Companies Accelerating Adoption of Cloud-Based HR Platforms Amid Pandemic, ISG Survey Finds - Seite 2

Many leading SaaS HR solutions added COVID-specific functionality to comply with new payroll legislation, track COVID cases and help manage the return to work, Card noted.

The study found a strong correlation between an organization’s success at aligning its service delivery model and processes with its new HR platform and its ability to achieve business results.

Companies are fairly evenly split between their use of internal shared services and outsourcing delivery models, but the report shows a clear migration toward outsourcing since the 2019 and 2017 reports. Among the 11 HR functions analyzed, the greatest move toward outsourced or hybrid delivery models was in the areas of payroll and health and wellness benefits administration.

In the wake of the pandemic, the survey found nearly seven in 10 organizations expect a significant percentage of their employees (more than 20 percent) to work from home in 2022 and beyond, with the most common view that between 20 and 40 percent will work from home. This will necessitate greater investment in HR technology, tools and policies to support a long-term work-from-home strategy, ISG said.

“The COVID-19 pandemic refocused HR on the need for workforce planning data and analytics, including real-time data on absences and employee sentiment, as well as the ability to plan and execute furloughs and return-to-work events,” said Kelly Will, director, ISG HR Technology, and report co-author. “Almost 40 percent of organizations say they have been very successful in fostering a data-driven culture in HR, with an additional quarter of respondents describing themselves as moderately successful.”

Will said advancements in HR analytics are encouraging, but plenty of opportunity remains to leverage enterprise-wide HR metrics. “Using data to drive action requires a change management effort to build skills and habits, embed analytics into daily work and take advantage of new analytics capabilities,” she said.

The 260 companies surveyed for the 2021 ISG Survey on Industry Trends in HR Technology and Service Delivery report represent a cross-section of industries operating in key geographic regions around the world and range in size from 5,000 employees to more than 50,000 employees. The report tracks how market trends are evolving based on prior research and examines the maturity of organizations as they make their way along the digital transformation journey.