COVID-19 has had significant impact on Human Resources Software customers, vendors and consulting firms–not only on projects currently in flight, but future investments this year and next. Raven Intel surveyed 146 members of IHRIM and OHUG (Oracle Human Resources User’s Group) in April, 2020 to determine the degree and timeframe of impact and have produced a report that details the information.
“While the current economic and health situation is rapidly changing, the data we captured reflects early impacts to both current and future software projects and investments,” said Bonnie Tinder, principal of Raven Intel.
Below are 7 Takeaways from the report (as well as links to the report download and listen to the webinar hosted by IHRIM May 12th.)
7. The majority of software projects in flight have had significant impact–either being paused, having a scope change or being cancelled altogether.
39% report “dramatic impact to current projects / 37% report a “medium” impact / 24% say it has had “low” or no impact
6. No industry is immune from disruption.
The crisis has accelerated iteration, innovation and stretching previous boundaries of remote work. Our participants represented organizations in every industry and size and their HR functions have all been impacted by the pandemic.
5. The majority of future investments in HR technology will be impacted for a minimum of 6 months, if not more.
59% of respondents said they are cutting costs wherever possible, and while 34% said it will be ‘business as usual’ for now, they expect that to change. 6% are ramping up investments to deal with immediate COVID-19 needs.
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4. Remote work is here to stay.
63% said that remote work has made them more productive (even though the transition wasn’t easy at first.) Only 11% said they’ll go back to the traditional work environment when this period is over.
3. Future Hiring will be dramatically impacted.
“Our future hiring is frozen”, said several respondents and others remarked that current employees will be required to do multiple jobs to make up for eliminated positions. 34% say the anticipated timeframe for hiring freezes / cuts will be 6+ months.
2. HR Software and services vendors have been highly impacted–no in-person users conferences / tech shows, fewer potential projects / less new software spend.
Many respondents gave examples of vendors who are stepping up to help customers with free programs, creative invoicing and consulting services.
1. If we were to do this study in 6 months–the results would be different and would depend on several factors.
In the current study, many respondents answered to the best of their knowledge, knowing their answers today might be different tomorrow. Factor of impact on a future study would include unemployment rate, infection / mortality rates, vaccine timeframe, schools being open and the success of the ‘re-opening’ of business in the next couple of months.
Download the full report here
View the webinar recording here (5/12/2020)