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10 Pitfalls to Avoid When Choosing a HCM Platform

December 21, 2022
By Ganesh Ram
10 Pitfalls to Avoid When Choosing a HCM Platform

To cope with the industry 4.0 challenges and manage a skilled workforce, companies have been increasingly turning to advanced HCM solutions in recent years. As per a research report by Market Research Future (MRFR), Human Capital Management Market – Forecast 2030”, the HR software market is expected to reach USD 28.93 billion by 2030 with an estimated 8.2% CAGR.

Leading this growth is SMBs (Small and Medium Business) in the Asia-Pacific region, with industries across the aisle, including BFSI, healthcare, retail, manufacturing, and others adopting HR tech 4.0.



Source: Statista

As the number of HR software solutions proliferates in the market, covering all facets of HR, it is imperative for HR leaders to choose an HCM solution that fits perfectly with their business needs.

As a leading Human Capital Management software provider in Asia-Pacific and having implemented HR technology solutions from hiring to retirement for leading enterprises in the region including Air Asia, Inspiro, ThaiRe Insurance, and others, here are some pitfalls that we believe HR leaders need to avoid.

  1. Not aligning the platform with your business goals and objectives

    Before selecting an HR software, it is essential to clearly understand your business goals and how the HR solution will help you achieve these objectives. Let us say, your business goal is to improve employee retention. In this case, you might need to look for a HR software that prioritizes employee rewards and engagement.

    Similarly, if your goal is to automate payroll and workforce management, you will need to look for an HRMS solution that offers robust automation and has self-service capabilities in these areas.

    By clearly aligning your expectations with the platform, you can ensure your digital transformation is a success and your HR KPIs are met.

  2. Not considering scalability to accommodate future needs

    When selecting a HR software, it is crucial that you ensure it can scale it along with your business and synchronize seamlessly with other tools that you already use.

    If you are already running a large organization, it is important to make sure that the platform can handle the complexity and scale of your operations.

  3. Not prioritizing employee experience

    Ease of use is a key factor to consider when choosing an HR platform because it can significantly impact user adoption and can be the make-or-break factor in your digital transformation journey. If the platform is difficult to use or navigate, employees may be less likely to use it, which can further lead to low adoption rates and hinder the effectiveness of the platform.

    Low adoption rates can also lead to increased frustration and decreased productivity, as employees may struggle to access the information and tools they need.

    In contrast, a user-friendly platform that is easy to navigate and use can increase adoption rates and improve employee satisfaction as employees are able to easily access the HR software to perform a range of HR tasks – be it requesting time off or accessing benefits information.

  4. Not considering current/future integrations

    According to Josh Bersin, an industry expert, the average number of SaaS (software as a service) tools used by an HR in an organization is up to 11 from 8 only a few years ago. With this continuous rise in the number of SaaS platforms being used, it becomes imperative for all these tools to communicate with each other.

    An HR platform that can easily integrate with other systems you use, such as your payroll, benefits, and HRIS (Human Resource Information System) systems, can reduce the risk of errors, manual data entry, and boost HR efficiency.

    Integrations can also help ensure that employees have access to accurate and up-to-date information, as data is automatically updated and synchronized across systems.

  5. Opting for a rigid HR software

    Customization is a principal factor to consider when choosing an HR platform because it allows you to tailor the platform to meet the specific needs of your organization and industry. Some common customization options include and are not limited to:

    • Custom fields
    • Workflows and approval processes: The ability to customize and configure workflows and approval processes to align with your organization’s HR processes – from hiring to retirement.
    • Branding: The ability to customize the platform’s look and feel, such as by adding your organization’s logo or using specific colors
  6. Not focusing enough on security and data privacy

    “27% of Fortune 500 companies experienced data breaches in the last decade” – VPNmentor

    In 2018, a disgruntled employee of Coca-Cola leaked the personal information of over 8000 employees. Following the incident, it is believed that the company has provided ID monitoring to its employees. This is akin to similar incidents in Meta, Uber, JP Morgan Chase and elsewhere in recent years. Incidents like these are why it becomes very important to ensure that key security features and protection against data leaks are present in an HR platform. The features that ought to not be missed are:

    • Enterprise-grade data encryption
    • Access controls
    • Regular security updates
    • Compliance with relevant laws and regulations such as the Data Privacy Act in Philippines, Personal Data Protection Law in Indonesia, and so on
  7. Not opting for a mobile-friendly HR platform

    Mobile compatibility is an important consideration when choosing an HCM platform because it allows employees to access and manage their HR information from anywhere, any time. This can be particularly useful for employees who are frequently on the go such as gig employees or for those working remotely. A mobile-compatible human capital management (HCM) platform allows employees to view and update their personal information, request time off, view their paystubs, and access other HR-related resources away from their laptop/workspace.

    This can also be beneficial for HR professionals, as it allows them to manage employee information and perform other HR tasks from their device of choice thus boosting productivity and efficiency.

  8. Not focusing on implementation and post-implementation support

    For HR leaders, it is essential to clearly understand the timeline for implementation and the resources that will be necessary. Post-implementation support is also an important consideration when choosing an HR software because it can impact the implementation of your digital transformation.

    A HR platform with a dedicated support team can help you with any questions or issues that may arise, ensuring that you can fully utilize the platform and get the most value out of it.

    There are a few key factors to consider when evaluating the support offered by an HCM platform:

    • Availability: Look for a platform that offers support during business hours, as well as after-hours support for urgent issues.
    • Response time: Consider the speed at which the support team responds to inquiries or issues.
    • Knowledge and expertise: Choose a platform with a support team that is knowledgeable about the product and can help you resolve any issues you may have.
    • Multiple channels: Look for a platform that offers support through multiple channels, such as phone, email, and chat, so you can choose the method that is most convenient for you.
  9. Lack of comprehensive analytics and reporting

    Analytics and reporting capabilities are notable features to consider when choosing an HCM platform because they allow you to track key HR metrics and make informed decisions about your HR strategy. A platform with a centralized dashboard that talks to other workspace tools can help you gain visibility into different key HR KPIs such as attrition rate, time to hire, employee turnover, performance engagement, and so on.

    This further helps you make informed decisions about your HR strategy that impacts the company’s bottom line positively.

  10. Not focusing enough on the future roadmap

    A product roadmap reflects the priorities of the HR vendor to internal stakeholders, external stakeholders, and potential customers. For companies, the future roadmap of the HR vendor is important when choosing HR software because it can help determine whether the software will meet their needs in the long term.

    When considering a HR software, it is also crucial to consider the HR vendor’s past commitment to ongoing development and support of the software.

    By considering these factors, you can ensure all stakeholders are in the same page when it comes to priorities and make an informed decision about whether a particular HR software is the right fit for your organization.

Check out PeopleStrong

PeopleStrong’s HR-Tech 4.0 platform is an integrated suite of solutions that enables organizations to offer their employees end-to-end services across their life cycle thus enhancing their employee experience.

The platform capabilities span the employee lifecycle from hire to exit, including Human Capital Management, Payroll, Talent Acquisition & Management, and Collaboration.

Organizations across Asia-Pacific, such as Inspiro, AirAsia, Aditya Birla Group, Max Life Insurance, and more, already use our HR Tech 4.0 platform to make data-driven decisions.


Check out the all-in-one HR platform

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