Claymont, Delaware - November 20, 2024  –  aconso, an innovator in HR document management systems and a leading provider of cloud-based HR software solutions, has announced new research revealing that workflow issues and technology roadblocks are leaving U.S. HR teams overwhelmed by an increasingly digital workforce and proliferation of AI-driven technologies. aconso surveyed 250 senior HR leaders to gain insights into the state of HR in the U.S., following its recent expansion into the U.S. market earlier this year. The findings are part of the report, Transitioning from Manual to Meaningful: Unlocking HR’s Potential through AI and Digital Transformation, which surveyed 650 global senior HR leaders.   

The report finds that 71% of U.S. HR leaders struggle to align their HR strategy with rapidly changing business objectives while focusing on employee needs. 43% admit the sheer volume and complexity of HR responsibilities leave their teams overwhelmed; 47% feel stuck in a constant cycle of implementing layoffs and managing employee performance issues, and 43%  are weighed down by manual processes (44%). 

Additionally, their teams make more errors (56%), lose time that could be better spent on initiatives that drive business value (53%) and, critically, are at risk of burnout and decreased morale (46%). 

HR Workflows and Workloads are Stifling Innovation 

Understandably, there is little room for HR leaders to direct their teams to focus on the innovation needed to keep pace with the major trends they anticipate heading their way.

In the next three to five years, HR leaders say four trends will significantly impact the function and broader workforce: 

• AI and automation (66%)
• The reskilling of the workforce to embrace new technologies (58%) 
• More focus on employee well-being and experience initiatives (56%) 
• A need to demonstrate the measurable impact of HR initiatives (54%)

Compounding the issue of an over-stretched team is that HR professionals are also being failed by a ‘tech overload’. 53% of HR leaders indicate that fragmented and ineffective solutions are increasing the workloads of their teams, while 64% say that solutions that are “too generic”  don’t meet their specific needs. 

For example, HR leaders say their teams spend an excessive amount of time ensuring compliance with policy changes and addressing employee concerns (65%), maintaining HR materials including employee documents (62%), and securing employee signatures (50%).

Ulrich Jaenicke, Co-founder and CEO, aconso comments: “The rush to implement digital technologies post-pandemic has left many HR teams with several core workflow issues thanks to disjointed systems, siloed data, and manual processes. Feelings of being overwhelmed and overworked leave HR teams with little time to focus on tasks that will unlock value for their people or business, even though they want to.

“Technology can deliver value – but only if it improves the experience of HR teams, rather than adds to current challenges. AI and digital investments must be considered to unlock HR’s potential and drive meaningful change.”

How HR leaders plan to use technology to unlock HR’s potential 

The strain on HR is evident and leaders know they must rapidly overcome current issues to relieve workloads and improve the experiences of their team. The research identifies four key areas that HR leaders see as having the biggest impact on improving current workflows and frustrations: 

1. AI and automation: 62% outline AI as their top investment, with 99% already using it in recruitment, and automated document management, payroll, and benefits. 
2. Self-service tools: 55% see value in fully digitizing employee documents and making them accessible via self-service applications to boost employee engagement and reduce demands on HR teams. 
3. Dedicated HR solutions: 62% would rather invest in dedicated HR solutions rather than generic tools to navigate the issue of technology falling short of their needs. 
4. A new tech stack: 54% say building a new tech stack would reduce current problems with ‘tech overload’ and disparate solutions, processes, and data that lead to errors. 

For more information, visit: https://hubs.la/Q02Yv40n0

Methodology

The research was conducted by Opinion Matters, among a sample of 650 Senior HR leaders in companies with 5000+ employees and who use ERP software in the UK, US, and DACH (Germany + Switzerland) (Aged 18+). The data was collected between 26.09.2024 - 08.10.2024.