HR teams struggle amid digital transformation: survey

Many overwhelmed by volume, complexity of HR responsibilities

HR teams struggle amid digital transformation: survey

Many HR teams are facing challenges when it comes to navigating an increasingly digital workforce and AI-driven technologies, according to a U.S. report.

The survey found that 71% of U.S. HR leaders struggle to align HR strategies with rapidly changing business objectives while maintaining a focus on employee needs. A significant portion of respondents — 43% — reported feeling overwhelmed by the volume and complexity of HR responsibilities, with nearly half (47%) stuck in cycles of layoffs and performance management issues.

Manual processes remain a major challenge, cited by 43% of respondents, with 56% noting increased errors and 53% indicating that these processes prevent HR teams from dedicating time to initiatives that could drive business value, found the survey by aconso, provider of HR software solutions.

Nearly half (46%) reported risks of burnout and decreased morale within their teams.

“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,” said Ulrich Jaenicke, co-founder and CEO of aconso.

“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.”

Barriers to innovation in human resources

HR teams find it difficult to innovate due to overwhelming workloads and workflow inefficiencies. When asked about the trends anticipated to impact HR functions and the broader workforce over the next three to five years, respondents identified:

  • AI and automation (66%)
  • Workforce reskilling to embrace new technologies (58%)
  • Employee well-being and experience initiatives (56%)
  • Demonstrating measurable HR impact (54%)

Adding to these challenges is what respondents describe as "tech overload." Fragmented and ineffective solutions are increasing workloads for 53% of HR leaders, while 64% say that overly generic tools fail to meet their specific needs.

HR leaders reported spending excessive time ensuring compliance with policy changes (65%), maintaining HR materials (62%), and securing employee signatures (50%).

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,” Jaenicke said.

Addressing HR challenges with technology

The report highlights four areas where HR leaders believe technology can alleviate current issues and enhance workflows:

AI and automation: 62% of respondents identified AI as their top investment, with 99% already utilizing it in areas such as recruitment, document management, payroll, and benefits.

Self-service tools: 55% see the potential of digitizing employee documents and enabling access through self-service applications, which can boost engagement while reducing the burden on HR teams.

Dedicated HR solutions: 62% expressed a preference for investing in specialized HR tools over generic ones to meet specific needs.

Revamping tech stacks: 54% believe that building a new tech stack would resolve issues caused by fragmented solutions, disparate processes, and siloed data.

The study involved 650 senior HR leaders in organizations with 5,000 or more employees across the U.K., U.S., and DACH (Germany and Switzerland) regions between September 26 and October 8, 2024.