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Historically workforce management has been centered on tracking time and attendance, absences and leaves. Organizations view the time and attendance system as the top priority to integrate with the payroll system; in our payroll management benchmark researchvr_Payroll_Management_06_what_to_integrate_with_payroll_management half (51%) of organizations called it very important. However, only one in five have integrated the two to streamline processes. So limited an administrative and operational focus does not contribute to improving worker productivity or manager efficiency. Moreover, such an approach can foster employee turnover and undermine worker satisfaction and loyalty. Our research analysis underscores that paying insufficient attention to the worker experience can degrade employees’ sense of accomplishment and in some situations also degrade the customer experience.

Of course, managing the costs and efficiency of schedule-, time- and pay-related tasks, including compliance, remains important. However, these tasks, as well as those above, can be more easily accomplished with advanced workforce management software. Used to full capability, it can manage this operational environment and help managers drive not just productivity but also the success of the organization while also engaging the workforce.

Out of necessity, workforce management software is evolving as an integral part of systems for business units and for human resources. Importantly, advanced workforce management systems typically include analytics that help management understand workforce performance; in our previous workforce management research 61 percent of organizations said that analytics is important to workforce management. For example, analytics applied to optimization of schedules can help organizations manage workers to their expectations. Analytics also is critical to optimize workforce performance and to enable members of the workforce to understand their contributions to the success of the organization. Furthermore, analytics can guide executives and managers to improve decision-making and rectify issues that could be leading to increased costs and be out of compliance with regulations. Many organizations, however, are not prepared to undertake these efforts; they still use an array of spreadsheets or tools that are not synchronized with real-time data from workforce management systems.

As organizations evolve, their needs for more efficient and engaging workforce management is transforming workforce management. We have begun to explore this category further in new benchmark research on Workforce Management for Human Capital Management. This new research will gather and analyze data on enterprises’ current workforce management practices, the software they use and their plans for the future. Here are some of the aspects we will explore.

The availability of next-generation workforce management systems (which include analytics) through cloud computing facilitates adoption of and access to these applications and the information they use. In our previous research one-fifth (19%) of participants expressed a preference to use cloud computing for workforce management, and we expect this percentage to grow as the attraction of deploying software as a service in the cloud influences buying decisions. For most organizations there is value in having the vendor manage the implementation and maintenance of the systems, and the ability to stay current in newer releases also is significant. Organizations are most concerned with time to value in new implementations and efficiency of their teams in using it. Depending on their needs and budgets, they can choose to deploy it in a single customer private cloud or a multitenant public cloud.

Likewise the proliferation of mobile applications for workers and managers in today’s workplace dovetails with the interests and proclivities of the increasingly younger workforce. Almost half (45%) of organizations in our previous research indicated that they will deploy such new applications to improve productivity. We expect the readiness of organizations to use mobile devices including wearables will further increase demand for advanced workforce management. The use of smartphones to access information about employees, payments and benefits and corporate policies makes it easier for workers to review and request changes to schedules; it is a key way to provide the flexibility demanded by workers who want to balance their personal and business lives. Organizations that do not embrace mobile devices for their workers and managers risk decreases in productivity and workforce engagement that could lead to increased employee churn.

Younger workers also are comfortable collaborating using social technology such as messaging, forums and open threaded dialogue on topics. Employers need to learn to interact with them accordingly to retain talent; at the same time, these methods provide an opportunity to further optimize workforce management by engaging workers in new ways. These innovations include assigning goals and rewarding achievement along with using new communication channels to resolve issues quickly, easily and interactively – more than half of organizations in our research identified these capabilities as important. As social forms of collaboration become part of the communication fabric, organizations can gain valuable feedback from workers and also provide coaching to increase their effectiveness. Efforts to improve the skills and competence of workers also can benefit from learning management and other systems that are accessible on mobile devices.

Driven by the evolving nature of talent and challenges to retain it, advanced workforce management now has capabilities to address spectrum broad range of human capital management needs. Using it senior management can gain greater insight into the workforce in action while improving the work experience and complying with relevant policies and regulations. Most organizations will find that investment in workforce management can be justified by its ability to ensure compliance with regulations regarding the Affordable Care Act, the Family and Medical Leave Act and a growing variety of locally established worker rights mandates.

Employers are recognizing the value of a new generation of workforce management systems in enabling organizations to meet requirements beyond managing schedules, absences and time off. For example, one-third (34%) of those participating in our payroll management research said they plan to deploy new workforce management software by the end of 2016. Almost half (47%) said they are not satisfied with their current product’s functionality. Workforce managementVentanaResearch_NGWFM_BenchmarkResearchas it is evolving addresses concerns common to all industries and will play a key role in tomorrow’s human capital management. Finance and operations management should examine the benefits it will deliver by bringing more efficiency into their processes, in particular ensuring a more engaged and longer-tenured workforce that contributes to financial profitability.

Implementing this new generation of workforce management will require an in-depth understanding of the options available and the people, processes, information and technology issues that must be addressed. Our new Workforce Management for Human Capital Management benchmark research will examine advances in the three years since our previous research was published. I believe that workforce management has a stronger role to play in efforts to achieve operational excellence and customer satisfaction and that the benefits organizations can realize from using these applications can be significant. Please look for upcoming announcements of how you can participate in and learn from this cutting-edge research.


Mark Smith

CEO & Chief Research Officer

Ventana Research defines a human resources management system (HRMS) as the set of applications and associated processes that store and manage the employee information used by an organization’s human resources department. New technologies make it possible for the HRMS to perform better and be easier to use by HR professionals and members of the workforce. The range of evolving technologies impacting the development of the HRMS includeVR_HRMS_BenchmarkResearch business analytics, big data, cloud computing, mobile technology, business collaboration, social media and wearable computing. These advances enable organizations to streamline the processes that the HRMS supports and more efficiently take advantage of competencies that already exist in the workforce. The changes are so substantive for organizations and their HR departments that we have undertaken new research called Next-Generation Human Resources Management Systems.

As well as becoming more efficient in their HR processes, employers want to ensure that their employees can interact easily with HR managers and feel satisfied with these relations. This is facilitated by using new methods such as collaboration through mobile devices. In addition companies today have to manage greater amounts of information than ever before related to benefits and policies and be able to provide specific, relevant information directly to employees at any time. Employers also have to comply with a range of employment rules and required benefits such as the Affordable Care Act for healthcare in the United States. In this context of information overload the HRMS should be able to use big data technologies to become a strategic tool that helps both HR and employees have complete and relevant information about employment.

The basic use of the HRMS is to hold essential information about an organization’s employees. Until recently HRMSs were stand-alone systems that maintained seldom-changing information and were used by only a few people in the HR department. The HRMS, and indeed the HR function in general, was seen as dedicated to keeping records, providing input for payroll, overseeing related compliance processes and managing benefits including healthcare, time off and others not related to compensation. Employees and managers had limited access to self-service capabilities, not to mention ready availability of it on a variety of devices.

This perception has begun to change in recent years. Other types of applications, such as talent management and workforce management, have been introduced into human resources processes, and HRMSs often must share information with them. Such systems potentially expand the kinds of information available to managers and those who work for them. In addition, innovative technologies including richer analytics have expanded the ways this wealth of information can be used and the array of roles – line-of-business managers, executives and even individual employees – that can benefit from using it. Business analytics can highlight the types and quality of talent a company possesses – and needs. Ubiquitous access to HR information through smartphones and tablets improves the reach and speed with which employees and managers access information and promotes sharing, communication and understanding. Embedded social collaboration tools connect employees more effectively and impact metrics such as employee engagement and time to productivity.

Thus the HRMS can play a strategic role in human capital management. HR professionals now can have applications and tools that support a range of workforce processes and also help the rest of the organization with their employment and business needs. A modern HRMS also can help engage and retain talent through advanced and more efficient HR practices. This new market research will explore both the evolution of human resources management systems and the roles of new technologies that being added to them. It will evaluate how organizations are integrating their HRMSs with new technologies and their impact on improving HR processes and increasing the value of HR to the organization.

Such changes in HRMSs and other human capital management systems are facilitating an evolution of HR processes. Key focus points of this research will be to examine the changing role of the HRMS in organizations, how new technologies such as business collaboration are being integrated into the HRMS and related applications HR personnel use, how VentanaResearchBenchmark_PayrollManagementthe applications are accessed through mobile devices and finally the perceived value these new technologies add to core HR applications such as the HRMS. The research will detail the specific ways in which the HRMS is evolving from a system that stores basic employee information to one that integrates benefits and payroll along with integration to talent management and workforce management information and applications to provide more useful information for HR and business leaders. Our latest benchmark research on payroll management already shows that more than half (53%) of organizations see employee self-service as important for accessing an individual’s payroll information. The new research will track as well the changing needs of HR for information related to benefits and pay and to compliance with regulations and policies.

The goal of this Next-Generation Human Resources Management benchmark research is to examine how organizations are evolving in using an HRMS and determine the drivers for and benefits of adapting a new technological approach. It will build upon recent benchmark research findings that show that talent management and workforce management systems are critical for organizations as adapt to a new generation of technologies for their workers and employees. This research also will seek to understand how the next-generation technologies listed above are changing the way organizations operate in human capital management processes and to identify the best practices used by innovative companies. It will examine whether and how organizations are choosing to embrace these new technologies in their HR functions. It also will assess how adopting an advanced approach to using an HRMS impacts an organization’s  people, processes, information and technology requirements as well as its productivity.

Come engage in our research and in return receive best practices and insights that can help your organization. Participate.


Mark Smith

CEO & Chief Research Officer

Mark Smith – Twitter

Ventana Research

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