HRIS Technology Trends and Next-Generation Needs

Human resources technologyInformation technology applications have largely taken over Human Resources management functions. Human Resources software, core HR IT systems, cloud-based and outsourced, these systems form an alphabet soup of opportunities
that can sometimes be confusing and overwhelming for business owners.  HRIS technology trends are changing and challenging vendors to come up with next-generation solutions for employers. 

According to the research firm IDC, spending on Human Resources cloud systems that record employee information over the internet hit $4.8 billion in 2012. The interest in core HRIS software remains strong as more companies move away
from in-house on-premises solutions. 

To understand the future of HRIS technology trends, you need to manage the vocabulary. 

  • Core HR systems began by taking on Human Resources administrative work
    and tracking basic employee information: name, address, social security number, withholding, job title, pay level, etc. Early systems typically allowed a range of manager and employee interactions, including time-off requests and approvals. Core HR systems generally tie to benefits administration and payroll. 
  • HRMS applications account for the bulk of spending in the overall human resources software market. They include recruiting, performance management, and scheduling tools. Top providers include SAP, Oracle, and ADP. 
  • HCM or Human Capital Management systems add capabilities that automate recruiting, applicant tracking, on-boarding, and daily performance issues intending to value employees for effective placement. 
  • HRIS programs upgrade and integrate core systems and cloud-based performance. HRIS relieves IT personnel to pursue overall corporate and operational needs, encourages employee and management interface, and facilitates administration and communication over multi-site operations. 

Developing companies are looking for more than record keeping in HRIS technology trends. They value products that integrate Enterprise Resource Planning (ERP) with HRMS. They appreciate the traditional human resources software hire-to-retire processes like recruiting, archiving, performance management, and compensation, but they want to align that data with the ability to track and manage workers external to the organization. 

Making them user friendly 

According to a Workforce survey, a large number of employers want to replace, upgrade, reimagine, or re-implement their core HR systems to make them more user-friendly for the workforce and easier to maintain from an IT standpoint. “Our survey of nearly 600 HR practitioners found that 47 were ‘likely’ or ‘very likely’ to make such a change in their core HR software within the next three years.” 

There may be several reasons for this reversion in HRIS technology trends: 

  • Core HR systems have just gotten a lot better. Employers are finding that their corporate internal proprietary systems can include or re-engineer most of the bells and whistles of the HRIS market. 
  • Some HRIS software products are aging, engineered well on the IT side but shallow on the side of evolving Human Capital Management (HCM), Talent Management (TMS), and Enterprise Resource Planning (ERP). 
  • Some software packages come with more features than they realistically need. 

Integration is the word. 

Employers of all sizes are pushing for new design and direction: 

  • Human Resources software data storage inclines to the static, stacked in columns and tucked into virtual cubbyholes. Employers want systems that will integrate relevant data into applications that can access data-driven decisions in real time to transform a business process.
  • Applicant tracking risks becoming static. Recruiters want more than tracking the flow from application to on-boarding. They want more contemplative software that analyzes the tracking channels. Data can show and integrate the history of various recruiting channels to inform managers of the shortest on-boarding time, the source of best performing employees, and/or the most employees.
  • Training data can, when integrated, demonstrate the average performance of staff who have attended certain development sessions. It can then recommend courses and mentors and/or suggest development of internal courses.
  • Multiple cloud-based programs for Human Resources administration, talent management, recruiting, and more make relocating systems easier than ever. According to Forbes, 24% of the companies surveyed are considering replacement.
  • HRIS has become a given part of the operation. Human Resources management cannot think of doing business without it. So, they are looking for more in terms of things like talent management analytics. In fact, they want to learn more about analytics and just how analytics can improve their tasks and accountability across the board.
  • CEOs, Human Resources leadership, supervisors/managers, and employees are looking for more information at their disposal in real time.  Mobile applications promise full and fast access to administrative, recruiting, talent management, and performance metrics.
  • Talent Management systems tend to be silo functions. For instance, while they might explore the analytics in marketing, that exploration does not easily integrate with the analytics for the manufacturing floor. If providers can meet employer wishes for flexibility and integration of business goals and performance metrics, they will increase the strategic value of Human Resources software as the systems help meet goals and objectives. 

Sharlyn Lauby from HR Bartender writes, “It can be tempting to automate a process too soon because the capability now exists.” The time is coming for a shakeout among HRIS products. Users have found legacy products fully useful and have altered their management models to embrace them - but employers are also encountering next generation needs which require next generation HR IT solutions.

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