HR tech transformation priorities and challenges in 2023

Skills management, learning experience platforms, and internal talent marketplaces are ranked as some of the most important HR technologies for 2023.

Specifically, 44% of HR leaders reported driving better business outcomes as their top strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26%) and cost optimisation (17%) were ranked as the next most important priorities.

Sam Grinter, Director in the Gartner HR practice, said, “Right now, many organisations are taking a proactive approach to business transformation to safeguard critical areas of operations. Delivering on revenue growth and profitability is imperative for HR technology leaders, particularly during times of social, technology, and economic changes.”

The HR Technology Planning Imperatives for 2023 and Beyond report by Gartner also identified several challenges HR technology leaders are facing, including ensuring ongoing adoption of HR technology among key stakeholders such as employees, managers, and HR (57%); justifying HR technology investments (46%); and developing and maintaining a strategic roadmap for HR technology transformation (43%).

HR technology leaders must also focus on the deployment and optimisation of existing technology decisions. The report found that cloud applications receive two to four major updates per year, and HR technology leaders must work to communicate updates in a timely fashion, so the organisation can benefit from new capabilities as they arrive.

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The report also revealed that less than half (43%) of HR technology leaders believe their employees are satisfied with the HR technology used by their organisation. Additionally, 39% of HR technology leaders define their own HR technology strategy with support from the IT department, while 45% reported shared leadership between IT and HR in defining the HR technology strategy.