10 Signs You Need a Diagnostic Review

Some companies don’t get the return-on-investment that they had projected when they bought HR technology. Or they may struggle with compliance or operational issues that they had hoped to solve with software.

“Technology is worthless unless it’s used—it must fit within the context of how an organization operates to optimize the organization’s investment,” according to the Sierra-Cedar 2019–2020 HR Systems Survey White Paper. “Organizations often focus solely on specific functionality desired from HR technology and supporting processes but may overlook how that functionality will actually work within their unique culture.”

An HR diagnostic review can help you optimize HR technology, systems, and processes by identifying gaps between your capabilities and your performance. You can then transform your organization by improving your existing technology, systems, and processes, or implementing new solutions.

Think of it like marriage counseling. You can fix the problems before getting a divorce.

Focus on your:

• Governance
• Structure
• Processes
• Infrastructure

Signs to Watch

Here are just a few examples of problems that an HR diagnostic review could help you solve.

1. Workers waste time on repetitive tasks that should be automated.
2. Employees wait to get information on benefits and policies because HR service delivery is slow.
3. Employees demand better technology or leave for organizations that have it already.
4. Managers lack good information when making decisions because analytics and reports are limited or ineffective.
5. Job postings don’t draw applications or fail to attract top talent.
6. Team members can’t develop skills through internal training because they lack a user-friendly way to learn.
7. HR systems aren’t integrated with your ERP.
8. Data doesn’t flow between HCM applications.
9. Payroll taxes aren’t calculated and paid properly.
10. Time isn’t tracked correctly, including overtime.

These issues could be signs of bigger problems such as the following.

• Systems aren’t aligned with your mission and vision.
• Inefficient processes limit employees’ effectiveness.
• HR isn’t self-sufficient.

“The changing nature of HR management demands that HR professionals participate and contribute fully to their organizations as true strategic business partners,” the Society for Human Resource Management stated in a guide to conducting human resource audits. “An audit helps an organization understand whether its HR practices help, hinder or have little impact on its business goals.”

“The audit also helps quantify the results of the department’s initiatives and provides a road map for necessary changes. Audits can also help the organization achieve and maintain world-class HR practices.”

Possible Benefits

An HR diagnostic review can help you:

• Recruit and retain top talent by streamlining talent acquisition and management.
• Strategically reposition your organization by adopting new technologies throughout the employee lifecycle.
• Fool-proof your HR systems by reviewing data elements, inter-system data flow, and existing contracts.
• Increase HR self-sufficiency with improved processes, technology, and training.
• Optimize data exchange and leverage automation while maintaining the security and integrity of your data.
• Unlock dormant functionality of your existing technology and create a strategy to enhance your HCM solution to keep up with changes or move ahead.

In auditing your HR processes, systems, and technology, you should cover the entire employee lifecycle. Conduct a comprehensive needs and priorities assessment, thoroughly reviewing and documenting each aspect of your governance, structure, processes, and infrastructure.

Your digital transformation efforts depend on your ability to leverage the right people, processes and technology. Transform your organization by identifying and implementing the right solutions through an HR diagnostic review.