Indian companies increase investment in HR technology, automation: Report


A pan-India Human Resources sector study of Indian companies reveals that while adoption of technology in HR is going up, levels of automation in crucial HR functions like identifying high potential individuals, succession planning and strategic workforce management remains considerably low.
The study found that while tech adoption is prevalent and on the rise, with 70 per cent of companies having some level of automation in their HR processes, it remained low in critical areas like with identifying and incentivising High Potential Employees (HiPos). In HiPo management, only 23% Indian companies have automated more than half of their the function, while the percentage is at a mere 22 per cent when it came to succession planning as well as strategic workforce planning.

The findings are part of the research report titled ‘State of HR Technology in India’, on the digital agenda of Indian corporate organisations. Conducted by People Matters TechHR. The study looked at automation levels in different aspects of talent management and also at companies’ investment plans in HR technologies and how they could future-proof HR teams for digital transformation.

The study also reveals that many Indian companies are still not training their HR teams to be future-proof. HR expert David Green, managing director of the analytics programme at Insight222, commented, “Reflecting a lack of investment elsewhere in the world, companies are still not training their HR teams. This is indeed something organisations need to ponder upon and work on while making HR tech decisions.”

The report highlighted that HR technologies are not only improving the efficiency of HR processes but also empowering employees — as 59 percent of Indian organisations will invest in technology to enable employees and managers to self-manage people processes this year.

Employer Branding observed a surge in HR technology adoption in the field of communication and collaboration by 21 percent and in employee branding by 17 percent. As per the study, 75 percent of organisations will increase investment in HR technology, wherein 20 percent of companies have allocated a budget of more than one crore in this financial year — A 35 percent increase from the financial year 2017, when the last similar study was conducted.


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