Spending on HR technology & systems remains robust

Spending on upgrading HR technology and systems is expected to continue to grow in 2015, a recent Towers Watson survey shows. The survey finds that 88% of EMEA businesses will be looking to spend the same amount or more on HR technologies compared to last year, with 30% planning to replace core HR system entirely and 40% to use software as a service to meet their HR needs. Of survey participants, 61% are considering adding a mobile platform to their service mix.

In a recently released survey, HR consulting firm Towers Watson explores how the use of technology is transforming the HR landscape. The survey, titled ‘2015 HR Service Delivery and Technology Survey’, involved 798 participants from 37 countries, with 50% of those surveyed global organisations.

Modernising HR
According to this year’s survey, the use of technology and software in HR processes is continuing to grow, with 88% of EMEA businesses looking to spend the same amount or more on HR technologies in 2015 compared to 2014. Of those intending to increase their spending levels on technology, 12% expects to do so by more than a fifth. Four in ten (40%) respondents say they are considering changing their HR structure in 2015 or 2016.

“Modernising core HR technology is emerging as the primary HR service delivery priority,” explains Mike DiClaudio, Global leader of Towers Watson’s HR Service Delivery Practice. “While in the past, companies have mostly invested in secondary technology for talent, compensation, and performance management, there has been a dramatic shift to investing in core HR systems.”

Overcoming paper
The report further finds that a number of HR departments are still dependent on legacy computer systems as well as paper based systems. Of the respondents, 28% indicates their company is still using paper in performance management, 42% in global grading/job levelling, and 47% for their compensation activities. This compares to the 70-80% that see technological solutions as effective replacements of paper.

“Given the robust technology solutions now available to HR departments, we expect the reliance on software and systems to increase while the use of paper will steadily decline over the next several years,” comments DiClaudio.

Software solutions
Around a third (30%) is planning to replace their core HR system entirely, while globally 40% of companies plan to go for software-as-a-service solutions, to replace their on premise HR systems. “Many organisations are now looking at cloud-based solutions to replace traditional HR platforms,” explains EMEA leader of its HR service delivery practice Tim Richard.

Going mobile is also seen as a way forward in HR operations, with 61% saying they will use more mobile technology this year, up from 46% in 2014. With particularly the Americas, at 74%, seeking to engage mobile technology, compared to 46% of respondents from the Asian region.