Global corporate investment in HR technology shows no signs of slowing down, with nearly nine out of ten respondents (88%) stating they intend to spend the same amount or more on HR technology and systems this year compared to last year.
This is one of the key findings highlighted in the 2015 HR Service Delivery and Technology survey conducted by Towers Watson.
However, the survey also reveals that while the majority of companies are adopting HR technology, a notably high proportion of organizations still rely on paper-based processes for HR tasks.
Companies are also replacing their core HR management systems more frequently than in the past—every 3 to 5 years, down from the previous 5 to 7-year cycle.
The survey further indicates that 30% of respondents plan to replace their HR systems this year—a figure significantly higher than in previous years.
"Modernizing HR technology is emerging as a top priority for companies delivering HR services," said Mike DiClaudio, Global Leader of HR Service Delivery at Towers Watson.
“While in the past, many companies primarily invested in HR technologies for talent management, compensation, and performance management, there has now been a significant shift in how they invest in HR systems.”
“A changing environment is leading companies to take a deeper look at their overall HR technology needs,” added Mike DiClaudio.
The survey also reveals growing corporate interest in the use of mobile technology and HR portals.
More than six in ten respondents (61%) intend to use mobile technology for HR tasks this year, a sharp increase from last year (46%).
The survey also shows that two-thirds of respondents now have an HR portal in place, up from 60% last year.
Respondents highlighted a significant gap between satisfaction levels with HR technology and the extent to which businesses still rely on paper-based processes for HR tasks.
For instance, while three-quarters of respondents (74%) are satisfied with the technology used for their performance management programs, more than a quarter (28%) still use paper-based methods.
Similarly, 79% of companies using technology for HR activities such as job grading/leveling and compensation management consider the technology effective; yet, 42% and 47% respectively still use paper for these two activities.
“It is quite surprising that so many organizations still rely so heavily on paper,” said DiClaudio. “With robust technology solutions now available for HR functions, we anticipate an increase in reliance on software and systems, alongside a steady decline in paper usage over the coming years.”
Other key findings from the survey include:
Four in ten respondents are preparing to alter their HR structures this year or next, compared to the 30% who indicated an intention to do so last year.
A remarkable 85% of respondents reported that HR services met or exceeded expectations. Nearly nine out of ten inquiries were resolved through self-service or HR service channels.
Three-quarters of respondents use a single payroll system at company headquarters, while 78% operate multiple payroll systems outside of headquarters.
The 18th annual HR Service Delivery and Technology survey was conducted in January and February 2015.
Responses were gathered from HR and HRIT professionals across 789 organizations in 37 countries.
