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The Modernization Trend of HR Technology Systems

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A rise in company spending on core HR technology and systems is underway, according to the 2015 HR Service Delivery and Technology Survey conducted by Towers Watson, a leading global professional services company that helps organizations improve performance.[1] This year, nearly nine out of 10 HR executives surveyed indicated that they plan to spend the same amount or increase their budget for HR technology and systems compared to 2014.[2] In addition, the survey indicated that many organizations are replacing their core HR management systems more frequently than ever, approximately every three to five years compared to every five to seven years in the past.[3]

After polling 798 organizations across 37 countries, Towers Watson learned that the modernization of HR technology continues to be a priority for many organizations. For example, as many as 40 percent of survey respondents are looking to change their HR structure over the next two years, and 30 percent of respondents – an all-time high – indicated that they will replace their core HR system in 2015.[4]

Cloud-based platforms are replacing traditional HR platforms, and mobile technology and HR portal technology are gaining traction with employers as well. The survey showed that 61 percent of respondents plan to use mobile technologies for HR transactions this year, which is an increase from 46 percent last year. Plus, 40 percent of HR leaders responding to the survey want to replace their existing premise-based HR system with a software-as-a-service solution. Despite this dramatic shift in implementing advanced technology for HR functions, some companies (28 percent of respondents), surprisingly, still use paper for talent management tasks.[5] The manual use of paper will continue to decline as HR system transformations continue to increase at a steady rate.

For additional details about these survey results, you can find more information here. Consider learning about how human capital management (HCM) platforms like ADP SmartCompliance® can help HR and financial professionals drive strategic growth for their companies.

Learn More About ADP SmartCompliance®


The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.

1, [2], 3, 4, 5




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