The Search for HR Technology: 2015 to be a Very Active Year
According to the Society for Human Resource Management, the average HR Information System is over five years old. At the same time, there has been an explosion of new developments and options for someone in search of a new system in today’s market. When you combine these two trends, it is easy to see that 2015 will be a very active year for HR technology markets.
What’s changed? Five or more years ago, a company would generally buy an HR system that would be internal to their company only. They would own and install the software on their systems and support it with their internal IT department. Or they would forego this altogether and use a payroll service which had available HR features. Now, the predominant emerging new trend is to “rent” the software over the internet, use your own hardware, store your information remotely and have the software serviced by the remote software owner. This is what is referred to as software-as-a-service with cloud computing.
This has led to a number of disruptions to the HR Technology industry. Real-time data is integrated between all components of the system. Web-based software allows access from the office, on the road, at home and wherever you can get an internet connection. This has led to mobile smartphone applications which are now available and spreading, making system access even more available. And with the growing general use of web and mobile applications for almost every aspect of life, there is a new emphasis of rising expectations from the users of these systems. They want them to be very easy to learn and use; quick to process required activities; inviting in look and feel. In short, they want the software experience to be engaging and natural.
The final, and best, point is that all of these new capabilities come at a lower price. With the sharing of software, no internal IT support is needed, more intuitive applications are leading to reduced time for user training and with fierce competition between these new software providers now is a great time to see what’s available to replace your aging HR system.