Four Factors Driving Today's HR Technology
The growth and use of HR technology is hot and expected to get hotter. Recent research published by Bersin & Associates and Deloitte Consulting found that 57% of companies are planning to make a major new HR software purchase in the next 18 months. What’s behind this surge in HR technology? A lot of factors but there are several key ones. As expert Josh Bersin wrote in a recent Forbes article, much is driven by a renewed “War For Talent.” Beyond that, there are several key factors.
- Old HR Software
- Too Many Systems to Integrate
- Cloud HR Software
- New User Interfaces
Old HR software is a problem especially at larger companies. Many enterprise software systems in use are five to seven years old and approaching obsolescence in today’s world when many new better systems are now available, and usually cheaper. Compared to today’s alternatives, older software is generally clunky and expensive.
Too many systems to integrate results from HRIS systems that do not provide a good experience beyond the basics. Needed HR processes, such as applicant tracking, benefits enrollment and timekeeping, are often then added on with a best-in-class standalone software. Many employers are then using an HRIS/Payroll system and attaching other separate systems that specialize in one or more of these areas. However, today there are now available HRIS/Payroll systems that are truly all-in-one integrated systems with good applications for most or all of HR’s needs.
Cloud HR software – It’s easy to buy, install and maintain. What’s not to like when compared to older types of software? Cloud HR software is run and maintained by the software vendor who is basically leasing the same software to numerous companies. So it is much easier to purchase (no hardware), it is can be reached via the internet and, in many cases, internal IT do not even need to get involved in the implementation.
New user interfaces make the purchase and use of new HR software much more desirable. Users find the new systems very easy to understand and use. In fact, the latest systems require very little user training because they are so simple and intuitive. Finally, you don’t have to have a desktop or laptop. Mobile smartphone apps are now available allowing employees to view pay stubs, make vacation requests, submit timesheets, etc.
For all these reasons, new HR software is hot and will get hotter which is taking HR software “mainstream” in many organizations.