To thrive in an ever-changing business environment, companies must remain agile and implement enterprisewide changes that impact people, processes, and products. In many cases, these transformations center on HR technology, as organizations seek to modernize systems, improve efficiency, and enhance the employee experience.
External factors, such as advancements in AI-driven recruitment tools, shifting compliance requirements, and evolving workforce expectations, often drive HR technology transformations. Likewise, internal factors — including growth ambitions, new service models, and the need to streamline HR operations — can also spark major system overhauls. These transitions come with obvious and often significant costs, making strategic change management essential to ensuring a return on investment.
When it comes to HR technology, change management means developing and applying strategies, structures, and procedures that not only facilitate technical implementation but also drive adoption and minimize disruption.
While HR transformations directly impact employees, much of a company’s budget for these initiatives often goes toward software and system integration rather than the people who will use them. Without a thoughtful approach to change management, even the most advanced HR technology can fail to deliver its intended benefits.
The Benefits of Well-Managed Change
Maximize return on investment: HR transformations demand significant investments in terms of time, money, and effort. Effective change management ensures that these investments yield substantial returns.
Enhancing employee engagement: Engaged employees are more likely to embrace change and actively contribute to organizational goals. When done right, change management increases employee involvement, fostering their sense of ownership in the transformation. This enhances overall engagement and commitment to the process.
The Risks of Overlooking Change Management
Increased resistance and fear among employees: Without change management, employees may resist new initiatives because they fear uncertainty and disrupted routines or have concerns about job security.
Operational disruptions: Failing to implement change management can result in unstructured, poorly executed transformations that disrupt daily operations and lead to profit loss.
SHRM sat down with Confirm, a company specializing in performance management platforms, to discuss the risks of overlooking change management and its approach as a technology-focused company. SHRM learned that Confirm approaches change management through four phases: Analyze, Build, Execute, and Embed.
The four-step process guides companies from preparation to initial and long-term implementation. Want to learn more about successfully implementing new HR technology? Read our article series for in-depth insights on each step. The Analyze phase is out now!
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