HR Professionals’ needs still not being taken into account


HR Professionals’ needs still not being taken into account
 
*Cost and difficulty of upgrading ERP systems proving barrier to change*
 
HR directors, managers and decision-makers in large organisations are still not being given a fair share of voice in selecting the technology to enable them to do their roles effectively, according to a new research report, HR Technology 2013: How mid to large sized UK organisations are using HR technology.
 
It was clear that in those organisations which had opted for an Enterprise Resource Planning (ERP) solution, the HR department felt that it had not been consulted sufficiently, with only 55% feeling they had the right level of involvement. This contrasts with specialist solution users where more than three quarters (81%) said they had been listened to.
 
Commenting on the findings, MidlandHR’s managing director, Declan McGrath, said “It is well-known that HR departments often get a raw deal from ERP systems which are often driven through by finance directors to deliver savings in other parts of the business but fail to take into account the needs of the HR and payroll professionals.”
 
The research also revealed that organisations using ERP solutions are not regularly reviewing whether the technology is continuing to meet the HR and payroll needs of the business. Over half (51%) of  HR directors, managers and decision makers whose organisations use ERP technology reported that a review was not going to be undertaken for at least five years or more (compared to only 35% using specialist solutions).
 
This is despite the fact that the primary reason cited for those ERP systems which had been delivered late, was that the product ‘didn’t do what it was supposed to do’ (29%). ERP systems were also more likely to have faced installation problems (14%) that had caused them to be delivered late. 
 
Meanwhile, the most common reasons for ERP solutions not being delivered on budget were: unexpected consultancy costs (20%), unexpected software costs (20%) and additional resources required (20%).
 
McGrath explains: “Organisations need to be thinking more about the strategic importance of HR before defining their ERP strategy.  The difficulty and costs associated with upgrading ERP systems may be contributing to the long periods that these systems are not being reviewed internally.  Many of those not planning to change supplier cited the amount of money already invested in their current systems (54%) and the high cost of changing supplier (44%) as reasons.
 
“Organisations are unwilling, particularly in times of austerity, to invest in new technology. However, this is only contributing to businesses having to stick with systems that don’t meet their current or ongoing needs and is clearly acting as a barrier to adopting the latest technology.  For example, the findings revealed that only 22% of HR departments using ERP solutions considered their systems conducive to Bring Your Own Device (BYOD), as opposed to 39% using specialist solutions. “
 
The research surveyed the opinions of over 200 senior HR and payroll directors, managers and decision-makers from UK organisations with over 500 employees. The research, commissioned by MidlandHR, a leading specialist supplier of talent management, workforce planning, HR and payroll solutions and services, examined the views of private and public sector organisations, 52% and 48% respectively.
 
To download a copy of the report, HR Technology 2013: How mid to large sized UK organisations are using HR technology, please click here