How to Prepare for Your HRIS Switch or Implementation

The decision to switch your Human Resource Information System (HRIS) or implement one for the first time is a pivotal step for any small or mid-sized business (SMB). A well-chosen HRIS can streamline your operations, improve compliance, and free up valuable time for your HR team. However, switching or implementing a new HRIS without a clear plan can result in significant disruptions and inefficiencies. Whether you are upgrading from a manual process or transitioning from an outdated system, careful preparation is key to ensuring a smooth transition.

This guide outlines the nine essential steps SMBs need to take when preparing to switch or implement a new HRIS that minimize risks while maximizing the benefits.

1. Assess Current HR Processes and Identify Gaps

Before you start looking at new systems, it’s critical to understand where your current HR processes stand. Conduct a thorough audit of your HR workflows, procedures, and existing technology (if any). Identify inefficiencies and pain points, such as data entry redundancies, lack of reporting capabilities, or difficulties in employee self-service.

Key questions to ask:

• What works well in your current process?

• What are the main bottlenecks or frustrations for your HR team?

• Are there any compliance or reporting issues with your current system?

• Are there any tools that we need to keep and/or integrate into the new system?

Once you have a clear picture of what’s not working, you can define what you want from a new HRIS. Set clear objectives for the system, whether it’s to automate repetitive tasks, simplify compliance reporting, or offer better employee self-service options. A well-defined list of goals will guide you in selecting a system that fits your business needs.

2. Secure Leadership Buy-In and Cross-Departmental Support

Switching to a new HRIS is a significant investment, and you’ll need the backing of senior leadership. Presenting the potential return on investment (ROI) is a crucial part of securing this buy-in. Focus on the long-term savings and return on investment that the new system will bring, rather than just the initial cost.

To strengthen your case, gather data from industry benchmarks, case studies, or your own internal analysis. For example, how much time does your HR team currently spend on manual tasks that could be automated? How many errors in payroll or compliance have occurred due to outdated processes?

Action items:

• Align the HRIS upgrade with broader business goals, such as supporting growth, improving compliance, or increasing employee satisfaction.

• Secure support from other key departments, especially IT, finance, and operations, to ensure they are aligned with the project goals.

Cross-departmental involvement is vital because the implementation will likely require collaboration with IT for integrations, finance for budgeting, and managers across departments to ensure the system aligns with overall business operations.

3. Budget and Resource Planning

Once you have leadership buy-in, the next step is creating a realistic budget. Consider the total cost of ownership, including not only the initial licensing and implementation fees but also ongoing maintenance, training, and support costs.

Budget considerations:

• Licensing fees: These could be a one-time cost or subscription-based, depending on the vendor.

• Implementation costs: Will you need to hire a consultant or use the vendor’s implementation team?

• Training: Consider the time (and cost) of training your HR team and the wider organization.

• Support: Will you require premium support from the vendor, or will your internal team handle this?

It’s also crucial to allocate internal resources. Designate an internal project manager or team to oversee the transition. This team will be responsible for maintaining communication with the vendor, ensuring timelines are met, and addressing any issues that arise during the process.

4. Select the Right Vendor

Choosing the right vendor is one of the most important decisions in this process. Start by creating a list of requirements based on the goals you outlined in Step 1. Your requirements should include:

• Must-have features (e.g., payroll automation, employee self-service).

• Compliance needs (e.g., integration with local labor laws, tax reporting).

• Integration capabilities with other software (e.g., accounting systems, benefits platforms).

• Scalability to grow with your business.

Vendor selection process:

• Shortlist vendors that cater specifically to SMBs.

• Request demos to get a real sense of how each system works.

• Compare service level agreements (SLAs), support options, and pricing structures.

Don’t forget to check references, reviews, or case studies for other businesses of a similar size or industry to ensure the vendor has a track record of successful implementations.

5. Prepare Data for Migration

Data migration is often one of the most challenging aspects of switching HRIS. Before migration begins, take the time to clean and organize your existing HR data. This includes verifying that employee information, payroll records, and benefits data are accurate and up to date.

Steps for data preparation:

• Standardize data formats to ensure compatibility with the new system.

• Identify any redundant or outdated information and remove it.

• Map out how data will be transferred, ensuring key fields are aligned between the old and new systems.

It’s a good idea to test a small sample of data before migrating everything to ensure there are no issues with formatting or missing data.

6. Communicate the Change to Employees

A successful HRIS implementation doesn’t just depend on the HR team. It requires company-wide adoption, and that starts with effective communication. Prepare employees by explaining why the change is happening, how it will benefit them, and what the implementation timeline looks like.

Communication plan tips:

• Announce the change through multiple channels (email, meetings, messaging).

• Provide clear information on how the new system will benefit them (e.g., easier access to pay stubs, faster PTO requests).

• Address common concerns, such as data privacy or additional workload during the transition.

Employees are more likely to embrace the change if they understand how it will make their work easier. Transparency throughout the process will help mitigate concerns and resistance.

7. Training and Change Management

Once communication is in place, it’s time to focus on training. Your HR team, department managers, and employees will all need some level of training to get the most out of the new system.

Training strategy:

• HR team: Provide in-depth training on all features, such as advanced reporting and compliance functionalities.

• Managers: Focus on key functions such as approving time off requests, accessing employee records, and running reports.

• Employees: Offer easy-to-follow guides or short training sessions to introduce self-service features.

Consider scheduling ongoing support after the initial training to answer any questions that arise and to help users adjust to the new system. Some businesses also set up a helpdesk or a dedicated support team to assist during the transition.

8. Run a Pilot or Soft Launch

Before fully committing to the new HRIS, it’s wise to run a pilot or soft launch. Choose a small group of employees or departments to test the system in real-world conditions. This helps identify any issues before the entire company begins using it.

Pilot launch steps:

• Test all key functions, including data migration, payroll, benefits administration, and employee self-service.

• Gather feedback from the pilot group to understand what works well and where improvements are needed.

• Adjust system configurations based on the feedback before moving forward with the full launch.

A successful pilot will reduce the risk of significant problems when the system is rolled out company-wide.

9. Monitor and Optimize Post-Implementation

Once the system is live, the work doesn’t stop. Monitoring and optimizing the system post-implementation ensures that it continues to meet your company’s needs. Establish key performance indicators ( KPIs) that reflect the goals you set earlier, such as time saved on HR tasks, error rates in payroll, or employee satisfaction with self-service features.

Post-launch activities:

• Solicit feedback from users regularly to understand any ongoing challenges.

• Adjust workflows and settings based on user feedback and performance data.

• Schedule periodic check-ins with the vendor to ensure the system is up to date and functioning optimally.

Continuous improvement is essential to getting the most out of your HRIS. As your business grows or regulatory requirements change, your system should be flexible enough to evolve with your needs.

Final Thoughts

Switching or implementing a new HRIS is a major undertaking for any small or mid-sized business, but with the right preparation, it can be a smooth and successful transition. By following these steps — assessing your current processes, securing buy-in, planning your budget, selecting the right vendor, preparing your data, and managing the change effectively — you can minimize risks and maximize the benefits of your new system. Ultimately, a well-implemented HRIS will not only streamline your HR operations but also contribute to the overall efficiency and success of your business.

At GoCo, we’re committed to helping small and mid-sized businesses like yours streamline HR, payroll, and benefits management with ease. Take the stress out of switching systems with our award-winning client success team and our intuitive, all-in-one platform designed for maximum efficiency and minimal disruption.

Want to see how GoCo can work for your business? Schedule a free demo today, and let us show you how we can make your HR transformation smooth and successful!