I need a new HR System!! Or do I?

In the office we get many calls from customers who are unhappy with their current HR system. “I’m looking for support with finding a new HR system” is a Phrase we often hear. Our job is to qualify that phrase – what is happening to make you think you need a new HR System?

There are many reasons why new technology is required:

  • Business Growth, acquisitions or TUPE
  • A Burning Platform – where the current vendor is no longer supporting the product
  • End of Contract terms
  • A requirement to shift to cloud or hosted models
  • Talent attraction

But there are also many reasons why moving to a HR System might not be the best option for you. There are lots of things to consider. When you purchased the product and it was shiny and new you went through a process and decided that this product was right for you – you were excited about all of the possibilities of what it could offer. Now, maybe years down the line you find it ‘clunky’ and it doesn’t do the critical things it needs to.

My question to you here is why? (And maybe ask that 5 times). Some ideas might include:

  • Did I invest resource into maintaining the system?
  • Do I have skills/capacity in house to maintain a system?
  • How have I managed data quality?
  • Is the system up to date with the latest releases and patches?
  • Have I ever reviewed the system since implementation?
  • Do I understand what has changed in the business since implementing the system?

“What we see so often is a lack of investment in a product, both in time and cash, a fleeting decision to move to a new system, an expensive implementation – only to end up in exactly the same place 2 years down the line.”


So – how do you make sure you don’t fall into that trap?

Firstly – consider benchmarking your current system – Phase 3 did a Webinar recently with CIPHR which you can watch here with all sorts of hints and tips on how to benchmark HR Technology.

We have also developed a Benchmarking Tool to help you determine if you need a new system – 30 simple questions to steer you on the right path

You may wish to use a system selection tool like Phase 3 Connect to review what products and functionality are available on the market.

Assess your internal capability for HR technology – are your team primed to support new and developing technology – our Competency Indicator can help you and your team to identify gaps.

Consider a Health Check of your current product – an independent eye can help you to determine whether there is a need to develop what you have rather than replace.

And finally, if you do decide to invest in new technology – review our 12 steps to HR Technology Project Success which talks you through step by step how to select, scope, design and implement HR and Payroll technology.

Phase 3 are committed to bridging the gap between people and the technology they use. If you would like support with your HR Technology reviews or projects please get in touch.