Within the next two years, many companies around the world will change their HR structures and embrace new HR technologies due to growing pressure to enhance the delivery and effectiveness of HR services in today’s highly connected landscape.
This is according to Towers Watson’s 2013 HR Service Delivery and Technology Survey, which polled 1,025 companies across the globe.
Thirty-six percent of respondents plan to make a change to their HR structure before the end of next year, the survey shows. Among companies altering their HR structure, 74% are doing so to realize further operational efficiencies. Other reasons include improving quality, saving costs and changing the business strategy.
Regardless of the motivation, firms that are overhauling their HR structures are primarily gravitating toward shared services. The survey reveals that almost half of the firms polled are moving toward an environment of shared services. Seventeen percent plan to outsource additional functions, and 12% intend to move to a single HR function for the entire organization.
“Many organizations see new opportunities to increase HR’s strategic contributions to the business,” says Mike DiClaudio, global leader of Towers Watson’s HR service delivery practice. “What is really interesting is the continued trend toward replacing core HR systems and a willingness to invest in new technology and partners with a growing shift toward software-as-a-service.”
Indeed, the report shows a commitment to technology spending. More than half of polled organizations say their investment in HR technology this year will match last year’s investment levels, and more than one-quarter of organizations will either increase or significantly increase their investment.
The report also shows that the world of HR is embracing mobile technology. More than 60% of respondents now provide mobile access via smartphone to employees, and 24% offer tablets. But mobile apps are in their infancy: only about 10% of organizations currently use mobile apps for HR purposes. This trend is expected to accelerate, as 25% plan to offer HR-enabled apps in the next 12 to 18 months. However, half of organizations have no plans to introduce mobile apps before the end of 2014.