Economic downturn has impacted on HR technology in a number of ways. Craig Donaldson, editor of HR Leader Magazine, interviews our expert, Ari Kopoulos, our National Sales and Marketing Manager, on this topic and what HR can expect from relevant technology in the future.

This article is first published in Human Resources Leader magazine – issue 180 (7 July 2009)

Q. What sort of trends do you see in the HR technology space over the coming three to five years?

The Trend is towards a new set of tools that interpret the business strategy into a measurable HR strategy. That means functionality that will effectively put employee-related activities on the balance sheet. But it won’t stop there: HR software will become more intuitive, analytical, and predictive, with reports that give clear instructions to a user, based on a logical condition being met.

The way an organisation is viewed will also be challenged. As a result, you will see functionality that offers different views of structure, beyond the traditional reporting. Expect to see structure based on costing, performance, potential and even value. These views will highlight strengths and weaknesses, and determine where to focus or cut spend.

The real change will be alongside the continual evolution of the web itself, Web 2.o. The workforce is connected practically 24/7. It is here we can expect the impact and value of social software to be realised. In general, social media facilitates people locating and communicating with one another, sharing and collaborating on any topic and forming virtual tribes and communities. These are typically blogs, wikis, social networks, search and RSS feeds. How will this translate to HR technology? One obvious example is connecting to jobs boards. From a workflow perspective, it is the approval recruitment request being sent directly to Seek or MyCareer and the applicant sent back to the HR System.

Through many new devices, including Web 3.0, HR technology will embed itself deeper within the corporate workforce and the way an employee interacts within the corporate application sphere will change dramatically.

Q. Has there been any change in how companies are using/leveraging HR technology in the downturn?

Recent Events have forced many organisations to shift focus towards accountability. As a result, HR departments will not only need to be strategic, but measurable down to the dollar.

Specifically it means companies are looking for dynamic reports – headcount, liabilities, competency gap analysis, budget VS actual, FTE’s etc, or taking a look at activity costs and associated outcomes.

E-learning is a prime example of this, where the learning objects are measured for days, cost and tracked against budget. These results are also compared against position, teams and other organisational units.

HR Technology is providing the real-time metrics against which strategy can be set and decision made.

Q. Have companies altered their HR technology spend as a result of the downturn?

There is no doubt that the current economic crisis has focused the minds of all decision-makers, but this has not resulted in a decision not to purchase. Instead we are seeing behaviour changes on the project definition and implementation.

Specifically it means more emphasis on expanding reporting capabilities, tighter approval criteria in business process and reworked approval maps to reflect policy change.

What is also of interest is a shift towards holistic HR systems, with emphasis on the role all HR modules play in the overall HR process, to address gaps in the management of data and processes.

Q. How can such technology increase efficiencies and cut costs for organisations?

The most simple, but highest volume, transaction in a true HR system is leave management.

Going beyond a simple leave liability report, the most effective managers are able to identify those team members with excess leave entitlements, identify absence trends and manage resources effectively.

The graphic reports allow manager to quickly assess and forward plan not only the reduction in excess entitlements, but ensure that the current entitlements are taken to prevent ongoing build up of excess leave and liability.

Q. How can HR best add value to their organisation through technology?

When you look at the characteristics of HR technology you are primarily looking at workflow and reporting capabilities allowing you to measure, manage and inform.

Implement a solution that delivers the key metrics on workforce figures, remuneration models, talent management, leave management and selective retention.
Integrate modules such as training, recruitment, performance management, OH&S within your HR systems and within your HR technology and you will have a more complete and agile information base to inform your planning and decision making.