Despite continued economic uncertainty, many human resource departments are making a solid business case to invest in human capital management (HCM) software used for both core HR and talent management. According to a Bersin by Deloitte study that surveyed readers of Human Resource Executive magazine and the Bersin Research Exchange, HCM buyers cited the following reasons for seeking a new human resource information system:
- Availability of new better, faster technology solutions in the market
- To improve user experience
- Inability to get analytics (from legacy systems)
- Business goals cannot be addressed (using legacy technology)
- Unable to efficiently integrate with other systems
The researchers note that today’s buying decisions reflect pent-up demand for upgrades in the wake of the recent economic recession. Faced with talent shortages in many areas, especially workers with expertise in innovations such as in-memory computing, Big-Data, cloud computing, and mobile technology, companies aim to use technology to attract, develop, and retain the best and brightest employees.
Overall, companies are looking for an integrated talent management suite and expect these technologies to improve the end-user experience for employees while integrating various talent platforms. Indeed, the researchers note that these demands coincide with the emergence of easier to use HR software that includes mobile access for employees and managers on the go, as well as social media for instant collaboration.
HCM buyers want sophisticated analytics and integration
The study also showed that 57 percent of HCM buyers planned to procure new software in the next 18 months. Sixty-one percent will replace legacy systems and buy new solutions. The top-three talent management applications to be replaced are learning/development management, recruiting/talent acquisition, and performance management. It makes sense to replace outdated, cumbersome software with more easily customizable systems that are less expensive to support.
Companies also want the ability to gather and analyze employee data, so-called “people” analytics that will guide decisions around behavioral improvements for increased productivity as well as talent management strategies for leadership development. Ideally, they want systems that will integrate with back-office services and processes including customer relationship management, enterprise resource planning, and supply chain management. Inevitably innovations like this are slowly but surely turning HCM and HR into a strategic component of the business.
To download a complementary summary of the Managing Talent Through Technology: HCM Buying Trends in 2013 report, click here.