Dive Brief:

• HR technology is experiencing a setback just as the digital transformation is becoming imperative, meaning HR must rethink its partnership with IT to modernize talent acquisition, an iCIMS report said. "HR is evolving from using technology to count employees to making employees count, and recruiting is evolving from 'post and pray' to proactively identifying, engaging, and nurturing talent," Adam Feigenbaum, iCIMS chief customer officer, said in the report released Jan. 30.
• In key findings in the report, HR practitioners universally agree that hiring is "critical to their organization's success," but that HR is a low priority for IT. In response, HR must demonstrate to the C-suite the return on investment of HR digital transformation. Most IT/HR operatives plan to "increase their investment in recruiting technology in 2020," the report added, and HR leaders are turning to AI-driven solutions to "differentiate the candidate experience."
• The report recommended that HR and IT pros should start by determining their organization's data needs rather than the technology's features; develop a digital strategy, rather than a digital road map; create a plan to put in action; automate the workflow; and adopt best-in-class solutions for TA over an HCM recruiting module.

Dive Insight:

As the digital transformation marches on, HR's relationship with IT has shifted in turn. Matt Harris, head of workplace technology at Envoy, has said in a piece for sister site CIO Dive that IT should report to the chief people officer. "IT's relationship with HR and its people has the opportunity to completely transform the way business is done and the way employees exist in (and out of) the workplace," Harris wrote. "Industry will start to see more IT teams report to HR and chief people officers, and even directly to the CEO."

Forward-thinking HR professionals have embraced technology for efficiency, but a 2018 KPMG survey found that some HR professionals have been slow to move away from doing business as usual. The survey showed that while two-thirds of the respondents recognize that the HR function is undergoing a digital transformation and more than 70% understand the need for a workforce shift, only 40% reported having a digitized workplace at either the HR or organizational level.  

HR leaders who aren't completely sold on digitizing their organizations — and preparing their employees for the shift — could face a huge cost in productivity. A new study by Accenture and Qlik found that the lack of digital literacy among employees costs organizations five days in lost work time per person each year. The productivity shortfall builds up in sick days, procrastination and general anxiety workers experience when they don't know how to use data. As a result, HR must lead its organizations in getting employees trained and reskilled in preparation for a digitized workplace.