HR Tech Planning: Connecting HR Tools to Critical Outcomes

November 26th, 2024 – By eff Reid, COO & CPO of SkillCycle

Budgeting season can be full of tough choices, especially when evaluating how to streamline and optimize your HR tools. What’s at stake? Balancing innovation with efficiency and figuring out what tools to keep, cut, or add to your HR tech stack. 

These decisions are worth careful consideration. According to Gartner, bringing humans and technology together creates strategic business value. Improving HR’s approach to technology with better adoption can increase the business value of that tech by up to 54%, compared to a focus on capacity-building, which only delivers an increase of 28%. 

With a thoughtful plan, you can communicate potential risks and return on investment to the satisfaction of all stakeholders and manage change effectively through any transitions.

To better understand how to evaluate and streamline your HR tech stack, let’s explore:

  • Common obstacles that slow HR tech changes
  • How to evaluate current and potential HR tools 
  • 3 tips for developing and implementing a streamlined tech strategy
  • How to introduce new HR tools without disrupting workflows
  • Incorporating AI and HR automation into your technology strategy

 

Common obstacles that slow HR tech changes

One of the biggest challenges when evaluating or changing HR tools is overcoming inertia. It’s not necessarily that anyone disagrees that HR should use online tools, but instead, your team may feel paralyzed by the complexity of moving away from ingrained systems. 

This struggle can stem from workflows heavily reliant on legacy tools or having a large amount of historical data stored in the current system. Identifying which data you need to enable critical outcomes is critical to reducing unnecessary migration efforts.

Managing the transition without disrupting operations can also be problemartic. An immediate switch from one system to another is rarely feasible. Instead, organizations should take a longer-term view, budgeting for overlapping systems or pilot programs to ensure a smooth transition. 

Sometimes, there’s a significant gap between what leadership and employees are experiencing, indicating a need for practical roadmaps for implementation. For example, according to Gallup, 93% of Fortune 500 CHROs say their organization has begun using AI tools and technologies, yet only 33% of employees say this integration is happening. 

Uncertainty can also be a significant hurdle. Decision-makers may see the potential benefits of streamlining the tech stack but worry about the unknowns. Addressing these uncertainties with clear plans, gradual implementation, and internal communication is essential for success.

 

How to evaluate current and potential HR tools

When assessing HR tools, start with usage. A tool that isn’t used is a logical candidate for elimination. However, deeper evaluation is necessary, so talk to your team about why it’s not being used. A tool may not support essential outcomes, or it may not support key processes effectively. 

Consider the purpose of any tool or technology in HR. For compliance or workflow management, you’ll want to ask whether the tool is still essential to your operations. For performance management systems, ask whether they capture the correct data and enable meaningful feedback that drives improvement. 

Employee development tools should demonstrate measurable growth in skills, competencies, and alignment with company values. These metrics could include self-assessments, manager evaluations, or changes in engagement data.

Finally, weigh switching costs against potential benefits. Transitioning to new systems can be disruptive and costly, so look at the longer-term horizon. Ensure that any new tool aligns with your organization’s goals, supports smooth adoption, and avoids the pitfalls of low engagement or misalignment.

 

3 tips for developing and implementing a streamlined tech strategy

To secure executive buy-in, HR leaders should focus on three key areas: outcomes, planning, and collaboration.

1) Lead with outcomes

Clearly articulate the expected gains from the tech strategy to show that HR should use online tools that contribute to larger objectives. Highlight productivity improvements, time savings, and enhanced performance outcomes tied to organizational priorities. Where possible, quantify financial impacts.


2) Showcase thoughtful planning

Address potential concerns by outlining a well-structured adoption and rollout plan. Demonstrate that you’ve considered transition challenges, including disruption risks and strategies to mitigate them. Use pilot program results, employee feedback, or data on system usage to strengthen your case. 


3) Build cross-functional support 

Collaborate with other leaders and early adopters to advocate for the strategy. This adds credibility to your proposal and ensures it reflects broader organizational needs, making it easier to secure consensus.

You can confidently gain executive support for technology strategy by framing it as a carefully planned initiative with measurable outcomes.

 

How to introduce new HR tools without disrupting workflows

Introducing new tools requires careful planning to minimize disruption. Start by piloting the system with a smaller department or group. This approach helps uncover unforeseen issues and allows early adopters to shape the broader rollout as internal advocates. Their feedback can refine the process and build confidence across the organization.

If using both systems isn’t practical, try taking iterative steps. Begin with a phased introduction of key features aligned with your current performance cycle or priorities. Gradually expand functionality, ensuring teams have the support and training they need at each stage.

Finally, manage expectations about timelines. A successful rollout doesn’t happen overnight. It takes time to integrate new tools while maintaining existing workflows. 

 

Incorporating AI and HR automation into your technology strategy

Incorporating AI and automation successfully hinges on clear communication and thoughtful change management. First, ensure the rationale for using these tools is evident. AI should primarily save time by handling mundane tasks and freeing employees for higher-level, creative work. 

For tools that use AI for decision-making, rigorously test for bias and accuracy to ensure they enhance, rather than threaten, team dynamics and decision-making processes.

It’s also important to address employee concerns. Many still view AI with apprehension, worrying it might replace their roles or reduce team sizes. Leaders must emphasize that these tools are designed to support their work rather than replace it. Try to frame technology in HR as a resource that enhances productivity and decision-making while reinforcing the value of human insight.

A clear plan for onboarding and integration should accompany the rollout of AI tools. Provide training and open channels for feedback to help employees feel confident in using the new systems and understand their role in improving outcomes. Optimizing your HR tools for the best outcomes can have a sustainable impact on your organization. We can help. Schedule a demo to learn more.

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