Published on June 27, 2024, 7:03 am

A recent survey conducted by Gartner revealed that only 24% of Human Resources (HR) employees believe that their organization’s HR department is extracting maximum value from technology for the business. This survey, which involved 85 HR leaders in February 2024, highlighted a lack of confidence in current HR technology approaches aligning with achieving corporate objectives. Merely 35% of respondents expressed faith in the efficacy of their current HR tech focus.

Mark Whittle, Gartner’s Vice President of HR Advisory Practice, emphasized the struggle HR leaders face in maximizing technology value despite acknowledging its significance and impact. He stressed the importance of not just optimizing HR technology but leveraging it to enhance overall business value across the organization.

To address these findings, organizations are advised to enhance HR capabilities by embracing specialized technologies to boost contributions that drive increased business value. Piers Hudson, Gartner’s Senior Director in the HR practice, underscored the strategic importance of uniting human capital and technology to generate significant business value rather than merely freeing up employees’ time for strategic tasks.

Gartner recommends three key strategic measures for HR to leverage technology effectively: developing strategies based on a roadmap outlining transformation blocks with stakeholder engagement to prioritize new value; broadening HR staff perspectives to inspire value discovery; and formalizing shared objectives and roles conducive to complementary solutions that create fresh user-end value.

Shifting towards a technology-focused approach can potentially elevate business value by up to 54%, contrasting starkly with a capacity-centric approach offering a mere 28% increase in business value. Poor experiences with HR technology have eroded trust within organizations, with nearly half of surveyed HR staff reporting damaged reputations due to tech solutions.

To rebuild stakeholder confidence in HR’s technological capabilities, leaders should introduce incremental changes rather than overwhelming transformations. Demonstrating alignment between foundational elements and new technology values while preparing scenarios for potential plan adjustments under changing conditions are also vital steps advocated by Gartner.

Amid concerns about job displacement due to AI advancements voiced by nearly a quarter of respondents, it is crucial for HR professionals to embrace evolving perspectives on technology adoption beyond traditional training methods. Transparent relationships with tech suppliers exposing relevant knowledge can aid in fostering tech-savvy mindsets among HR personnel.

In conclusion, amidst barriers encountered when interacting with HR tech over the past year according to over 69% of surveyed employees, transforming the role of HR is essential for achieving shared outcomes with each process owner being accountable during technological system design or implementation phases. This approach fosters coherence across HR tech initiatives, streamlines comparison and prioritization of investments, and identifies necessary skills enhancements for reinforcing outcomes positively impacting organizational success in this digital age dominated by Artificial Intelligence (AI).

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