The Transformative Power of HCM in Driving AI Adoption and Data-Driven HR Trends
In a rapidly evolving business landscape, the integration of technology in human resources is becoming paramount. A recent report from Strada and ISG sheds light on how modern Human Capital Management (HCM) transformations are reshaping HR operations across organizations. This report is based on a comprehensive survey involving 190 global companies, primarily those utilizing Workday HCM solutions, revealing noteworthy insights into the changes prompted by these digital transitions.
The findings indicate a staggering 500% increase in the use of artificial intelligence (AI) and machine learning (ML) among organizations that have adopted HCM platforms. Moreover, there has been a 44% rise in data-driven decision-making, highlighting a marked shift toward digital transformation across HR functions. This substantial increase underscores how organizations are not just implementing technologies; they are fundamentally altering their operational framework to support growth and agility.
An impressive 91% of the surveyed organizations reported success following their HCM transformations, significantly outperforming the industry benchmark where typically about half of such initiatives fail. These successful transformations are characterized by significant improvements in HR operations, highlighted by notable statistics including:
The data also reveals that organizations achieving the most substantial improvements started with simplification of their processes, adoption of best practices, and the establishment of modern operating models. Pre-implementation, only 12% of companies found their HR processes to be somewhat easy, but this number jumped to 45% post-deployment, representing a remarkable 275% increase. Notably, after implementing these changes, no companies classified their HR processes as very complex, and there has been a near doubling of processes labeled as 'mostly automated' from 25% to 45%.
Sean Campbell, Strategic Advisor at Strada, emphasizes that the foundation of success lies in building a strong platform that fosters agility and supports continuous growth. He explains that organizations equipped with a solid operational model are better positioned to leverage advancements such as AI and machine learning, paving the way for innovative solutions and future-ready practices.
Despite the advancements, the report identifies areas of inconsistency in AI application. While overall adoption has seen a surge, 68% of participating organizations admitted to using AI or ML 'rarely' or 'sometimes,' which restricts the full potential of their investments. This inconsistency often stems from enduring challenges such as concerns around data security, trust in AI-generated insights, and the necessity for advanced internal expertise.
Interestingly, 90% of organizations have taken proactive steps to bolster their digital capabilities, especially in AI and ML. While a mere 4% reported lacking skills in these areas, 34% indicated that their abilities are still in development, signifying an ongoing need for skill enhancement and knowledge acquisition in these emerging domains.
Gaurang Pagdi, Principal Analyst at ISG, comments that HCM transformation transcends the mere implementation of new technologies; it is fundamentally about empowering HR to drive organizational growth, enhance workforce engagement, and unlock the full potential of human capital.
As these transformations continue, HR professionals are presented with a unique opportunity to redefine their roles, amplify their value, and lead significant changes within their organizations. Those who actively embrace data analytics, automation, and commit to continuous learning will undeniably hold the keys to navigating the future of work successfully.
For further insights on how HCM transformation is shaping the HR landscape, the full report can be accessed here.
About Strada:
Strada stands as a leader in providing people, payroll, and technology solutions that simplify international workforce management. Operating in 180 countries, Strada creates people-centric solutions that are powered by cloud technology, aiming to bolster organizational growth and enhance workforce performance. More information can be found at www.stradaglobal.com.
The findings indicate a staggering 500% increase in the use of artificial intelligence (AI) and machine learning (ML) among organizations that have adopted HCM platforms. Moreover, there has been a 44% rise in data-driven decision-making, highlighting a marked shift toward digital transformation across HR functions. This substantial increase underscores how organizations are not just implementing technologies; they are fundamentally altering their operational framework to support growth and agility.
An impressive 91% of the surveyed organizations reported success following their HCM transformations, significantly outperforming the industry benchmark where typically about half of such initiatives fail. These successful transformations are characterized by significant improvements in HR operations, highlighted by notable statistics including:
- - A remarkable 66% increase in system integration, facilitating smoother operations.
- - A 55% rise in process automation, indicating a shift toward more efficient workflows.
- - A 49% reduction in HR processes considered complex, reflecting enhanced simplicity and usability of systems.
- - A 44% growth in data-centric decision-making practices, evidencing the power of analytics in shaping strategic initiatives.
The data also reveals that organizations achieving the most substantial improvements started with simplification of their processes, adoption of best practices, and the establishment of modern operating models. Pre-implementation, only 12% of companies found their HR processes to be somewhat easy, but this number jumped to 45% post-deployment, representing a remarkable 275% increase. Notably, after implementing these changes, no companies classified their HR processes as very complex, and there has been a near doubling of processes labeled as 'mostly automated' from 25% to 45%.
Sean Campbell, Strategic Advisor at Strada, emphasizes that the foundation of success lies in building a strong platform that fosters agility and supports continuous growth. He explains that organizations equipped with a solid operational model are better positioned to leverage advancements such as AI and machine learning, paving the way for innovative solutions and future-ready practices.
Despite the advancements, the report identifies areas of inconsistency in AI application. While overall adoption has seen a surge, 68% of participating organizations admitted to using AI or ML 'rarely' or 'sometimes,' which restricts the full potential of their investments. This inconsistency often stems from enduring challenges such as concerns around data security, trust in AI-generated insights, and the necessity for advanced internal expertise.
Interestingly, 90% of organizations have taken proactive steps to bolster their digital capabilities, especially in AI and ML. While a mere 4% reported lacking skills in these areas, 34% indicated that their abilities are still in development, signifying an ongoing need for skill enhancement and knowledge acquisition in these emerging domains.
Gaurang Pagdi, Principal Analyst at ISG, comments that HCM transformation transcends the mere implementation of new technologies; it is fundamentally about empowering HR to drive organizational growth, enhance workforce engagement, and unlock the full potential of human capital.
As these transformations continue, HR professionals are presented with a unique opportunity to redefine their roles, amplify their value, and lead significant changes within their organizations. Those who actively embrace data analytics, automation, and commit to continuous learning will undeniably hold the keys to navigating the future of work successfully.
For further insights on how HCM transformation is shaping the HR landscape, the full report can be accessed here.
About Strada:
Strada stands as a leader in providing people, payroll, and technology solutions that simplify international workforce management. Operating in 180 countries, Strada creates people-centric solutions that are powered by cloud technology, aiming to bolster organizational growth and enhance workforce performance. More information can be found at www.stradaglobal.com.
Topics Business Technology）
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