#USA #Miami #Human Capital Management #AI Adoption #Data-Driven HR

Transforming HR through HCM

A recent study by Strada and ISG showcases a remarkable shift in human resources (HR) operations, fueled by new innovations in Human Capital Management (HCM). Organizations that have embraced modern HCM platforms are witnessing a staggering 500% increase in artificial intelligence (AI) and machine learning use, along with a 44% boost in data-driven decision-making. This report, based on a survey of 190 global companies, underscores the transformative power of digital technology within HR functions.

The findings reveal that organizations using Workday HCM are achieving tangible improvements in their HR operations. A striking 91% of these firms reported successful outcomes, dwarfing industry benchmarks where approximately half of similar projects typically fail. The penetration of technology in HR has resulted in improved operational metrics, including:

• - A 500% increase in AI and machine learning applications in daily HR tasks.
• - A 66% rise in system integrations.
• - A 55% boost in process automation.
• - A 49% decrease in complex HR processes.
• - A 44% elevation in data-driven decision-making.

The report emphasizes the necessity of a solid foundational approach. Organizations that experienced the most significant advancements, many of whom implemented Workday, began by streamlining their processes, adopting best practice configurations, and developing contemporary operational models. Prior to implementation, only 12% of companies characterized their HR processes as relatively simple. Post-implementation, this number soared to 45%, representing a 275% increase, with an additional 10% identifying their processes as significantly simpler - terms seldom used before this transformation. Notably, after implementation, no company referred to their processes as very complex.

Automation levels also saw noticeable enhancements, with processes deemed "mostly automated" nearly doubling from 25% to 45%.

Sean Campbell, a strategic advisor at Strada, remarked, "Success begins with a solid foundation—an agile and growth-oriented platform, a setup grounded in best practices, and a forward-thinking operational model that supports the business at every stage. With these elements in place, organizations are ideal positioned to embrace cutting-edge innovations like AI, machine learning, and the limitless potentials of Agentic AI."

Despite the evident progress, AI usage remains inconsistent. While adoption rates are rising, a significant 68% of companies still reported using AI and machine learning only "rarely" or "sometimes," hindering the overall value of their investments. This gap often correlates with ongoing challenges, including concerns regarding data security, trust in AI insights, and the requirement for more robust internal expertise.

Encouragingly, 90% of organizations are already taking steps to improve their digital proficiencies, particularly in emerging sectors such as AI and machine learning. Although merely 4% stated they lack expertise in this area, 34% mentioned their capabilities are still under development. This highlights a pressing need for ongoing learning and development.

Gaurang Pagdi, lead analyst at ISG, noted, "HCM transformation transcends the mere implementation of new technology; it’s about empowering HR to drive business growth, foster engagement, and unleash the full potential of the workforce."

This transformation presents HR professionals with a unique opportunity to redefine their roles, increase their impact, and lead strategic change within their organizations. As technology continues to reshape these functions, those who embrace data, automation, and continuous learning will find themselves best positioned to navigate the future of work.

To explore how HCM transformation is shaping the future of HR, download the full report here.

About Strada

Strada leads in human resources, payroll, and technology, simplifying international workforce management. In 180 countries, Strada designs and provides people-centric, cloud-based solutions that empower organizations to thrive and enable their teams to perform at their best. For more information, visit www.stradaglobal.com.