Research demonstrates not all HR software is fit-for-purpose
Currently HR and payroll processes are under a great deal of scrutiny as firms prepare themselves for new legislative changes, such as the introduction of RTI and pensions reforms. The pressure to make sure software and architecture are fit-for-purpose has never been higher, particularly taking into account the fact that research from supplier of HR and payroll solutions and services MidlandHR has shown almost two-thirds of systems are more than five years old – signalling that they are severely out-of-date. But in the rush to update, it seems a significant number of HR departments feel they aren’t being consulted on what solutions actually meet their requirements.
The survey of 200 senior payroll and HR managers – entitled HR Technology 2013: How mid to large sized UK organisations are using HR technology – has revealed that regardless of whether companies adopt individual ‘best-of-breed’ software or systems that integrate with enterprise-wide solutions, the foremost driver for changing software is to allow enterprises to meet changing legislation. However, when considering which of the two is really best for the task at hand, little more than half of HR departments at companies that plumped for blanket enterprise-wide solutions felt they were sufficiently consulted around the decision. In contrast, at enterprises that opted for best-of-breed four-fifths of HR professionals felt that their perspective had been considered when the choice was made.
Rather more alarmingly, some of the additional functionality of existing solutions very limited. Only 45% of respondents said their software gave them any recruitment functionality. In terms of personnel development and learning management, just 41% and 40% of solutions respectively offered the required capabilities. And just 39% of respondents were able to use their systems to carry out any workforce planning or performance management.
“Lack of functionality in some HR and payroll solutions is clearly a problem for many organisations,” commented Declan McGrath, MidlandHR’s managing director. “Many feel they have already invested too much money in their current systems to do so. But they are ignoring the cost benefits and long-term business gains which could be realised by investing in the right solution to meet their needs.”
Working with your staff to ensure you have the right tools for the job seems like a bit of a no-brainer. But when we’re facing changes like the imminent RTI and pensions reforms, suddenly the wrong software could cost you more than just a little productivity.