New Research from Sage Reveals 82% of HR Leaders Anticipate Their Role Will Be Unrecognizable in 10 Years’ Time

Nearly 57% of HR Leaders Reveal They Can’t Invest in New Technology Because of Resourcing Restrictions, with 51% Citing a Lack of Vision and Leadership in Their Organization Is Preventing Change

Sage, the market leader in cloud business management solutions, released the findings from its The changing face of HR report. The study revealed that 82% of HR leaders anticipate that their role will be unrecognizable in 10 years’ time, thanks in large part to the transformation from HR to a “People” function and the adoption of technology. In fact, almost half (43%) believe that their organization will not keep up with related changes in technology in that same 10-year time frame.

Presented today at the 2019 HR Tech Conference in Las Vegas, the report provides a unique glimpse into the perceptions of 500 senior HR and People leaders in midsize organizations. Key findings include:

• 24% are using AI for recruitment; 56% plan to adopt it within the next year
• 42% say HR/People decisions are data-driven; 51% are planning to access data in real time within the next year
• 57% say they can’t invest in new technology because of resourcing restrictions
• Only 25% rate their team as expert with HR technology

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While there is widespread recognition of continuing changes to the traditional HR department, many corporations have yet to prioritize HR in relation to budget, investment and vision. Nearly 57% of HR leaders responded that they can’t invest in new technology because of resourcing restrictions, and 51% said a lack of vision and leadership in their organization is preventing change.

“It’s clear that while many companies are adopting new technologies and making advancements within their HR departments on their journey towards a ‘People’ function, just as many remain resistant to invest,” said Vice President of Sage People Paul Burrin. “Although our research reveals that 53% of HR leaders are currently struggling to make the business case for change, how HR departments recruit, onboard employees, engage their workers and encourage productivity plays a vital role in the future of work. Companies ignore this at their own peril.”

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Despite some resistance, HR leaders are still adapting to the changing times, particularly in response to the increasing demands of the younger generation. Thirty eight percent of respondents say they’ve developed enhanced workforce experiences for all employees – an advancement that 92% of millennials believe will have a huge impact on their productivity, according a previous Sage report. As a result, social media and sites like Glassdoor, which give candidates a window into organizations, are playing an ever-more-important role in the world of work and building great experiences. In fact, 78% of HR leaders noted the influence of sites like Glassdoor as having a strong influence over HR policy.

Added Burrin, “As companies across the globe evolve in response to the advancement of data analytics and new technologies like AI and automation, HR and People departments must do the same – it’s critically important for growth, brand management and reputation, as well as employee engagement and satisfaction.”

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