So, you know that your HR system is outdated and problematic—but you also know that selling upper management on new HR software is an uphill climb. After all, management doesn’t use the system like your people do, so they don’t see its failures and frustrations. At the same time, they do manage the budget—and are understandably reluctant to invest in new technology right now.
But here’s the thing. The HR tech space has advanced radically over the last few years. Typically, employers update their HR systems every seven or eight years. But if your system is anywhere near that old, you’re probably missing out on some powerful tools and innovations that would improve your operations across every level.
In order to win management over, you need to make a compelling business case—i.e., demonstrate that the benefits of new HR software outweigh the costs, not just for your HR department, but the company as a whole.
Of course, this requires some footwork on your end. You know your current system’s weaknesses, but it’s important to document them, define their cost to your organization, and research how other HR platforms overcome these problems.
This is all work you’ll need to do anyway when you start evaluating HR systems, so it’s a valuable baseline to establish. But before you get to that stage, you’ll need to get management’s buy-in. To that end, here are five near-universal talking points to help you make your case.
1. We Need to Boost Hiring and Retention Rates
If your company is like many employers, it’s struggling with a labor shortage—and your applicant tracking system isn’t getting the job done. An updated, fully mobile-optimized ATS will provide you with additional tools for not only reaching more candidates, but communicating with them on their terms and speeding internal hiring decisions.
In addition, through expanded analytics, you’ll be able to see where you’re finding your best new hires, as well as your retention rates for each worksite and manager. If you don’t have access to these kinds of tools and data, how can you build and maintain an effective workforce?
2. A New HR System Will Improve Employee Engagement
It’s well established: companies with more engaged employees are more financially successful. Unfortunately, no matter how many engagement initiatives you’ve undertaken, if your HR system is not user friendly for workers, it’s a liability.
Contemporary HR software is all about the user experience, for every level of employees. For workers, that translates to an easy-to-use self-service portal and a welcoming online onboarding process that will engage and motivate your new hires.
3. How Can We Plan without Solid Analytics?
Securing quality analytical data ranks already high on many employers’ wish lists—and unless you already have a fabulous system in place, this is one point that should immediately resonate with your management.
The best HR systems offer built-in reporting and analytics capabilities that offer C-level management a wealth of knowledge: revealing workforce trends, predicting manpower needs, breaking down labor costs by client or worksite. Play to your CFO—he or she may likely be the first to get on board.
4. Great Workforce Management Software Will Save us Money!
If you manage an hourly workforce, you’re probably spending more on labor than you should be. An HR system with a strong workforce management component will provide an arsenal of cost-cutting safeguards—from more-effectively deterring time theft to alerting managers when unplanned overtime is about to occur.
In addition, it will make it easy for managers to build cost-effective schedules—and of course, workforce management analytics will allow management to see exactly how and where your labor budget is spent. (Need proof? EPAY’s workforce management system cuts labor costs by up to 5% or more—see how we saved one employer $4.75 million in one year!).
5. We Need Help Improving Labor Compliance
Under the Biden administration, the Department of Labor is cracking down on wage and hour noncompliance, tightening rules and ramping up enforcement. In addition, civil wage and hour litigation is on the rise, with class-action lawsuits at an all-time high.
Undoubtedly, your management worries about compliance risk. At the same time, it may not realize just how powerful HR software can be when it comes to maintaining compliance. For example, it can ensure that payroll is calculated correctly—no matter how many state and local jurisdictions you operate in. And, when your software includes a comprehensive learning management system, it makes it easy to keep your workforce current on mandated training, whether OSHA safety courses or sexual-harassment training.
The long and short of it is, HR systems are no longer just about serving the HR department—and this is what management needs to know. Great HR software helps employers manage more effectively, solve their greatest workforce challenges, and position the company for future success.
For more specifics on what to expect from—and look for—in state-of-the-art HR software, download our HCM Buyer’s Guide