Companies around the world are planning to increase and redirect their investments in HR technology as they embrace talent management solutions, HR portals, software-as-a-service (SaaS) systems and mobile applications, according to a survey.
The Towers Watson 2014 HR Service Delivery and Technology Survey finds that one in three respondents (33%) plan to spend more on HR technology in the coming year compared with the previous year.
This includes 23% that plan to increase spending by as much as 20% and 10% that plan to increase HR technology investment by more than 20%. Only 15% plan to spend less on HR technology in the coming year.
“Despite cost cutting in some areas of HR, we are seeing a substantial spike in technology spending,” says Mike DiClaudio, global leader of Towers Watson’s HR service delivery practice. “Companies are realizing the value that consumer-grade technology brings to HR and are willing to make smart investments that can grow and evolve with the business.”
The survey also finds a continued increase in the use of SaaS systems for core HR and talent management technologies, further adoption of mobile technologies and utilization of HR portals.
Nearly half of the respondents (46%) reported using mobile technologies for HR transactions, an increase from 36% in 2013. The survey notes that there is room for much growth, as only 10% are using mobile access for a majority of HR transactions.
Meanwhile, 60% of employers have an HR portal in place, up from 53% in 2013. Another 20% are in the process of developing a portal. Additionally, the adoption of SaaS increased again this year, with 40% of respondents saying they are considering SaaS as their only solution.
The survey reveals that one in three companies is planning to make changes to their HR structures either this year or next.
For the second consecutive year, respondents identify streamlining their business processes as the number one HR initiative. More than half (55%) of respondents say they reengineered key HR processes over the past 18 months, while roughly half (49%) improved line managers’ people management capabilities. About one-third (36%) implemented manager and employee self-service initiatives, while 31% refocused the role of their HR business partners.
“Organizations are narrowing their focus on HR initiatives as they attempt to strike a balance among people, processes and technology priorities,” adds DiClaudio. “We attribute this shift to high-impact HR investments, such as streamlining business processes and implementing manager self-service, to a commitment to running the HR function more like a business.”
There were 1,048 organizations from 45 countries that participated in the survey. Two-thirds of the respondents were large or midsize organizations with more than 5,000 employees.
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