usually encounter is ad-hoc planning!?

Ad-hoc planning can tip success in the wrong direction for large-scale HR tech projects. Lack of clear short-term and long-term milestones, the inability to respond quickly to feedback, and the failure to integrate a process for continuous learning and improvement often hinder success.

2. Culture and Mindset

The next potential problem area is the organizational culture and mindset.

It is appalling that businesses invest so much into HR tech but skip working on building the right mindset to adopt this technology. As a result, lack of clear ownership, delayed decision-making, a rigid focus on contractual agreements, and weak risk management become hurdles during project execution.

A limited sense of ownership during implementation can eventually lead to failure. It affects team members' engagement levels, leading to delays in decision-making and other inefficiencies. Without ownership, there are also risks of suboptimal technology utilization and, thus, decreased ROIs.?

Another aspect of culture and mindset is the ‘contractual’ party focus. This, in other words, means that the focus is primarily on meeting contractual obligations rather than emphasizing quality and innovativeness. How can this be a problem? Because contractual obligations may result in missed opportunities that are sure to add value beyond the scope of the initial chalked-out plan.?

Finally, I want to highlight weak risk management in HR tech projects, which can undermine stability and security and, therefore, the project's success.?

It is important to remember that HR systems contain sensitive information, and inadequate measures can lead to data breaches, compliance issues, unauthorized access, legal ramifications, and failures.

3. External Factors

Some things may be well beyond our control.

Delayed approvals from the senior leadership, IT, and Information Security teams – are a significant disadvantage in HR tech implementation. Without approvals, there could be delays in updates, disrupting HR operations. Delays invariably lead to increased costs, extended project timelines, and penalties. Not to forget, compliance risks related to labor laws, data protection, reduced trust, and loss of opportunities can worsen things.

Market factors like price escalation and economic factors can also hinder HR tech implementation and operations. While the former can directly impact HR tech costs, unfavorable market conditions can tighten organizations' budgets, forcing them to put HR tech initiatives on hold.?

How Can You Solve These Problems for Successful HR Tech Implementation?

There are many ways to look at these problems and solve them.?

But the crux of the matter lies in really understanding what your problem area is.

My suggestion would be to assess the specific challenges for your organization and explore solutions that meet these unique issues.?

If you need help, we are just one strategy call away.

However, on a more generic level, I have created this table of recommendations, which, to a great extent, can resolve many of the issues cost-effectively.

In Conclusion

Implementation is where a lot of HR tech projects fail.

This mostly has less to do with the features and capabilities of a tool but more with the process, culture, capabilities, and mindset within an organization.

No doubt, implementing HR tech is complex.?