Tips from a unicorn founder on re-evaluating HR tech in 2024
According to data from Gartner, technology ranked as the top investment priority for HR leaders last year, largely thanks to its efficiency potential driven by automation. HR tech purchases represent a significant spending line item for many companies.
In fact, costs relating to the people function can amount to 70%-80% of an organisation’s budget, according to Sapient Insights Group’s 2023-2024 HR Systems Survey of HR tech buyers from more than 2,500 organisations around the world. A consequential chunk of this can be attributed to technology, and the Sapient report indicates that professionals purchasing HR tech show a growing commitment to HR tech investment as workforce dynamics change.
HR tech imperatives
Organisations all have unique priorities, but certain checkpoints can help most employers gain clarity when re-examining HR tech. Jordi Romero is the founder and CEO of Factorial, a Barcelona-based HR software start-up that is one of the fastest-growing companies in the industry. Founded in 2016 to help business leaders automate HR processes in one central tool, Factorial enjoys unicorn status and serves 8,000 companies in over 65 countries.
When asked what HR leaders can do to reassess tech solutions in 2024, he told HRE that this would be the year to focus on data security, AI and automation. He also expects that the “continuous battle between remote, on-site and hybrid work arrangements” will influence how HR tech buyers make their purchases.
“As someone who has been involved in the HR landscape for a long time now, my critical tips for HR leaders re-evaluating HR tech software in 2024 would centre around strategic considerations,” says Romero.
Identify platforms that leverage artificial intelligence and automation effectively, according to this founder. He also suggests targeting solutions that can support virtual collaboration and address the challenges of distributed teams. Tech buyers should prioritise integration capabilities that align with existing systems and give preference to data security and privacy functionality, according to Romero.
He also reminds HR leaders to be mindful of future considerations. “Scalability is crucial,” says Romero. “Select a platform that can grow with your organisation and adapt to changing business needs.”
This innovator also says that HR leaders should insist on engaging with vendors committed to customer support, from implementation to ongoing service. Finally, prioritise solutions that contribute to employee wellbeing and engagement because a positive workplace experience is vital for organisational success. This includes systems that are appealing to navigate, according to Romero: “Focus on enhancing the user experience for your team, as a user-friendly interface is key to maximising adoption and productivity.”
About the author: Jill Barth is HR Tech Editor of Human Resource Executive, where this article was first published.