Well implemented IT systems enable HR to drive business performance

Research shows that integrated IT systems enable HR professionals to show true contribution to business and allow them more time to focus on strategic business issues. A new report, HR and technology: impact and advantages, launched today from the Chartered Institute of Personnel and Development (CIPD) and Cranfield School of Management gives practical advice on how employers can successfully develop an integrated information technology system that will add value to business.

Rebecca Clake, CIPD Organisation and Resourcing Adviser, says: ìPressures to meet customer and stakeholder requirements have made accurate measurement a necessity in order to demonstrate value. HR Information Systems (HRIS) can do the basics brilliantly in terms of improving the efficiency of HR processes. But well implemented systems have the potential to drive business performance, as well as providing effective means of employee engagement and communication.

ìThey can provide accurate statistics enabling HR professionals to identify areas that managers can work on to improve performance and productivity of teams. But failing to invest the resources required and cutting corners or costs early on will leave businesses losing out in the long-term.î

Research shows 91% of organisations introduce a HRIS to improve the quality of information available but the majority fail to integrate systems across the organisation. ìHR must work with IT professionals to draw on the skills required to develop an information system that will meet the needs of HR, other users across the organisation and help achieve the wider business objectives,î adds Clake.

The report investigates the use of technology to implement HR systems, such as an intranet, e-recruitment system, employee self-service system and talent management system. It includes the following ten case studies:

BOC Gases
British Sky Broadcasting
Cancer Research UK
Crown Prosecution Service
IBM
Marks and Spencer
NHS
Nortel
Norwich Union
Transport for London

Dr Emma Parry, Research Fellow in the Human Resource Research Centre, Cranfield School of Management and co-author of the report, says: ìThere are many different HR Information Systems and reporting needs to be tailored to the needs and objectives of each organisation. But the same principle applies. Good communication and an open channel for feedback is essential in order to gain and maintain buy-in from key stakeholders.

ìKey users must ensure that statistics, such as absence, leave and turnover, are available if employers are to achieve the knowledge and information sharing benefits associated with technology. This will enable HR to make more accurate decisions and provide a consultancy service to managers to enable them to identify problems and improve efficiency.î

Findings from CIPDís 2005 People and Technology Survey:

Over three-quarters of organisations use a Human Resource Management System (HRM).

Only 48% of organisations using a HRM system provide a facility for staff feedback.

Less than one fifth (16%) of human resource information systems (HRIS) are integrated with an organisation-wide IT system.

More than a quarter of respondents (28%) say their systems are difficult for the HR department to use.

Human Resource Information Systems are most likely to be used to monitor absence management (85%), training and development (75%) and reward (75%); they were also the three most likely to be run as an integrated system.