HR not ready to utilise new tech to full potential in 2022, experts warn 

• Experts warn that HR tech innovations will not solve HR’s data capability issues
• Study shows, on average, nearly half of HR managers (48%) say they lack data or information to understand issues and plan approaches across 5 key HR pillars
• Fifty-two percent feel that understanding how new technology will impact employees and organisational design is a challenge for them
• Experts advise that disparate sources, few structured responsibilities and even poor narrative capabilities are holding back HR from proactive data planning and analysis.

With reports showing that HR tech companies raised more than 12 billion dollars in 2021 – more than 2019 and 2020 combined – experts from LACE Partners warn that growth in tech innovations will not overcome data capability issues many HR teams currently face.

According to LACE Partners, an HR transformation and tech advisory consultancy, despite increased HR tech innovation, many People teams aren’t improving their people insights. They caution that some HR teams lack the data, analytical and articulation skills needed to use new technology to its full potential and inform HR strategies.

The warning comes as new research from PRinHR shows that that many HR teams remain wary of the future of HR tech. The survey of 200 UK HR managers reveals that over half (52%) agree that understanding how new technology will impact employees and organisational design is a key challenge for them. Twenty-two percent are also worried about creating a clear tech roadmap that can support the integration of new technologies.

As well as this, when creating strategies across five key HR pillars – Talent, Organisational Design, Future of Work, DEI, and Employee Experience – on average, 48% of HR managers say they lack data or information to understand issues and plan their approach. Forty-nine percent also agree that they don’t have the tactics or tools to overcome Future of Work challenges.

Emma Leonis, HR Transformation Director at LACE Partners, explains:

“Though an increase in technology could support HR’s often limited data options, this will not necessarily tackle the true issues at hand.

“For HR and an organisation to become more insight-driven, there needs to be a clearly defined set of roles and responsibilities surrounding data collection, analysis and reporting. Many organisations don’t have the scope to create entire data analytics teams – but this can often mean that disparate data sources can go uncollated and unrecognised, and valuable insights from people, financial, facilities and so forth are ignored. It’s important to ensure there are clearly defined roles for those to locate possible data sources, aggregate data, identify trends, benchmark, and articulate the issues and solutions. This will bring much needed purpose and structure to the process.

“Business leaders are adding pressure, asking for more data and more preparation from HR. HR must build this capability in a conscious way – focusing on the issue, defining roles and developing capabilities to understand and explain the individual narratives and issues experienced, so they can respond in a way that’s meaningful to the business’ needs.”

About LACE Partners

LACE Partners, is an HR transformation, change and tech advisory consultancy supporting FTSE250 businesses. It combines the on-demand expertise of top HR change specialists, with the market leaders in progressive HR technologies, providing a flexible, bespoke service to help HR and Exec teams of large organisations to solve strategic and technology challenges. Its operating model drives innovation, quality and collaboration. UK headquartered, LACE undertakes global projects for organisations of all industry sectors and sizes.

For more information visit www.lacepartners.co.uk.