The People Matters HR Technology Study, 2015 has revealed that 6 out of 10 companies will increase their technology budgets on strategic Human Resources (HR). 155 HR leaders from Indian and Multinational companies of various sizes, sectors and vintage responded to the study. Conducted by People Matters, a 360-degree knowledge and media platform in the Human Resources space, responses were collected through an online questionnaire and face-to-face interviews between June and July 2015.
Ester Martinez, CEO and Editor-in-Chief, People Matters says, “We commissioned The People Matters HR Technology Study, 2015 to ascertain the direction of the HR-Tech journey. Only factual market data, supported by actual experiences of the community, can direct attention and emphasis towards areas of development. People Matters aims to make this study an annual feature to help the HR leadership co-create a roadmap for the future. Of course, also backed up by the energies of the entire ecosystem: HR leaders, practitioners, business leaders, service providers and, importantly, the end beneficiaries – employees themselves.”
The study delves deeper to determine the HR domains that will receive the bulk of HR Technology investments: HR Analytics (72%), Recruitment Technology (69%), L&D Technology (69%), and bringing mobility across the HR processes (65%).
According to 80% of the respondents, HR Technology has achieved two clear objectives: 1. Transparency in the HR workflows, by eliminating human errors – a very critical and significant objective; and 2. Operating efficiencies in HR delivery. These achievements help with accuracy and integration of data that can now be transparently shared.
So what, according to HR Leaders, are the factors driving technology further into the HR space?
A significant development is the emergence of the Chief HR Officer (CHRO) as a core player in the HR Tech investment decision-making process. Once the domain of the Chief Information Officer (CIO), Finance Head or directly the Chief Executive Officer (CEO), 45% respondents indicate that the CHRO is now the final decision-maker for HR Tech investments! 67% also said that the CHRO was a key influencer.
“Historically, it has been the IT and the CFO who has been major stakeholders in putting technology in place based on the requirements of the HR executives. But now, in a big shift, it is the CHRO or the Managing Director of HR who makes major part of the decision regarding selection, adoption and management of HR technology.” Says Aaron Green, Vice President-HCM Strategy, Oracle.
In addition to the decision-making role of the CHRO, there are several other drivers that are increasing the adoption of HR Technology. According to Deepa Chadha, Head HR COE at Bharti Airtel says, “Organization scale and the need for employer branding are two of the core drivers of tech adoption. Other factors behind the need for HR technology are effectiveness and data accuracy.”
However, the study also revealed a struggle. Only 19% of the respondents indicated that their HR Technology strategy has been a complete success! Also, it emerges that methodology for determining the return on investment (ROI) is yet to be buttoned down, since as many as 31% respondents stated that they do not measure the ROI on HR Technology.
Ester Martinez further adds, “This study reveals that there are still many dots to be joined. So leaders must continue to connect, debate and deliberate on ways to make HR technology strategies more successful. Partners – internal and external – across the HR ecosystem need to come together more. So that successes and challenges can be shared and lessons learnt. The benefits are countless!”
People Matters manages a suite of sharing-learning platforms for every HR domain. The platform specific to the HR-Technology ecosystem is TechHR 2015 on August 18-20, 2015 in Gurgaon, where this conversation will continue. Like the outcomes of the People Matters HR Technology Study, 2015, People Matters believes in sharing the highly experiential content from all its initiatives with the HR fraternity.
About:
People Matters is a leading knowledge and media platform in the Human Resources space. We strive to create an HR community of practice and excellence that fosters amalgamation of new ideas between HR managers, HR service providers and CXOs, leading to the growth of HR as a business-critical function.
People Matters’ print, online, digital and events platforms provide thousands of HR stakeholders with information, best practices, trends and industry news. In a short span of 4 years, it has emerged as India’s single point of reference for knowledge in the HR industry.
As HR ups its role as a strategic business partner, our vision is to become an indispensable source of knowledge, information and inspiration for this community.
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Photo Caption: Where's the investment going?
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