HR Software User Insights & 2015 Outlook

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Most organizations are operating with some sort of HR software for capabilities such as talent acquisition, applicant tracking and succession planning. When the economy took a dive and hiring was at an all-time low, the need for hiring and selection tools and/or the added cost and expense of HR software programs seemed to become less of a priority. Now that things look to be on the upswing, you may be thinking about implementing something new or sharpening your focus in a particular area.

With a high user satisfaction rate, HR software should see a spike in business throughout 2015. Software Advice, an HR software review company, surveyed HR professionals who currently take advantage of the benefits that HR-related software provides. A summary follows; you may view the full report here.

Key Findings:

  • The most common pain point, highlighted by 17 percent of HR professionals surveyed, is difficulty customizing their HR software to meet their needs.
  • Eighty-nine percent of respondents note that they are “somewhat” or “very satisfied” with their current HR software.

Most Buyers Use HR Software Together With Manual Methods. Possibly because of budget constraints, Software Advice found that small businesses are much more likely to be using a combination of software and manual methods, while larger businesses are more likely to utilize limited to no manual methods. “But why?…businesses tend to purchase only the type of software that will have the greatest return on investment, generally in terms of time saved.”

Nearly 90 Percent of Respondents Satisfied With HR Software. An important finding to note is that 89 percent of respondents are either ‘somewhat’ or ‘very satisfied’ with their software…Only 6 percent of respondents are either ‘somewhat’ or ‘very unsatisfied’ with their software. Those that used HR software exclusively reported higher satisfaction rates than those that combine their software with manual methods.

Improved Access to Employee Records Is Primary Benefit of HR Software Use. In a previous report, “Software Advice found that the primary motivator for purchasing new HR software is the need to improve efficiency and accuracy.” Based on the satisfaction and performance ratings businesses offered, the data supports that with the implementation of HR software, these benefits are realized in the form of storing and organization, accuracy and reduced paperwork.

Difficulty Customizing HR Software Is Users’ Primary Challenge. While there is not a perfect software program for every company, the number of options from providers and increasing innovation and understanding make it possible for HR software to cover the key benefits and abilities requested by most businesses.

No Single Vendor Dominates the HR Software Market. Moving onto which products companies currently use, we find that our sample employs a wide variety of HR software solutions, with no single vendor taking the lion’s share of the market.

Conclusions. Small-business users in our sample are highly satisfied with their HR software, so others currently looking to buy can infer that their purchase will likely be worth the investment. In fact, most current HR software users anticipate either maintaining or increasing their current level of spending on software.

Traci Kingery, PHR is an HR Professional and freelance writer based in the Midwest, specializing in immigration and talent management. When she’s not improving unemployment, she keeps busy with her husband and four children.

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