Top 10 mistakes when implementing HR software in an SME

We have spent a decade supporting more than 200 Spanish SMEs in the digitalisation of their HR. Along the way we have seen every possible mistake: some funny, most of them expensive. This article gathers the 10 most frequent mistakes companies make when implementing HR software for the first time, with real examples and how to avoid them. Even if you are choosing a different software from ours, it will be useful to you.

Mistake 1: Choosing the software before knowing which problem you are solving

The most common mistake: the HR manager or the director browse supplier websites, fall in love with a pretty interface and sign up. Later they discover the software has a very advanced recruitment module… that they are never going to use, and lacks the whistleblowing channel module that the law requires of them.

How to avoid it: before looking at suppliers, write down on a sheet:

1. Which processes do we do today on paper or in Excel that cause us problems?
2. Which legal obligations are we failing to meet today?
3. How much time saving do we expect?
4. How many employees do we have and how are we growing?

With that sheet, compare 3-4 options (include LapsoWork, Factorial, Bizneo or Sesame) against clear criteria.

Mistake 2: Signing up for the most expensive plan “just in case”

Some suppliers play this game: the basic plan includes nothing useful, so you end up signing up for the advanced one “just to be safe”. Then you discover there are modules you never switch on.

How to avoid it: always start with the basic plan. If you need advanced modules, switch. Modern software like LapsoWork lets you change plan month by month with no lock-in. It makes no sense to pay for something you are not going to use in the first year.

Mistake 3: Skipping data cleansing before migrating

You migrate your Excel “as is” to the new software, complete with the three “Jose Garcías” with no ID number you have been dragging around since 2018, start dates in different formats and unclassified documents. The new system inherits all that chaos.

How to avoid it: spend 1-2 days before migrating to:

• Clean up duplicates and obsolete records.
• Standardise the format (first name surname vs surname, first name; DD/MM/YYYY across all dates).
• Organise documents per employee into folders with consistent names.

A clean Excel file takes 72h to migrate. A chaotic one, 2 weeks.

Mistake 4: Not communicating the change to employees

One day employees receive an email saying “from Monday you will clock in via the app”. Reaction: fear, resistance, rumours (“they’re spying on us”), complaints to the works council.

How to avoid it: communicate 2-3 weeks in advance:

1. Email from management explaining the why (new law, saving paper, simplifying).
2. A brief question and answer session (30 min in person or by video call).
3. A short PDF manual with screenshots (2-4 pages).
4. A queries channel (email or internal chat) active for the first 2 weeks.

Companies that communicate well achieve >95% adoption in the first week. Those that don’t reach 60% and take months.

Mistake 5: Not training middle managers

Employees learn the app quickly because the interface is simple. Middle managers get lost if you don’t train them: how do I approve holidays? Where do I see my team’s hours? What do I do if an employee requests a correction?

How to avoid it: a dedicated 1-hour session for managers (team leaders, supervisors). This is the most critical group because if a manager rejects the system, their team rejects it with them.

Mistake 6: Configuring the collective agreement wrongly

This is the most expensive mistake in the long run. If you don’t configure the collective agreement correctly (public holidays, bonuses, working hours, rest periods), the software starts to miscalculate hours and holiday balances. That data reaches your payroll office skewed and ends up causing errors in payroll. You discover the fault three months later, with the entire workforce filing claims.

How to avoid it: ask your supplier for a validation of the collective agreement at sign-up. Have them show you where public holidays, bonus types and overtime are configured, and review it yourself before switching the system on. LapsoWork performs this validation at no cost with pre-configured collective agreements.

Mistake 7: Entrusting control to a single person

A 40-employee company delegates the entire system to the HR manager. When that person is on holiday or off sick, no one else knows how to approve holidays, correct clock-ins or manage a leave of absence. Operational paralysis.

How to avoid it: from day 1, set up at least two administrators and give limited access to each middle manager. The LapsoWork app has default roles (Admin, Team manager, Employee) that solve this.

Mistake 8: Not making the most of integrations

Some companies keep their external payroll office manually doing the monthly export of hours. They are paying for two things (software + payroll office) that could be connected directly via API.

How to avoid it: at sign-up, ask:

• Is there an integration with our payroll office (A3, Sage, ContaSOL)?
• Can it be connected with our ERP?
• Is there a public API for our own developments?

LapsoWork integrates with the main Spanish payroll offices and has a documented API if you want to automate processes.

Mistake 9: Not reviewing the system in the first 30 days

You implement, train the team, go live. And then you forget about it. Mistake. The first 30 days are critical for spotting adjustments: an employee who isn’t clocking in, a type of absence that isn’t configured, a report that doesn’t come out as you expect.

How to avoid it: schedule a review with the supplier 30 days after going live. Checklist of points to review:

• Are all employees clocking in? Is there anyone with no activity?
• Have any incidents or requests been created that you didn’t know about?
• Does the monthly export to the payroll office add up?
• Do the reports return what you expected?
• Are there recurring complaints or queries from the team?

Mistake 10: Not preparing for an inspection

The software is compliant, but you have never prepared for an inspection. When the Inspección de Trabajo (Labour Inspectorate) arrives, the HR manager panics, can’t find the report, pulls incomplete data and ends up with an unnecessary requirement notice.

How to avoid it: run an inspection simulation every 6 months:

1. Export the working-time record of 20 random employees.
2. Check that it matches the payroll for the period.
3. Export the record of corrections and check there are valid reasons.
4. Confirm you have the remote working agreement for each remote employee.
5. Verify that the whistleblowing channel is published and has a named officer (if +50 employees).

LapsoWork generates all these reports in 1 click. The drill should take you 30 minutes.

Implementation summary checklist

If you are going to implement HR software this month, follow this order:

1. Initial assessment (1-2 days): which processes, which laws, which savings.
2. Comparison of 3 suppliers (1 week): without being swayed by the marketing.
3. 30-day demo of the winning candidate: test with real data.
4. Data cleansing before migrating (2-3 days).
5. Assisted migration by the supplier (2-3 days).
6. Collective agreement configuration + validation with the payroll office (1 day).
7. Manager training (1 session, 1 hour).
8. Communication to employees (email + PDF manual).
9. Go-live with an exact date.
10. 30-day review + adjustments.
11. Inspection drill at month 6.

With this plan, the implementation is done in 5-6 weeks and stabilises within 2-3 months.

Frequently asked questions

How long will the whole implementation take me? From the decision to a stable system: 6-10 weeks for an average SME. The technical implementation alone is 3-5 days.

What ROI should I expect in the first year? In SMEs of 30-80 employees, the typical saving is 6-10 hours/week for the HR manager + a reduction in administrative errors. The software (720€/year with LapsoWork Basic) pays for itself within the first month on saved hours alone.

And if we are not happy after 3 months? With no-lock-in software like LapsoWork, you leave. Before signing up, make sure there is no compulsory annual contract.

Is it worth hiring an external consultancy to implement? For SMEs with fewer than 100 employees, it is usually not necessary: the software supplier carries out the implementation at no cost. For larger companies or those with complex integrations, a consultancy can save time.

And if the software chosen doesn’t measure up afterwards? Better to detect it during the 30-day demo. If you have already signed up on an annual contract, renegotiate a change of plan or early cancellation. If the contract has no lock-in, you leave.

Conclusion

Implementing HR software seems complicated because it mixes technology, law and people. The 10 mistakes we have listed boil down to three ideas: plan before you sign up, communicate well with your team and review in real time during the first 30 days. With that, digitalisation goes from being a stressful project to a simple administrative change.

If you want to get the implementation right from the start, you can try LapsoWork free for 30 days with support from our technical team. And if you are still deciding, read how much HR software costs for an SME or the guide on how to migrate from Excel without losing data.