Future of HRIS

Sumon Kumar Mozumdar

Assistant Professor
Dept. of Management Studies, JnU.
 What is the Future of Human Resource
Technology?
 Technology has changed the world, in general and
the world of Human Resources
 Employees can work any time and anywhere
 HR has shifted to a more strategic focus
 HR still has Administrative responsibilities
 Delivery of software as a “cloud based” application has
enabled any size company to take advantage of
efficiencies and effectiveness of strong HR Systems
functionality
 However, the implementation of an effective HR
Technology solution is still a challenge. Requiring
leadership, communications, management buy-in and
competence.
 Future of HRIS
 Human Resource Information Systems (HRIS)
is a new field of study and managerial
practice. It is a merging between IT and HRM.
Most of the HRIS development and
sophistication began in the United States, but
HRIS have spread rapidly throughout the
industrialized countries of the world. The
question to be answered here is where the field
of HRIS is going in the future. Forecasting the
future is always difficult.
 Future Trends in HRM
 Today, HRM is seen in a strategic context and
not merely as an administrative or support
service. HR's contribution to competitive
advantage lies in its adding value to strategic
capabilities and business processes. One
implication of strategic HRM (SHRM) is that it
needs to be viewed from a holistic or systems
perspective.
 SHRM is all about linking the HR function and all
HR activities to your organization's strategic
objectives.
 Future Trends in HRM
 SHRM also recognizes the importance of
environmental contingencies; that is, what is best
for an organization in terms of the use of HRM
concepts and practices relates to the context in
which it is applied. To achieve best fit, HRM needs
to be both data driven and evidence based.
 SHRM is the strategic alignment of the HR
management function with organizational goal
and aims to harness the potential of people as a
key competitive advantage through the use of their
creativity and innovation.
 Future Trends in HRM
 The purpose of HRIS (computer-based
system) is to integrate diverse processes
into a coherent whole. HRIS applications can
be very useful in drilling down data and
deriving appropriate reports to help
managerial decision making. For example,
work­force strategy needs to be embedded in
proper workforce planning from a long-term
perspective.
 Future Trends in HRM
 It also means that in measuring the effectiveness
of HRM functions and practices, appropriate HR
metrics and analytics need to be developed,
expanded, and improved on. Creating value for
HRM practices and programs requires that HR
professionals recognize that value is defined by
the receiver more than the provider. As such,
HR professionals must start by identifying which
stakeholders (e.g., employees, managers,
stockholders) are the targets for establishing
value for HRM products and programs
 Future Trends in HRM
 HR professionals should make a clear
connection between the HR contributions and
the company's end results. Technology can
be a great enabler in designing and
delivering many of the SHRM concepts, such
as e-recruitment, e-training, total rewards
package, and self-service portal, by relating
them to the company’s business model.
 Future Trends in HRM
 To examine future trends in the HR field, one
must look within countries, since labor laws
differ from country to country and, thus, could
have a significant impact on any new
developments in HRM for that country. 13
trends in HR in terms of importance, which
will be discussed in this section.
 Future Trends in HRM
 The trend ranked first was the increased
emphasis on corporate social responsibility
(CSR).
 The second trend in importance was an
increased focus on employee health, safety,
and security.
 There is more attention to employee relations
as it relates to talent management.
 Future Trends in HRM
 The interpretation and application of ethical
issues in the workplace are growing in
terms of differences in perception and
understanding across generations.
 The effects of globalization and the
necessity to understand multiculturalism are
of increasing importance to both domestic
and international companies.
 Future Trends in HRM
 The role of the HR professional in consulting
and outsourcing has changed and has
become more important relative to allowing
HR professionals to focus on strategic
objectives.
 There is an increased emphasis in HR on
accountability by using human capital
measurement and HR metrics.
 Future Trends in HRM
 Labor relations have been growing in
importance due to increased union
consolidation and attempts to unionize
workers in new sectors of the economy.
 There is an increased awareness of
organizational development and the effect
of better working relationships on the bottom
line.
 Future Trends in HRM
 There is a major emphasis on staffing
management, as firms will need to focus on
talent management in general.
 There is a continued focus on technology
and HR management due to the rapid growth
of technology and the pervasiveness of
social networking.
 The analysis of total rewards/compensation
and benefits as they influence employee
retention is growing in importance
 Future Trends in HRM
 There is an increasing emphasis on improving
workforce diversity and linking it to corporate
strategy.

The field and practice of HR are changing in

many ways, all of them creating more
complexity in the management of
organizations. But a well-developed and
implemented cost-effective HRIS can be a great
aid in handling this complexity in the future.
SHIFTS THAT ARE RE-SHAPING
HR ROLES
FROM
Local markets, operations
Manufacturing, clerical work
Hierarchy
Intermediaries; face-to-face
Obedience to formal authority
Stability, efficiency, control
Full time job
Customer service
Work done by employees
Fixed work location
Management prerogative
Loyal service
White, male workforce
Financial performance
“Get a job”
TO
Global markets, operations
Service, knowledge work
Networks
Direct access, virtual relationship
Questioning of formal authority
Change, creativity, flexibility, order
Part-time and project work
Shareholder, stakeholder value
Work done by many contributors
Diverse work locations
Social licence
Marketable knowledge, skills
Diverse workforce
Triple bottom line
“Get a life”
Future Trends in HR Management

 Healthcare
 Business Intelligence
 Demographic Workforce Changes
 Complexity of Legal Compliance
 Virtualization of Work
 Healthcare
 Rising healthcare costs were identified by nearly 90% of
executives surveyed as an important challenge facing their
organization in the next 2-5 years
 Chief Financial Officers identified healthcare costs at the
number one issue facing their organization
 Passage of the Patient Protection and Affordable Care Act
(i.e. Obamacare), HR departments are facing a number of
issues associated with its implementation.
 The new law makes some provisions of these plans illegal if
they are not available to lower compensated employees as
well. In addition, organizations will have to consider the
penalty costs of not offering healthcare to employees, and the
makeup of their workforce (e.g. full-time, part-time, contingent)
as they determine how to best comply with the new law, as
well as offering plans that best serve their employees.
 Business Intelligence
 HR is increasingly turning to the use of business intelligence to
support complex metrics. Although covered in greater detail in
Chapter 7, we also discuss data analytics and HR metrics here
because they are growing in importance to HR departments in
most large organizations
 Many organizations already have basic reporting capabilities, but
they are increasingly looking to incorporate more sophisticated
metrics
 Metrics:
 Organizations will increasingly demand that HR better measure and
assess the value of their human capital initiatives.
 The increasing use of metrics may lead to standard, and widely
accepted set of metrics to “describe, predict and evaluate the quality
and impact of HR practices and the productivity of the workforce”.
 Organizations begin to transform their view of HR, from that of a
people function to more of one focused on decision science.
Demographic Workforce Changes
 More women and minorities are entering the workforce than ever
before. For example, nearly 60% of working-age women are now
in the workforce compared to only 40% in 1970 (Bureau of Labor
Statistics, 2011).
 Growth in the Hispanic-American (Hispanics) population in the
United States. Currently, Hispanics make up 15 percent of the
U.S. population, and account for more than half (50.5%) of its
population growth (Pew Hispanic Center, 2010). They are also
expected to comprise at least 25 percent of the population by
2030 (U. S. Bureau of Census, 2009).
 Baby Boomers are postponing retirement. Recent data from the
Bureau of Labor Statistics suggest that the fastest growing age
groups in the workforce will be those over 65 years old, with
projections suggesting that participation of those over 65 will
have grown by over 80% between 2006-2016 (Bureau of Labor
Statistics, 2008)!
Complexity of Legal Compliance
 The pace of regulations continue to grow. For example, the
EEOC continues to develop additional guidelines and states
continue to pass additional regulations on issues as varied
as hiring practices to workplace safety. In addition, the
recent negotiations due to the recent “fiscal cliff” has
resulted in a change in the social security tax rates for all
employees, and the raising of taxes for high earning
employees. Human resources will need to be prepared to
implement these changes, and additional changes are likely
to occur in the coming years.
 Changes due to the new Patient Protection and Affordable
Care Act will require human resource departments in
organizations from the very small to the Fortune 100 to
comply with a myriad of federal requirements and very likely
state mandates as well
 Virtualization of Work
 No longer are employees confined by physical or temporal
space. Employees can conduct work anywhere and at any
time. “The virtual workspace can be defined as an
environment where employees work away from company
premises and communicate with their respective
workplaces via telephone or computer devices” (Lockwood,
2010,).
 Text - Figure 17.1 lists several keys to managing virtual
meetings successfully.
 HR EXECUTIVES’ VIEW OF
THE FUTURE
TOP 5 BUSINESS TOP 3 HR CHALLENGES
CHALLENGES
 Developing new markets  Attracting and retaining talented
 Improving profitability people
 Market share growth  Improving organisational
capabilities
 Becoming the recognised 
Developing leadership skills
global market leader
 Building shareholder value

Source: Arthur Andersen survey of HR Executives in almost 70 Australian-based firms

Reported in HR Monthly, August 2001, p.17
 Future Trends in the Fields of
IT/IS and HRIS
 When examining future trends in HRIS, it is
impossible to separate the future trends in IT/IS
without relating them to the field of HRM.
The knowledge economy is being profoundly
influenced not only by the intensity but also by
the speed of technological evolution.
Information technologies have been steadily
evolving and improving from mainframes to
client servers and now to Internet/Web
interfaces.
 Future Trends in the Fields of
IT/IS and HRIS
 While robotics and nanotechnology are some
of the broader technological trends, network
communication technologies (broadband and
wireless), convergence technologies (e.g.,
cell phones and PDAs), collaborative tools
(e.g., Web 2.0, portals), service-oriented
architecture (SOA), and business intelligent
systems are some of the notable
developments that have affected the field of
HRIS and its related technologies.
 Future Trends in the Fields of
IT/IS and HRIS
 Apart from achieving better coordination
and integration of different systems within
an enterprise, these technologies are
empowering both employers and
employees to deploy, share, and use their
knowledge for the common benefit of their
company.
 Future Trends in Human Resource
Information Systems (HRIS)
 Bring your own Device
 Software as a Service (SaaS)
 Service Oriented Architecture (SOA)
 Web 2.0
 Social Networking
 Enterprise Portals
 Open Source Software
 Bring your own Device
 The change is a dramatic departure
 Previously, the most common arrangement by organizations was to
manage a centralized and tightly controlled technological platform (e.g.
IBM, HP, Dell, Windows, etc.), and anyone who wanted to use another
platform (e.g. Mac, Linux, etc.) would potentially have problems
receiving adequate support.
 But, today, employees are more likely to want to use their own personal
mobile devices (e.g. smart phones, tablets, and laptops)
 In a recent Forester research survey, nearly 70% of
employees noted that they would like to be able to bring their
own personal mobile devices and use them at work
(Forrester, 2012). Gartner also predicts that by 2013 mobile
devices will become the most common technology used to
access the Web, even surpassing PCs (Gartner, 2012).
 Bring your own Device
 Privacy issues become important: For example, how do you deal with
the privacy issues associated with the storage and use of personal
and work data on the same device? In addition, the complexity of
managing network and data security dramatically increases when
employees bring their personal devices into work, which means that
organizations will need to rethink data and network security practices
to support these devices
 Companies will need to develop policies in regards to the use of these devices and
who will pay for these devices
 Accordingly, the growth in smartphone apps (e.g. for the iPhone,
Blackberry, Android, or Windows). For example, vendors such as
Workday and SuccessFactors have built apps where employees can
use their mobile devices to access and connect to the corporate HRIS.
 No longer are employees “chained” to their desks to when working
with HRIS data.
 Software as a Service (SaaS)
 Traditionally, IT systems, such as ERPs, have
been large, time-consuming, and expensive
undertakings. Typically, ERPs are developed in-
house by large firms, but more often, they are
purchased from vendors - that is, a third-party
provider. Traditional software development
models are being replaced by "on demand"
software in which the company/customer pays
only for the HR parts and programs of the
software that are needed.
 Software as a Service (SaaS)
 By selecting only the HR parts/programs needed,
the company can save money over purchasing
entire integrated systems. The
customer/company pays to use and not to own the
software. With significant drops in the price of
computer processing power and with innovative
delivery options, such as Software as a Service
(SAAS) or Application Service Provider's (ASP's)
model, HRIS technologies are now within the reach
of small to medium enterprises (SMEs), which are
the largest customers for new HRIS packages.
 Software as a Service (SAAS)
 SaaS is a software distribution model in which
applications are hosted by a vendor or service
provider and made available to customers over
a network, typically the Internet.
 SaaS, sometimes referred to as "on-demand
software," is a software delivery model in which
software and its associated data are hosted
centrally (typically in the Internet) and are
typically accessed by users using a thin client,
normally using a web browser over the Internet.
Service-Oriented Architecture
 One of the major problems during this
technological evolution has been the
frustration associated with frequent system
upgrade cycles. SOA may be a solution, as it
converts monolithic and static system, into
modular and flexible components.
 The big change in enterprise software that
will impact everything from financials to HR is
standards-based, service-oriented software.
Service-Oriented Architecture
 SOA is about "efficient modular design and
deployment, and reusable software is at the
heart of the architecture.
 The key feature of SOA is that functionality is
decomposed into distinct units (services),
which can be distributed over a network and
can be combined together and reused to
create new business applications.
 Service-Oriented Architecture
 SOA offers several advantages to end users, who
can change the business process when needed
and purchase or develop only those applications
that are involved in the new processes. This
approach is much better than working around the
existing system or purchasing a package from a
vendor based on predetermined processes and
applications. Thus, under SOA, the business
process dictates the IT system to be used and not
the other way round. In the long run, this will reduce
technology costs and should improve productivity.
 Web 2.0
 This term refers to a second generation of Web-
related communities and services focusing on
creativity, collaboration, and sharing, in
contrast to traditional isolated information silos.
Web 2.0 users not only access information but
also generate, share, and distribute new content.
 Web 2.0 is a knowledge oriented environment
where human interactions generate content that
is published, managed and used through network
applications; in a service-oriented architecture
 Web 2.0
 Web 2.0 has also encouraged business to
promote user collaboration to share knowledge
and to communicate with business partners,
such as suppliers and outsourcing providers.
With an emphasis on sharing, Web 2.0 can
dramatically change the way in which
employees communicate with each other and
with customers. Using Web 2.0 will require the
HR department to pay greater attention to the
legal, ethical, and security implications of
information exchange.
 Enterprise Portals
 An enterprise portal, also known as an
enterprise information portal (EIP) or corporate
portal, is a framework for integrating information,
people and processes across organizational
boundaries. One very important implication
regarding the establishment and use of
enterprise portals is their effect on the family-
work conflicts that dual wage earners face. Being
able to respond to, and it is hoped, solve work
problems front one's home will be increasingly
important in the future.
 Social Networking
 Social networking (SNW) is one of the features of Web 2.0.
Social networking tools such as Facebook, LinkedIn and Twitter
have become important tools for organizations, and human
resources is not an exception
 Companies are using Facebook and Twitter to help expand their
HR brand and attract employees to the organization.
 A recent SHRM study has found that 20% of organizations are
using SNW tools for internal communications (SHRM, 2012).
 Through these tools, companies are seeking to connect
employees and facilitate internal and global work group
collaboration
 Due to the growing use of social networking HRIS vendors are
developing applications within their product offerings to help
support employee collaboration, on boarding, and learning.
 Enterprise Portals
 Enterprise portal is the general term used to
refer to the ways in which individuals can
interact with each other. They can be
information portals, collaboration portals,
expertise and knowledge portals, operation
portals, or a combination of all these. Within
an HRIS, employee and manager self-service
portals are powerful examples of the potential
use of such portals.
 Open Source Software
 Normally, software that is developed is copyrighted, and
the source code is neither open nor available for others.
 Some software developers have agreed to a different
approach to the development of software called open
source.
 In an open source approach to software development, the
developers make the source code available for anyone to
see and to change.
 Other companies or developers can then expand on the
product or easily develop complimentary products.
 Open source software also costs much less than traditional
(or proprietary) software, and is sometimes provided for
free.
 Future Trends in Workforce
Technologies
 The technology of the future will be both
collaborative and connected;
 There will be increased and more widespread
use of intelligent self-service via employee
portals;
 There will be increased use of HR scorecards
coupled with workforce analytics and
decision trees;
 Future Trends in Workforce
Technologies
 There will be increases in process automation and
the use of online analytical processing (OLAP)
for processing raw data.
 Faster and cheaper access to accurate real-time
HR information will he possible due to
advancements in communication tools; and
 The worker of the future will be able to work
anywhere, any time, and on any device, which
would not only help work-life balance but also turn
the workplace into a 24/7 cycle.
 Human Capital Management (HCM) workforce
technologies and service delivery approaches
 Organizations using more HRIS software
applications experienced more operating income
growth than with organizations fewer applications.
 One of the key objectives of HRIS software
applications is to help the organization in meeting
its strategic objectives.
 They were least satisfied with analytics (reporting
and decision tools), employee development, and
recruiting services.
Human Capital Management (HCM) workforce
technologies and service delivery approaches
 The benefits were realized in reduced time to
hire (recruiting), headcount reductions, and
lower transactional and compliance costs-
mainly through the use of self-service portals.
 The market for different HRIS software
applications varies as a function of the type of
application.
 Organizations are moving away from solutions,
away from third-party vendors, and toward Web
self-service.
Human Capital Management (HCM) workforce
technologies and service delivery approaches
 Organizations that have in-house HRIS
solutions use employee productivity and ease
of integrating new services as their key drivers
or reasons to stay with in-house solutions.
 In terms of in-house versus outsourced
choices for automating HR processes,
selective outsourcing is growing.
 Spending more for outsourced solutions than
for in-house HRIS solutions.
Human Capital Management (HCM) workforce
technologies and service delivery approaches
 Change management is the most important
and continuing success factor for the adoption
of workforce technologies.
Forecasting the future is very difficult. Many of
us look to nanotechnology for the major
breakthroughs in computer technology.
However, the student of HRIS must never
forget the human issues in developing and
implementing an HRIS.
 Conclusion
 At the end of the day, technology cannot
substitute for managerial competence and
employee discretionary behavior (Armstrong,
2005). It can only be a messenger, not a
message. It is also impractical to expect
information sys­tems to supplant the soft
functions of HR, such as an online character
replacing a good executive coach (Stanton &
Coovert, 2004). In sum, technology is extremely
important in the field of HRIS, but people are
simply more important.
Thanks
You