Many companies still rely on disparate systems and manual processes to manage their human capital management-related compliance, which is putting a drain on company resources, according to a new report released today by CFO Research and ADP, a provider of human capital management solutions.
According to the report, 50 percent of 161 senior finance and human resources executives polled said they rely on multiple, disparate information systems or manual processes to manage their HCM-related compliance. Another 57 percent of survey respondents said it takes more effort than it should to enter or update data in their company’s HCM-related systems.
As a result, 62 percent of survey respondents sid the time and attention required for HCM-related compliance activities are a drain on company resources. Furthermore, most respondents (78 percent) said this lack of integration increases their company’s compliance costs.
The survey also found that 42 percent of HR and finance leaders don’t have access to real-time, consolidated HCM-related compliance data through a dashboard or other technology platform. Twenty-four percent of survey respondents said their company’s management rarely, or never, uses HCM-related compliance data to support their business decisions.
Based on these results, it may come as little surprise that 38 percent of respondents said improving the existing technology and systems they use to manage HCM-related compliance would provide the most benefit to their company. Other respondents said that investing in new technology, or consolidating or centralizing compliance activities, would also provide significant benefit.
Many respondents further indicated that the systems their company uses for HCM-related compliance activities are difficult to understand and use. Fifty-eight percent of respondents graded the use of these software systems and applications a “C” or lower. At the same time, 80 percent of survey respondents said making their company’s HCM-related compliance systems easier to use is important.
The results are especially significant, given that many senior finance and HR executives (35 percent) said they spend more time today on HCM-related compliance than they did two years ago, compared to only 13 percent who said they spend less time.
Moving forward, more than one-third of survey respondents said they’ll need to spend more time on HCM-related compliance activities over the next two years, primarily due to new regulatory requirements, increased regulatory oversight and enforcement, and a lack of integration between the systems they use to manage such compliance.