82% of HR leaders anticipate their role will be unrecognizable in 10 years’ time, reveals new research

Paul Burrin
Published on 7th October 2019
2 min read

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, has released the findings from its report ‘The changing face of HR’.

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 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

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, and engage their workers and get them productive plays a vital role in the future of work. Companies ignore this at their peril.”

Despite some resistance, HR leaders are still adapting to the changing times, particularly in response to the increasing demands of the younger generation.

38% 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 People research 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.”

View the report in full online.

About Sage People

Sage People, part of Sage Business Cloud, enables mid-size, multinational companies to manage workforces through its global, cloud HR and people system, transforming how organizations acquire, engage, manage and develop their employees. Implemented quickly and simple to use, the award-winning system increases workforce visibility, HR productivity and provides better experiences across the entire workforce.                                                          

 About Sage

Sage is the global market leader for technology that helps businesses of all sizes manage everything from money to people – whether they’re a start-up, scale-up or enterprise. We do this through Sage Business Cloud – the one and only business management solution that customers will ever need, comprising Accounting, Sage Intacct, Sage X3, Sage People and Payroll, and Payments and Banking.

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