According to research by ADP Research, 57% of companies are planning to make an investment in HR software in the near future. This study and many others confirm that human resource management software is on the rise, but this software has been around in some form or another for many years, so why are so many companies adopting it now? Here are some of the top reasons HR software implementation and sales are on the rise today:
5 Reasons for HR Software Implemenations
Replacing old software: Many companies who currently have some form of HR software are operating on old systems and considering that a majority of business software becomes obsolete within 7 years (unless upgrades to newer versions have been made), it’s no wonder businesses are ready for a change to more modern applications now or in the near future.
Cloud technology has made buying software easier: Leading HR software providers are now offering cloud solutions, a deployment model that has proven itself to make the buying, implementation, ongoing maintenance, and the upgrade process much easier. Additionally cloud systems make switching vendors easier and often times less expensive than on premise solutions of the past. With the cloud having made HR integrations faster, cheaper, and easier than ever, organizations who may not have implemented in the past due to cost and complexity are jumping at the idea of a cloud-based system.
New systems offer user friendly interfaces: As with any software purchase low adoption rates are the fear of any company implementing HR software. Modern systems have much friendlier and more intuitive UI’s than legacy systems which are proven to increase software adoption rates across an organization.
The need for system consolidation: Research shows that only 13% of companies have one single HR system, the large majority have two or three applications for various purposes. Modern HR systems have pulled all of this into a single comprehensive solution that also integrates with other critical business systems such as ERP, ridding businesses of the expense and the hassle of managing data in multiple places.
The talent challenge: While companies have always invested in HR software for the purposes of efficiency and compliance, CEO’s are now more concerned than ever with finding and hiring top talent. Strategic recruiting, employee training, networking, and internal communications are becoming a more critical part of the HR manager’s role and modern HR systems can support these activities in ways legacy systems could not.
If you’re among the 57% who are ready to make an investment in human resource management, you have a lot to think about. There are hundreds of systems available on the market, each with a different price point and feature set. We’ve put together a Buyer’s Guide and request for proposal template to help you pick out which system will best fit your needs. Click below to get your copy.