WHILE technology has become an indispensable part of the HR function, many organisations are failing to fully leverage existing HR technology investments due to a lack of planning.
A recent survey of more than 65 Australian companies found that when undertaking a HR technology project, successful companies spent a minimum of 25 per cent and up to 50 per cent of project time and resources on planning.
In successfully leveraging HR technology investments, key planning areas include process optimisation and proper change management activities, according to Kathy McRae, practice leader for technology solutions at Watson Wyatt Australia, which conducted the survey.
“This is not just project management. It means working out what you are trying to achieve up front, how this differs from where you are now (in terms of people, process and technology) and then how you are going to get there,” she said.
With 94 per cent of companies planning further HR technology projects this year, the Australian eHR survey also found that 63 per cent agreed that HR technology helped them focus on more strategic activities and a further 62 per cent agreed that the technology enabled better quality service to their organisation.
However, there was a continuing problem with underutilised functionality within HRMS technology, with more than 90 per cent of organisations still purchasing modules that are either rarely or never used.
The survey found that modules most commonly underutilised include career planning (88 per cent), incentive management (58 per cent), performance management (47 per cent) and recruitment (44 per cent).
“Too many people get caught up by the exciting software they see, without thinking about how they can make it work in their organisations,” McRae said.
“They need to understand that functionality is only as valuable as the data that is supporting it, and the way in which users can access it.
“Don’t sacrifice integration or functionality. There no longer needs to be a trade-off between these two items.”
The survey also dispelled the single vendor myth, with no hard evidence that a single HRMS vendor can meet all the HR functional needs of an organisation.
“Our survey showed quite clearly that not one participant had been able to meet every HR technology need with one single solution,” said McRae. “The most successful survey respondents were those who chose an optimal mix of vendors.”
Aside from spending significant time and resources in planning, the most successful organisations also automated significantly more HR functions than average performers, namely eRecruitment, rostering and online information and services such as ESS and MSS.
