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A lot of promises have been made about what HR technology can do for organizations. I’ve heard all kinds of wild claims, from increasing retention 10 times to being able to reassign or let go of most of your staff thanks to the automation and efficiencies it brings.
Yet, here we are, still asking difficult questions. Why aren’t we getting more from these solutions? Why can’t they deliver on lofty promises and idealized futures? What are we spending all this money on if not the results we need?
New data may have the answer.
Maximizing the Value of HR Tech Isn’t Common
According to a recent Gartner report, only 24% of HR functions are maximizing the business value from HR technology. That’s a shockingly low number, but it wasn’t the only thing that stood out from the report.
Gartner’s survey also revealed that just 35% of HR leaders feel confident that their current HR technology approach is helping them achieve business objectives, and two-thirds believe that if they don’t take action to improve HR’s approach to technology, their effectiveness will suffer.
Think about implementing a core HR system. You might invest years into selecting and implementing a solution only to find that the actual progress you were hoping for is still years away because it requires additional integrations with other tech or significant change management. Every misstep and failure makes each successive change more challenging as trust erodes.
So, why does the grand promise of HR technology so often fall short? Four possibilities come to mind:
- Lack of Proper Implementation and Training. Even the best HR technology won't deliver results if it's not implemented correctly. Companies will sometimes try to save money by skimping here, but it can be a major pain point. Without this, technology becomes an expensive tool that no one knows how to use properly.
- Integration Challenges With Existing Systems. Integrating new HR technology with existing systems can be a complex, time-consuming process. Data silos and compatibility issues often negate the benefits of the new technology, leading to frustration and inefficiency.
- Overreliance on Technology Without Addressing Underlying Issues. Technology can streamline processes, but carrying out bad policy faster and more efficiently doesn’t fix fundamental organizational problems. For example, if a company has a toxic culture or unclear HR policies, no amount of technology will solve these issues.
- Resistance to Change From Employees and Management. Employees and managers alike can be resistant to new technology, especially if they don’t see the immediate benefits or find the new system cumbersome. Overcoming this resistance requires clear communication and ongoing support.
Related Article: Here's Why HR Needs to Move From Service Center to Systemic
GenAI: Not a Magic Bullet
Can’t generative AI help? Sure, but it might not be the panacea that so many prognosticators hoped for when it arrived on the scene. While GenAI can automate certain tasks and provide valuable insights, it hasn’t solved HR’s core technology challenges.
For instance, AI-driven tools can sift through resumes and identify potential candidates more efficiently than a human recruiter, but they can't replace the nuanced understanding and personal touch that a skilled recruiter brings to the process. Again, doing dumb things faster isn’t a solution to any problem.
Gartner’s report highlights that nearly half of the HR leaders surveyed have experienced poor outcomes with HR technology, damaging their reputation within their organizations. Throwing more technology that isn’t carefully thought out at a problem can't be the answer. Technology must be implemented thoughtfully and used in conjunction with strong human judgment and effective HR strategy.
Related Article: AI or Not, An HR Software's Utility Is What Matters
Practical Solutions for Maximizing HR Tech Value
So, how can organizations truly maximize the value of HR technology? Gartner has a few strategies — three of which I’m summarizing below.
1. Create Roadmap Strategies
Start by developing clear roadmap strategies that engage the people impacted by the technology at every level. These roadmaps should focus on something Gartner calls transformational blocks — that is, key initiatives that can drive significant change and value.
This is about prioritizing new value creation, not just automating existing processes. This means involving various departments in the planning stages to ensure the technology aligns with broader business goals and can deliver tangible benefits.
For instance, if an organization aims to improve employee engagement, a roadmap might include implementing an advanced feedback system that integrates with existing HR platforms, providing real-time insights and actionable data.
2. Take the Threat of Job Loss Out of the Equation
Your HR employees need to see technology not as a threat to their jobs, but as a tool that can enhance their work. This requires expanding their viewpoints and inspiring them to pursue new skills and strategies for the organization.
Training is crucial, but it must go beyond the basics. HR leaders should illustrate how technology supports high-value work, such as strategic decision-making and employee development, rather than just eliminating mundane tasks.
Consider arranging workshops where HR staff can explore new technologies hands-on and see direct applications to their roles. Bringing in case studies or examples from other organizations can also help staff visualize the potential benefits.
3. Formalize Shared Goals and Roles
Every process owner should be accountable for the outcomes of any new technology implementation. This shared responsibility helps align the entire organization toward common objectives and makes it easier to prioritize investments.
For example, if implementing a new performance management system, ensure that both HR and department managers have clearly defined roles in utilizing the system and that they are working toward the same performance goals.
Related Article: Technology Is Turning Human Resources Into an Oxymoron
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Poor experiences with HR technology significantly damage confidence in our ability as HR professionals to drive organizational transformation. Everyone responsible for HR technology must focus on strategic implementation, comprehensive training and fostering a culture that embraces change. By taking these steps, HR technology can truly transform not just the HR function but also the entire organization.
The future of HR tech is bright, and I believe in the potential of solutions to completely change organizations' trajectory. But it’s up to us to turn promise into reality. With a strategic approach and a commitment to continuous improvement, organizations can maximize the value of their HR technology investments and drive real business value — certainly more than 24%, at least.
