With budget season approaching, organizations are assessing their overall financial and operational performance, and asking questions like – Where can we cut costs? Drive efficiencies? Make smarter investments?
For the last two years, technology was ranked as the top investment priority among HR leaders, according to an annual survey by Gartner. HR tech includes software and services that help manage payroll, recruitment, benefits, training, employee engagement, remote workers, and more. In the past, companies could get away with updating their HR tech every few years, but post-pandemic, HR technology is essential to how businesses engage with their remote and hybrid workforce.
If you’re among the businesses trying to deploy new HR tech programs next year, it’s important to start planning early. The actual amount of time the HR tech buying process takes depends on an organization's size, industry, and specific needs, but it typically involves the following steps leading up to, during, and after deployment.
Step 1: Identify HR Needs
The first step is to identify an organization’s HR needs and challenges. Determine if there are any gaps in areas such as recruitment, employee training and development, performance management, payroll, benefits administration, employee engagement, and HR analytics. Collaborate with managers to understand their specific workforce needs and benchmark against competitors to see where you might be falling behind.
Step 2: Research Solutions
Based on the needs identified, start researching products and services that can help remedy pain points and bolster your HR initiatives. To do this, gather information from vendors, online resources, and even industry publications to find out which solutions might work best for your company. If you know any HR professionals, ask them about the tools they’re using and how they might tackle certain issues.
A shortlist of potential vendors will eventually emerge that offer solutions matching your requirements. When evaluating which ones to contact, look into their track record, customer reviews, pricing, and the quality of their solution.
Step 3: Proposals & Demos
Step three, it’s time to narrow down that shortlist even further. For more complex and substantial HR purchases, organizations may issue a Request for Proposal (RFP) to select vendors which will outline their pricing, implementation plans, and other relevant information. Depending on the type of HR solution, HR professionals might request product demonstrations or trials from the vendors to assess how well the solution meets their needs and integrates with their existing systems.
After evaluating all the options, HR professionals will negotiate with the selected vendor to agree on terms, pricing, and any customization or implementation details.
Note, make sure you have signed off from the right stakeholders and understand your budget before starting on step four.
Step 4: Purchase & Implement
Once the purchase is made, the HR team works with the vendor to implement the solution and integrate it into the existing HR infrastructure. The chosen solution might be customized to match existing processes, or if implementing a new platform, data securely migrated to ensure records are preserved.
Before full implementation, your team may want to first conduct a pilot test with a select group of users to identify any potential issues and make necessary adjustments. After the pilot test, HR staff and other relevant employees will need training to ensure smooth adoption.
Step 5: Post-Implementation Evaluation & Support
After the program’s full rollout, the HR team should evaluate the new solution’s effectiveness by analyzing its impact on HR operations, employee experience, and overall organizational performance. The vendor will often continue the relationship after implementation as the HR team may require ongoing support, updates, or additional services.
It's important to remember that the HR buying process is not a one-size-fits-all approach and can be adapted to the organization's unique requirements. Additionally, HR professionals often collaborate with other departments, such as IT and finance, during the buying process to ensure seamless alignment with the overall organizational strategy.
Ready to start the HR tech buying process? Contact NBBS today!