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 include 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 the 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.
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CEO & Chief Research Officer