HR technology has evolved from a nice-to-have to a business-critical investment. The shrinking workforce and changing employee-employer relationship is driving adoption of HCM solutions that can help organizations face challenges and prepare for the future.
Leading-edge HR technologies are now being viewed as an essential investment for companies to empower employees, drive productivity, inform mission-critical decisions, and adapt to change. In fact, 78% of Ceridian’s 2022 Executive Survey respondents say their human capital management (HCM) software is very or extremely effective at helping their organizations prepare for change.
But there is room for improvement. When asked how workforce technologies were being used to support organizational agility, the top three responses in our Executive Survey were to deliver training effectively (62%), to measure employee performance (61%), and to aid in workforce scheduling (60%). These technologies could be considered table stakes today, yet roughly 40% of respondents don’t currently have these systems in place.
A large percentage of companies aren’t leveraging their technology to attract and retain talent in a tight labour market either. Just over half (56%) of 2022 Executive Survey respondents are using technology to simplify or speed up recruitment, and only 44% are using their new technology to identify flight-risk employees.
There’s significant potential for organizations to improve their change-readiness with the use of HR technology – but only if they consider the right factors. Let’s look at what it takes for HR technology to help an organization be ready for what comes next.
Identify barriers and invest accordingly
Identify the barriers that prevent your organization from making workforce decisions quickly and invest in technology to overcome them.
In an uncertain economic climate, some businesses may be reluctant to allocate additional funds to technology transformation. But without the latest systems automating processes and providing critical insights, your costs may grow even higher.
One of the best business cases for implementing technologies that support workforce agility is return on investment. For example, a study by Nucleus research showed that for every dollar spent in workforce management technology, a company can expect a return of $12.
Empower everyone to make data-driven decisions
Only 15% of 2022 Executive Survey respondents globally said they don’t have any issues with their workforce data. They indicated that their top workforce data challenge was data that is siloed in systems that aren’t integrated (39%). This was followed by 37% who said data is siloed by functional area and 34% who struggled with outdated data.
Without their people having access to the proper data, organizations may struggle in times of rapid change. The right workforce technology empowers all users in your organization to make real-time, data-driven decisions.
While deeper insights and greater efficiencies for management may be top reasons to adopt these solutions, you should consider the interests of the entire workforce. The right HCM platform should empower all members of your team.
Making agility more than a mindset
How do you ensure your organization is ready for change? Our Executive Survey found three key areas leaders should focus on to build organizational resilience.
Ensure widespread adoption
Of Executive Survey respondents who said their HCM software wasn’t effective at helping their organizations prepare for change, 43% cited a lack of feature usage as the reason why.
It isn’t enough to purchase and implement any piece of technology. Without widespread adoption, a solution can’t help organizations achieve their goals.
At the heart of the issue may be training. Ensure that initial and ongoing training opportunities are available to users at all levels. This will help employees understand how the system can benefit them and feel confident in using the solution to achieve those gains.
Consider the future
Who can be sure what the future will hold for your organization? Unfortunately, business leaders don’t have the ability to see into the future. But they can still prepare for it. That’s why it’s important to implement systems that can adapt to change and can scale with your business to accommodate future needs.
Your HR technology should be flexible enough to help you evolve and remain competitive as the workforce changes. The right HCM software, in short, should help you stay ahead of the curve, helping to ensure that your organization and people can reach their full potential.
No matter your sector or size, your workforce is your most valuable asset, enabling you to thrive in an uncertain world. HCM systems, now more than ever, present the best way to efficiently manage that asset. Help your organization better prepare for and withstand whatever disruptions come your way.