I recently served as a panelist on a webinar which discussed the 2012 HCM budgets. The survey was done by IHRIM (International Association for Human Resource Information Management), and some interesting results appeared on the survey which caused me to do additional research on how the past few years of a difficult economy has impacted HR and HR systems budgets.
The good news is that 82% of those surveyed had their 2011 budget kept at the 2010 level or increased. For 2012 that number is going up to 85%. While we are still struggling with the economy, it shows that corporate leaders are realizing that they need to begin to invest in their technology infrastructure. As companies have tried to hold down their expenses, their systems have continued to age and may not be taking full advantage of the technologies being used by newer groups of employees.
Use of the 2012 budgets appear to be in the Talent Management areas (Recruiting, Performance Management and On-Boarding). One interesting area of increase is with Business Intelligence, which corporations have realized can help them make better decisions about running the business. 32% of all respondents said they would be looking at some sort of Business Intelligence this year.
Spending on HR technology continues to grow in 2012 as organizations begin to see the economy moving. There are still many areas which could impact the economy and corporate spending, but if you have allowed your technology and HR systems to become out dated, this needs to be rectified sooner instead of waiting for a full economic recovery. If you haven’t already done so, you should begin to create an HCM technology strategy roadmap to best use your budgeted funding.