Despite layoffs and budget cuts, about 76% of HR managers want to invest in HR technology this year to save time and cash, according to a March 21 report from Humaans, an employee management platform.
Investing in HR technology could help smaller teams and drive business growth, they said. In addition, about 56% of managers said they could save time on HR tasks with the right tools.
“Today, HR leaders play a meaningful, strategic role in helping organizations to navigate the downturn and mitigate the risk and impact it may have on their people,” Giovanni Luperti, co-founder and CEO of Humaans, said in a statement.
“But as the data shows, their teams are understaffed, and it is increasingly clear that much of their tools aren’t fit for purpose,” he said. “At the end of the day, the success of any company hinges on the success of its people, and a robust HR tech stack is a powerful component to enable that success.”
Humaans surveyed 1,000 HR managers across the U.S. and Europe to better understand the current economic landscape and opinions about HR technology. About 59% reported team reductions during the past 18 months, and 61% said their HR team is understaffed today.
Feeling the strain, a little over half of the HR managers said the role of an HR professional has grown more complex amid an uncertain landscape with smaller teams and fewer resources. On top of that, about 46% said companies will continue to cut costs with layoffs, hiring freezes, and budget cuts throughout the second half of 2023.
At the same time, a vast majority of the HR managers said they’d like to invest in HR tech this year as workplaces continue to evolve. Only half have the right set of tools to integrate with their core HR system, which they said could save time and money through an efficient integration strategy.
The pandemic-era shift in remote and hybrid work changed workplaces and the regulatory landscape in fundamental ways, they noted. HR professionals have become vital to risk management, for instance, and cybersecurity threats to personal data are top of mind. However, 61% said the data security of their HR technology should be improved to meet these challenges.
In addition, HR technology could improve employee experience and build a positive company culture, they said. About 53% of HR leaders noted that diversity and belonging initiatives are key for 2023, yet 28% said they lacked the tools to track their company’s diversity metrics.
Among those who have the relevant HR technology, nearly half said they’ve seen improvements at their company related to employee experience. Teams who had insights and analyses were more equipped to back up their workplace experiences with data, they said.
Other recent reports have found that employers are focusing on employee experience over cost savings in 2023. This includes investments in diversity initiatives, engagement-focused technology and talent development.
Although employee engagement appears to be trending downward this year, according to a recent Gallup survey, creating clarity and having personal conversations with employees can help. If HR technology can make administrative tasks more efficient, there may be more time to prioritize those one-on-one chats.
