Employers in Europe, the Middle East and Africa plan to spend the same or more on HR technology this year, according to a recent survey from Towers Watson. Just over one in ten of this group will increase investment in technology and software by more than a fifth. The most frequently cited way of increasing expenditure planned for 2015 is to replace an existing core HR management system; over a third of employers in the survey of 798 organisations plan to switch core systems this year.
However, despite this planned investment, the survey highlights clear opportunities for HR to automate more processes to increase efficiency and drive down costs. Nearly a third of organisations still use manual or paper-based systems to manage bonuses and other variable pay and 39% use paper-based systems to process new joiners.
Tim Richard, EMEA leader of Towers Watson’s HR Service Delivery practice, comments:
'Upgrading and consolidating technology is becoming a major priority for HR. While in the past, companies have mostly invested in separate technology for talent, compensation and performance management, there has been a dramatic shift to investing in an overarching IT system with the functionality to take care of all of these areas. Many organisations are now looking at cloud-based solutions to replace traditional HR platforms. That said, while many HR organisations are embracing change and capitalising on the opportunities presented by new technologies, the extent to which legacy paper systems prevail is startling. I expect as more positive case studies of tech adoption are shared with peers, confidence will naturally grow and the use of paper systems will significantly decline during the next few years.'