1. With a faltering global economy, HR technology leaders must anticipate greater demand for measurable outcomes to justify new investments and their wider technology strategies. As a result, the top 3 priorities for HR technology transformation are: better business outcomes, headcount and skill growth, and cost optimization. Buyers will find investment in HR technology can deliver desired revenue growth and growth in headcount and skills. However, cost optimization will be more challenging and will depend on where the organization is on its cloud HR journey.
Gartner recommends that wherever the organization is on its cloud journey, it should not move to the cloud to find cost savings only. While cloud deployments can avoid large capital expenditures that come with on-premises deployments, they still require high operating costs and full-time equivalents to manage them. HR leaders should move to the cloud for reasons such as increasing scalability, reducing need for manual intervention or embracing the innovation offered by cloud services.
2. The top hurdle for HR leaders is HR technology adoption by employees and managers. Without adoption, technology provides zero value while incurring ongoing costs. Moreover, employees who reject an HR technology spend time finding workarounds, which leads to work friction and inefficiency.
Gartner recommends that HR technology leaders actively drive adoption of the technologies they introduce. This requires the application of user feedback to improve the technology incrementally and it requires changing management’s digital maturity. Also, HR technology leaders must focus on using data to improve the related resources and the process flows of the most frequently used technologies.
3. 75% of HR leaders expect their HR technology to be consolidated around a core cloud human capital management suite by 2025. With only 15% of respondents indicating they planned to host at least some applications on-premises by 2025, we are long past the halfway point in the transition from on-premises to cloud. *
Gartner recommends that as on-premises applications approach end-of-life, HR leaders make immediate plans to migrate to the cloud to deliver business transformation and reduce risk.
When it comes to insights on HR technology strategies, you won’t find better HR events than Gartner ReimagineHR Conference. By meeting Gartner experts and networking with HR leaders, you are bound to gain important, actionable insights on the role HR technologies can play in your organization.
*Source: HR Technology Planning Imperatives for 2023 and Beyond