The Biggest Reason Why New HR Technology Implementations Fail

Despite growing investments in HR technology, adoption rates remain stubbornly low. A 2022 Gartner survey found that the average human resource information system (HRIS) is used by only 32% of employees — a surprisingly low rate for such a critical system.

Meanwhile, nearly 1 in 4 organizations report that their new HR tech implementations fail to meet adoption expectations, according to a recent survey by the Sapient Insights Group.

The biggest challenge HR leaders face in implementing new HR software or AI-powered platforms isn’t a technical hurdle — it’s human behavior. While steps such as selecting the right software product and negotiating good implementation terms with technology vendors are essential, the reality is if few HR professionals, managers, or employees actually use newly introduced software with regularity, the ROI of those purchases will plummet.

So how can organizations close the gap between implementation and adoption? It starts with a clear definition of success — and a strategy that prioritizes behavior change as much as system functionality.

“Transformation starts with understanding who you really are as an organization,” wrote SHRM Chief Transformation Officer Andy Biladeau in People + Strategy journal. “That work demands introspection, commitment, and honesty.”

Start by Setting Adoption Goals

Experts say any strategies designed to improve the usage rates of new HR software should start with defining what good adoption looks like to the HR function. “In my experience, there often isn’t a clear definition of adoption, or that definition isn’t rigorous enough,” said Julie Bedard, managing director and partner at Boston Consulting Group.

What’s considered a good adoption rate for a system of record such as an HRIS or a time-tracking platform — the latter of which is mandatory for many employees to use — may differ from specialized point solutions such as a learning and development or well-being platform, Bedard said. “Leaders might be satisfied with very different levels of adoption for varied HR platforms,” she explained.

Strategies for Boosting Adoption Rates

Once adoption is defined and goals are set, HR leaders should anchor their efforts in a structured change management strategy — one that acknowledges how slow employees can be to shift entrenched habits around technology use.

A strong change management plan answers the fundamental “What’s in it for me?” question by employees about how the new software can streamline workflows, reduce frustration, or free up time compared to legacy or manual processes. It also addresses AI-related fears by communicating how the technology is designed to complement or amplify, rather than replace, human skills.

From there, organizations can layer in additional tactics to reinforce and sustain adoption, from hands-on training to incentives and gamification.

Carve Out Time for User Training and Experimentation

One of the most common — and costly — mistakes organizations make during HR tech rollouts is assuming that employees will figure out how to use the tools without formal training on how to use and apply them within the context of their roles. “This is especially true with GenAI tools, where user training is often overlooked,” said Julia Lamm, principal in the workforce transformation group at PwC. “Successful organizations invest in AI training and digital literacy programs.”

Lamm said companies that employ a “fail fast, learn faster” mindset are better positioned to encourage experimentation and iterative learning with AI platforms, helping boost adoption. Some HR departments do this by holding “prompt-a-thons,” facilitated sessions where employees learn to work with GenAI tools by experimenting and sharing prompts. Others encourage experienced HR staff to create and circulate short videos of lessons learned when using GenAI tools such as ChatGPT, Google Gemini, Anthropic’s Claude, or Microsoft Copilot.

Theresa Fesinstine, a longtime HR executive and founder of PeoplePower.ai, a company that teaches HR leaders how to incorporate AI into their workflows, says one of the biggest reasons for low adoption rates of newly purchased AI platforms is poor follow-up once the systems are installed.

“HR professionals are busy people, and if you don’t carve out time to educate them about GenAI or AI agents and give them the time to experiment with the tools, they’ll simply go unused,” she said.

Use Digital Nudges

Even the most thoughtfully implemented platforms can fade into the background without consistent engagement cues. That’s where digital nudges — timely, contextual prompts delivered within or alongside HR systems — can make a significant impact.

Many modern HR platforms already include built-in nudge features, such as progress trackers, pop-up guides, and email reminders that help reinforce key behaviors, according to Hiten Sheth, director of research and advisory in the HR technology practice at Gartner. These nudges can be especially helpful for busy managers who juggle multiple systems and tasks.

“For example, a manager overseeing a team of 15 people may have to perform many transactional activities for those employees on a HR technology platform that can be hard to keep track of,” he said. “Nudges can tell them, for example, what’s pending for approval for certain employees, or the next step someone needs to take based on the current status of a project. Those digital reminders help managers make more frequent use of new technologies.”

Whether it’s completing reviews, updating goals, or navigating workflows, these small, well-timed cues can play an outsized role in helping new technology stick.

Integrate Small Doses of GenAI

Generative AI can also play a key role in driving adoption — especially when it’s embedded into the flow of daily tasks. Some companies leverage GenAI tools such as virtual assistants or job description generators to show employees the value of adopting HR software, Sheth said.

“With GenAI becoming more common on HR technology platforms, it’s easier to bring it into the flow of work,” he said. “These tools can make using HR technology more intuitive, efficient, and user-friendly, which increases their adoption by employees.”

For example, AI-driven tools such as chatbots provide easier platform navigation and quick answers to HR-related questions, making employees more eager to use such platforms in the future.

Consider Nontraditional Adoption Strategies

To boost engagement with newly implemented HR software, some HR leaders have turned to nontraditional approaches such as gamification or small incentives to encourage the workforce to use newly implemented HR software.

Lamm points to one organization that used gamification during the launch of a new learning and development technology platform. Employees earned points for completing learning modules and exploring new content, while team-based leaderboards encouraged friendly competition.

“The sense of momentum and the recognition not only motivated employees to engage with the new platform — it also helped embed it into their daily routines more quickly,” she said.

When done well, these creative engagement strategies don’t just drive usage — they accelerate the return on investment by turning occasional users into consistent adopters.

Dave Zielinski is a business journalist who covers the impact of emerging technologies on the workplace. He is a frequent contributor to SHRM publications.