Momentive study: Investment in HR technology accelerates during Covid and the return to office
Remote and hybrid work arrangements drive a digital transformation within HR.
- Investment in HR software increases during Covid, as a decentralized workforce necessitates more advanced solutions to manage increasing complexity within HR.
- Reducing human errors is the main driver of HR software adoption, while cost is both a leading barrier motivation.
- Software for HR expands beyond payroll and benefits, affecting the entire employee experience.
More than 3 in 4 (77%) HR managers say their organization has already implemented or is currently implementing their return-to-office (RTO) plans
More than two years into the pandemic, and coming off the latest Covid variant, most companies have already begun their return-to-office plans: 4 in 10 (41%) HR managers say their organization has already implemented their plans to require works to return to the office, and 36% say their organizations are in the middle of carrying them out.
HR teams are facing many challenges when developing their organization’s return-to-office plans. Half of HR managers say figuring out employee development and retention is the main challenge, followed by finding and hiring the right talent (46%), keeping up with the changing needs of employees (44%), and helping employees stay connected (44%).
- Improving diversity, equity, and inclusion is among the least prioritized, with only 28% of HR managers saying DEI is top of mind when developing their RTO plans.
Remote and hybrid work arrangements drive a digital transformation within HR
Investment in software for HR purposes sees a large increase during the pandemic, especially among organizations whose workers are mostly remote or hybrid. Nearly two in three (62%) HR managers say their organization increased adoption of software for HR purposes, with a similar increase for spending on such software. Automation of HR processes also sees a bump within the last two years. These investments in HR technology are more prevalent among HR managers whose organizations are mostly remote or hybrid:
- 67% of HR managers whose companies are mostly remote or hybrid say their organization increased adoption of software for HR purposes, compared with only 50% of organizations whose workers are mostly remote. This story plays out for increased spending (72% vs. 53%) and automation of HR processes (71% vs. 54%).
Reducing human errors is the main driver of HR software adoption, while cost is both a leading barrier and motivation
The leading motivation for HR in seeking out software solutions for HR is reducing human errors (51%), followed by cost savings (46%). Cost, however, also plays a limiting role, with nearly half (46%) of HR managers citing “limited budget” as the main reason for not seeking out software solutions.
Click through all the results in the interactive toplines below: