HR processes that used to take a lot of time and effort have become significantly more efficient with the help of automation. Yet, like any innovation, new technology also brings its own unique challenges.
A recent study revealed that HR technology market is expected to grow from $23.98 billion in 2022 to $39.90 billion by 2029. This enormously huge numbers indicates the huge number of businesses that are investing in this technology.
In this article, we will be trying to uncover the five common challenges faced with HR technology. We will also provide you with the most effective and suitable solutions to these challenges.
5 major challenges of HRM technology
The five major challenges in HRM technology are discussed in this section. This will introduce you to the various challenges that you will have to overcome for a smooth workflow at your workplace.
Siloed Tech Systems
Are your HR functions scattered across multiple systems, each managing a different task? Juggling several platforms can be highly inefficient for your HR team. These disconnected systems often rely on manual data entry, which not only consumes time but also increases the risk of errors, inconsistencies, and incomplete data.
In fact, a quarter of HR decision-makers using multiple tools for employee-related tasks acknowledge that it leads to employee frustration. This leads to resentment and lower productivity among employees.
Lack of Technical Expertise
At first, standalone HR systems might seem like a cost-effective choice, particularly for small firms or start-ups. However, as mentioned earlier, off-the-shelf software that focuses on just one aspect of HR often struggles to integrate with other systems.
Achieving seamless interaction between these disparate systems requires advanced technical expertise. This typically demands significant involvement from IT specialists, which can be both time-consuming and expensive for your organization.
Piecemeal HR Systems Are Unscalable
The tools and processes that served your company well when it was small—such as paper forms and manual workflows—often become cumbersome and inefficient as your business grows.
As your organization expands, your focus should shift toward running operations, enhancing customer service, and driving profitability—not spending countless hours manually tracking PTO, managing payroll, or updating employee records. These repetitive tasks can quickly become distractions, hindering productivity and slowing down your progress.
Outdated HR Systems Without Real-Time Compliance Updates
Navigating the complex web of federal, state, and local employment laws is a daunting task for any business. Keeping up with frequent legislative changes, especially across multiple locations, requires constant attention—something that can be overwhelming for business leaders managing numerous responsibilities.
Outdated and disconnected HR systems often lack the ability to deliver timely, on-demand updates or real-time guidance on evolving employment regulations, leaving HR professionals without the support they need to ensure compliance.
Outdated HR Systems Lead to Poor Employee Experience
Employees prefer autonomy when it comes to routine tasks like tracking time, requesting PTO, or checking leave balances. Giving them self-service options not only improves their experience but also reduces the burden on managers to handle routine HR queries.
Outdated HR systems, however, force employees to rely on the HR team for even minor issues. With HR managers already juggling numerous responsibilities, responding to every small query can lead to delays, ultimately harming the overall employee experience.
How Kenyt HR AI Agent help you overcome these challenges
Now that we have discussed the five major challenges that affect the workplace, in this section, we will be discussing the ways how Kenyt.AI help you overcome these challenges. This will help you smooth and streamline your workflows according to your typical requirements.
Integrated HR Technology
To overcome the challenges of managing multiple HR applications, a fully integrated HR system is essential. With an all-in-one solution, your HR team can handle benefits, payroll, taxes, hiring, onboarding, and more—all from a single platform, eliminating the need to juggle between systems.
A cloud-based, comprehensive HR solution like Kenyt.AI HR agent with automated processes not only streamlines operations but also reduces the workforce required to manage HR tasks. This allows your organization to save significantly on HR costs per employee while improving efficiency.
Democratizing HR Tech
HR technology should be straightforward to implement, use, and scale without requiring deep technical expertise. At Kenyt.AI we focus on low-code and no-code HR solutions, combined with live AI support, empower users of all skill levels to efficiently manage daily operations, making HR processes accessible to everyone.
Investing in a Scalable HRMS
Implementing a scalable HR management system early on can save you time and headaches down the road while enabling a shift from a tactical to a more strategic mindset.
When you transition your company from reactive to proactive, Kenyt.AI empowers employees to focus on initiatives that align with your organization’s vision and goals rather than getting bogged down in day-to-day problem-solving.
Using a Platform with Automated Compliance Management
Kenyt.AI HR automation platform simplifies compliance by proactively addressing regulatory changes. For example, it can automatically adjust payroll deductions to reflect updated percentages, resolving compliance issues before you even notice them.
Enhancing Your Existing HRMS with Automation
With Kenyt.AI, you are only adding a layer of automation to your existing HR tech stack can work wonders. Automation frees your HR team from time-consuming administrative tasks, allowing them to focus on revenue-generating initiatives. Simultaneously, it empowers employees with on-demand access to information, improving efficiency and overall satisfaction.
Conclusion
Over the past few decades, technology has revolutionized the modern HR department. However, using different solutions for various HR functions can lead to fragmentation and hinder productivity.
When HR systems are siloed, gathering and analysing data becomes a tedious task. This can create data gaps and result in inaccurate reporting, preventing you from having a complete view of your organization. As a consequence, making quick, informed decisions becomes a challenge, slowing down your ability to act with agility.
We at Kenyt.AI are experts that provide you with customized HRM technology as per your business requirements for quick onboarding and simple user interface. Contact our sales team today.
Frequently Asked Questions
Some challenges include data security risks, resistance to change from employees, high implementation costs, and integration issues with existing systems.
Organizations can conduct training programs, involve employees in the decision-making process, and highlight the benefits of the technology to reduce resistance.
Implementing robust encryption protocols, using secure access controls, conducting regular audits, and working with reliable technology vendors can enhance data security.
Small businesses can start with scalable, cloud-based HRM solutions, prioritize essential features, and choose subscription-based models to minimize upfront costs.
Aaron Jebin is an enthusiastic SAAS technical content writer interested in writing for new and existing technologies, platforms, and tools. With an experience of over 4 years in technical writing, he is keenly focused on developing articles to provide readers with complete solutions to the common problems that arise in the everyday workplace. His writing mostly focused on team building, work ethics, business analysis, project management, automation, AI, customer and employee engagement methodologies. He has an interest in baking cakes and making stained glass art. He is currently honing his drifting skills.
