Human resources management systems (HRIS) are a huge investment. The decision making around changing your HRIS involves serious research and consideration. After all, your HRIS is the source of truth for all HR data and often includes payroll.
Since the last HRIS review in 2016, we have seen big changes within the HR tech space regarding on-premise to Software as a Service (SaaS) migration and data security.
There has been a lack of information around the different HRIS solutions and how they perform within the Australian landscape. Luckily, the HR Tech Survey is back with some helpful insights!
Based on the results from the 6th Australian HR Tech Survey, the top 5 most adopted HRIS systems are:
5th: SAP HCM
2nd: Ascender / Alesco
1st: ichris / chris21
With payroll and HRIS systems notoriously associated with negative satisfaction ratings, we decided to rank each system by satisfaction level.
Coming in 5th place, SAP HCM has maintained a strong position in the Australian market for many years. The platform remains popular due to the wide range of modules offered.
A new addition to the top five, TechnologyOne is a finance focused software solution for businesses and government departments. The general view of this platform amongst the survey participants was neutral, with no ‘very dissatisfied’ or ‘very satisfied’ responses.
Ascender is a frequent flyer in the best HRIS systems featured in the HR Tech Survey. With many long term payroll customers, Ascender has a large following in Australia and provides a mix of on-premise and hosted solutions. This platform had a mixed bag of results, with the largest number of respondents holding a ‘neutral’ perception of this HRIS (38%). Ascender has seen some significant changes over the past few years along with the rebrand, however customer satisfaction levels results appear consistent.
Workday managed to attract the highest amount of ‘very satisfied’ responses at 12%, with 50% of the remaining participants maintaining a neutral or positive satisfaction level. In recent times Workday has made significant inroads into the Australian HRIS market, with a customer base that now includes Telstra, CBA, Qantas and Toll.
Drum roll for this year’s winner…
Over the past few years we have seen a significant improvement in satisfaction levels for Frontier’s ichris, with 61% of users indicating that they are ‘satisfied’ or ‘very satisfied’. This is a significant shift in customer perception from previous results and a strong improvement for Frontier. Alongside the increase in positive customer satisfaction levels, ichris has maintained its position as Australia’s most adopted HRIS. Frontier’s broad ecosystem and improved customer satisfaction is why ichris has been crowned as this year’s winner.
The chart below is an overview of vendor satisfaction of the most adopted systems in Australia:
We have consistently seen a fragmented market for HR tech, with over 30 different HRIS systems listed by respondents. It is clear that the push and pull between Core HRIS vs. Best of Breed platforms continues. We recently explored this topic in detail as part of an interview with Inside HR.
Core HRIS user satisfaction continues to be challenging for vendors — only 5% of total respondents were ‘very satisfied’. Additionally, 5% of organisations were ‘very dissatisfied’ and 17% were ‘dissatisfied’ with their current Core HRIS.
With increasing sophistication and customisation available in Core HRIS platforms, many vendors are busy working with HR teams to integrate and consolidate systems.
HRIS migration can be an extremely time-consuming and costly project to tackle, leaving most companies reluctant to consider another option. Half of all organisations have a Core HRIS platform aged over 7 years (a slight reduction of 6% since 2015). All these systems have changed significantly during this time frame, leaving most users unaware of how their system compares to alternatives.
Of those outside the top five, these platforms achieved ‘satisfied’ or ‘very satisfied’ customer responses (alphabetical order):
The last two years has seen significant shifts in the HR tech space, the importance of data security is paramount and customers are more informed than ever. The verdict is in.. ichris maintains its stronghold in the HRIS market and appears to have the right priorities in mind.
For more details on specifics in the HR tech world, check out the 6th HR Tech Survey.