A successful ERP (enterprise resource planning) initiative requires more than technology. It demands a diverse and skilled team to drive its success. An ERP project can fail without the right person, and a bad ERP hire can have significant financial implications for businesses. In a time of tight budgets, hiring mistakes could cost UK businesses billions.
The importance of the ERP implementation team
ERP projects need skilled and diverse teams that can work together. Building an ERP team starts with hiring the right candidates. Choosing the right type of ERP professionals is based on company needs and project goals. In-house staff may lack specialised skills or experience with the latest ERP technologies. For this reason, external recruitment often needs to take place.
The cost of a wrong hire
Hiring the wrong candidate for an ERP role can lead to significant financial and operational risks. The cost of a bad hire is estimated to be three times higher than the salary paid, demonstrating the responsibility of hiring managers in getting hiring right. Reports estimate the cost of a bad hire can be around £132,000 for mid-level positions (REC). These include recruitment costs, training, lost productivity, and the impact on team morale. Missteps in ERP implementation or management due to bad hires can cost businesses thousands.
Financial risks of hiring the wrong candidate
Replacing a bad hire can cost thousands in recruitment fees, training, and onboarding expenses. Delays caused by underperformance can lead to missed business opportunities or reduced stakeholder satisfaction. In extreme cases, mishandling sensitive tasks could expose the company to compliance issues or legal disputes. Ineffective ERP hires in customer-facing roles can impact brand perception and client trust.
Operational risks of hiring the wrong ERP candidate
Poorly qualified employees can hinder workflows, disrupt team collaboration, and reduce morale and productivity. In ERP management, inadequate skills can result in misconfigurations, data inaccuracies, or costly outages. Paying for extra training to upskill an unfit hire increases expenditure - all without guaranteed results.
A rushed hire might lack the expertise to manage critical systems or tasks, leading to operational delays and mistakes. A bad hire may struggle to integrate into the workplace culture. In digital transformation projects, this can cause friction within teams and reduce morale. A wrong hire can also lead to higher turnover rates, requiring more time and resources for rehiring and retraining.
ERP project delays and failures
Hiring an ERP candidate with inadequate knowledge or poor decision-making can delay implementations. This can cause budget overruns, or result in project failure, jeopardising critical business operations.
How to improve ERP hiring processes
Enhance ERP hiring by clearly defining role requirements and implementing robust screening processes. Improving hiring processes with technical assessments and interviews ensures better candidate selection. This reduces the risk of costly hiring mistakes. Combine technical assessments to test core skills with interviews using scenario-based questions.
Technical assessments
Research from SHRM shows that 78% of HR professionals say the quality of their organisation's hires has improved due to their use of assessments. Incorporate tailored technical assessments to measure candidates’ ERP expertise, problem-solving, and real-world application skills. These evaluations ensure competency and reduce the risk of unsuitable hires.
ERP system configuration test
Ask candidates to configure part of a module in the ERP system, such as within finance, HR, or supply chain management. This tests their understanding of system architecture and configuration.
ERP customisation test
Ask technical ERP candidates to create sample custom reports or dashboards using ERP tools. This evaluates their skills in customising ERP systems to meet business needs.
Case study assessment
Present a scenario where an ERP system fails to meet business requirements, and ask candidates to give solutions. This assesses problem-solving and their ability to address system-related issues.
You could also look at a data migration task, a troubleshooting test, an SQL query test, or an integration assessment.
Interviews
Interviews tailored to specific roles enable hiring managers to assess problem-solving abilities and cultural fit. Structured approaches, such as using pre-defined evaluation criteria, improve decision-making consistency. Conduct structured interviews with situational questions focused on ERP challenges.
Reducing the risk of a bad hire
Using a specialist ERP recruitment agency like NU Concept Solutions can also help reduce the risk of a bad hire. With our own ERP-qualified recruiters, we ensure the right fit through thorough targeting active and passive candidates, screening and preliminary interviews. Hiring an ERP contractor can also be a good option, offering flexibility and immediate expertise to hit the ground running for specific project needs.
Poor hires may delay critical ERP projects, disrupt workflows, and compromise data integrity. Additionally, retraining or replacing unsuitable ERP professionals incurs further hiring costs and prolongs downtime. Effective hiring strategies and robust candidate assessments are essential to avoid costly setbacks.
Ensure your ERP project’s success in 2025 with NU Concept Solutions. Avoid frustration and lost opportunities - partner with us today! Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call us on 0330 058 3400.