A look at the top findings from our recent studies.
By Larry Basinait
Industry research is core to human capital management and decision-making. That is why the HRO TodayÂ research team has recently taken a deep dive into several topics that present challenges to HR professionals:Â artificial intelligence, tech innovations, employer brand, and more. Here, we share some of the top findingsâthe full version of the reports can be found here.
BITS DON’T BYTE
Artificial intelligence (AI) refers toÂ systems that can adapt theirÂ functionality without being explicitlyÂ programmed to do so based on theÂ usage data they collect. As a tool usedÂ to guide and execute HR processes, AIÂ has enormous implications. IntelligentÂ technology can be used to help HRÂ leaders source candidates, forecastÂ employee flight risk, identify high-potential employees,Â prevent bias in hiring, improve the candidate andÂ employee experience, and implement corporate learningÂ programsâand thatâs not even all of it.
In order to determine the prevalence of AI adoptionÂ in the HR industry and its impact on business results,Â HRO Today partnered with Alexander Mann SolutionsÂ to conduct a survey. It found that artificial intelligenceÂ used for HR processes remains in the early stages ofÂ adoption, and its earliest penetration has been amongÂ larger companies. Just over one-half (57.4 percent) ofÂ respondents have been using AI in HR for a year orÂ less, and on average theyâve employed AI in the humanÂ resources department for just 13.1 months. CompaniesÂ with 10,000 or more employees are three times moreÂ likely than those with less than 500 employees to beÂ using AI and twice as likely to have plans to implementÂ it in the next two years.
The most commonly expected benefits from AI areÂ most often reduced time to fill and cost. But AI canÂ go beyond those standard metrics of HR productivity,Â delivering value-added benefits like improvedÂ candidate experience. In fact, improved candidateÂ experience was the third most anticipated benefitÂ among HR professionals, and one that is already beingÂ realized.
The use of AI in human resources is still in infancy butÂ will only continue to grow in adoption and scope goingÂ forward. Currently, the technology has the greatestÂ impact on areas related to business productivity, whereÂ expectations are well defined and the recommendationsÂ are straightforward and not heavily nuanced. In theÂ future, expectations will be broader but all applications ofÂ the technologyâas well as relationships with candidatesÂ and hiring managers alikeâwill still require a humanÂ touch.
See more here.
HR AND HIRING MANAGERS EYE-TO-EYE
In a time when worldwideÂ unemployment rates are reachingÂ historic lows, recruiters are underÂ increasing pressure to fill positionsÂ quickly. Hiring managers, faced withÂ their own challenges, are not alwaysÂ the most sympathetic partners in theÂ hiring process. But how do they reallyÂ feel about the state of recruiting inÂ their company? How do HR recruitersâ opinions about theÂ internal hiring process vary with hiring managers, and howÂ do both groups feel about each other and the support ofÂ their mutual goals? This report shows where hiringÂ managers and recruiters agree and where they differ.
In order to determine the opinions of both hiringÂ managers and HR recruiters, HRO Today conductedÂ a research study sponsored by Orion Novotus toÂ survey both hiring managers and recruiters. Overall,Â satisfaction scores from both hiring managers andÂ recruiters are high, with an average score of 4.23 outÂ of 5.00. Recruiters underestimate hiring managerÂ satisfaction, indicating theyâd expect a rating of 3.71 forÂ the talent acquisition support they receive. A findingÂ consistent throughout the specific areas of this studyÂ is that hiring managers are more satisfied with eachÂ of the TA processes than recruiters feel they will be.Â This perception may be the result of negative verbalÂ feedback, lots of complaints, and too few complimentsÂ given to recruiters. But both parties agree thereâsÂ still considerable room for greater satisfaction, andÂ improved deliverables.
Optimal communication between hiring managersÂ and recruiters is essential. However, less than one-thirdÂ (31.1 percent) of hiring mangers and only 13.3 percentÂ of recruiters âagreed completelyâ that there is anÂ appropriate level of communication between the twoÂ groups, which is a mediocre level of agreement for suchÂ an important area.
See more here.
THE INNOVATION GAP 2018
Innovations in artificial intelligenceÂ and analytics, along withÂ development in cloud, social andÂ mobile technologies, are making HRÂ systems more intelligent and moreÂ engaging. But do the innovationsÂ being made reflect the needs of HRÂ practitioners?
In 2011, HRO Today surveyed its reader base and foundÂ that there was a disconnect between what HR serviceÂ partners thought they were delivering and whatÂ practitioners believed they were getting. The study,Â sponsored by Saba, was repeated in 2018, and reexaminesÂ opinions to see if they have changed over the last sevenÂ years, as well as identifying the areas most impacted byÂ technology innovation.
When the first wave of this study was completedÂ in 2011, the prevailing conclusion was clear. HRÂ practitioners and technology partners were far apartÂ with respect to their attitudes about the technologyÂ being offered to HR practitioners. At that time, HRÂ service partners considered the technology they offeredÂ far more important, more innovative, more applicableÂ to HR workflow, and more useful to key stakeholdersÂ than did practitioners.
In 2018, that perception largely remained in place,Â though the gap between views of practitioners andÂ HR service partners across each measure has narrowedÂ considerably.
Technology innovation is considered important byÂ the vast majority of study participants, both HRÂ service partners and HR practitioners. Technology isÂ transforming how HR operates, and it couldnât do thatÂ without considerable respect for the innovation beingÂ employed. But there is a difference in opinion as to itsÂ importance across talent management applications,Â performance management, and HRIS. TechnologyÂ partners are offering innovation, but HR isnât asÂ enthusiastic about the specific functionality as theÂ providers.
Consistent with the gap between HR service partnerÂ and practitioner opinions about the importance ofÂ HR innovation, there is another difference in opinionÂ about if technology change is truly innovative. HRÂ service partners are far more likely to believe inÂ their own technology innovation prowess than areÂ HR practitioners, again across talent management,Â performance management, and HRIS systems. TheÂ extent of this difference in opinions has narrowed sinceÂ 2011, but that difference still remains significant.
Workflow applicability also impacts opinions aboutÂ technology innovation. In 2018, three-quarters (75Â percent) of HR service partners overwhelminglyÂ indicated that they thought the talent managementÂ innovations were directed toward workflow impact.Â That compared to only about one-third (37 percent)Â of practitioners. Opinions about performanceÂ management and HRIS technology followed a similarÂ pattern. Practitioners donât necessarily feel the focus ofÂ innovation is on workflow.
HR service partners might gain more buy-in for newÂ technology usage by consulting more with practitionersÂ about how their business strategy aligns with their useÂ of technology. Less than one-quarter of practitionersÂ feel partners often consult with them. Soliciting inputÂ and collaborating more with practitioners might lead toÂ a greater acceptance that the innovations being madeÂ are applicable to workflow.
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THE IMPORTANCE OF CONTINGENT WORKFORCE AND EMPLOYER BRANDING
This report, sponsored byÂ AgileOne, examines theÂ importance of employer brandingÂ and workforce engagementÂ efforts for contingent workers. ItÂ also looks at the methods used toÂ measure the effectiveness ofÂ contingent worker engagementÂ offers.
Nearly three-quarters (71 percent) of studyÂ participants felt contingent workers were anÂ important part of their employment mix. TheÂ importance placed on contingent workers isnâtÂ surprising given there are approximately 6 millionÂ workers classified as contingent in the U.S.
Despite the degree of importance placed onÂ contingent workers, the percentage of studyÂ respondents feeling their employer brand is importantÂ in attracting contingent workers is 60 percent,Â significantly lower than the level of importanceÂ attached to attracting and retaining full-timeÂ employees. Using the employer brand to attractÂ contingent workers is a completely lost opportunityÂ for up to 40 percent of companies.
Just over two-thirds of those surveyed measure theÂ effectiveness of their contingent worker engagementÂ efforts, meaning one-third of those who useÂ contingent workers make no attempt to measure theÂ effectiveness of their engagement efforts. Further,Â one-half of those not measuring worker engagementÂ effectiveness reported that contingent workers areÂ important to them, suggesting more metrics aroundÂ how well their engagement efforts are performingÂ would also be important to them. The method mostÂ often used to measure the effectiveness of contingentÂ engagement is monitoring social proof sites, indicated byÂ over two-thirds (67 percent) of respondents. Only aboutÂ one-third (37 percent) take advantage of contingentÂ worker satisfaction surveys to measure the effectivenessÂ of engagement efforts.
One of the reasons organizations use contingent laborÂ is to evaluate a prospective employee prior to bringingÂ them into the organization as a member of their full-timeÂ workforce. This is validated by the fact that overÂ one-half (56 percent) considered contingent workers anÂ important or very important source of talent for theirÂ full-time workforce, further illustrating the importanceÂ of sharing your employer brand with contingentÂ workers.
See more here.