HR Automation, disparate investments and budgets

Generally speaking, budgets dedicated to the automation of HR processes are moderate and also, in fact, nuance the importance expressed by HR decision-makers on the subject. Indeed, the study conducted by Markess by exaegis at the end of the health crisis indicates that only 37% of HR managers consider the budget allocated on the subject as largely sufficient or even adequate.

This is probably explained once again by the cost of the most innovative solutions, an element that has become all the more important as the COVID-19 crisis has led to the freezing of many budgets related to development.

AI (Artificial Intelligence) and HR Automation

The reluctance of many companies to really adopt these new technologies is another tangible explanation. For example, in 2019, only 17% of HR managers really intended to invest in Artificial Intelligence (AI).

The COVID-19 crisis has deeply changed the situation since today, 63% of the consulted decision-makers consider the contribution of Artificial Intelligence (AI) in the automation of HR processes important or even very important.

Before the Covid-19 crisis, the most important investments were made on the processes related to the ‘human capital’, more recent and less digitized. Thus, the goal was to catch up on the processes related to the payroll or the ‘administrative management’. Between 2019 and 2021, Markess by exaegis estimates the average annual growth rate of investments at +14.4% for processes related to ‘human capital management’ and only +3.6% for those related to payroll and ‘administrative management’.

After the COVID-19 crisis, without it being possible to mention a harmonization of investments in digital HR, companies have grasped the importance of quickly automating the processes related to payroll and ‘administrative management’ and to have a global policy on the subject.

Indeed, while the payroll and ‘administrative management’ processes are essential to adapt quickly to the context and to set up state aid schemes (short-time working…), they often remain ‘technologically obsolete’ today.

Future of investments

For the next two years, 5 processes will monopolize the majority of investments. Among them, let’s mention:

• Personnel administration for 41% of the HR managers consulted,
• Payroll, mentioned by 31% of them,
• Recruitment, cited by 33% of HR decision-makers, which, although it has become more complex and time-consuming, has gained in-depth with to the increasing use of digital tools (online interviews, tests, matching tools…) and promotes more efficient recruitment.