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What surveyed HCM buyers want includes: • Integrated talent management suites • Improved end-user experience • Improved integration across talent platforms • The ability to derive “people” analytics The majority of HR professionals surveyed indicated that they plan to procure new software within the next 18 months (57 percent) — and most indicated they will both replace and procure new solutions (61 percent). Twenty-three percent are solely replacing existing solutions and 16 percent solely plan to add new solutions to their existing HR environments. Replacing a Core HRIS System WhatWorks® members have access to the entire report, Managing Talent through Technology: HCM Buying Trends in 2013, which provides a look at plans by HR executives to change or buy new software. According to our research, one in four organizations plans on replacing a current HRIS system in the next 12 to 18 months. Of these, 14 percent of global companies are looking to replace their HRIS/HRMS 1 , certainly not a trivial task considering the complexity of these large organizations. However, more multinationals are anticipating changes in their HRIS systems and another one-third of national companies (those with operations only in one country) plan to replace their HRIS. Standalone talent management applications are the primary replacement targets for many users; 20 percent indicated that they will replace their talent management applications with an integrated suite (see Figure 2). The desire for change in the case of human capital management (HCM) software for the near future is likely not a reflection of random dissatisfaction with a provider or a solution. Few new HCM application investments were made during the recent economic recession. As a result, much software is perceived as outdated and cumbersome, difficult to customize, and expensive to support. Managing Talent through Technology: HCM Buying Trends in 2013 After years of belt-tightening, HR professionals are again looking at new software solutions to help in addressing the management of their human capital. We surveyed readers of Human Resource Executive magazine and the Bersin Research Exchange in Fall 2012 to discover whether companies seek to replace or add to their currently installed and deployed human capital management (HCM) software — the software used for both core HR and talent management. || APRIL 2013 54% 54% 57% 73% 76% 0% 50% 100% Unable to efficiently integrate with other systems Business goals cannot be addressed using this technology Inability to get analytics Improve user experience New, better, faster technology solutions in the market Figure 1: The Top Five Reasons Organizations Seek a New HRIS* Source: Bersin by Deloitte, 2013. *Percentages may not add up to 100% as partici- pants could select more than one option. WHATWORKS ® BRIEF Copyright © 2013 Deloitte Development LLC. All rights reserved. 1 1 “HRIS” stands for human resource information system; “HRMS” stands for human resource management system.
