Transforming HR Through Technology | Gartner

Technology plays an increasingly pivotal role in how HR operates — and in most organizations, HR technology is the CHRO’s problem to solve. In the face of challenging economic conditions and tight labor markets, CHROs must balance between the need to deliver business transformation and the need to operate with fiscal discipline.

Nevertheless, HR is investing. Our research indicates that HR leaders rank HR technology as the No. 1 area of investment in 2023 among all priorities, and 46% of HR leaders plan to increase investments in HR technology.

Technology now touches every aspect of employees’ lives. By expanding digital HR to all employee workflows, HR technology leaders must be prepared to innovate beyond operational efficiency to make significant changes that will affect employees’ work, careers and the organization.

As with other parts of HR’s operating model, huge process, technology and cultural changes are needed to effectively leverage skills and align HR technology investments with critical business outcomes.

The HR function can start this journey by moving away from HR process automation and moving toward business-enabling digital transformation. This doesn’t mean “pushing” things to the business, but developing the HR technology landscape with and for the business. To accomplish this, progressive CHROs must take these actions:

• Anchor HR’s digitalization efforts around the business outcome and end users to secure adoption of HR technology solutions. This requires two-way alignment with stakeholders on the talent imperatives of your organization and on the expectations from HR and HR technology.

• Tackle user resistance to new HR technologies. Our research shows that 63% of employees stop using technology if they don’t see its relevance to their day-to-day work. Engaging HR teams around their understanding of the technology and its processes is critical. When considering a new HR technology, ask these questions: 

  • Will the HR tech solution encourage the right culture for all user types?

  • How do we want employees to feel as a result of the process after they have interacted with it?

• Use internal SLAs to establish accountability for process improvements and drive adoption. Determine what manager and employee behaviors are necessary to ensure smooth access to technology-related opportunities — and create strategies for redirecting resistors toward the new technology.

• Choose “big bang” HR technology efforts carefully, and then stick with them. By ensuring HR is set up to capture the benefits of market innovations, you can position HR to improve talent, as well as the business outcomes your organization cares about. You will also equip employees with the skills and capabilities to thrive and feel fulfilled in an increasingly complex work environment.