Recent research put out by SAP SuccessFactors , “Empowering Employees and Organisations with Intelligent HR Technology”, based on interviews with 41 HR leaders and a survey of 1,378 employees, examines the readiness of organisations for the adoption of intelligent HR tech. The findings shed important light on the perspectives of both employees and HR departments, highlighting key trends that can be used to improve implementation of new technology.
The white paper begins by categorising organisations into three levels of maturity regarding intelligent technology adoption in HR:
- Non-active (44%) organisations struggle with digital immaturity and lack a clear starting point for intelligent technology integration.
- Reactive (22%) organisations are undergoing digital transformations and prioritise intelligent technology adoption, but are waiting for proven results.
- Proactive (34%) organisations embrace emerging technologies, including implementing intelligent technology across the employee journey, though often with basic use cases.
Bhrish‘s experience aligns with this categorisation. Many companies approach BhriSh at different stages of AI readiness – some are hesitant, unsure of where to begin, while others are eager to implement advanced solutions across their HR processes.
Challenges and Motivations for Adoption
The SAP research identifies several challenges organisations face in adopting intelligent technology, ranging from organisational (cost concerns, stakeholder priorities) to legal (AI regulation uncertainty, data security risks) to technical (integration complexity, training requirements, algorithmic bias) to employee (change resistance, technology fatigue and distrust).
Despite these challenges, organisations are motivated to adopt intelligent technology to:
- Ensure business longevity.
- Improve employee experience (EX).
- Utilise data effectively.
- Retain top talent.
At Bhrish, we have observed similar motivations and challenges among our clients. Cost, data security, and employee apprehension are common concerns. However, the desire to enhance efficiency, personalise employee experiences, and leverage data for better decision-making drives their willingness to tackle these new challenges with partners like us.
Employee Perceptions and Acceptance
Contrary to common portrayals of employee fear and resistance to AI, the SAP research reveals a more nuanced picture. While some apprehension exists (44%), employees also express excitement (74%) and optimism (80%) about AI’s potential benefits.
The research highlights that transparency is crucial for building employee trust. Organisations must communicate the purpose and benefits of AI technology and address concerns regarding data privacy and potential job displacement. This transparency also extends to service partners like us; BhriSh emphasises clear communication and collaboration with clients to ensure employees understand how AI solutions benefit them and how their data is protected.
Use Cases: Alignment and Misalignment
The study identifies recruiting and learning as current priority areas for AI adoption in HR, but these are expected to be deprioritised in the future in favour of employee support and internal mobility. We have noticed similar trends amongst our clients; initially, companies are focused on automating recruitment processes and personalising learning recommendations. However, as they mature in their AI adoption, the focus shifts toward using AI for talent management, performance analysis, and employee engagement.
Specific AI use cases in HR receive varying levels of employee acceptance. Employees generally welcome AI that enables them to do their work more effectively, such as:
- Finding relevant documents
- Answering basic questions
- Identifying relevant learning courses
However, they are more wary of AI used for evaluation:
- Assessing performance
- Determining job fit
- Evaluating skill level
Interestingly, the SAP study finds misalignment between HR priorities and employee preferences regarding AI use in recruiting and career pathing. While HR professionals see value in these areas, employees express concerns. This underscores the need for open dialogue and education to bridge this gap.
Data Privacy and Ethical Considerations
Data privacy and ethical considerations are paramount in the context of AI implementation in HR. The SAP research emphasises the importance of transparency, accuracy, and equity in AI systems. Employees are more comfortable with AI accessing work-related data sources and less comfortable with access to data related to their physical body and behaviour. Bhrish echoes this commitment to responsible AI development and usage.
Bhrish’s AI solutions prioritise data security and comply with all relevant privacy regulations. We work closely with clients to develop and implement ethical guidelines for AI utilisation in HR, ensuring transparency and fairness in all AI-driven processes.
Best Practices for Empowering Employees
The SAP research provides five key recommendations for organisations to empower employees with intelligent technology:
- Provide employees with more information about the purpose and scope of the technology.
- Ensure decision accuracy and equity.
- Give employees autonomy where possible.
- Be thoughtful about notifications, nudges, and reminders.
- Drive an innovative and supportive culture.
Our approach strongly aligns with these best practices. We place significant emphasis on employee education, transparent communication, and data security. We also work with clients to design HR solutions that empower employees, offering choice and control over their data and interactions with the technology.
By adopting a human-centred approach to AI implementation, organisations can unlock the transformative potential of intelligent technology in HR while fostering a positive and empowering work environment for all employees.