TeamLease Services launched its latest report, ‘HR Tech: empowering people and enterprises’ which relates to the adoption of Human Resource technology tools in organizations. The report is a thorough analysis of spending on HR technology in organizations and the benefits of its adoption. It further highlights the industry trends showing a transformation in the core functions and the sub-functions of HR owing to the adoption of HR Tech.
According to the report, the core HR Tech adoption is over 75% in 10 out of the 14 sectors surveyed, and sub function HR Tech adoption is 75% or more in BFSI, BPO/ITeS, E-commerce and Telecommunication sectors. The core functions of HR include administration, payroll and compliance and HR analytics while the sub-functions consist of talent acquisition, retention and engagement, Onboarding, Performance Management and Training and Employee Productivity [Time and Attendance]. The benefits of this evolution range from baseline aspects of process automation for time and cost savings to enabling HR in delivering business value to organisations.
The report discovers that while most large businesses prefer to deploy their own software that is built in-house, an overwhelming majority is also moving to SaaS (Software as a Service) platforms and procuring software from multiple vendors. Medium businesses are open to procuring these softwares from vendors, either in part or in full.
Small businesses, on the other hand, have a marked preference for procuring various modules from multiple vendors across all deployment models. The automation of routine processes and efficient data management through this technology has resulted in up to 65% gains in time and cost for the HR administration function. It has also resulted in better control and systematic record keeping with Payroll and Compliance tech yielding up to 80% in cost savings for the function.
Moreover, the sub-functions of HR have been aided by HR technology. It has significantly improved the process of talent acquisitions, retention and engagement by leveraging big data and predictive analytics for matching and identification of the right-fit talent for open positions, thereby saving enormous time and cost, especially, in large-scale hiring. The technology used for time and attendance tracking and reporting systems have increased the accuracy of payroll by up to 85% and have resulted in a boost of productivity by 25% to 45%.
The impact on Employers:
- HR Tech has structured and automated HR processes for up to 21% improvement in administrative efficiency, up to 30% savings in time and cost, and up to 65% reduction in errors and duplication.
- Payroll Processing and Compliance tools have reduced compliance risk by up to 50% and increased the accuracy of payroll processing by up to 55% and affected up to 80% savings in data access.
- Talent Acquisition, Retention and Engagement tools leverage big data and continuous feedback loops to deliver 65% better matching and 80% faster hiring, and up to 65% improvement in talent retention.
- HR Analytics (up to 26%) and Employee Productivity tools (up to 17%) will see a near doubling of investments, and Talent Acquisition/Retention (22%) and On-boarding/Performance Management tools (10%) will see steady investment trends over 2018 – 2021
The impact on Employees
- Mobile and social technologies boost productivity by 20% - 25%.
- HR Tech is perceived to affect significant improvements in Job Satisfaction (by 76%), Productivity (by 83%) and Performance (by 75%) while the value equation is perceived to be mixed for Health and Safety and Work-Life balance.
Elaborating on the findings of the report Rituparna Chakraborty, Co-founder & EVP, TeamLease services said, “Big data and technological advancements have enabled organizations being Paperless, Presenceless & Cashless. Artificial Intelligence and machine learning based tools have enabled faster hiring and improved talent retention to deliver up to 85% time, cost and productivity gains for organizations. The study finds that the implementation of social technologies can potentially raise the productivity of high and skill knowledge workers by 20%-25%. It has improved the accuracy of evaluations as it has set related benchmarks against which performances can be measured and evaluated.”
The report further goes on to state that the current investments by organizations are growing incrementally and are spread across HR Tech areas, while HR Analytics and Employee Productivity tools will see a near doubling of investments. Talent Acquisition, Retention and On-boarding performance management tools will see steady investment trends from 2018 – 2021.
The survey was conducted among HR Managers across 400 employers in 14 prominent sectors and 13 cities of India belonging to large, medium and small businesses.