The vast majority of human resources departments at larger companies plan to significantly increase their tech spending in the next two years, consulting company Bain found in a new survey.
Much of that investment will go to artificial intelligence technologies.
Some HR departments are already using AI and related technologies for things such as workforce planning and performance management, Bain found.
But many HR departments are still relying on older processes, including paper forms, and most have had trouble getting the most out of the technology they’re already using.
Many corporate human resources departments are such technological backwaters that they still rely on Excel spreadsheets or even paper documents for many of their tasks or services.
But the vast majority of HR departments expect to make a quantum leap in their IT systems in just the next two years, with many of them embracing artificial intelligence to help with their functions, according to a new study from consulting firm Bain.
“HR departments are rapidly adopting new technologies,” Michael Heric, a partner with Bain’s Performance Improvement practice, said in the report.
It warned, though, that “the appetite of HR leaders for more digital tools may outpace their ability to absorb the tools.”
For its survey, Bain polled human resource executives and managers at 500 large companies in the US, Germany, and the United Kingdom. The companies, which each have more than $500 million in annual revenue, including both publicly traded and privately owned organizations and represented a broad range of industries from manufacturing to retail to healthcare.
Some HR departments still rely on paper forms
Many of the HR departments are still relying on older processes for many of their services. Depending on the service, somewhere between 23% and 31% of such departments still rely on manual techniques, such as entering data into a basic spreadsheet or relying on paper forms, the study found.
For example, 31% of HR departments surveyed still rely on manual processes for career management of employees. Some 27% rely on such techniques to manage compensation and benefits. And a full quarter of HR departments even use manual processes to handle their payrolls.
HR professionals expect to dramatically reduce their reliance on such outdated techniques and processes within the next two years, according to Bain’s study. By then, just 7% expect to be using manual processes for career management or compensation and benefits. And just 2% expect to be using such techniques for their payroll.
Many departments are planning to …read more
Source:: Business Insider