Guest Column | June 4, 2015

5 Reasons Why HR Apps Are Not "Stand Alone" Solutions

By Robyn Porter, Human Resources Manager & Consultant, HTG Peer Groups

Lately there’s been a lot of buzz in the SMB space regarding the use of HR apps, and many have emerged as a way to fill some HR voids for small business owners. Offering scalable and affordable applicant tracking systems (ATS) and human resource information systems (HRIS), the apps seem to alleviate the need to hire HR staff. While I realize I’ve “got a dog in this fight” (after all, can’t these apps potentially replace the need for HR staff like myself?), I have worked with a few of these lately and have some insight I think will be helpful implementing HR apps and arguing that they cannot and should not replace the need for HR professionals.

  1. Recruiting Is Never That Easy. In an age of fierce employer competition for skilled workers, the last thing you should be doing is “dumbing down” your recruiting processes.  ATSs often do that, using filters that you don’t realize are in place. Tech-savvy candidates have found ways around the software, resulting in the flooding of your inbox with unqualified candidates and the elimination of those who may be more qualified.  Keep in mind that ATSs are designed to filter out candidates using algorithms and may not necessarily cast a wide enough net. While I have found ATSs very helpful with collaboration and tracking, I have also found they make “mistakes” and should never solely be relied upon to screen candidates. 
  2. Who Maintains All Of This? I recently had a consulting client who asked my opinion of his new HRIS app.  After I pointed out some of the pitfalls he said, “I’ve just got too much time invested in setting it up to back out now.” Some of the biggest issues I see with these apps are their set-up, maintenance and utilization. They are extremely time consumptive (contrary to their advertising), requiring constant attention to ensure you are utilizing them to their fullest potential and to remain compliant with federal and state laws. Be ready to allocate a lot of time and dedicated resources toward implementation.
  3. There Is A Lack of Integration. There are a lot of new apps out there, but few offer a comprehensive all-in-one solution for your HR needs. The better known solutions offer integration but are extremely cost prohibitive for most SMBs, thus the allure of “free” software. Free is good but understand that often these solutions do not integrate with other apps or with your existing solutions such as payroll, I-9 compliance, etc. In addition, they oftentimes offer only their preferred vendor integration, limiting your choices.
  4. You Are Still Responsible For Compliance. Many of the new apps tout how you can reduce your “liability” when it comes to compliance with federal and state laws. This is simply not true. While they can help you to build a consistent process, many federal and state agencies have very explicit instructions on how to implement and store various policies, forms, etc. With regard to the law and as the employer, you are ultimately responsible for making sure any app you use is compliant, not the third party.
  5. You Shouldn’t Replace The “Human” In Human Resources. That’s exactly what I said to my aforementioned client. HR apps lack the human interaction that so many employees are craving today. As an SMB employer, you have the unique and enviable ability to set your business apart as an Employer of Choice by interacting with your employees on a more personal level. That’s why we call it Human Resources.

Robyn Porter is a Human Resources Manager of 20+ years and Consultant with HTG Peer Groups.  Her background includes the IT, Hospitality, Distribution, Entertainment and Gaming industries, and from operations to ownership to corporate human resources.  Her passion lies in the SMB space helping businesses to maximize HR processes and successfully navigate the challenges.  You can reach her at rporter@htgpeergroups.com or find her on LinkedIn or Twitter at @RobynTheHRLady.

About HTG Peer Groups.  HTG Peer Groups is an international organization of leading IT solution providers with nearly 300 member companies.  In everything they do, whether running peer groups, coaching, or consulting with clients, the HTG team looks to make a positive difference in the lives and businesses of those they serve.  Visit www.htgpeergroups.com or call 712-794-7994 for more information.