One item that doesn’t seem to be taking as big a hit as other areas:
Spending on HR technology.
At least that’s what one recent survey says. According to the poll conducted by Towers Perrin:
- 43% of companies are spending the same amount on HR tech in 2009 as they did last year
- 21% are increasing spending
- 25% are cutting back by 20% or less, and
- 11% are cutting back more than 20%.
The reason, Towers Perrin says: Companies are continuing to invest in HR tools that help increase efficiency and lower other costs.
What has changed is what companies are buying. More HR tools are provided through a software-as-a-service model (i.e., companies pay subscription fees to access software installed remotely), because that type of pay-as-you-go purchase doesn’t require justifying a huge capital expense.