Investment in a company’s HR technology stack will become increasingly business critical in 2023 as people teams navigate today’s economic climate.
According to the employee management platform Humaans, HR and talent teams were hit hard by recent lay-offs. A survey by the company found 59% of teams reported reductions over the last 18 months. So, it’s not surprising that 61% of HR managers believe their HR team is currently understaffed.
Meanwhile, 54% believe that the role of the HR professional has grown more complex as they navigate an increasingly turbulent landscape, with smaller teams and fewer resources. The survey shows that 46% of HR managers believe companies will continue to implement cost-cutting measures such as layoffs, hiring freeze and budget cuts into the second half of 2023.
Giovanni Luperti, CEO and cofounder of Humaans, noted that HR leaders now play “a meaningful role in helping their organizations navigate the downturn and mitigate the risks and impact it may have on their people.” But, he added, “as the data shows, their teams are understaffed and it is increasingly clear that much of their tools aren’t fit for purpose.”
The Right Tools
Investing in HR technology was top of mind for the survey’s respondents, with 76% saying they would like to invest in HR tech during 2023. As HR professionals continue to navigate the rapidly evolving world of work, with less budget and smaller teams, it’s increasingly important to procure the tools that will help them succeed. With 55% of HR managers stating that they could save more time on HR tasks with the right tools, a robust HR tech stack is a key element in driving business growth.
With the shift to remote work amidst a changing regulatory environment, the role of HR professionals has become critical to risk management. Cybersecurity threats have become more commonplace, and HR leaders are increasingly concerned about the security of their company’s people data. But with 61% of HR Managers claiming that the data security of their HR technology could be improved, it’s clear their current HR tech stack is not fit for purpose.
The survey also found that only half of HR managers have tools that integrate with their core HR system. About 50% agree that they could drive value for their organization with the right set of integrations within the HR tech stack. In the meantime, 56% believe that they can save time and budget through an efficient integration strategy.