Technology.  We can’t escape it.  Computers have enabled us to accomplish more than we thought possible in shorter timeframes.  We’ve all undoubtedly had momentary technological setbacks with crashed hard drives and downed servers, but all in all technology has helped us to move forward.  But has the use of technology been fully leveraged in all organizations?  What is in store for the future?

The Society for Human Resource Management recently asked its Special Expertise Panel on Technology and HR Management to report on technology trends in the sector.  The panel’s overall conclusion was that Information Technology (IT) is being leveraged by HR to benefit almost every aspect of day-to-day operations. With HR technology constantly improving and costs continuing to decline in many instances, it is inevitable that implementation of these applications will continue to rise.

Increasing concerns over the ability to attract and retain key employees, as well as compliance requirements generated by laws such as Sarbanes-Oxley, have caused organizations to examine how they manage their HR more closely than ever before. And in turn, HR professionals have increasingly turned to IT to address key issues such as performance management, compliance-oriented training, and succession planning.

Certainly there is a greater willingness by HR professionals to embrace technology, as demonstrated by the SHRM study. The report’s panel of experts identified “expanded use of the web for delivery and utilization of HR applications on a service basis” as a common trend, but the deployment of HR technology runs far deeper. One particular area that has been highlighted is the increasing deployment of self-service components built into HR technology systems.

Elsewhere, software is utilized to manage areas such as internal mobility, appraisal management, succession planning, package review, and personal development. E-recruitment and performance management software are also helping to improve HR’s ability to carry out effective human resource management, and improve the organization’s reputation as an employer of choice.

With the rise in HR technology, integration issues between systems have also reared their heads, prompting more focus on IT matters. Unable to risk a costly integration problem, some professionals are turning to application service providers. Applicant tracking systems in particular are a popular application to be delivered. For organizations looking to keep their operations in-house, however, there are other options.  Fortunately, technology is maturing sufficiently to become a viable solution.

Employee buy-in to the new technology is an important part of any HR technology implementation. HR professionals may be ambitious enough to roll out a new system in an effort to support the department.  However, there is not necessarily the same enthusiasm among the rest of the staff – particularly if they are unsure where they will see the benefit. As such, more organizations are involving employees at various stages of HR technology design and implementation.

The Society for Human Resource Management’s new HR Technology Survey highlights the following key findings:

• Expanded use of the web for delivery and utilization of HR applications on a service basis.
• The majority of organizations do not have an employee self-service component built into their HR technology systems.  This is likely to change according to HR technology experts, however, as Internet-based self-service applications are improved and are better integrated into other work processes.
• Most organizations are not measuring the Return on Investment (ROI) for HR technology systems.  Thus, some are finding making the case for HR technology problematic.
• Significant growth in the use of e-learning.
• Heightened awareness of HR data privacy.  This is an increasingly important issue given the rise of identity theft using employee information.
• Increased outsourcing of human resource information technology systems.
• Increased transition to paperless payroll.

Further, the study identifies the technologies making the biggest impact in the HR market:

• Employee self-service
• Workflow technologies
• Vendor management systems
• Applicant tracking systems
• Hiring management systems
• E-recruitment software
• Internal mobility software
• Performance and appraisal management software
• Succession planning software
• Personal development software
• Career planning software
• Package review software
• Executives and key people management software

“Think about your current systems.  Undoubtedly there is area for enhancement that comes from automation,” says John Sazaklis, Astron’s Senior Automation Expert.  “Remember, you don’t have to invest in systems like Oracle or PeopleSoft to automate your HR initiatives.  Microsoft Office and the Web are powerful tools you can harness.  If you don’t want to outsource the development process to a third party vendor, someone in your HR or IT department probably has the skills to create a system to meet your needs.”

 When thinking about automation opportunities in your organization, consider the time saved by using the computerized system.  Multiply that by your hourly rate of pay and benefits cost to start a cost-benefit analysis.  Consider also the costs saved by having to use less paper, toner, postage, or other office supplies.  “Building a case through a thorough cost-benefit analysis will be your best tool for gaining program approval,” says John.