HR managers want to automate more. Eight in ten believe additional tasks could be automated to increase efficiency, while 63% of those who do not use automation expect to do so in the next five years.
At the same time, HR leaders are eagerly anticipating the benefits of artificial intelligence (AI) in HR for time savings, job satisfaction, job creation and the adoption of new ways of working.
However, HR leaders are aware of the knowledge and skills gaps that may prevent them from making the most of these new technologies. 75% of HR leaders told us that they lack “detailed knowledge” of specific AI tools and their functionalities.
These are just some of the findings from Sage’s new annual research report:The changing face of HR’.
We spoke to more than 1,000 global HR leaders from small and medium-sized businesses to find out how they feel about future technologies, whether and how they use automation and AI, and how they think about the future of HR.
Let’s take a look at what they said about moving forward today and find out how you can do it too.
Here’s what we cover in this article:
The changing face of HR
Our Sage People research report reveals insights from more than 500 HR leaders about changing HR and how progressive people leaders are moving forward.
How HR teams are moving forward through automation
Our research shows that HR leaders and their teams using automation today are making progress. You’ll streamline processes, reduce manual tasks, and free up time to focus on strategic initiatives that drive business success.
In fact, 80% of HR teams in medium-sized companies report that more than half of their HR processes are automated today. While the number is lower at 57% for HR teams in smaller companies, HR leaders across organizations strongly believe that automation is the key to increasing efficiency.
According to David D’Souza, Membership Director at CIPD, the benefits of automation are so great and can be used so widely in HR that “we are approaching a point where the question is not so much what we can automate, but rather rather, “what are we not going to automate?”
He adds that automation allows HR to spend more time on value-added tasks: “When we talk about HR expertise, it’s rarely about paperwork or processes, but rather about how we make a real difference beyond those tasks .”
Perry Timms, founder and chief energy officer at PTHR, agrees that the true value of automation lies in the human opportunities it opens up. “It’s not about whether we should use automation (per se), but about the knock-on effects along the value chain.”
Automating data makes HR feel unstoppable
We asked what makes HR leaders feel unstoppable, and over half (51%) told us that increasing data automation makes them feel unstoppable. Meanwhile, 49% said improved data analytics to improve decision-making contribute to their unstoppable evaluation.
However, we asked HR and HR leaders what metrics they track today, and still only 56% track basic metrics like headcount. Encouragingly, the third, fourth and fifth most commonly collected data points were labor costs per FTE, costs per employee and employee productivity rates — showing that many HR teams are increasingly aligning people metrics with business strategies and the bottom line.
“Data enables HR leaders to make more informed decisions and ensure HR activities, initiatives and practices are robust and evidence-based,” says Gemma Dale, Senior HR Lecturer at Liverpool Business School. “Investing in data capabilities should be on every HR leader’s list.”
What support does the HR department want and need when it comes to new technologies?
As HR leaders expect continued heavy workloads over the next five years and place greater emphasis on strategic planning, investing in the right technology with appropriate support is critical. Those who feel unstoppable are significantly more likely to say investing in technology has worked for them (48%), while 79% say they need more training and support from their HR software provider.
When it comes to new technologies like AI, 71% of HR leaders fear their company lacks the skills or guidance to effectively implement AI into HR tasks. However, the experts demand that the HR department deals intensively with the technology.
“HR needs to get out of its comfort zone of formal education and start its own primary research and independent analysis of what is happening in the market,” says Ben Brooks, founder and CEO of PILOT. “Attend conferences, participate in webinars, engage in virtual HR communities on Slack, spend more time with technologists internally, and be curious.”
Our research highlights the opportunities and potential of AI in HR both today and in the future of HR. However, there is much work to be done when it comes to technologies that have been available for some time, such as automation, analytics and self-service.
These mature technologies have two major advantages. First, they enable HR teams to be more strategic in their work and the insights they derive from it. Second, by saving practical time, they allow HR to spend less time on processes and paperwork and more time focusing on the reason many got into HR in the first place: creating great HR strategies that make a real difference to people’s work lives.
“Some HR departments have shied away from large-scale automation,” says Grant Weinberg, VP of HR Operations and Talent Acquisition at Eikon Therapeutics. “We need to leverage GenAI and look at automation to help HR professionals do the work that bots can’t do. This will drive operational excellence and thereby increase compliance.”
Automation: The right technology for the problem at hand
HR leaders know that automation is absolutely essential to driving positive change, but less than half (44%) are using automation in their jobs today.
Take advantage of the opportunity now to increase efficiency and effectiveness through automation. Test and experiment with automation and AI to find the right solutions that free you from administrative burdens and free you to focus on more strategic initiatives.
By using these advanced tools, HR professionals can streamline processes, reduce manual input, and make data-driven decisions so you and your HR team can feel truly unstoppable.
