Why is making a technology decision such an overwhelming task? With so many available options and ever-changing technology, the pressure of making the right choice can seem impossible.

There are several questions to be asked and decisions to be made before even beginning to vet out a new solution for your organization. For example: Who should be involved in the decision? What are the important features to look for? How do you know you’re making the right decision? How can you ensure implementation is successful?

Here are five steps that will help guide you in your decision on HR technology:

  1. Needs. What’s the primary reason for change? Is the organization ready to embrace change? Be sure to review what’s in place and identify needs based on the various departments that will be using the new tech. Will the end user utilize the implemented solutions? Will the organization’s leaders back this project? Document what’s working well today and what’s needed in something new before beginning to review solutions. This will help you remain focused on your needs as vendors present what their solution offers.
  2. Implementation. Are the right resources available for this project? The implementation of a total Human Capital Management (HCM) solution is a time-consuming project. Implementation alone can sometimes feel like a full-time job. There are even organizations that offer third party project management services because a company internally may not have enough resources to handle it. Require the vendor offer a detailed project plan that outlines critical dates, roles, and responsibilities of the various implementation phases.
  3. Compliance. This is an often an overlooked area when deciding on technology solutions. There’s potential for risk if not carefully reviewed. Adapting new technologies too early could have potential compliance risks. For example, some ACA reporting vendors proposed a single tracking and reporting solution without any variance based on the individual client. Upon further review, our compliance team determined some vendors were using incorrect measurement methods that would have put the client at risk. Know the rules and compliance risks before making a final decision.
  4. Data Security. It’s important to avoid risk and protect yourself by asking hard-hitting questions around security measures. Ask your vendor prospect what steps they take to protect the client’s data. The vendor must have a large number of resources and an overall focus on protecting clients. What are the information security strategies? Does the vendor have measures in place to monitor who’s accessing the data (not only external contractors, but even the vendor’s internal employees)? Is your data being backed up? What type of education and training are the vendor’s employees receiving on this matter? Ask what the vendor’s top executives identify as a priority for their organization – data security should be at the top of that list.
  5. Final Steps. Setting the right expectations will help your team fully understand the scope of the project before getting started. Research the vendor, not only by reaching out to provided references, but by asking around and doing your own research. In today’s world, we have access to so much information, take advantage of it before finalizing your selection.

For more information on navigating HR technology decisions, contact an MMA advisor today.

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