most organizations to replace hcm software soonNew research from Bersin by Deloitte has shown that after years of budget cuts, 90 percent of surveyed organizations plan to replace their human capital management (HCM) software within the next 18 months. The new findings are a part of the research report, “Investments in Human Capital management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead,” and refers to all large scale HR-related platform software (e.g. talent management systems, learning management systems, and HR information systems).

The research shows that 39 percent of global organizations are planning to replace their HRISs in 2014, over 2.5x the number doing so last year (14 percent). Most organizations plan to acquire or replace talent management and HRISs in the next 18 months; particularly older performance management and hiring management systems that cannot be integrated.

“The top themes for software acquisition remain remarkably consistent,” said Katherine Jones, vice president of HCM Technology Research at Bersin by Deloitte. “Seventy-four percent of respondents in the market for a replacement HCM system sought to improve their users’ experience, recognizing that new, better and faster technologies are available in the market today. The ability to integrate the entire range of HCM software to improve access to analytics and decision-making were also key drivers.”

Additional key findings from the report include:

• Better analytics and reporting capabilities were the top criteria for the replacement of HRIS. Almost half of survey participants have used their HRIS solutions for at least seven years.

• Half of large organizations have owned their HR management suite/HRISs for more than seven years.

• They key motivator for seeking an integrated management suite was improving the end-user experiences. Nearly three-quarters of respondents replacing an HR system reported wanting to improve the end-user experience.

• Integration with other talent and business applications was the key motivator for organizations moving from standalone applications to a suite. Three-quarters of these organizations want integrated learning and development, performance management, recruiting, and onboarding.


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