Study Reveals HR Objectives Poorly Supported by IT Systems in UK Organisations
Study reveals more than half of UK HR managers need more effective technology to support talent management demands
LONDON – June 20, 2006 – Taleo, the leading provider of on demand talent management solutions, today released findings from its study entitled, “The Gap Between IT and Strategic HR in the UK”. The results show a major disconnect between the strategic functions of HR, including talent acquisition and workforce planning, and the ability of technology to support these business initiatives.
Key findings highlight only one quarter (25 per cent) of survey respondents feel that strategic HR functions such as workforce planning, leadership development and performance management are well supported by their IT systems. Additionally, only one third (33 per cent) of participants reported confidence in their current IT systems’ ability to support the recruitment and internal mobility of employees throughout the organisation.
With more than half of survey respondents indicating that talent management, including recruitment, is a high priority in the coming year, significant opportunities exist for UK organisations to focus on more integrated technology solutions to better support strategic talent management processes.
The study was comissioned by Taleo Research, the research division of Taleo. Views from 100 senior HR Managers in organisations with a minimum of 1,000 staff were collected, with additional findings of the report showing:
Current technology systems are out-dated.
- The majority of respondents (55 per cent) agree that HR needs more sophisticated technology systems and processes to support recruitment and development.
Only lower value, administrative functions are well supported.
- Survey respondents reported that administrative functions, such as payroll and employee administration (68 per cent) and evaluation and management reporting (53 per cent) are adequately supported by IT.
- On the other hand, strategic HR initiatives including performance management (28 per cent), leadership development and planning (25 per cent) and strategic workforce planning (25 per cent) are not well supported.
Lack of data and technology systems obstructs workforce management.
- Only 29 per cent of respondents felt that they had sufficient systems in place to gain a clear picture of existing employee skills.
The HR function is striving to become more strategic within the organisation.
- 63 per cent of respondents cited talent management (including recruitment) as a high priority in the coming year.
According to Taleo Research Vice President Alice Snell, “The gap between the support of administrative functions and strategic HR responsibilities needs to be addressed in order for HR directors to deliver results to the Board. When HR directors can assess the workforce changes needed by the business, acquire and develop the talent needed to optimise the workforce, and then measure the results, their true value can be realised.”
“Findings of this study clearly show that HR is evolving to play a more strategic role in supporting fundamental business objectives, but the systems being used by HR functions are not keeping up,” commented Neil Hudspith, Senior Vice President, International Operations, Taleo. “It’s clear that talent management and other strategic initiatives are being recognised as essential functions by ambitious companies that want to retain and recruit the best people, but organisations need to arm their HR directors with the tools and technology needed to support this strategy. The right HR technology is a critical element of any HR strategy moving forward.”
A complete copy of the report can be downloaded at:
http://www.taleo.com/research/whitepapers/Gap-Between-IT-and-Strategic-HR-UK/
NOTES TO EDITORS:
Methodology
This survey was conducted by Loudhouse for Taleo Research between March and April 2006. The data analysis is based on 100 respondents with HR management responsibilities in UK organisations with a minimum of 1,000 employees. Companies surveyed represent a broad range of industries including financial services, manufacturing, technology, public sector and retail.
About Taleo
Taleo (NASDAQ: TLEO) delivers on demand talent management solutions that enable organisations of all sizes to assess, acquire, develop and align their workforce for improved business performance. Taleo’s customers use its suite of solutions to improve their talent management processes to reduce the time and costs associated with these processes and to enhance the quality, productivity and satisfaction of their workforces. Taleo currently has more than 518 corporate customers with approximately 588,000 registered users who use our services to fill positions in almost 100 countries. For more information visit www.taleo.com.
About Taleo Research
Taleo Research analyzes the best practices and economics of talent management for organisations of all sizes, worldwide. The specialty research practice focuses on business analytics that tie talent management technology and process improvements to financial results. Taleo Research conducts primary research on critical issues of talent management and maintains a valuable library of talent management resources. Published reports and studies include Hidden ROI of Talent Acquisition and Mobility, Quality of Hire, Internal Mobility, Economics of Candidate Relationship Databases, Onboarding, Corporate Careers Site Value Creation, Jobseeker Surveys, and many others. Founded in 1997 as iLogos Internet Intelligence, Taleo Research is the talent management research division of Taleo.
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