Purchasing a new HR software: How to convince internal stakeholders

Convincing stakeholders to invest in new technology can be a difficult task. Especially in relation to a new HR software. Often it is the managing director, the team lead or your colleagues in human resources who are not directly aware of the advantages of a new application, or they shy away from the financial or work-related effort.

It gets even harder when key stakeholders are scattered across the organization and also face budget requests from other teams who are also looking to upgrade their technology to improve their own productivity. So how can you ensure that your department gets the green light to acquire a new HR system?

Define the internal stakeholders - who needs to be convinced?

C-suite approval for a new HR software is key to developing and maintaining an effective HR strategy and way of working. Depending on the organizational structure of the company, you will need to convince the CEO, CTO or the board of directors, and other key executives that the new HR software is a worthwhile purchase to move the company forward.

In a first step, you must therefore identify which internal stakeholders are involved in the decision to purchase a new HR system. However, these are not always just managers, but often also colleagues from human resources, IT or the finance department.

Here are some important internal stakeholders that can be identified in a company:

Employees: They are the most important internal stakeholders and contribute to the success of the company. It is important to consider their needs and opinions as they are the ones who will be working with the new system. But be careful: Unfortunately, they often have no real authority to make decisions.
- Employee Concerns:
  - Privacy Concerns: Employees fear their personal information is insecure.
  - Resistance to change: The introduction of new software can be perceived as an additional burden.
  - Training needs: Employees fear a high training effort in order to be able to use the new software.
  - Job security: Employees fear the new software will put their jobs at risk.
  - Ease of use: Employees worry that the new software will be complicated and difficult to use.

Human Resources: HR professionals are a key stakeholder as they will use the new software the most, are already well versed in HR applications and may be critical of a new purchase. Their opinion will be heard internally regarding the new HR software.
- HR concerns:
  - Fear of job loss through automation
  - Doubts about the reliability and effectiveness of the software
  - Concern about the complexity of the application and the possible training effort for the employees
  - Concern about the loss of flexibility and adaptability of the HR department.
Head of HR: The head of HR plays an important role in the acquisition of a new HR software, as he or she is responsible for managing and optimizing HR processes and systems. Typically, the head of HR is one of the key stakeholders when it comes to evaluating and selecting new HR software. The head of HR works closely with the IT team to ensure that the new software meets the needs of the business and is compatible with existing systems. The head of HR can also identify staff training needs and ensure that staff are prepared to use the new HR software.
- Head of HR concerns:
  - The head of HR may have concerns that the software will be too expensive to purchase and implement, and that it may be difficult to justify the budget for it.
  - He may have concerns that the HR software will be too complex or difficult to use, potentially leading to training needs, interruption in service and longer training periods.
  - The head of HR may be concerned that the software is not secure enough to protect employees personal information.
  - The head of HR may be concerned that the HR software is not flexible enough to adapt to their organization's specific needs.

Recruiter: The recruiter is tasked with defining the requirements for the new software and what functions and features are needed to improve the recruiting process. The recruiter then assists in selecting the appropriate vendor and verifies the compatibility of the software with the company's existing systems and processes. During the implementation and training of the staff, the recruiter is usually also involved and assists in the smooth integration of the new HR software into the recruitment process.
- Recruiter concerns:
  - There is a possibility that the new HR software may not be compatible with the company's existing systems and processes, which can be a major concern for the recruiter.
  - Protecting confidential information is an important factor for any company. A recruiter may have concerns about data security and worry that the new HR software may not be adequately secured.

Data Protection Officer: The data protection officer will only work marginally with the new software. His main focus is on the GDPR compliance of the application. He wants to guarantee that the data is secure and that only authorized people have access to the system. With Kenjo, the all-in-one HR software, you are on the safe side when it comes to data.
- Concerns of the data protection officer:
  - Processing of sensitive personal data (e.g. health data) by the software
  - Insufficient security measures to protect personal data from loss, theft or misuse
  - Potential disclosure of personal data to third parties without sufficient consent or legal basis
  - Unclear liability regulations in the event of data breaches caused by the software

Management: Management plays an important role in decision-making, the acquisition of new software and the implementation of strategies, as it often has to approve the budget and decide on strategic directions. It is important that management is involved and persuaded to ensure a successful implementation of the new HR software.
- Management concerns:
  - Cost of acquiring and implementing the software
  - Training needs and familiarization of the employees
  - Integration with existing systems and data migration
  - Data Security and Privacy Policy
  - Software quality assurance and future support.
  - Skepticism about the HR department and the software because no money is generated in HR.

Managing Director: Directors are often the ones who own and/or direct the company and usually also make decisions. It is important to consider their interests and needs to ensure their satisfaction. Also in connection with the purchase of new HR software.
- Manager's concerns:
  - The cost of acquiring and implementing the software.
  - The compatibility of the new software with existing systems and data.
  - The training effort for the employees to be able to use the new software effectively.
  - Privacy and security concerns related to the new software and the data processed.
  - The need for long-term strategic planning and integration of the new software into business processes.

IT department: The IT department is an important stakeholder when it comes to purchasing a new HR software. This is because the IT department is usually responsible for the implementation, maintenance and integration of IT systems in the company. A new HR software must be seamlessly integrated into the existing IT infrastructure to ensure that it works smoothly and that all necessary data can be processed correctly.

The IT department can also provide valuable insight into the technical requirements of the new software, such as security and privacy requirements. Therefore, it is important to involve the IT department in the procurement process from the beginning to ensure that the new HR software meets the needs of the business and can be implemented successfully.
- IT department concerns:
  - Integration problems with existing IT systems
  - Costs for acquisition, implementation and training of employees
  - Security concerns about privacy and access rights
  - User acceptance and adaptation to the new software
  - Long-term software maintenance and support costs

Investors: Investors have a financial interest in the company and are entitled to dividends and profits. It is important to consider their interests in order to gain their support.
- Investor Concerns:
  - The cost of the software and its implementation could be too high.
  - The complexity of the new software could lead to a longer training period.
  - The possibly limited flexibility and adaptability of the software to the specific needs of the company.
  - The possible incompatibility of the new software with the existing systems and processes.

Works Council: The works council represents an important employee interest group and has a voice in decisions affecting employees. It is important to maintain a good relationship with them and to consider their opinions and concerns. In relation to the purchase of new HR software, however, they usually only play a subordinate role.
- Concerns of the works council
  - Loss of jobs through automation
  - Privacy concerns about the processing of sensitive employee data
  - Lack of transparency in decision making and implementation
  - Restriction of the co-determination rights of the works council in personnel administration
  - High costs for acquisition and training of employees.

Unions: Unions represent workers' interests and can play an important role in negotiating collective agreements and other working conditions. Just like the works council, they only play a minor role when it comes to purchasing new HR software.
- Union concerns:
  - Privacy and Security
  - Impact on working conditions
  - Potential job losses
  - Insufficient staff training
  - Lack of opportunities for trade unions to have a say in the decision-making process.

Financial department: The finance department is responsible for the finances of the company and therefore plays an important role in planning and monitoring the budget. So they ultimately have to release new applications and are therefore an important player in the process.
- Financial department concerns:
  - Costs: The finance department fears that the acquisition of a new HR software will incur high costs and follow-up costs over the next few years.
  - Implementation: Implementing the new software can be time consuming and may require additional resources.
  - Training: Training employees to use the new software effectively can also require time and resources.
  - Data integration: Integrating the data from the old HR software into the new software can be a challenge.
  - Security: Finance departments are concerned about the security of HR data and protection against cyber attacks.

Legal department: The Legal department is responsible for ensuring compliance with laws and regulations and ensuring the legal protection of the company. It is important to involve them in the acquisition of new software to avoid or solve legal issues.
- Legal department concerns:
  - Data security and data protection - protection of sensitive employee data.
  - Integration - Integration of the new software into existing HR systems.
  - Cost - Cost of purchasing and implementing the new software.
  - Training and acceptance - Training of the employees and their acceptance of the new software.
  - Functionality - Ensuring that the software meets all needed features and requirements.

Summary

Internal stakeholders are people within a company who are affected by a decision or change. In order to convince them, it is recommended to take the following actions:

Identify the key stakeholders and their interests.
Interview the stakeholders and gain supporters for your project.
Communicate clearly and transparently about the decision-making process and the reasons for purchasing new HR software.
Explain why the software you have chosen is the most suitable.
Use stakeholder feedback to gain acceptance and support for your project.

Added value: These recommendations can result in higher employee satisfaction, better cooperation and ultimately a more effective implementation of the new HR software in the company.

The 10 best methods to convince internal stakeholders that your company needs a new HR software

Once you have identified the stakeholders, it is up to you to convince them that the new HR software not only saves time and money, but can also influence other areas such as employee satisfaction, employee retention and performance. Here are the top ten ways to convince your CEO and other stakeholders that Kenjo is the right choice for your company.

1. The HR software as a technological pioneer into the digital future

An HR software like Kenjo enables your company to streamline and digitize internal processes and workflows from onboarding to payroll, shift planning and offboarding. Our processes reduce the workload of the HR department and offer employees quick access to all relevant information.

An HR software can act as a technological enabler into the digital future by automating HR processes, improving data analysis, supporting remote work and integrating with other tools. This can help improve the effectiveness and efficiency of the HR department and optimize the employee experience.

2. Time savings with Kenjo's HR software: A comparison with manual HR processes

HR departments in companies often spend a lot of time with manual processes, such as managing vacation requests, creating employment contracts or checking employee data. It is important to make these processes efficient to save time and resources. One way to do this is with Kenjo’s HR software, which automates many of these processes.

By comparing the time you currently spend on manual processes with the time saved by Kenjo, you can quickly see how much valuable time you can save by using the software.

Kenjo's platform offers employees a user-friendly experience with important functions such as digital payroll, the online shift planner or the Kiosk App. At the same time, Kenjo removes any kind of geographical barriers between teams and individual team members to enable a tailor-made, individual application - even from home or from different locations.

3. Demonstrate the benefits of HR software

Show internal stakeholders how the new HR software will improve the business by increasing efficiency, saving time and increasing data accuracy. Use examples to illustrate the benefits of the software and emphasize the impact on employee satisfaction and productivity.

4. The HR software as an independent platform

All too often, the integration of a new platform means an overhaul of existing processes and extensive new developments. Show the stakeholders that this is not the case with your solution. Kenjo, for example, is an independent platform that works with your existing processes, systems and workflows to provide a simplified interface and enhanced experience for your employees. This allows teams to create new internal documents and content without generating additional costs for developers. This way you stay flexible!

5. Save time and money

This is the key point to convince stakeholders that the Kenjo HR software is financially beneficial for your business. Because where time and money are saved, this helps the company strengthen the business model.

Kenjo's primary focus is to provide employees and managers with solutions to time-consuming interactions with HR. With the ability to access information 24/7 and from any location, employees get a productivity boost with faster and easier access.

A high employee churn rate can have devastating effects on a company. Increased turnover means more resources must be spent on recruiting, hiring and training. Immediate benefits from new hires are not guaranteed, and it may take up to a year or more for the investment to return. Kenjo reduces time and costs by helping to extend employee life cycles, streamline onboarding and offboarding, and encourage employee retention.

6. Make it clear how the investment in the new HR software will pay off

Show internal stakeholders how the investment in the new HR software will pay off. Emphasize how much time and money can be saved and how this will affect the overall performance of the business.

7. Compare with the current solution

If the company already has an HR software, make a direct comparison between the current solution and the new software. Show the advantages of the new software and the gaps in the current software.

8. Create a better employee experience

Kenjo is an HR platform designed for your employees to provide a better employee experience and increase productivity. At Kenjo, we support HR departments on their journey to becoming the strategic hub of the organization. That's because it's the only way to unleash people to their full potential and set companies on the path to success - regardless of their location. This increases their value to the company and makes them feel like an integral part of their team, no matter where they are.

Kenjo is the all-in-one platform that provides the technology and knowledge needed to manage businesses with service and manufacturing workforces. Our product helps small and medium-sized businesses to complete their HR administration tasks with ease.

At Kenjo, we believe that every employee plays a key role in a company's success. That's why, with our mobile-first strategy and our holistic approach, we offer a unique technology that makes it easy to handle all HR processes and promotes employee development.

9. Kenjo allows your company to remain flexible

Whether a business is going through rapid growth or a period of digital transformation, your HR software should allow your business to remain flexible and grow together. Too many companies are held back by outdated, inconsistent systems that impede data-driven hiring decisions and reduce talent retention. Kenjo addresses all of these issues by focusing on what employees need to stay with the company and thrive.

10. Involve consultants from the software company in individual processes with other decision-makers.

To convince internal decision makers that the new HR software is needed, it is important to involve consultants from the software company in all the process and to collaborate with other stakeholders. First, consultants should understand the needs and requirements of the various departments within the organization to ensure that the new software meets their needs. This can be accomplished by talking to department heads and conducting employee surveys.

Consultants can then offer presentations and demos of the software to showcase its functionality and benefits. It is important to solicit feedback from stakeholders and ensure that their concerns and needs are addressed. This collaboration and involvement of the consultants and stakeholders can create a better understanding and a higher level of acceptance for the implementation of the new HR software in the company.

Summary

Analyze the current HR processes and identify potential for improvement.
Gather data and facts to prove the benefits of the new HR software.
Communicate clearly and transparently the benefits for the company and employees.

Added value: Through a systematic analysis and clear communication of the benefits of a new HR software, internal stakeholders can be convinced, which ultimately leads to more efficient HR processes, increased employee satisfaction and a competitive company. The way to digitization is prepared, the company saves money and remains flexible with regard to technical innovations in the future. In addition, the churn rate is reduced and your HR department becomes a strategic focal point.

Acquisition of a new HR software - The process

When it comes to purchasing a new HR software, you should proceed as structured as possible. To support you, we have created a checklist for you that you can work through systematically in order to make the purchase of new HR software as smooth as possible:

Analyze the Status Quo
1. Inventory of the current HR software
2. Identification of strengths and weaknesses of current HR software
3. Problems and challenges of current HR software
Research into HR software
1. Needs analysis and definition of requirements
2. Research of potential HR software providers
3. Selection of suitable HR software providers
Identify the Stakeholders
1. Identify stakeholders
2. Document the position of the stakeholders
3. Identify the function of the stakeholder (within your process - who makes the decisions?)
Preparation of the argument
1. Benefits of HR software
2. Cost
3. Risks related to the HR software
4. alternatives
Presentation of the HR software
1. Target group-oriented preparation of the presentation
2. Choosing the right form of presentation
3. Communicating the benefits and advantages
4. Show how the software fixes problems
Addressing concerns and resistance
1. Identification of concerns and resistance
2. Effective arguments against concerns and resistance
3. Approaches to solving concerns and resistance
Implementation and evaluation
1. Implementation planning
2. Training of employees
3. Evaluation of the introduction
Conclusion and Outlook
1. Summary of results
2. Recommendations for future decisions regarding an HR software or other software
3. Outlook on future developments in the field of HR software

Summary

Analysis of the existing HR processes and requirements for the new software
Identification of suitable HR software providers and implementation of demo presentations
Deciding on the most suitable HR software and planning the implementation

Added value:

More efficient HR processes and time savings through automated processes
Improved data quality and transparency
Better collaboration and communication within the HR team and with other departments

Kenjo's HR Platform: The HR & Operations Hub to manage your deskless workforce

Kenjo, the all-in-one HR platform, not only saves your company time and money through optimized processes, but also improves the user experience of your employees, supports them in their daily work and brings teams together. Kenjo is a key enabler of broader employee engagement, leading to happier colleagues, lower churn and higher turnover.

At Kenjo, we are committed to providing companies, which consist mostly of frontline workers in service and production, with the most advanced technology and knowledge to improve their human resource management. We want to give them the necessary tools to optimize their communication, data access and recruitment processes in compliance with the applicable regulations.

Want to learn more about what Kenjo can do for your business? Then book a demo now.