According to data from Gartner, technology ranked as the top investment priority for HR leaders last year, largely thanks to its efficiency potential driven by automation. HR tech purchases represent a significant spending line item for many companies.
In fact, costs relating to the people function can amount to 70%-80% of an organization’s budget, according to Sapient Insights Group’s 2023-2024 HR Systems Survey of HR tech buyers from more than 2,500 organizations around the world. A consequential chunk of this can be attributed to technology, and the Sapient report indicates that professionals purchasing HR tech show a growing commitment to HR tech investment as workforce dynamics change.
HR tech imperatives
Organizations all have unique priorities, but certain checkpoints can help most employers gain clarity when reexamining HR tech. Jordi Romero is the founder and CEO of Factorial, a Barcelona-based HR software start-up that is one of the fastest-growing companies in the industry. Founded in 2016 to help business leaders automate HR processes in one central tool, Factorial enjoys unicorn status and serves 8,000 companies in over 65 countries.
When asked what HR leaders can do to reassess tech solutions in 2024, he told HRE that this would be the year to focus on data security, AI and automation. He also expects that the “continuous battle between remote, on-site and hybrid work arrangements” will influence how HR tech buyers make their purchases.
“As someone who has been involved in the HR landscape for a long time now, my critical tips for HR leaders reevaluating HR tech software in 2024 would center around strategic considerations,” says Romero.
Identify platforms that leverage artificial intelligence and automation effectively, according to this founder. He also suggests targeting solutions that can support virtual collaboration and address the challenges of distributed teams. Tech buyers should prioritize integration capabilities that align with existing systems and give preference to data security and privacy functionality, according to Romero.
He also reminds HR leaders to be mindful of future considerations. “Scalability is crucial,” says Romero. “Select a platform that can grow with your organization and adapt to changing business needs.”
This innovator also says that HR leaders should insist on engaging with vendors committed to customer support, from implementation to ongoing service. Finally, prioritize solutions that contribute to employee wellbeing and engagement because a positive workplace experience is vital for organizational success. This includes systems that are appealing to navigate, according to Romero: “Focus on enhancing the user experience for your team, as a user-friendly interface is key to maximizing adoption and productivity.”
Want more advice on reevaluating technology purchases? Learn about the fundamentals of HR tech vendor selection from Micheal Kannisto, scenario director at think tank MindemicLab, at Virtual HR Tech 2024. Grab your free spot here.
The post Tips from a unicorn founder on reevaluating HR tech in 2024 appeared first on HR Executive.