An integrated IT system frees up more time for HR professionals to focus on strategic business issues and show the value HR can make to business performance, according to research.
The report, by the Chartered Institute of Personnel and Development (CIPD) and Cranfield School of Management, indicates that an effective IT system is essential for monitoring the efficiency of HR processes.
Rebecca Clake, CIPD organisation and resourcing adviser, said: "Pressures to meet customer and stakeholder requirements have made accurate measurement a necessity in order to demonstrate value. HR information systems can do the basics brilliantly in terms of improving the efficiency of HR processes. But well-implemented systems have the potential to drive business performance, as well as providing effective means of employee engagement and communication.
"They can provide accurate statistics, enabling HR professionals to identify areas that managers can work on to improve performance and productivity of teams. But failing to invest the resources required and cutting corners or costs early on will leave businesses losing out in the long-term."
The HR and Technology: Impact and Advantages report analysed the use of technology to implement HR systems, such as an intranet, e-recruitment system, employee self-service system and talent management.
Dr Emma Parry, research fellow in the HR Research Centre at Cranfield School of Management and co-author of the report, said: "There are many different HR information systems, and reporting needs to be tailored to the needs and objectives of each organisation. But the same principle applies. Good communication and an open channel for feedback is essential in order to gain and maintain buy-in from key stakeholders.
"Key users must ensure that statistics, such as absence, leave and turnover, are available if employers are to achieve the knowledge and information-sharing benefits associated with technology. This will enable HR to make more accurate decisions and provide a consultancy service to managers to enable them to identify problems and improve efficiency."