Survey: HR Systems Need To Get Integrated
Human resources departments want to have integrated HR, payroll and compensation data systems, but most of them don't. And for smaller employers in particular, problems with employee data systems are a big issue.
Those are some of the findings of a recent survey by HR administrative services company ADP.
The survey of 300 HR leaders from companies of all sizes found that 44.3 percent use spreadsheets, rather than HR-specific systems, to plan compensation rewards. Two percent still use pen and paper.
Only 35.5 percent of those surveyed have integrated HR, payroll and compensation systems, although 83 percent said that integration was either critical or highly important.
Of those companies that must transfer data manually from their HR systems to the systems they use for compensation planning, more than a third described the process as "painful."
Errors in HR systems are a major problem for small- to mid-sized companies. A full 61.5 percent of companies with fewer than 1,000 employees said that errors are either unmanageable or a big problem. In contrast, 14.5 percent of companies with 20,000 or more employees said the same.
ADP said those results showed that the automated systems typically used by large employers lead to greater ease and accuracy.
Accuracy in the compensation reward process was rated critical or highly important by 92.9 percent of respondents, but only 17.8 percent said they have tight control over compensation decisions.
WBJ Web Partners
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