Despite Urgent Need to Adopt HR Tech, Your Peers Are Cautious About AI

Leveraging HR technology is essential right now for driving strategic decision-making and organizational agility. After all, 50% of the professionals polled in the HR Trends Report 2024 from McLean & Company said their HR organization is a strategic partner at their company. In 2021, that figure was 36%.

“There is evidence that HR is looking to data and technology to solve … challenges and that these efforts are leading to success, but 2024 will be a key year for HR to adapt to known and unknown changes,” the report said.

Embracing Tech-Enabled, Data-Driven Approaches

When asked “in which ways is your HR organization evolving its practices to deliver on its expected goals and priorities,” 65% of survey respondents said making “better use” of HR tech, and 63% are leveraging data for making talent decisions.

The report suggests that tech-enabled and data-driven HR practices pay off. HR teams that describe themselves as making better use of technology are 1.2 times more likely to be high performing at supporting change management and 1.3 times more likely to be high performing at changing quickly to capitalize on new opportunities.

Manuelita Cherizard, the CHRO of the Royal Ontario Museum in Toronto, commented to McLean & Company: “There is a huge opportunity for HR to use more data and to use generative AI to help with the workload and allow HR professionals more time to focus on things that add value to the organization and employees.”

Obstacles to HR Tech Implementation

While generative AI holds a lot of promise, including as a data analysis tool, just 28% of HR pros are taking steps to implement it. The top reason they’re being cautious: a lack of time to assess the possibilities. Risk was another frequently mentioned concern.

But as generative AI becomes more integrated into HR software solutions, such as HCM platforms, HR will need to be able to readily assess and embrace the potential uses of AI tools.

Technology capacity issues were cited by 68% of respondents as being a roadblock to delivering on their priorities. The specific pain points are:

• Lack of a tech budget (45%): To remedy this, a well-thought-out business case for HR tech — including the financial return — needs to be presented to the CFO.
• Skills gaps (42%): Upskilling your HR team in areas such as digital and data literacy will enable organizations to make better use of existing tech resources and implement new technologies.
• Inadequate technology infrastructure (39%): Many HR departments are hampered by legacy tech, while others aren’t fully realizing the benefits of their existing tech. Now’s the right time to seek opportunities to optimize the HR tech you have before committing to a costly and time-consuming implementation. Your software vendors and IT department probably have some ideas.

Tackling Top Priorities With HR Tech Solutions

Based on the responses of 1,373 professionals — 77% of them in HR roles — the No. 1 and No. 2 HR-related priorities are recruiting and providing a great employee experience.

Key HR tech tools that can address recruiting needs include:

• Applicant tracking systems that manage the entire recruitment lifecycle and automate tasks like resume screening, candidate tracking and communication
• Recruitment marketing platforms that help build an employer brand, create targeted job ads, and nurture candidate relationships through email campaigns and social media integration
• AI-powered sourcing tools like Entelo and Seekout use advanced search capabilities to identify and engage passive candidates from various online sources
• Video interviewing software tools enable pre-recorded or live video interviews, reducing scheduling hassles and travel costs, and
• Chatbots powered by AI can automate initial candidate screening, answer FAQs, and schedule interviews, improving candidate experience.

Here’s how HR tech can solve employee experience needs:

• Self-service HR portals empower employees by providing a centralized platform to access HR services and information on-demand. They can handle tasks like updating personal details, enrolling in benefits, requesting time off and accessing company policies
• Onboarding tools streamline the onboarding process, creating a positive first impression. They automate paperwork, training and more, ensuring a smooth transition for new hires
• Collaboration tools facilitate real-time communication and file sharing among teams
• Learning management systems enable continuous learning and skill development by providing access to online courses, training materials and knowledge resources
• Employee feedback and engagement tools like CultureAmp, Workday Peakon and TINYpulse allow organizations to gather real-time feedback, measure engagement levels and identify areas for improvement, and
• HR analytics platforms like Visier provide data-driven insights into workforce trends, performance and engagement, helping HR make informed decisions to enhance the employee experience.