Achieving Digital Transformation Success for SMEs through Effective HRIS and Change Management

In this new age of AI (Artificial Intelligence), digital transformation, and the increasing costs of doing business, SMBs in professional services, technology, non-profits, and construction companies are facing a constant uphill battle.

In the SMB market in Ireland and the UK, approximately 70% of digital transformation projects fail to achieve their objectives. This high failure rate is consistent with global trends and is often attributed to several key factors.

One major issue is the lack of a comprehensive change management strategy. Projects that do not implement structured processes to help stakeholders understand and embrace changes are much more likely to fail. Additionally, treating digital transformation as solely an IT task, rather than a company-wide initiative, can lead to fragmented and ineffective implementations. Lastly, trying to do too much too quickly without adequate planning and resource management can also derail projects.

While every company should have digital transformation as a strategic pillar, it is possible to mitigate the risk of failure. Most digital transformation projects get derailed due to people. People do not derail these projects on purpose but do so because of a lack of understanding and a reluctance to change their daily routines as they fail to see how these changes can make things better.

After implementing over 1000 HRIS (Human Resources Information Systems) for SMB companies in the UK and Ireland, HRLocker knows that these projects can be implemented successfully and are more likely to succeed if you get your people on board. HRIS systems affect everyone in the organisation, and when implemented well, they pave the way for further digital transformation success as employees experience the benefits firsthand.

Implementing a HRIS System: Key Considerations

Cost: Ensure that the investment is within your budget and offers a clear return on your investment.

Integration: The ability to work with other systems to generate reports that help with overall company metrics.

Ease of Use: Choose a system that is user-friendly and can be implemented quickly.

Compatibility: Ensure new systems are compatible with your existing tech stack.

Implementation Time: Aim for a short turnaround time from start to implementation.

Sector Suitability: The system should be fit for purpose based on the cost and utilisation relative to your sector and organisational size.

Ownership: Management of the system outputs should be assigned to a specific department or individual within the company.

Too often, HRIS and people systems get left to the last phase of a digital transformation project. Frequently, the project runs over budget or time, or in many situations, the HRIS gets dropped altogether. We advocate starting your digital transformation journey with people systems. They can be implemented quickly and effectively and help get employees accustomed to the inevitable changes that will happen as your company evolves.

HRLocker hosted a virtual roundtable with valued guest speakers from Microsoft and Nexer on digital transformation, the benefits and growth opportunities for organisations and how it has enabled companies to scale. Find out more here:

Actionable Ending

To ensure your digital transformation projects succeed, start with a robust change management strategy. Focus on people systems first, such as HRIS, to build a solid foundation for future digital initiatives. Remember, the success of digital transformation lies in getting everyone on board, understanding the benefits, and managing change effectively.

For more insights and tailored solutions, schedule a call to see how we can help in your digital transformation journey.