The Business Value of HR Technology [Research Preview]
August 1, 2017
Within the next few weeks we are going to be releasing our research summary from the 2017 Lighthouse Research Business Value of HR Technology Study. It has been fascinating to examine some of the data and we haven’t yet finished writing up the findings; however, I wanted to take a moment to explore a few of the key insights here.
Top 5 Research Highlights
Some of the key findings from the study:
- Business leaders working outside the HR function are twice as likely as HR leaders to see their company’s HR technology as a strategic tool.
- Employers that have more recently implemented HR technology are more than twice as likely to see the tools as strategic when compared with their peers who have older systems.
- Recent implementers of HR technology are more likely to experience benefits such as increased productivity (47% more likely), employee engagement (twice as likely), and better reporting and insight (73% more likely).
- High-performing firms have a greater chance of generating higher levels of cost savings and ROI than other companies. They are also eight times less likely to say that their technology is troublesome.
- 86% of participating companies experienced benefits or payback from their HR technology within 12 months.
Taken as a whole, these data points paint a great picture for companies implementing new HR technology. Today’s HR technology stack may be fragmented or even fragile, but it also has value, apparently.
Recent Implementations Lead to Better Outcomes
One of the areas we explored was the difference between companies that had implemented technology recently and those that had their technology in place for at least 24 months.
In virtually every category, companies with recent technology implementations saw increased value when compared with those with longer-tenured technology, particularly in seven key areas. Companies who implemented HR technology within the past 24 months saw the following results.
- Productivity: 47% more likely to see productivity benefits
- Better reporting: 73% more likely to have better reporting and insights
- Data accuracy: 50% more likely to have better data accuracy
- Resource reduction: 4 times as likely to see resource reduction
- Employee/candidate experience: 48% more likely to have better candidate or employee experience
- Engagement: 2 times as likely to have better employee engagement
- Organizational trends: 65% more likely to have better insight into organizational trends
These outcomes give some powerful tools to business leaders looking to build a business case for new HCM technology.
Other findings in the study show payback periods and ROI data, what high-performing companies do differently, and how non-HR business leaders view their company’s HR tech. What are your initial thoughts on these findings? Surprising? Expected?