Gartner: Only 35% of HR teams are confident in their business’ current approach to HR technology

Is your HR department deriving the maximum value from HR technology?

Well, according to new research from Gartner, only 24% of HR employees reported that their organization is achieving its full potential.

The research found that only 35% of HR leaders are confident that their organization’s current approach to HR technology will help the business to achieve its goals.

What’s more, two thirds shared that if action is not taken to improve HR’s approach to technology, the business will see a decline in effectiveness.

In an exclusive conversation with Piers Hudson, Senior Director in Gartner HR, UNLEASH explores how this issue can be overcome, as well as the key factors to help businesses reach their full potential.

Embracing technology and utilizing it to its fullest in HR teams

Staying relevant among competition is a priority for every organizations, and for Hudson, this is achieved by adapting, evolving, and fully integrate HR technology.

He expresses that by embracing technological advancements not only maximizes the value derived from HR systems but also bolsters stakeholder confidence in HR's capability to drive technological transformation.

However, Gartner’s research indicates that nearly half of HR professionals believe that past implementations of HR technology have negatively impacted HR's reputation within their organizations.

To restore and build this confidence, HR leaders need a strategic approach focused on implementing incremental changes that build toward transformational HR capabilities rather than trying to sell large-scale transformation goals in one go,” Hudson shares.To restore and build this confidence, HR leaders need a strategic approach focused on implementing incremental changes that build toward transformational HR capabilities rather than trying to sell large-scale transformation goals in one go,” Hudson shares.

“This approach facilitates stakeholder engagement with the technology that generates new business value. Additionally, given that one-quarter of employees’ fear that AI could replace their jobs within the next five years, it is imperative for HR leaders to address these concerns.

“HR leaders must go beyond just training HR staff and actively demonstrate how the new technology can enhance high-value work, rather than posing a threat.”

Additionally, for businesses to utilize technology to its fullest potential, Gartner recognizes that three key actions must be taken. These are:

• Encouraging stakeholders to prioritize value, by creating a roadmap strategy that provides transformational blocks
• Expanding staff’s viewpoints to inspire new value
• Formalizing new roles that creates complementary solutions that provides new value for end-users

If businesses can augment their HR team’s approach to technology, it can increase HR’s technology business value by 54% compared to a capacity-centric approach, which can only increase HR technology business value by up to 28%.

Sharing his final thoughts, Hudson says: “HR leaders should ensure accountability among all process owners to achieve shared outcomes when designing or implementing technological systems.

“This will create consistency across HR tech initiatives, allowing for effective comparison and prioritization of investments, as well as the identification of any skills needed to get the best from new technologies.

“By adopting these measures, organizations can fully leverage HR technology, drive meaningful change, and reinforce HR's pivotal role in the digital transformation journey.”