The pace of technological innovation around us indicates soon the impossible will become possible. The emergence of technologies like AI, Data Science, Big Data, Cloud, etc. has massively impacted the business environment. To thrive through disruptions, business models are changing, and a lot is expected from HR to support the ongoing change. 

KPMG recently published a survey- HR transformation: Which lens are you using? The study focuses on HR transformation at the times of disruption. The survey saw participation from 887 executives from 48 countries with representation from 27 industries across Asia Pacific, Europe, North America, Middle East/Africa and Latin America. 

Here are the key insights from the study:

HR transformation initiatives:

The survey findings revealed the characteristics of the organizations that successfully executed complex HR transformation initiatives:

• HR adding strategic value to the business (89%)
• Having a business case to identify clear measures for success (73%)
• Changing their operating model alongside their implementation (72%) 

According to Indian data, 59% of Indian organizations do not have a primary business case for putting in place key HR processes.

Challenges faced in implementing technologies: 

Funding, Lack of appetite, budget, and skills to make necessary process standardization and disparate underlying IT systems and lack of integration of IT applications and systems were cited as the top three challenges in implementing new and innovative technologies such as process and cognitive automation into the HR function.

Top Investment Areas:

49% organizations site HRMS as the most significant area of investment followed by cloud and on-premise systems. The top expected benefits from HRMS as cited by the respondents includes HR transaction processing, delivering value-added services, and improved availability of management information. 

Intelligent Automation Investment:

50% organizations say intelligent automation will drive significant changes in the business and believe process automation will have a substantial impact on the HR operating model. Top focus areas for intelligent automation efforts are talent management (61 percent) and talent acquisition or onboarding (57 percent).

Vishalli Dongrie, Partner, BPS-People, and Change, KPMG in India, was quoted in media saying, “Most respondents are currently involved in HR transformation. Overwhelmingly, most of them have a modest and traditional view of projecting HR transformation with systems and processes.”

From India, 109 executives participated in the survey which further revealed that despite the urgency shown by CEOs, the transformation is still not moving in the context of supporting a business strategy or helping a company meet its business objectives. In fact, about 85% organizations confirmed that they are not achieving ROI on HR initiatives.