HR teams are limited in their ability to do data analytics and are dissatisfied with their core IT vendors, new research has found.
Navigo Research spoke to 289 HR, payroll, and other professionals related to the field across several industries for its 4th Annual Australian HR Technology Report.
Sixty-one per cent of HR professionals who use HR reporting and analytics tools (218 respondents) said the technology provides limited metrics and is solely based on HR data that is not integrated with other data that might be useful for analysis.
Only 2 per cent are able to model future scenarios to predict business outcomes, the survey found.
Data analysis and predictive modelling is considered most important to HR service delivery for 55 per cent of respondents, as well as mobile enablement.
Vendor dissatisfaction was also noted with 75 per cent of respondents indicating they wouldn't recommend the supplier of their HR information system (HRIS) – the core software for recording employee information – to other companies.
Respondents were mostly dissatisfied with their vendors’ poor customer service, which includes communication, support and account management.
The most adopted HRIS system among respondents was Frontier’s chris21 software (33 per cent), which was much higher than the others; Talent2’s Alesco, SAP’s HCM, Chandler Macleod’s Aurion and Oracle’s PeopleSoft were all under 15 per cent.
Talent2 received three times more ‘very dissatisfied’ responses than any other vendor, making it the lowest in customer satisfaction, the survey found.
In-house systems were the most adopted type of technology (16 per cent of 205 respondents) by HR professionals to do business intelligence. About 27 per cent of 95 respondents also used a module of their HRIS system to do workplace modelling.
Dated or ageing technology is a main contributing factor to not being able to carry out proper data analysis and predictive modelling. More than half (54 per cent) of respondents said their HR systems had been in place for more than seven years and almost 70 per cent in place for more than five years.
Only 16 per cent of respondents running systems more than seven years old plan to replace them in the next year with the majority looking to replace their old systems within two to five years.
Finally, 32 per cent of 212 respondents didn't know what their HR technology budget was for the coming year; 24 per cent said it was between $100,000 and $500,000; 19 per cent said it was between $50,000 and $100,000; and 11 per cent less than $50,000.