As the role of Human Resources (HR) has shifted and transformed, with an increased focus on optimizing the workforce experience, HR technology has also transformed. We’ve seen the shift from transactional personnel systems of record to transformational data-rich platforms. Newer Human Capital Management (HCM) suites offer more to organizations than their predecessors, such as the ability to automate workflows, leverage artificial intelligence (AI), collect and share real-time data, and truly optimize workforce experience. Yet, driving adoption of HCM tools can be complex, as the learning curve is steepest around new ways of working, not the technology itself.
As you embark on your HR transformation journey, accompanied by the integration of HCM technology, here are some strategies to drive HCM adoption and, in turn, deliver on long-term value for your workforce and the organization. (To put these insights into action, check out the Driving Adoption of HCM Systems Checklist.)
One of the most powerful benefits of new HCM technology is access to data and trends that can equip HR and leaders to make more informed decisions about the workforce. Being able to articulate the value of this change to the organization and how it will impact their everyday jobs is imperative. With some HCM tools, leaders have real-time access to headcount, performance, tenure, compensation, diversity, and engagement, with the click of a dashboard. There is inherent power in HCM data and getting it right early in the process will exponentially accelerate HCM adoption.
Amber Battaglia, Sr. HR Operations Manager from PNC Financial Services, shares, “Give yourself enough time to understand and evaluate the data prior to and throughout the implementation. With data being a core and foundational component of a large transformation, rushing any exercise around this can create long-term irreversible issues with your business processes, integration work, and adoption.”
Invest time into assessing stakeholder groups and broad impacts, going beyond technology to also identify relational, capability, process, culture, and business impacts. HCM adoption is accelerated when people have a clear understanding of not just how to use the technology, but why, when, and who to work with as part of the process.
Adoption is also aligned with the desired employee experience and long-term business strategy. Often, the working relationship between HR, managers, and leaders might change as a result of an HCM integration. It’s important to know those impacts early and build clear communication, alignment, and learning tactics in your HCM adoption plan to address them.
Let’s face it, HCM integration is often the hardest for managers. Engaging stakeholders early in the process and clearly articulating the long-term value of the technology can directly impact the rate and speed of HCM adoption. To accomplish this, messaging needs to be directly oriented to value for each stakeholder group. For example, your managers might want to know what they will be asked to do and how this will help them manage their team. Similarly, leaders and executives might want to understand how data aggregates to key metrics around retention, diversity, engagement, and cost. HR business partners might want to know how they can help support their leaders in a more strategic way and how the technology can help them accomplish that. Messaging matters, and addressing the needs, wants, gains, and pains for each group will set you up for success.
Missy Paxton, Director, OCIO at Mylan, shares, “It’s important to remember that investment in technology is made with an intention to provide an outcome. All stakeholders, those consuming, implementing, and buying the solution need to understand that outcome and the part they play in achieving it. Think about your favorite sports team – the outcome is to win the game, and every player understands what they need to do to help their team win. Just like a sports team, every stakeholder group needs to see themselves as part of the team to make things happen. This effort isn’t easy. It takes alignment, practice, dedication, communication, and a clear vision of the goal. Whether it’s blocking and tackling or going for the goal line, when everyone is aligned to the outcome and how they contribute, it’s a winning formula!”
HCM technology training is often straightforward and building a bank of step-action resources for stakeholders to use in the moment is a standard best practice. That said, HCM often comes with significant changes in process and workflow that happen outside of the system. These changes might shift ownership of certain activities that have historically been owned by HR to Managers (e.g., creating a requisition, adjusting compensation, or separating employees). HR’s role often shifts to a consultative function and partner to managers, instead of performing tasks. It takes time and intentional effort, both communication and learning, to build these skills for true HCM adoption.
Maria Raymond, Global Leader of People Insights at PPG Industries shares, “Our global WD implementation included building a tier 0 learning tool, the PeoplePulse portal, which is enabled through ServiceNow technology. Our implementation team documented our core HR processes and created supporting knowledge articles and quick reference guides that clearly articulated the role of the HR Manager and the leader. In addition, we provided video tutorials and a comprehensive manager guide. And we continue to refine our approach! We recently conducted surveys and end-user focus groups to better understand how people are leveraging the portal. The result is a refreshed landing page and article updates to maximize our search results.”
Unlike ERP Go Live events, HCM adoption is a slower climb as system usage is based on moments of need, both short term (hiring, separating employees, etc.) and longer term (performance, talent review succession planning, etc.). Adoption needs to be managed and measured over a longer period (at least one calendar year) after Go Live, and the interventions to support should be designed accordingly. Instead of conducting heavier upfront “system training,” we see better results in increasing communication to drive awareness and understanding, followed up with tools, resources, and support for those moments of need and building muscle across the organization on how to find those resources when they are needed.
Susan Bonidie, Director of Learning & Development at Eaton, shares, “Communication and learning are on an experience continuum, and organizations need to choose the right intervention via the right channel at the right time to help stakeholders make the mental and technical leap to new ways of working. One size, one time does not fit all, and we need to design with that in mind.”
Taking the leap to upgrade your HCM technology is a strategic decision that will certainly enable your organization to optimize your workforce experience, achieve business outcomes and deliver long-term value. Having a clear vision for data, a laser focus on your stakeholders and their role in creating value, a strategy for building capability and the right tools and resources integrated into the flow of work will accelerate HCM adoption and the return on your capital investment. After all, the potential of every organization lies within its people.
Like these insights? Put them into action with the Driving Adoption of HCM Systems Checklist, or check out the following insights on:
Why People Readiness Matters for Systems Adoption
Driving Adoption of Agile Sprints
Driving Adoption of CRM Systems
Driving Adoption of Microsoft 365
People Readiness and ERP Implementations
If you’d like to connect with our team to learn more about driving HCM adoption through people, give us a call at 859-415-1000 or reach out through the form below.