To thrive in an ever-changing business environment, companies must remain agile and implement enterprisewide changes that impact people, processes, and products. In many cases, these transformations center on HR technology as organizations seek to modernize systems, improve efficiency, and enhance the employee experience.
External factors, such as advancements in AI-driven recruitment tools, shifting compliance requirements, and evolving workforce expectations, often drive HR technology transformations. In fact, 90% of CHROs predicted that the integration of AI into the workplace will be much more (18%) or more (72%) prevalent in 2025, according to SHRM's CHRO Priorities and Perspectives report.
Likewise, internal factors — including growth ambitions, new service models, and the need to streamline HR operations — can also spark major system overhauls. These transitions come with obvious and often significant costs, making strategic change management essential to ensuring a return on investment.
When it comes to HR technology, change management means developing and applying strategies, structures, and procedures that not only facilitate technical implementation but also drive adoption and minimize disruption.
HR transformations directly impact employees, but much of a company’s budget for these initiatives often goes toward software and system integration rather than the people who will use those tools. Without a thoughtful approach to change management, even the most advanced HR technology can fail to deliver its intended benefits.
The Benefits of Well-Managed Change
- Maximizing return on investment — HR transformations demand significant investments of time, money, and effort. Effective change management ensures that these investments yield substantial returns.
- Enhancing employee engagement — engaged employees are more likely to embrace change and actively contribute to organizational goals. When done right, change management increases employees’ involvement, fostering their sense of ownership in the transformation. This enhances overall engagement and commitment to the process.
The Risks of Overlooking Change Management
- Increased resistance and fear among employees — without change management, employees may resist new initiatives because they fear uncertainty and disrupted routines or have concerns about job security.
- Operational disruptions — failing to implement change management can result in unstructured, poorly executed transformations that disrupt daily operations and lead to profit loss.
SHRM sat down with Confirm, a company specializing in performance management platforms, to discuss the risks of overlooking change management and Confirm’s approach as a technology-focused company. SHRM learned that Confirm approaches change management through four phases: Analyze, Build, Execute, and Embed.
The four-step process guides companies from preparation to initial and long-term implementation. Want to learn more about successfully implementing new HR technology? Read our article series for in-depth insights on each step. The article on the Analyze phase is out now!
Methodology
Confirm is an all-in-one people platform built on the science of organizational network analysis to reveal who is driving impact — and who needs help. Recognizing a critical need for an HR technology transformation process that focuses on the “people” side of change, Confirm developed its four-phase change management methodology: Analyze, Build, Execute, and Embed. This methodology emerged from lessons learned in previous large-scale transformations, during which inadequate resources and lack of buy-in led to suboptimal adoption.
This methodology was developed with three main goals in mind:
- Reduce resistance to change by involving stakeholders, addressing concerns, and promoting buy-in, which leads to smoother transitions.
- Ensure that disruptions are minimized and productivity slips are avoided to help maintain operational efficiency during the change.
- Commit to enhanced employee morale and engagement, transparent communication and support, and fostering a sense of trust and stability.
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.