Employers use out-of-date HR and payroll technology

Two-thirds (62%) of respondents are relying on out-of-date technology systems to manage HR and payroll functions, according to research by MidlandHR.

Its HR technology 2013: how mid to large-sized UK organisations are using HR technology, which surveyed more than 200 senior HR and payroll professionals, found that only 18% of respondents have taken or planned to undertake a return on investment (ROI) assessment on their current system.

The research also found that the majority of respondents were not planning to change their system. Among those that did intend to change systems, the reason was its lack of functionality, both for HR (29%) and for payroll (38%).

Declan McGrath, managing director at MidlandHR (pictured), said: “Organisations need to consider adopting a wider range of technology instead of just the basic HR and payroll administration.

“Manager and employee self-service, for example, have been proven to provide considerable process efficiency gains. This leaves HR personnel free to focus on more strategic HR activities, which have more impact on workforce optimisation.

“It’s incredibly disappointing that ROI assessments are not routinely being carried out. Technology providers should be willing to work with organisations to quantify the financial benefits and cost savings achieved.”