Why Don't Your Employees Use Your ERP System?

In most organizations, it’s normal for employees to resist change. Familiarity of the norm and the thought of learning a new skill or way of doing things are sure to make employees resistant to adopting a new ERP system. Still, underneath these two factors, lie other reasons that make ERP user adoption level in organizations lower than expected. Below are some common reasons why employees resist implementation or adoption of new systems.

1. Management is Not Encouraging Adoption

ERP adoption in the organization should start with and be supported by the management. Heads of departments should be the first to adopt the new system and encourage their teams to use it. Quick adoption can be encouraged by providing feedback on the system’s usage, requiring the team to produce data through the ERP, and so on.

However, when management is not keen on using the new ERP, adoption rate will be low among employees. For instance, the ERP may produce reports in a new format while the VP may insist on getting reports in the old familiar spreadsheets. Such actions discourage adoption of a new system among employees.

2. Poor Training or Support for the ERP

Employees learn differently and with the installation of a new system, it’s paramount that the learning needs of the majority of users are considered. Sometimes the learning may require one-on-one interaction or small group sessions. Other times, a classroom setting will be valuable. The installation partner should be available to offer post-installation training and support.

There is need to offer comprehensive training to users, especially if the organization has switched to a new ERP by a different company or that is significantly different from the legacy on-premise systems. Online or shared content that users can review at their own time should be provided to ensure every employee gets the most out of the ERP.

3. Important Systems Applications are not Integrated in the ERP

Your organization probably already has other systems or applications that are important to the day-to-day running of various processes. Some of the applications may be used in manufacturing, quality checks, invoicing, shipping and so on. If the applications are not functional, supply chain processes may be disrupted.

Before you install an ERP, find out whether it can be integrated with critical systems that support your business. Otherwise, employees may be frustrated with the ERP and resort to using the critical applications while substituting the ERP’s functions with manual tasks.

4. The ERP Does Not Fit with the Company Culture

Every organization has a way of doing things. The shop should run on a well–defined production schedule that is supported by the ERP. Workflows and released jobs should progress smoothly down the production line to ensure inventory is available as required and sales are made. If the new system does not support or complement existing processes, employees will not be keen to adopt it.

Check that the ERP system you want to install is in line with your organization’s processes. The ERP should not completely revamp the way processes are run. Rather, it should refine them to improve efficiency and keep costs down.

5. The ERP Will Expose Underlying Fraud in the Organization

Manual processes are not only inefficient but also prone to be abused by untrustworthy employees. For instance, when invoices and receipts are manually written and issued, users can be tempted not to report some transactions. Installing an ERP system eliminates manual transaction processes and seals fraud loopholes in the organization that users may be abusing.

The ERP can be configured to allow different user access levels to reduce fraud. For instance, the sales team members may be able to create and edit invoices but not delete them. On the other hand, the department head may be able to see all changes made on an invoice or data edits by other users. In case of any anomalies, it will be easy to identify the users involved.

The above are some common reasons why employees may not be keen to adopt a new ERP system installed for the organization. It’s up to the management and departmental heads to encourage adoption of a new ERP through education, training and crafting organization polices.