Employers plan to increase HR technology spend

A third (31%) of employers are planning to increase their spend on HR technology in the next year, according to research by Towers Watson.

The HR service delivery survey, which polled 628 organisations, found that this was being fuelled by a need to continue growth in the organisation and also improve efficiency during the economic downturn.

Over half (53%) of respondents said they intended to match the levels of investment from last year, while 16% said they would look to reduce their spend on HR technology.

The areas where firms were looking to invest included: rolling-out additional functionality from existing vendors, upgrading HR management systems and expanding self-service functions.

The research also found that 44% of respondents were looking to change the structure of their HR functions in the next few years. These changes included: moving or reverting to a shared-services environment (39%), increasing the number of shared services used (31%) and outsourcing additional HR functions (26%).

Mike DiClaudio, head of Europe, Middle East and Africa (EMEA) HR service delivery practice at Towers Watson, said: “Despite the obvious pressure on budgets over the past few years, many organisations have decided that investment cannot be postponed any longer as HR departments face pressure to adapt and update the way services are delivered.”

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