Relax, take a deep breath and keep your eye OFF the bright shiny ball.
This idea is one of the best — and most frequent — pieces of advice Gallagher's HR Technology consultants offer employer clients. More than one HR team has found themselves hypnotized by the bright, shiny technology available to support organizational strategy and wellbeing, including employee experience, automation of administrative tasks, and regulatory compliance.
Most basic technology isn't particularly interesting. Functional? Yes. Efficient? Yes. Cool and exciting? No. So, it's easy to understand the allure of attention-grabbing features included with new solutions. Generative AI has elevated the "cool" aspect of many HR solutions but increased the risks. Many of these flashy elements are very helpful and deliver significant value — if you need them.
And there's the rub. Frequently, employers find themselves charmed into potentially costly purchase decisions based on how the software looks or performs, not on the problems it solves.
When you fall for the bright shiny ball, likely you'll get functions you don't want or need. You may not be able to strip these out, so you end up paying for technology you don't use.
Purchasing technology because of its eye-catching features stems from thinking of technology as a "what" instead of a "how." Following is an abridged version of the advice Gallagher's HR Technology consultants offer employers interested in purchasing technology.
Technology is a "how," not a "what"
First, define the "what" (problem or opportunity) you're trying to address before looking for the "how" (technology). Take the example of time-tracking software. What's your goal? Perhaps you're trying to determine what is cheaper: automate time tracking while complying with regulatory reporting, hiring another person or continuing to pay overtime. Or maybe you want to understand worker productivity and to what extent employees spend time on activities supporting business goals.
These are very specific and different objectives. While tools exist to accomplish each, without first defining your needs, you may wind up making a purchase decision based on far less strategic criteria — including attraction to a bright, shiny ball.
Defining your "what"
Sometimes, the "what" gets defined for you — for instance, a new state or federal law regarding time reporting. More often, however, the "what" will require critical thinking about the challenges you're trying to solve in your business.
Your employees are your most important asset; but don't approach this exercise as solving for HR challenges. Think about the organization's objectives and the CEO's agenda. Employees figure largely in any strategy to deliver on that agenda.
Following is a list of core workforce management areas and examples of a related "what." These "whats" may not be your "whats." Still, they should spark thinking about your organization's strategic objectives and how HR technology — the "how" — can support them.
- Talent acquisition: Hire faster or hire better. Meet diversity, equity and inclusion goals. Avoid discrimination traps.
- Onboarding: Shape new hires' experience during the first three months of employment to increase the rate of retention.
- Core HR: Monitor compliance reporting such as EEO-1, visa expiration or Americans with Disabilities Act.
- Performance: Change the performance management process from an annual review to continuous feedback.
- Succession planning: Identify future positions and a create a pipeline of qualified people.
- Compensation: Understand whether you have a pay equity problem.
- Benefits administration: Offer plans that meet the needs of your workforce profile and provide decision-support tools that help employees make smart choices.
- Learning: Determine the need for re-training or upskilling associated with increased automation.
Getting to the "how"
Defining the "what" will lead you to the "how." The increasing sophistication of industry technology and ease of integration with existing or other new tools mean it's possible to identify technology solutions that address multiple "whats." Further, many of these solutions likely include bright, shiny balls, which you are now free to look at and enjoy.
Contact your Gallagher representative and ask how we can help you identify the best technology to fit your organizational objectives.
