Old Tech Vs New Tech – Why Legacy HR Software Hinders More Than It Helps

Mar 05, 2020

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You will have heard people discussing the “digitisation of HR” over the past few years. HR software is not a new phenomenon, many companies have been working with it for over 10 years and see their digital journey is one that is well advanced. However, given the huge strides in technology are you still working with old tech or keeping up to date with new tech? And if so, what’s the difference?

Many larger organisations bought into various forms of HR software in the early 2000s. Most started with Payroll systems, adding different programs to maintain employee records and ended up with an amalgamation of 4-5 different systems all operating independently, promising to save HR time and money. Many of these options were highly customised, complex and expensive to maintain.

Although these systems deliver an improvement over paper based processes, as time has progressed the constant need to update employee records across several systems and the investigation of numerous HR queries, have eaten into the time and cost savings that were once promised.

It is no wonder therefore, that when HR practitioners see adverts for new software that can change their working lives, their view is one of scepticism.

Digital disillusion is understandable, after all – you digitised HR years ago, you’re ahead of the curve right?…………Wrong!
With the evolution of cloud software, a more nimble, innovative approach to HR technology has been introduced to the market which takes HR digitisation to a whole new level. Artificial intelligence now uses your company data to intelligently and effortlessly automate rosters, mobile technology is empowering employees to maintain, update and control their own data and system integration is reducing administrative tasks as well as costly errors. In short, the digital landscape of today, is nothing like the digital journey we went on 20 years ago.


Why is this important?

As your business introduces more Gen Z and Millennials into the workforce their needs will exacerbate the issues caused by old technology and the resulting frustrations created will drive them to seek opportunities elsewhere. The increasing expectations of a younger generation in a digital age mean that organisations must strive to be relevant, using the latest technology to make them an attractive place to work.


Signs that you have outgrown your current HR Technology

The organisations who will win the race to hire the most dynamic, skilled workforce will be those who provide them with the best employee experience. This starts at recruitment (the assessment tools used and speed of the process) and continues throughout their career.

Research by Fosway has shown this poses a threat to many businesses, with 68% of HR leaders feeling their HR systems are not ready for the modern workforce.

All images copyright: Fosway Group


Issues caused by old technology are:

  • Limited functionality – Relying on spreadsheets or systems which require significant manual data entry and offer limited functionality. Teams are weighed down with manual administration instead of working on strategic initiatives to benefit the business.
  • Risk Management – Concerns about the security of employee data and difficulty generating reports to prove compliance with local legislation. Costly errors are unavoidable.
  • No Support – Current software tools are no longer supported by customer service or training. Only a few people in the business know exactly how all the systems work.
  • Lack of adaptability – Software cannot be adapted or tailored to support the business as it grows
  • Reporting – An accurate picture of the workforce cannot be quickly generated. Businesses have to pay £££’s and ask their HR software supplier to create the reports they need.

If your current HR software systems are creating any of the above issues, it’s time to make a change. If not, you run the risk of holding your business back as well as your own department. Today’s HR software solutions are agile, integrated and use AI to save time on administrative tasks, leaving you and your management team to focus on driving your organisation forward. Whilst making a change can be daunting, it is far less problematic than maintaining the status quo.

To update your software, speak to one of our experts and find out how CoreHR technology can transform your business.

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