By Dwaine Maltais, Executive Vice President, Technomedia-Hodes iQ
New Situations in the workplace, like changing workforce dynamics increased mobility and the rise in contingent labor, have caused many organizatios to evaluate talent management technologies to see if they can keep pace. Due to current economic conditions, HR teams also are under increasing pressure to make sure their systems are worth the investment. As a result of this scrutiny, many organizations are finding that their talent management systems simply aren't providing their intended benefits.
Who’s to Blame?
There are several reasons why a talent management system may be underperforming, but most commonly, companies don’t get the initial configuration right. Despite many vendors’ claims that their solutions are easy to configure, this isn’t often the case. While the technology itself may be easy to install, full implementation requires much effort and coordination to design the associated strategic processes, customized reports and dashboards. This is not a simple process.
Organizations expect their technology solution providers to work with them to not only implement the solution, but also develop a strategy for using it. When problems arise due to a lack of configurability, it may initially appear to be a shortcoming of the technology. All too often, though, it is more likely due to a lack of expertise on the vendor’s part.
The right vendor should provide both technological expertise and customer service, working with the client to implement the solution and provide ongoing support. Problems surface when this type of arrangement isn’t in place. However, since many HR leaders aren’t experts in technology, they can’t be blamed for not understanding how to use a solution to its full potential. But a lack of understanding about the solution’s capabilities can create more inefficiencies as companies rely on additional applications to fill in the perceived shortcomings that could be prevented by working with a more client-focused vendor.
Organizations that don’t fully use their talent management solution are at a disadvantage, as they don’t receive the crucial insight into business intelligence that HR needs. And, without the key analytics that a talent management solution should provide, it is difficult to substantiate ROI measures.
Five Steps for Making the Switch
Whatever may be the cause of the dissatisfaction with the current talent management solution, a company with an underperforming system in place is missing out on the key workforce analytics they need in order to hire and retain the right employees. But before jumping to a new provider, it is worth the time and effort to perform due diligence and consider the following steps.
Assess current gaps to document requirements and goals
In order to find a better talent management solution, it is crucial to conduct a process audit to document the gaps caused by the current system. Leveraging feedback from all stakeholders, including recruiters, hiring managers and the executive team, will help determine the requirements of the new system and the goals expected to be obtained by making the switch. It is also important to document what is working well with the current system, so such processes aren’t left behind when a new system is implemented.
Exhaust all options with your current provider
After clearly documenting the list of gaps with the current talent management solution, it is a good idea to present these to the provider. Since they will want to keep your business, see if they offer to do what they can to fix the problems and if they clearly demonstrate how they will meet the new requirements. The provider should essentially align with your defined goals and put in writing how and when they will be able to make the necessary changes. Still, don’t commit to staying with the current vendor until all options are considered.
Look for a partner, not a provider
When considering new options, it is helpful to view the solutions provider as a partner with which HR can develop an ongoing relationship. As in the previous step, you’ll want to present potential providers with the list of goals and requirements. A true partner will commit to key performance goals in writing and set clear timetables for how these goals will be met. Additionally, a partner should be willing to agree to penalties for not meeting specific performance goals reflected in any service contract.
Negotiate set-up costs to minimize financial impact
Economic pressures have left many HR organizations with little or no reserves for the upfront investment of capital often required to switch to a new talent management solution. Thus, consider a provider that will spread some of the set-up costs over part of the lifecycle of the contract. It should raise a red flag if a provider is unwilling to help you transition with as little financial disruption as possible. Furthermore, you’ll want to review the contract with your current provider to be aware of any costs associated with contract termination and data transition.
Prepare to make your case to the executive team
After narrowing down the search to one or more potential providers, it will be time to make the case to the executive team about why the change is needed. It is crucial to outline the deficiencies of the current talent management system, the impact they have had on business processes and the steps taken to resolve them. This discussion should be open and honest, highlighting the benefits of implementing the new system.
The longer a company keeps its underperforming talent management system the more likely it is to see an underperforming workforce. Though switching to a new system may be difficult at a time when organizations are looking for areas to cut their spending, investing in a new solution that provides vital insight into the workforce can end up paying for itself in due time. Without a robust talent management system, companies won’t receive the insight necessary to improve employee performance and hire and retain the top talent needed to succeed.
