According to a Gartner survey, only 24% of HR employees reported that their organisation's HR function is deriving the maximum value from HR technology. This suggests that HR leaders are grappling with how to unlock the full potential of these tools.
The survey, which polled 85 HR leaders in February 2024, found that only 35% are confident their current approach to HR technology is helping to achieve business objectives. Worryingly, two-thirds believe that if they don't take action, their function's effectiveness will decrease.
"The goal isn't to maximise technology's value to HR alone, but to maximise the business value the technology can bring to the entire organisation," said Mark Whittle, vice president of advisory in the Gartner HR practice. To achieve this, organisations need to shift their approach and focus on augmenting HR through increased technology adoption and utilisation.
Recommendations
To leverage technology for maximum business value, Gartner recommends three key actions: create roadmap strategies that engage stakeholders, expand HR staff's viewpoints to inspire the pursuit of new value and formalise shared goals and new roles that enable complementary, rather than siloed, solutions.
Augmenting HR's approach to technology can increase its business value by up to 54%, compared to a capacity-centric approach, which can only increase it by up to 28%. By embracing these strategies, HR leaders can overcome barriers, build stakeholder confidence, and unlock the transformative potential of their technology investments.
“Strategic business value is generated by bringing humans and technology together, not freeing up employees’ time to do strategic work on their own,” said Piers Hudson, senior director in the Gartner HR practice.
