See how human resources technology is being used to help companies achieve strategic HR management
A recent study by consulting firm PWC reveals that no less than 74% of companies are increasing their HR Tech spending and 72% already have cloud-based HR applications. This data demonstrates the growth of the HRTech segment, which was, not coincidentally, the topic of the second edition of the Call for SaaS.
In this article, we will share some trends regarding the current landscape of technology applied to human resources management.
How is technology in HR viewed today?
In 2021, we can already consider that HR has ceased to be merely an operational area of the business and has become a strategic asset. Leading corporations already understand that their first customers are their employees and are beginning to take action.
These changes prompted PWC Research to conduct a study with 600 human resources and technology professionals specializing in HR to provide their opinions on industry trends.
Below, we summarize the study's main insights. ## Innovative solutions need to be accompanied by stakeholder engagement Although many solutions offered by HRTechs are extremely innovative, they only generate the expected benefits if they are accompanied by organizational mindsets willing to embrace change.
Only 37% of survey respondents said their talent management solutions are delivering significant benefits. This is because such solutions are not effective without internal stakeholder engagement and engagement measures to adopt new ways of working.
Focus on employee experience, selection, and people development
More than 70% of HR executives surveyed stated that talent acquisition tools, employee experience tools, and career development tools will be their focus areas in the next two years.
The cloud accelerates change
A large portion of HR professionals plan to invest in cloud-based HRTech.
When comparing organizations with cloud solutions and those without, we can see that organizations that have implemented cloud-based HR have seen more positive changes in productivity, employee experience, talent attraction and retention, and are also able to gain more valuable insights.
Managers and employees have different views on increased productivity
There is a significant difference between managers' and employees' views on the effectiveness of HRTech technology in improving organizational performance and the employee experience.
While half of executives believe that technology has led to improved productivity, only 22% of employees agree.
This difference indicates that leaders should evaluate implementations based on whether the tool is delivering the expected benefits for the business and culture change, and not simply considering them a success when delivered on time and within budget.