IT systems for the HR profession a good investment?

Nine out of 10 employers see improving the quality of information as the most important objective when acquiring an HR management system according to findings released today by IRS Employment Review, published by LexisNexis Butterworths .

Seven out of 10 say their aim is to be able to use information more flexibly. The cost of the system, future flexibility of the technology and ease of use are less important.

But the survey also shows that cost and deadline overruns are common, with four out of 10 saying they had overspent their budget when buying a new HR computer system and three out of 10 reporting that it took longer than planned to implement. Even then, one in three were either dissatisfied or totally dissatisfied with their new IT system.

The results are based on a survey of 46 senior HR professionals. The survey was conducted in September 2004 and the results are published in the new issue of IRS Employment Review (812), and on its website, www.irsemploymentreview.com

Other findings include:

Approximately one sixth (15%) of respondents reported that they had a unified HRMS in place, with the same number using multiple standalone systems - or separate component systems.

Most companies struggle to allow anyone other than the HR department access to HR information. One third (34%) of respondents reported that senior managers were able to access computerised employee records but this was generally limited to monitoring absence figures or downloading forms for manual completion.

Less than one third (28%) allowed line managers access to computerised employee records, and less than 5% of respondents allowed line managers to change pay rates. Just 13% of respondents gave employees access to data held in their HRMS, even though more than half the organisations surveyed (54%) said ìgiving control to individual employeesî was a core objective of their HRMS implementation.

Although the vast majority of respondents said they did not offer employee self service to their staff, more than seven in 10 (71%) organisations said employee self service was either essential or desirable

The main challenges to successful implementation are: training (cited by more than half the respondents - 54%), cost (41%), managing HR expectations (41%), managing supplier relationships (36%) , skills issues (34%) and finally, managing employee expectations (8%).


IRS Employment Review managing editor, Mark Crail said:

ìAs human capital management has gained momentum in the HR and business world, consultants - and IT vendors - have increasingly touted the use of technology as a solution enabling employers to better manage their staff, boost productivity and address skills issues, and reduce workplace absence.

ìOur research shows that many employers are not making full use of technology, with HR departments often simply transferring paper-based systems to a computer screen. But employers that fully exploit the potential of their systems to rid themselves of routine admin and empower individuals and line managers do get results in terms of staff satisfaction and cost savings.

ìWith the benefit of hindsight, many respondents said that they would strive for better planning and communication, as well as more training, if they had to implement a bit HR IT system again. Significantly, not one respondent would outsource the work. îIT systems for the HR profession; a good investment?

Nine out of 10 employers see improving the quality of information as the most important objective when acquiring an HR management system according to findings released today (3 December 2004) by IRS Employment Review, published by LexisNexis Butterworths .

Seven out of 10 say their aim is to be able to use information more flexibly. The cost of the system, future flexibility of the technology and ease of use are less important.

But the survey also shows that cost and deadline overruns are common, with four out of 10 saying they had overspent their budget when buying a new HR computer system and three out of 10 reporting that it took longer than planned to implement. Even then, one in three were either dissatisfied or totally dissatisfied with their new IT system.

The results are based on a survey of 46 senior HR professionals. The survey was conducted in September 2004 and the results are published in the new issue of IRS Employment Review (812), and on its website,