HR Systems Still Disappointing

February 14 2007 - A survey by PMP Research commissioned by the Evaluation Centre found that one-third of companies feel that their HR and payroll IT systems either do not meet their requirements adequately (29 per cent) or fail to do so completely (5 per cent). As a result, 37 per cent plan to replace their current software and 68 per cent intend to upgrade their existing applications.

The survey drew on responses from 100 organizations in a number of sectors including manufacturing (11 per cent), transport (6 per cent), and finance (6 per cent). Over one-quarter (28 per cent) had a turnover between £150million and £1 billion with a further 12 per cent exceeding £1billion. The remainder had turnover between £10million and £150million.
The survey found that cost remains the most important determining factor in any purchase or upgrade (80 per cent of respondents), followed by integration (74 per cent), flexibility (71 per cent) and functionality (71 per cent).

Two-thirds of companies (66 per cent) want to expand their HR applications beyond traditional administrative areas. Popular options include software for recruitment (32 per cent), workforce management (29 per cent), employee absence management (23 per cent), learning management (20 per cent) and succession planning (17 per cent).

The survey found that organizations are more interested in online working; 54 per cent said internet-enabling HR processes was a priority investment. The HR department can improve the service offered by providing access to information via the web or a company intranet without increasing administrative overheads. Most respondents (89 per cent) disseminate corporate news such as changes to HR policies and procedures online. About one-third (34 per cent) have implemented self-service options enabling employees to view key HR data online and change details such as an address or bank account. The survey suggests that this is a continuing trend; 46 per cent indicated that their future HR plans include self-service, only 17 per cent discounted this option.

The survey found that many companies fail to measure the return on investment (ROI) gained from their IT systems; 60 per cent make no calculation, 23 per cent do so for major projects and only 9 per cent establish cost/benefits for all HR system implementations. About one-third (34 per cent) admit they do not know if HR technology has been effective at delivering ROI for their organization, 23 per cent estimate that implementation has partly failed and 11 per cent completely failed in this respect.

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