- HR is tasked with managing an agile organization and retaining top employees — and today's "dynamic HR technology and services market is responding in kind," according to a new report from Information Services Group (ISG).
- Human capital management (HCM) software providers continue to expand and acquire new capability, the report said, and "emerging technologies such as artificial intelligence (AI), machine learning and HR chatbot solutions are flourishing, and new automation is being used to improve operational efficiency and employee experience." This includes performance and feedback tools, learning solutions, wellness platforms and payroll services.
- Organizations seem eager to move to full "software as a service" (SaaS) solutions, but many are not moving as quickly as they had hoped, the report said. But adoption is important, according to ISG, as it can improve employee engagement, provide access to best practices and innovation, reduce HR administration costs and improve the employee experience.
It's no secret that HR has not been quick in the uptake of technology, due in part to a lack of resources. A report from The Hackett Group found that 90% of HR executives believe that technology will transform their operations, but less than half think they have the resources to make such a change happen. Survey respondents cited lower budgets, decreases in HR staff and gaps elsewhere as deficiencies that prevent them from making the leap.
ISG recommended that, in looking to modernize HR with technology, leaders should consider defining realistic cost-savings goals; making agility a priority; infusing HR technology into daily work; moving to enabling technologies (such as portal, knowledge-base and case management tools); recognizing that HCM vendors won't own 100% of the innovation; and identifying opportunities for robotic process automation to improve the delivery of HR services.
And when it comes to the budget, good news may be on the horizon. CEOs say they're increasingly concerned with talent issues, which puts HR in a strategic role with a higher priority. And some initiatives, like learning and development are already seeing a shift. Budgets in the space are up, according to a recent report from LinkedIn Learning. In fact, almost twice as many employers reported an expected budget increase for L&D initiatives over recent years.