How to Make the Case for HR Technology to Your Executives

Only 4% of senior executives believe their HR function is highly effective. Here is how HR can get executive buy-in for the technology investments they need to do their jobs properly.

TL;DR: To get executive buy-in for HR technology, demonstrate its value through free trials and company-wide benefits. Involve employees to build internal support and present a clear return on investment. This approach helps overcome executive reluctance and secures necessary funding.

Gartner research shows that 58% of HR technology investments fail to deliver expected value. The most common cause is a business case built on cost savings alone, rather than on strategic capability outcomes. (Gartner)

The start of a new year is always challenging for an HR department. One minute they are wrapping up the year-end report and the next, they are bombarded with requests for training and onboarding for new hires. The problem is that, while HR is stretched to the limit, executives are not supporting them.

According to a global survey by Deloitte and the Economist Intelligence Unit, only 4% of senior business executives believe their HR function is highly effective in addressing the needs of the business. 96% said that HR needed some, or significant, improvement. But even though executives see the need for improvement, many are reluctant to support the department with more budget, staff, or technology.

Why do executives hesitate to invest in HR technology?

Executives are hesitant to invest in HR technology for two main reasons. First, they are reluctant to let go of money already invested in poorly-executed solutions or technology that is not working. They would rather try to fix what is not working than start again. Second, since the previous solution did not work, they cannot see the benefits of well-executed HR technology.

If HR wants to make a real difference, and get the executive buy-in they need to do their jobs properly, they have to sell HR technology solutions to the leadership team. Here is how.

Step 1: Get the free trial

Most technology providers will offer a free trial of their software. Use it. It is not a marketing ploy - it will actually allow you to see how the technology works in a real environment. If you like it and have mastered how it works, set up a meeting with your executive committee to show them how it would work. They are more likely to agree if they see it in action.

Step 2: Involve the whole company

Spend some time talking to other departments, finding out if they have any big projects, plans, or needs coming up. Can your proposed technology help them at all? If executives see something can benefit more than just one department in the company, they will be more excited to sign on the bottom line.

Step 3: Get user buy-in

If the business's employees are going to be using the technology, get them to be part of the squad, cheerleading for its implementation. Gather a group of employees, give them access to a free trial for a month, and ask them to create a report or presentation outlining what the technology would mean for employees. Use that to help convince the boardroom.

Step 4: Create an ROI prediction

The biggest worry for executives is that they will lose money. Spend time creating an ROI prediction that outlines what the solution will cost versus what its financial benefits could be. Will it allow you to develop internal staff more effectively, cutting down on recruitment costs? Back up the features with stats - gather figures that show your current shortcomings, and provide numbers on how the technology could fix it.

Step 5: Connect to business goals

Business leaders are going to be more interested in HR technology that helps them drive their business goals. Set up a meeting with the leaders, find out what the business strategy is for the next five years, and then find technology that will allow HR to help drive those goals. It will keep your department more focused and impress executives enough for them to offer more support.

Step 6: Get IT involved

Another concern for executives is how the technology will be implemented and integrated into existing systems. Sit down with IT and explain the HR technology solution to them - and find out how they could make the implementation secure, cost-effective, and easy. By the time you meet with leadership, have an IT solution in place. IT teams are also much happier when they are consulted on new technology before it is purchased.

Step 7: Visualise the data

We keep telling business executives that data can transform their business strategy, but without anything to look at, 'data' can sound like an abstract notion with no tangible results. Let those in charge actually visualise the HR data that software can collect. Show them what data can be collected - how many staff members are retiring in the next five years, for example - simply and clearly.

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Frequently Asked Questions

How can HR leaders convince executives to invest in HR technology?

HR leaders can convince executives by showing a clear return on investment (ROI) and demonstrating how the technology benefits multiple departments. Using free trials to showcase the technology's functionality and involving employees in the evaluation process also builds a stronger case.

What are common reasons executives hesitate to fund HR technology solutions?

Executives often hesitate due to past negative experiences with poorly implemented solutions or a lack of understanding of the benefits. They may prefer to fix existing systems rather than invest in new HR technology, fearing financial loss or redundancy.

How does involving employees help secure executive buy-in for HR technology?

Involving employees helps secure executive buy-in by demonstrating user adoption and enthusiasm. When employees actively participate in free trials and present their positive experiences, it shows executives that the HR technology will be used effectively and improve their work processes.

What is the best way to present the ROI of new HR technology to executives?

The best way to present ROI is by creating a detailed prediction that outlines specific financial gains, efficiency improvements, and cost savings. Quantify how the HR technology will address business needs and contribute to the company's strategic goals, making the financial commitment justifiable.