Satisfaction with employee relationship management systems: the impact of usefulness on systems quality perceptions

The ability to effectively manage external customer satisfaction through IT‐based Customer Relationship Management systems (CRM) is well documented in the literature. The concept of applying such technologies in Business to Employee relationships to manage the firm's relationships with its employees is not. By extending the CRM paradigm to consider the service of internal customers, we characterize the emergent concept of Employee Relationship Management systems (ERM) for investigation. We find that employee satisfaction with ERM systems designed to provide access to benefits and other important employee services is largely a function of systems quality perceptions, as moderated by employee perceptions of system usefulness. Specifically, we believe our results suggest that high‐quality systems implementations will not produce high degrees of employee satisfaction with ERM systems unless such systems are also found by the employee to be highly useful for their intended purpose. This highlights the critical role of accurate assessments of user requirements matched to specific needs from human resources‐based systems support in the analysis phase of system design.