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.
Key findings:
- 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.
Read more about our polling methodology here.
Click through all the results in the interactive toplines below:
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