Podcast: HR Will Put More Money Into Technology This Year

Compensation

Transcript

Welcome to PeopleTech, the podcast of the HCM Technology Report. I’m Mark Feffer.

This edition of PeopleTech is brought to you by ADP. Its Next Gen HCM is designed for how teams work, and helps you break down silos, improve engagement and performance, and create a culture of connection. Learn more at flowofwork.ADP.com.

Podcast: HR departments expect bigger budgets this year, and plan to put much of that new money into tech solutions. #HR #HRTech Click To Tweet

Pandemic or no, most HR departments expect their budgets to increase this year, with much of the money going toward technology rather than benefits, recruitment or engagement.

Specifically, half of the HR professionals surveyed for the Paychex Pulse of HR report put said technology would be their number one spending priority with any new money they get. For comparison’s sake, 44% said benefits, while 43% said recruiting and engagement.

This is logical, Paychex says, because HR does less and less work by hand. Rekeying information dropped by 60% from 2019, for example. The time spent merging data by hand fell by 40%.

Also, the numbers show the impact of self-service. Most HR leaders—79%—says apps or portals are important tools for them in meeting workforce needs and freeing HR from processing time-off requests or updating information.

And what would an HR technology survey be without discussing analytics? Well, no surprise, HR is using more data tools. Almost all professionals—97%—said they rely on analytics to do their jobs, up from 90% in 2017.  

They’re using it to get a more objective view of the workforce, make more informed decisions, justify their decisions to leadership, or track benefits, time off and training.

And what’s a 2020 survey without asking about Covid? The pandemic’s shifted HR priorities this year, no surprise. Regulatory compliance is the most pressing concern, and more than a third of HR practitioners say keeping track of which jurisdictions want what is now their biggest challenge.

Beyond that, their biggest concerns are keeping employees engaged, keeping them informed, and managing employee stress.

The good news for vendors, besides the additional spending money, is that HR leaders say they still need help from third parties, especially in areas like strategy, talent acquisition, compliance and risk management. 

This has been PeopleTech, from the HCM Technology Report. This edition was sponsored by ADP. Next Gen HCM, designed for how teams work. Learn more at flowofwork.ADP.com.

And to keep up with HR technology, visit the HCM Technology Report every day. We’re the most trusted source of news in the HR tech industry. Find us at www-dot-hcm-technology-report-dot-com. I’m Mark Feffer.

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