Looking at CedarCrestone (of Cedar Group fame) and their survey of HCM applications, it’s interesting to see the trends of what everyone is using, what they will be using, and how these trends debunk current myths and assumptions we (or I) may have about the marketplace.
First, it’s incredibly surprising to me that training enrollment has higher utilization than talent acquisition. (see image at the bottom of the post) I truly would have thought that recruiting systems had the highest implementation rate outside of core HRMS. Another surprise is that compensation management has a higher utilization and implementation rate than performance management. Even more surprising is that eLearning applications are used more often than performance. ((CedarCrestone 2005 Workforce Technologies and Service Delivery Approaches Survey,Eighth Annual Edition” page 10. Check out the survey at http://www.cedarcrestone.com/))
What is not surprising is that the tactical processes of training, performance, compensation are the most utilized. Workforce management areas such as succession planning, competency management and career planning are more future sight items that are not being utilized.
What gives a grain of hope is when you look out 36 months. I’m not sure I have huge optimism that companies will implement systems they say they will, but people are considering learning, succession, competency and career planning for implementation in the next few years. This is at a sharp contrast to the other tactical processes (performance and comp). So while we have only implemented tactical management tools, the vision is to implement strategic management tools. (remember the definition of HR strategy put forth by this website was “the shaping of the workforce”).
On another note, I’d like to cast serious doubt regarding the actual implementation rate in the next 12 and 36 months. If you look at competency management, only 22% of survey respondees use such systems today, but an additional 19% (almost double) will implement such a system this year. Then another 21% of organizations will implement between months 13 and 36. While I understand that competencies is one of the HR buzzwords, and competencies are on everyone’s mind, I wonder if this shows a lack of understanding on the part of HR practitioners. I get concerned that strategic objectives are valuable, but not implemented well due to “jumping on the bandwagon without a real clue.”
CedarCrestone 2005 Workforce Technologies and Service Delivery Approaches Survey,Eighth Annual Edition” page 10. Check out the survey at http://www.cedarcrestone.com/
2 responses to “HR Technology Functional Utilization”
A few comments based on the 8+ years of doing this survey:
Training enrollment is higher than recruiting as of last year — remember we had several years where we did not do a lot of recruiting, but organizations did do development of their existing employees. TODAY, however, organizations are once again focused on recruiting and the 2006 survey results may show recruiting once again in the top spot of strategic HCM applications.
Compensation management (as a technology) has been around much longer than performance management (as a technology) — thus the higher “in use” numbers
And, eLearning (simply – the delivery of training electronically) has been around for a long time.
And, like you, I cast doubt on the implementation rate we will see this year — the applications you cite take more work than respondents likely realize. And, based on past surveys, the implementation rate has never been as high as the 12 month plans indicate.
[…] Posted in HRHR Technology Functional Utilization May 8, 2006 5:00am from systematicHR Looking at CedarCrestone (of Cedar Group fame) and their survey of HCM applications, it’s interesting to see the trends of what everyone is using, what they will be using, and how these trends debunk current myths and assumptions we (or I) may have about the marketplace. First, it’s incredibly surprising to me that training enrollment has […] [Read Entry] […]