HR Tech Confidence Check: On the edge of glory or complacency?

HR Tech Confidence Check 2024
Are we more satisfied or just more complacent?
At a glance, overall satisfaction with HR tech seems to be on the rise, particularly among budget leaders. Satisfaction rates across this group increased by 30% year over year, while dissatisfaction rates decreased by more than 39%. Similarly, HR teams are citing greater contentment with the ROI they’re seeing from their HR technology.
However, a closer look shows extreme satisfaction and extreme dissatisfaction around HR tech ROI have both decreased since last year, signaling we may be settling. Instead of tech completely amazing or absolutely angering us, more of us seem to be just ok with how it’s doing. Should this complacency continue to grow, organizations risk falling behind in their efforts to drive historic productivity gains and truly outmaneuver their competition.
Budgets are still uncertain
What’s hot, what’s not
Investments in core HR (HCM) and foundational technologies like learning and development (L&D) are cooling slightly, while investments in AI, analytics, employee experience and skills are on the rise. Where we see investments cooling, it’s often because there are few new customers to tap in these markets (most have already invested) and there’s increasing resistance to ripping out old tech and replacing it with new tech — unless that new technology can significantly improve business outcomes or change the way work gets done.
Where we see increased investments this year — across AI, HR service delivery, upskilling and reskilling, and workforce management — there are clear ties to what’s top of mind for the C-suite, namely productivity and agility. Clearly, driving better business outcomes is hot while rip-and-replace of technology is not. For today’s HR tech buyer, if it’s not significantly impacting business outcomes, the status quo is good enough for now.
Struggling to realize desired outcomes
Read more
HR tech is making strides in satisfaction and ROI gains but serious challenges remain in deploying tech strategically and realizing desired outcomes. HR has a history of investing in technology without being able to prove the impact. It’s not enough to be good at selecting and implementing technology. We need to be good at deploying capabilities and executing change. Those will be the true measures of HR transformation success but we have a long way to go to build HR’s transformation muscle and learn to be digital.
Our latest research explores how HR teams perceive the value of their HR tech investments and how that impacts the future of innovation in our space.
Related products for purchase
-
Total rewardsLearn about healthcare offerings that help you create an inclusive benefits program to meet the needs of all employees.
-
Transformation
Workday optimization
Mercer helps you maximize your investment in Workday through implementation and optimization to ensure this powerful HR management software is providing maximum… -
M&A Advisory
Private Equity Advisory
Mercer’s comprehensive private equity advisory informs, operationalizes, and refines strategy to accelerate value creation through human capital.
Related solutions
-
Future of work
Meet Luminate, Mercer’s Vendor Services for HR Technology
Mercer helps HR technology providers bring their solutions and messages to life. Our team of experts offer analyst and advisor services, storytelling and strategy,… -
Attract & retain talent
Strategic workforce planning
Mercer’s strategic workforce planning solutions provide a rational business basis to prioritize, develop and fund the people practices needed to support business… -
Talent & transformation
Organization design
Mercer’s organization design consulting can help you transition from a traditional multilayered organization to a simple, agile and distributed structure.
Related insights
-
Portfolio strategies
Exploring the pros and cons of pooled employer plans
Pooled employer plans have gained traction in recent years. Employers are weighing up the pros and cons. -
Update for DC plan fiduciaries on DOL’s cryptocurrency guidance
Insights into the Department of Labor’s shift in stance regarding 401(k) plan investments in cryptocurrencies. -
Alternative investments
Private Markets in Motion
Asset managers with over US$2 trillion in assets under management share insights on challenges and opportunities in private debt