Few new Human Capital Management (HCM) application investments were made during the recent economic recession, so a lot of HR software is outdated and cumbersome, difficult to customize, and expensive to support.
Recent software innovations have brought a new look and feel to HR software, making it easier to use, and often with social and mobile capabilities built in.
The requirement for talent analytics has created a need for improved embedded metrics and more sophisticated (yet easy-to-use) tools, and "compelling dashboards."
Deloitte's "Managing Talent Through Technology: HCM Buying Trends in 2013" report indicated that this year, 61% of HR professionals plan to replace their human capital management (HCM) software. More than half say their HR software is outdated, especially if you take into account the global reach and mobility of today's workforce.
Other findings in the Deloitte report included:
- 57% of HR professionals surveyed plan to get new software within the next 18 months
- 61% say they will both replace and get new software
- 23% are solely replacing existing solutions
- 16% plan to add new solutions to their existing HR environments
- 1 in 4 organizations plans on replacing a current HRIS system in the next 12 to 18 months
- 20% says they will replace their talent management applications with an integrated suite
In-demand features for HR software
Companies look for differing capabilities in HR software to fill their needs, but if you think it's time to update, here are some features you might need to look at to help you decide:
Deeply Integrated Database
The more detailed database you have the better. That way, you can keep track of job training and continuing education of your employees, as well as job performance reviews, search by skills and education, ensure you're compliant with employment laws and regulations, and even details like employee birthdays.
Application and Recruitment
You'll want online recruiting software that will allow you to easily post job openings, track applicants, search through resumes, schedule interviews, and communicate with candidates, including using third-party resources and social media.
Timestamp and Payroll
You should look for software that would allow you to enter and maintain integrated payroll information such as schedules, timecards, salaries, benefits, tax withholdings, 401K, and other benefits and schedule information, no matter how many employees you have. You should be able to also track vacations and leave (sick, maternity), and integrate direct deposits.