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Is it time to break up with your HR or payroll tech?

Discover when it's time to switch your HR software and how to find the perfect new tech stack.

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Jul 11, 2024
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Last updated on Jul 08, 2024

How do you know when it’s time to break up with your HRIS, payroll, or benefits administration software? And once you’re ready, how do you choose a new—better—HR tech stack?

Today’s HR teams have more responsibilities than ever before, so overhauling your tech can feel overwhelming. But with the right software on your side, you can streamline your operations, meet your most pressing compliance challenges, better leverage HR data and insights, and more. The bottom line: The right HR technology is a partner who can help your organization’s HR function thrive.

If you suspect you might need to break up with your HR tech stack—but you want to be sure—check out our four top reasons for switching HR software below. And if any of these ring true for your organization, read on to figure out how to find a better software solution that will make your HR team stronger, faster, and more strategic than ever.

4 reasons for switching your HR technology

Here are four indicators to look out for:

1. Your current solution isn’t natively built

Your HR team is responsible for a lot: payroll, benefits administration, recruiting, performance management, learning management, and more. Software can help streamline (and even automate) some of that work, but most HR platforms—even the ones that claim to be “all-in-one”—are made of siloed modules typically pieced together through acquisitions. The systems don’t work together, which means admins are stuck manually re-entering data across multiple parts of the tech stack, risking errors and wasting time. This also limits your capabilities like reporting on key HR metrics across the employee lifecycle.

Having multiple, disconnected systems has hidden costs—for example, if your payroll software doesn’t integrate with your time tracking solution, it won’t notify managers when employees get near their overtime thresholds, which can result in unexpected overtime costs. Your HR tech should work seamlessly—not create more headaches, slowdowns, and admin work for your team.

If this sounds familiar, switching providers might be in your future. A natively built platform that has all the key functions your HR team needs—built from the ground up to work together seamlessly—can solve these all too common problems. 

2. You’re having compliance issues

64% of HR leaders say they lack the time and resources to meet their most pressing compliance challenges, so they need software that helps them stay on top of local, state, and federal regulations.

When you have the wrong HR tech, you might:

  • Forget to create a new state tax account for an employee who moves to a new state (not to mention enrolling them in state-specific sexual harassment courses or enrolling them in new insurance).
  • Miss other important tax deadlines, leading to costly penalties or interest payments.
  • Receive alerts after employees hit their overtime threshold, resulting in higher than forecast overtime costs.
  • Inadvertently commit payroll or labor violations that your software fails to flag for you, which can result in costly fines for your organization.

A good partner sets boundaries—and doesn’t leave you hanging. If your HR platform fails to alert you to critical compliance deadlines or infractions, the penalties can be costly. Your tech should help you with one of your most important responsibilities: staying in compliance with local, state, and federal regulations. But more importantly, your tech stack should be able to automate compliance to help your team save time and give you peace of mind that you won’t miss any important deadlines or risk costly errors.

3. Your current solution isn’t user friendly

While many HR software solutions are built with admins in mind, they aren’t the only people in your org who actually use the software. And if your HR admins have ever had to log in to make simple settings changes or retrieve documents like paystubs or W-2s for employees because your current system won’t let them do it themselves, you know how important it is for your HR tech to be user friendly and empower everyone, from managers to employees, to self-serve.

Your HR tech should empower your employees with an intuitive system that allows them to self-serve—removing a huge burden from your HR team’s plate in the process. Look for self-service features like an employee app or dashboard so anyone can sign in to update their own employee information or access and manage their own benefits and retirement accounts. 

4. You need HR tech that invests in the relationship

The final indicator that you need a new HR tech stack? When your current solution’s customer support doesn’t meet your needs.

Maybe you discovered a payroll error, but it took too long—a day or more—to get a response from your payroll vendor to correct it. Or you find that when you contact support, you have to explain the problem you’re encountering more than once. The bottom line: Nobody wants to deal with time-consuming, frustrating customer service

When looking into new HR tech solutions, consider what options they offer for contacting their support team. Email? Phone? Live chat? A dedicated support team just for your business? How long are their response times? You can also see if they publish their support stats so you can directly compare different solutions against one another.

Change your HR tech stack for the last time

If any of the four reasons above resonated with you and your team, it might be time for new HR software.

Join us July 10 at 1pm ET for Breaking up with bad HR tech. 

In this workshop, we’ll break down the complex process of breaking up with the tech that is dragging you down—and build a plan and a business case to share with executives. At the end of the workshop, you’ll have a roadmap to onboard the HR or payroll tech of your dreams.

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