HR Tech Number of the Day: HR tech failure rate

Employee adoption is vital to the success of HR tech projects, meaning HR needs to focus on employee experience.
By: | September 29, 2021

Groundbreaking and even modest HR technology projects can face tough odds after they are rolled out, and success is far from guaranteed. In short, if these new tools and solutions cannot get employee buy in, they could be destined to fail. In fact, according to research presented by Josh Bersin, global industry analyst and keynote speaker at the HR Tech Conference, 42% of HR tech projects fail after two years.

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What it means for HR leaders

“We are competing for the eyeballs of the employers,” Bersin said to tech developers in his Wednesday keynote titled “HR Technology Reinvented: The Big Shift Towards Work Tech.”

See also: 3 big ideas from Day 1 of HR Tech—and what’s up next

Once employers select new technology, rolling out the project is demanding work: Nearly one-third of respondents in Bersin’s research are over budget on ongoing HR tech projects, and 53% of their projects miss deadlines. 

Projects are deemed failures, Bersin said, if, after two years, employees refuse to use them, do not have the time to use them or see little benefit in the apps and solutions. 

Despite the challenges selecting and implementing tech projects, Bersin said, HR leaders need to realize that the success of a project is largely not about the technology itself but rather how it will be used by the workers. “Employee experience isn’t a set of features on top of software, rather it is a whole suite of tools to create a great experience for employees,” said Bersin. 

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Phil Albinus is HR Tech Editor for HRE. He has been covering personal and business technology for 25 years and has served as editor and executive editor for a number of financial services, trading technology and employee benefits titles. He is a graduate of SUNY New Paltz and lives in the Hudson Valley with his audiologist wife and three adult children. He can be reached at palbinus@lrp.com and followed on Twitter @philalbinus.

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