4th Annual Australian HR Technology Reports

Navigo Research’s 4th Annual Australian HR Technology Reports are an interesting read. As an HR technology provider, Subscribe-HR finds this type of research fascinating, insightful and a great foundation upon which to build future innovation in the SaaS cloud based HR technology space. Not only that, we find it to be a good benchmark against which to measure our values and the importance we place upon maintaining a sustainable business model in which we can still offer our clients the personalised customer service they desire.

The research indicates that whilst the big players in the marketplace still tend to dominate in terms of adoption, this year’s results also state quite adamantly, that 75% of respondents said they would not recommend their current HRIS system to someone else. That's a very high level of dissatisfaction and the main reason cited for this was due to poor customer service (communication, support and account management).

The implication of these results is that bigger and more well-known, is not always better if you’re looking for an HRIS solution provider. Not only that, the results offer a good reminder that providing a software solution is only half of the equation, and that customer service (a very Human Era aspect of doing business), is just as, if not more important than the solution itself. The results also reinforce the adage that actions speak louder than words.

If you read between the lines, evidence seems to suggest that the larger solution providers in the Australian market are still operating under a more siloed / institutional model of old, leading to low levels of customer satisfaction. Based on Navigo’s results, it is obvious that such organisations may not have figured out that there's a definitive need to transition to The Human Era and put their customers first in actions as well as words. After all, organisations that understand and uphold Human Era values would never allow the conditions which produce such survey results to happen.

As a provider that services small to medium businesses, Subscribe-HR understands the importance of ensuring that our business model allows us to provide personalised service to our clients that always puts the customer’s needs first. For those of you not familiar with The Human Era, you can learn more by reading our blog series about exactly what it means, and what constitutes Human Era values.

Below is a list of the top 20 highlights from both reports that HR Professionals (and HRIS providers alike) will find interesting. However, given that the reports contain a wealth of valuable information, it is highly recommended that you download them both and read them in their entirety.

  1. Operational efficiency is still the main motivation for investing in HR technology.
  2. Software as a Service (SaaS) is showing 500% growth, year over year.
  3. Today only 5% of organisations have their Core HRIS deployed in a “SaaS” model, with 24% indicating that “SaaS” is their preferred approach.
  4. 51% of organisations who have a preferred deployment of “SaaS” currently use an on-premise core HRIS.
  5. SaaS usage continues to grow as a method of deployment for Core HRIS although perceived security and data privacy issues are still a barrier for adoption.
  6. Australian organisations spend a lot of time trying to get more out of their legacy on-premise solutions. However, HR is driving HR Technology strategy and there is a requirement for mobile and analytical ability, although it seems neither are currently being satisfied.
  7. Almost 70% of solutions have been in place for more than five years. This means many systems are based on dated or ageing technology. These older products are sometimes limited in their ability to embrace technologies such as mobile and social.
  8. Customers often say that “no one” trusts their data or that their data is wrong. However, 74% of organisations said that they had formal controls (governance) around HR Data Management. Given the noise in the market place about poor data, it can only be assumed that these formal controls are not working.
  9. Predictive analytics and big data are 2 of the top 3 new technologies impacting HR Service Delivery.
  10. Following operational efficiency, the top motivations for HR technology adoption is meeting business objectives/strategy.
  11. The top roadblocks to HR technology adoption are still cost and budget, and time and resources.
  12. The technology most important to HR Service Delivery are mobile enablement, predictive analytics, Big Data in HR, with cloud capabilities fast gaining ground.
  13. The five most adopted solutions over the last four years has not changed, although their market share has adjusted.
  14. In the next year, 17% of respondents indicated that they will be replacing their Core HRIS platform. The primary reason being better functionality, followed by consolidation onto an enterprise platform.
  15. Almost 30% of small enterprises (100 – 500 employees) are planning to replace their core HRIS in the next 12 months.
  16. Payroll and Recruitment are the two functional areas with the highest levels of technology adoption.
  17. Technology adoption is higher in functional areas where clear and consistent business processes can be defined.
  18. Recruitment is the only functional area where best of breed solutions rule the roost.
  19. Best of breed solutions show much better satisfaction rates then the same functionality deployed as a module of a core HR platform.
  20. Almost 75% of respondents would not recommend their current HRIS solution to someone else!

Navigo's research clearly defines the gaps, and also points to opportunities based on current and future market trends. As a provider, it is a poignant reminder that as we focus on creating new innovative solutions for our clients, we must never forget the importance of maintaining our customer service standards. The 4th Annual HR Technology reports put it front of mind for all of us, to ensure that as we continue to grow, our business model remains sustainable and that our plans never prohibit us from putting our customers first.

Source: Subscribe-HR Blog

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