In the ever-evolving landscape of human resources, a new global report by Sage has highlighted a significant trend: HR professionals are increasingly turning to artificial intelligence (AI) to alleviate the administrative burden, streamline time-consuming tasks, and combat burnout.
The report, aptly named ‘The Changing Face of HR’, encapsulates the insights of over a thousand HR leaders from diverse sectors and regions. A striking 77% of these leaders are convinced that AI harbors the potential to transform their company’s operational methods. This belief comes against the backdrop of 95% of respondents witnessing a workload surge and 91% shouldering additional responsibilities over the last year.
Key Challenges and AI’s Impact
HR professionals are losing sleep over several pressing issues:
- The sheer volume of work (80%)
- Employee burnout and low morale (79%)
- Constrained budgets (79%)
Yet, there’s a silver lining with 80% of these professionals foreseeing a considerable transformation in HR roles due to AI, and 71% predicting that AI’s integration in HR tasks will lead to job creation. The current landscape shows a notable lean towards automation and analytics, with 45% of HR leaders employing HR metrics, 44% embracing automation, and 43% adopting cloud HR solutions.
Technology as a Catalyst
More than half (56%) of HR leaders acknowledge the need for enhanced technology to function effectively. Such technology paves the way for collecting, analyzing, and reporting data-driven insights, thereby empowering informed decision-making. Training emerges as a pivotal element, with 79% agreeing on its necessity to harness AI’s full potential.
A Vision for the Future
HR professionals are eager to dedicate more time to:
- Strategic planning (61%)
- Data-driven decision-making (59%)
- Employee engagement (59%)
This shift from paperwork to people-centric strategies underscores the urgency to automate labor-intensive HR admin tasks. While 68% report that over half of their HR processes are automated, a consensus of 79% believes that further automation could enhance efficiency.
The disparity in automation between small (57%) and medium-sized businesses (80%) suggests that smaller entities could benefit from investing in HR technology to remain competitive.
Conclusion and Expert Insights
The report optimistically positions HR professionals at the helm of navigating these transformative changes, continuing to shape the future of work. Amanda Cusdin, CPO at Sage, remarks on the resilience of the HR industry and the liberating power of technology and AI in reclaiming time—a precious commodity in the fight against burnout. This technological embrace allows HR professionals to refocus on more fulfilling aspects of their roles, like people strategies, potentially elevating job satisfaction.
Echoing this sentiment, Ben Brooks, Founder and CEO at Pilot, emphasizes the critical role of HR analytics in strategic HR. He advocates for leveraging technology to yield meaningful, data-driven insights, which he considers an HR superpower.