Investments in HR Technology to Grow Exponentially in 2015

June 23, 201511:36 pm696 views
Investments in HR Technology to Grow Exponentially in 2015
Leveraging HR technology to maximise returns on investments

As companies are increasingly adopting latest in HR technology systems to ease operations, the role of HR professionals has become ever more challenging today. Organisations expect HR professionals to focus efforts on productive functions that support organisational growth.

According to the latest annual survey by global professional services company, Tower Watson titled, ‘2015 HR Service Delivery and Technology Survey’, it found that nine out of ten respondents from the EMEA region (Europe, Middle East and Africa) continue to invest more into HR technology, as in comparison to last year.

12 percent of respondents who participated in the survey reported significant increase in their investments into HR technology by more than a fifth. Over a third of companies are planning to replace their existing HR management systems, with the latest in HR technology in 2015.

“Upgrading and consolidating technology is becoming a major priority for HR,” said Tim Richard, EMEA leader of Towers Watson’s HR Service Delivery practice. “While in the past, companies have mostly invested in separate technology for talent, compensation and performance management, there has been a dramatic shift to investing in an overarching IT system with the functionality to take care of all of these areas. Many organisations are now looking at cloud-based solutions to replace traditional HR platforms.”

Many HR organisations are now embracing change by cashing in on the opportunities provided by emerging technology systems. New HR technologies help companies do away with the legacy paper work mechanisms of recording leaves still practiced.

See: The Most Eagerly Awaited HR Technology Solutions in 2015

Key findings from the survey

  • Employers are showing increased interest in mobile technologies for HR purposes and nearly two-third of the companies have gone mobile friendly. Many companies are planning switch, to introduce mobile based recruitment technology in the next 12 to 18 months.
  • To increase efficiency and efficacy of workings with quality as the prime focus, many organisations are now restructuring HR framework to introduce and implement methods of radical change for growth.
  • Introduction of new types of collaboration tools for the delivery of HR services, which will be implemented successfully with a new HR portal.
  • Reengineering key HR processes to be integrated into a new core HR system
  • Investment of efforts into HR analytics function
  • HR is now looking at shared services as the delivery model of choice and not out of compulsion or mandate. Most HR enquiries today are solved by web-based self-service portals that bring together all information, systems and processes at one secure location.
  • Increase in employee engagement survey – Majority of companies in EMEA, close to 41 percent conduct employee engagement surveys annually.
  • Most companies are processing payroll in-house using an automated solution both in the country where they are based (55%) and in other locations (38%).

Despite overwhelming satisfaction recorded by the survey on new technologies adopted by the HR departments, this survey indicated a clear opportunity for HR professionals to automate more to increase HR efficiency and drive down costs.

Even today, despite HR technology being increasingly adopted there are some companies, who prefer managing bonuses and salary hike to be recorded manually on paper-based systems. With increasing awareness among organisations to adopt HR technology, the survey predicts, use of paper systems to soon decline and reduce significantly in the near future.

Foreseeing such exponential growth prospects for HR technology in the recruitment sphere, it is time for HR leaders to prioritise their strategic needs and try to match them with the right software tools and solutions to build a highly collaborative workforce. Do you think your organisation has raised the bar to meet current demands of HR professionals in the industry and leverage tools to speak success?

Also read: Benefits of Leveraging on HR Technology

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