Despite increased investments in AI upskilling, many HR professionals report that companies have not sufficiently adopted AI in a way that demonstrates impact and return on investment. This issue largely arises from organizations failing to integrate AI into their existing processes and workflows. 61% of HR professionals believe their departments have not yet successfully integrated AI into their work. Additionally, Gallup reports that only 22% of individuals feel comfortable or somewhat comfortable using AI in their roles.

That’s why upskilling alone will not lead to sustainable adoption. Instead, successful AI integration requires a combination of new skills and a clear strategy for applying AI in the HR function. 

In this article, we dive deeper into how organizations can practically bridge the gap between upskilling and real-world AI integration.

Contents
What is AI integration in HR?
What are the skills HR professionals need in the age of AI?
4 strategies to drive AI integration in HR

What is AI integration in HR?

AI integration in HR refers to the use of artificial intelligence technologies to automate, enhance, and optimize HR processes such as recruitment, employee engagement, performance management, and workforce analytics. It’s not just about developing AI-related skills but also about strategically implementing, scaling, and leveraging AI to optimize processes, enhance decision-making, and drive business impact.

I think there’s this expectation that when new technology comes out like it’s here and now, it’s going to change the world. And I believe it will, but not within 24 hours. With every major technological transformation—whether digital or even something like the printing press, you essentially have two components. You have the tech thing being invented, and then you have humans using it. And which one do you think is more difficult?

Sophia Matveeva, CEO & Founder of Tech For Non-Techies

What are the skills HR professionals need in the age of AI?

Our T-Shaped HR Competency Model defines five core competencies for HR professionals to succeed and remain relevant to meet the changing expectations of HR professionals:

• Business Acumen
• Data Literacy
• Digital Agility
• People Advocacy
• Execution Excellence. 

While HR professionals have made strides in Business Acumen, technical HR expertise, and People Advocacy, their ability to leverage data and technology effectively remains a persistent challenge.

One reason for this gap is historical exposure—many HR professionals simply haven’t had the same immersion in data and digital tools as their peers in other functions like Finance, Marketing, or Operations.

Another potential reason is that HR professionals do not stay abreast of technological changes over time as they mature in their careers. Unfortunately, this lack of competence and confidence leads to limited translation of skills development back to the day-to-day work of HR professionals.

In an AI-driven world, Data Literacy and Digital Agility are even more critical than before. Beyond technical expertise, HR professionals also have to develop the right mindset and behaviors to set themselves up for success. This includes developing curiosity, systemic thinking, and the ability to critically evaluate and consider ethical considerations when using AI. 

HR professionals are often hesitant to ask their employers for AI training. “I don’t want them to know I don’t understand this,” they say. But why would you? You work in HR—no one is born knowing AI. Yet, there’s a lot of shame around not instantly grasping digital transformation. In tech startups or big tech companies, there’s this unspoken expectation that you’ll absorb it when you walk in.

Sophia Matveeva, CEO & Founder of Tech For Non-Techies

A common misconception, however, is that all HR professionals require the same skills to use and apply AI. Context is essential, and we have found it helpful to think about skills requirements in three distinct categories. These categories help us understand how AI skills are developed and how HR professionals apply different skills within different roles.

Let’s take a closer look at these three skills categories.

Base skills for general users

The first skills category applies to most HR professionals who interact with AI-driven tools but do not build or maintain them. They use AI within their role in areas like talent acquisition, employee engagement, and workforce planning.

To do this effectively, the key requirements for this group of HR professionals are to have a basic understanding of how they can leverage AI, confidence in where and how to apply AI safely, and the ability to use essential AI tools. Some of the key skills required are:

• AI fundamentals and functionality: Understanding the core principles of AI, including how machine learning, natural language processing, and automation work and their applications in business and HR.
• Ethical and responsible AI usage: Ensuring AI is used transparently, fairly, and responsibly by addressing bias, data privacy, compliance, and ethical decision-making in AI-driven processes.
• Basic data literacy: The ability to read, interpret, and apply data insights, including understanding data sources, quality, and limitations, to support informed decision-making.
• Prompt design (for effective AI interaction): Crafting clear, structured, and strategic prompts to enhance interactions with AI tools, improving accuracy, relevance, and response efficiency.
• Adaptability, curiosity, and problem-solving: Cultivating a mindset that embraces change, exploring new possibilities, and applying critical thinking to solve challenges in dynamic and AI-enhanced environments.

Technical skills for builders and maintainers

The next category applies to fewer HR professionals. They are typically in roles that build, configure, manage, and optimize AI applications within HR functions. HR technology specialists, HRIS analysts, and some HR Center of Excellence functions fall into this category.

Applying AI at this level requires more specialized skills, including the following: 

• Machine learning fundamentals: Understanding key machine learning concepts, including algorithms, training models, and pattern recognition, to grasp how AI learns and improves over time.
• Business analysis and AI integration: Evaluating business needs, identifying AI opportunities, and aligning AI solutions with strategic goals to drive efficiency and innovation.
• Data management: Organizing, storing, and securing data effectively to ensure accuracy, accessibility, and compliance for AI-driven decision-making.
• Programming and system optimization: Applying coding skills and technical knowledge to develop, refine, and optimize AI systems for performance, scalability, and reliability.
• Communication and stakeholder collaboration: Translating AI concepts for diverse audiences, fostering cross-functional teamwork, and ensuring AI initiatives align with business priorities and user needs.

Advanced skills for developers and innovators

The last category applies to a small percentage of professionals who specialize in AI research, development, and security. These roles drive AI advancements, develop proprietary models, and ensure ethical and legal compliance.

Even though these skills will not be represented in most HR roles, HR professionals who are involved in developing HR technologies must be proficient in these advanced skills:

• Advanced AI model development: Designing and refining complex AI systems, including deep learning architectures and large language models, to enhance automation, prediction, and decision-making capabilities.
• Cybersecurity in AI-driven HR applications: Safeguarding HR data and AI systems by implementing security measures to prevent breaches, bias perpetuation, and unauthorized access while ensuring compliance with data protection regulations.
• Analytical and critical thinking: Evaluating AI-generated insights with a data-driven mindset, questioning assumptions, and making informed, strategic decisions based on evidence and logical reasoning.
• Problem-solving for AI optimization: Identifying inefficiencies, troubleshooting AI system errors, and enhancing AI performance through continuous refinement and innovative solutions.

To build these skills successfully and sustainably, we need to adopt a different approach beyond simply upskilling all HR professionals.

We discussed how to successfully integrate AI in HR and the business with Sophia Matveeva, CEO & Founder of Tech For Non-Techies. Watch the interview below:

4 strategies to drive AI integration in HR

When it comes to AI, most HR professionals upskill themselves through self-exploration, online resources, or vendor-driven training on specific platforms and tools. While developing AI-related skills is important, this unstructured approach has many limitations and can even hinder successful AI integration in HR.

A broader, more strategic approach is needed—one that goes beyond skill-building to focus on the structured implementation, scaling, and effective use of AI in HR.

We propose a structured, step-by-step approach to driving AI integration through four key phases that move HR professionals from awareness to being able to scale AI within the team.

1. Educate: Building AI awareness and understanding

Before HR professionals can effectively use AI, they need a strong foundational understanding of what AI is, what it can do, and how it applies to HR. Moreover, they need to have a strong grasp of the risks associated with AI use, specifically data security, where it should not be applied, and the technology’s limitations, such as hallucinations. This starts with structured learning and exposure to real-world applications.

How to start

• Create structured training programs: Offer learning paths that introduce HR professionals to AI fundamentals, ethics, and practical applications.
• Show clear and relevant use cases: Use real examples to illustrate AI’s role in recruitment, employee experience, talent management, and workforce planning.
• Implement AI literacy frameworks: Provide a structured learning journey, ensuring HR professionals understand:
  • What AI is good at (E.g., automation, pattern recognition, predictive analytics)
  • Where AI can be applied in HR (E.g., talent acquisition, employee engagement, workforce analytics)
  • How to approach AI in HR (Emphasizing ethics, data integrity, and responsible AI governance)

2. Equip: Providing the right tools and safe practice environments

Once HR professionals understand AI’s what and why, they need access to tools, guidelines, and structured opportunities to experiment. With the right tools, structured training, and a practice-first approach, they will gradually develop confidence and AI fluency. This phase focuses on practical application in a low-risk, supportive environment.

How to start

• Introduce AI tools progressively: Start with simple, user-friendly AI tools before moving to advanced applications. Generative AI tools can be a good starting point.
• Leverage familiar use cases: Begin with areas where HR professionals already have experience to build confidence.
• Create sandbox environments: Provide safe spaces where HR teams can experiment with AI without risk, allowing them to explore how AI generates insights, how AI adds value, and how to interpret AI-generated outputs. An example of this is using training HR data sets.
• Encourage reflection: Ensure users continuously reflect on what they are learning:
  • Where has AI been useful?
  • How does it enhance HR decision-making?
  • How can AI applications be expanded over time?

3. Expose: Integrating AI into daily work and encouraging collaboration

Once HR professionals are familiar with AI tools, the next step is to embed AI into their daily workflows in a structured way. This involves gradual adoption, social learning, and an environment encouraging knowledge-sharing.

How to start

• Create structured experiments: Allow HR teams to test AI applications in a controlled way, measuring their effectiveness and iterating based on results.
• Facilitate social learning: Encourage HR professionals to share their AI experiences, challenges, and best practices. Strategies include:
  • AI knowledge-sharing forums
  • HR learning groups focused on AI integration
  • Peer mentoring and collaborative problem-solving.
• Showcase success stories: Regularly share real-world examples of AI success within the organization. Highlight improvements in efficiency, candidate experience, or employee engagement.

By gradually integrating AI into real work scenarios, HR professionals will become more comfortable, confident, and willing to expand AI’s role in HR.

4. Elevate: Scaling AI across HR functions and strategy

The final step is to embed AI into the broader HR value chain, transforming HR from an AI adopter into an AI-enabled strategic function. This means moving from isolated use cases to a systematic and scalable AI-driven HR strategy.

How to start

• Expand AI applications across HR: Once AI proves its value in smaller projects, broaden its impact by embedding it into HR’s core processes and policies. Examples include:
  • AI-driven talent management (E.g., predicting future skills gaps and reskilling needs)
  • Intelligent automation of HR service delivery (E.g., AI-powered chatbots handling routine HR inquiries)
  • AI-assisted employee development (E.g., personalized learning recommendations).
• Start with HR processes before enterprise-wide AI adoption: Focus first on HR-specific AI applications, then expand AI into enterprise-wide HR decision-making (e.g., AI-driven workforce planning at the executive level).
• Establish governance and ethical frameworks: Ensure AI is used responsibly by implementing bias mitigation, compliance, and AI transparency policies.
• Measure impact and iterate: Continuously assess AI’s effectiveness in HR processes. Regularly gather feedback, refine AI applications, and stay updated on AI advancements.

Getting started

The first step is understanding the current state of AI skills in your HR department and across the business. Assess where your team and organization stand by asking key questions:

• How is AI currently used in HR processes?
• What level of data literacy exists within the team?
• Where are the biggest challenges or inefficiencies that AI could help solve?

Understanding these factors will clarify where AI can add value, ensuring that adoption aligns with business and talent strategies rather than becoming a disconnected initiative.

Once you have established a baseline, prioritize your starting point for the various roles that form part of your HR team based on the three levels of skills requirements. Next, structure a roadmap to guide activities based on the four strategies of Educate, Equip, Expose, and Elevate. 

AI adoption in HR is an ongoing journey, requiring continuous learning and iteration. Establish a system to monitor progress by tracking key HR metrics, gathering feedback from employees and HR stakeholders, and measuring the impact of AI-driven interventions. Regularly assess and refine your approach as AI capabilities evolve to ensure that AI strengthens HR’s role in driving business success rather than a one-time experiment.

The post AI Integration in HR: Educate, Equip, Expose and Elevate appeared first on AIHR.

Today, it’s all about AI-powered tools, which have opened up a new window of possibility, from improving employee experience to optimizing HR efficiencies.

There’s no doubt that there are many benefits to Human Resources technology. This article will highlight some of these and provide insights into how to use it to develop an HR tech strategy and effectively use HR technology across the HR function.

Let’s begin!

Contents
What is HR technology?
The role of technology in Human Resource Management
Key benefits of HR technology
Examples of HR technology across the employee life cycle
7 steps to implement HR technology
Best practices for successfully using HR technology

What is HR technology?

The term ‘HR technology’ refers to the software, hardware, tools, platforms, and applications designed to help organizations optimize their key HR functions. These solutions help HR automate processes, improve decision-making, and support employers and employees.

Technology in HR can include cloud-based platforms, AI, and data analytics tools that support workforce planning, employee engagement, and compliance. Through the strategic use of HR technologies, companies can reduce administrative tasks, improve employee experience, and align HR strategies with business goals.

The role of technology in Human Resource Management

Technology has transformed Human Resource Management (HRM) by making HR processes more efficient, data-driven, and employee-centric.

Human Resources technology plays a role in modern HRM in several ways. One is through automation, which reduces administrative burdens in payroll, benefits management, and recruitment. This provides HR teams with more time to focus on strategic tasks.

HR tech also enhances employee experience through self-service portals, chatbots, and engagement platforms that give employees easy access to HR services and resources. At the same time, AI and HR analytics tools enable Human Resources to make informed decisions through insights into workforce trends, employee performance, and engagement levels.

When it comes to legal compliance, organizations can use HR tech to help better adhere to labor laws and data protection regulations by automating compliance tracking and reporting. This leaves less room for human error or oversight that might otherwise result in non-compliance and potential legal risk.

Also, HR tech can help HR streamline workforce management and talent acquisition. For instance, cloud-based HR tech solutions can facilitate seamless communication, collaboration, and performance tracking for remote or hybrid teams. HR can also use AI-driven recruitment tools to attract, assess, and onboard top talent more efficiently.

Key benefits of HR technology

HR technology provides several advantages that can help HR teams operate more efficiently. Key benefits include:

• Increased efficiency: Automates repetitive HR tasks like payroll processing, benefits administration, and candidate screening, freeing time for strategic initiatives.
• Improved decision-making: Uses data analytics and AI-driven insights to help HR leaders make informed workforce decisions.
• Enhanced employee experience: Provides user-friendly tools so that employees can access HR services, manage benefits, and engage with the company.
• Better compliance and security: Ensures adherence to labor laws and data privacy regulations through built-in compliance features.
• Stronger talent management: Supports hiring, performance management, and employee development through integrated HR technology solutions.

Examples of HR technology across the employee life cycle

Here are some instances of HR tech solutions at work across the employee life cycle, along with a few examples of solution providers:

Example 1: Recruitment

Recruitment platforms can optimize the hiring process. You can use these platforms to post job ads, source candidates, schedule interviews, and screen applicants. This helps you quickly identify qualified candidates, reduce manual effort, and enhance collaboration among hiring teams, leading to faster, more efficient hiring decisions. 

Sample of solution providers

• Indeed
• LinkedIn Recruiter
• SmartRecruiters.

Example 2: Onboarding

Onboarding technology enables companies to structure and automate their employee onboarding process, making it more efficient and engaging. Onboarding software can simplify employee onboarding by automating tasks and organizing documents. It reduces errors, ensures compliance, and helps new hires get up to speed quickly.

Sample of solution providers

• Absorb LMS
• Enboarde
• Talmundo.

Example 3: Performance management

Performance management tools allow companies to track individual, team, and organizational productivity, enabling HR and managers to provide their teams with the appropriate support. These tools can help improve workforce productivity by tracking employee goals, providing real-time feedback, and automating performance reviews.

They also offer insights into individual and team performance and skills gaps and support data-driven decisions, enabling you to foster growth and align employee efforts with organizational objectives.

Sample of solution providers

• Engagedly
• Reflektive
• ThriveSparrow.

Example 4: Compensation and benefits

Payroll systems can help you save time and reduce errors by automating payroll calculations, tax deductions, and compliance with labor laws. They minimize the administrative burden by ensuring punctual salary payments, allowing HR teams to focus on strategic tasks.

They also provide centralized access to employee financial records, streamline reporting, and integrate with other HR tools like time tracking and benefits management. This improves efficiency, enhances data accuracy, and supports better decision-making.

Sample of solution providers

• ADP
• Deel
• Paycom.

Example 5: Employee engagement

Employee engagement platforms help improve the employee experience by facilitating better employee communication, gathering feedback, and recognizing achievements. These tools enable you to monitor employee sentiment through surveys and polls, identify issues early, and implement targeted initiatives to increase satisfaction and retention.

Also, these platforms foster a sense of community through features like social feeds, collaboration tools, and peer recognition programs. By creating a more connected and supportive work environment, you can enhance morale, boost productivity, and align employee efforts with organizational goals.

Solution providers

• Culture Amp
• Lattice
• Workvivo.

Example 6: Learning and development (L&D)

L&D software supports employee training by providing digital tools to build skills, share knowledge, and track performance. It offers personalized learning paths, on-demand courses, and interactive content to engage employees while ensuring compliance with industry standards.

These platforms integrate with HR systems to monitor progress, assess competencies, and identify skills gaps, enabling data-driven decision-making. By making training accessible and scalable, L&D software boosts employee growth, productivity, and retention, aligning workforce capabilities with business goals.

Solution providers

• 7taps Microlearning
• Degreed
• Docebo.

Example 7: Employee exits

HR tech can help streamline the offboarding process by automating administrative tasks and providing a smoother transition for the employer and employee. These tools manage exit documentation, revoke system access, and handle final payroll processing efficiently. 

They also support knowledge transfer through structured handovers and exit interviews, capturing valuable feedback to improve future offboarding experiences. By standardizing processes and reducing manual work, HR tech minimizes risks, maintains security, protects employer branding, and fosters alumni engagement.

Solution providers

• BambooHR
• Personio
• Remote.

How to use AI in HR

You can use AI in HR within recruitment, employee engagement, and performance management, to name a few. For instance, AI can help to streamline candidate screening by analyzing résumés, matching skills to job requirements, and even conducting initial interviews using chatbots.

Artificial Intelligence for HR can reduce time spent on repetitive tasks, improve decision-making with data-driven insights, and enhance the employee experience through personalized solutions. By automating routine work and offering predictive analytics, AI can allow you to focus on strategic initiatives that drive organizational growth.

7 steps to implement HR technology 

To successfully implement Human Resources technology in your organization, consider following these steps:

Step 1: Assess your HR needs

The first step is to thoroughly assess your existing HR processes to identify pain points, inefficiencies, and bottlenecks that hinder HR operations. Gather feedback from the rest of your HR team, managers, and employees to understand their challenges and requirements. This ensures your HR tech investment aligns with company needs.

Step 2: Set clear objectives

Clearly define what you want to achieve with HR technology (e.g., automating payroll processing, improving recruitment efficiency, enhancing employee engagement, or ensuring compliance). Establishing well-defined objectives will help you select the right technology and measure its success once implemented.

Step 3: Choose the right technology

Research and evaluate different HR tech solutions. Consider cost, scalability, ease of use, integration capabilities, and vendor reputation. Also, compare software options, request demos, and check user reviews before deciding. The right technology should cater to company needs and be flexible enough to accommodate future growth.

Step 4: Secure stakeholder buy-in

Getting support from key stakeholders (including leadership, HR teams, and employees) is crucial for successfully implementing HR tech. Present a clear business case highlighting the chosen technology’s benefits. Address potential concerns and demonstrate how the new system will improve HR processes without disrupting daily operations.

Step 5: Integrate with existing systems

Make sure the HR technology you choose can seamlessly integrate with your existing HR software and business systems. This will help you avoid data silos and ensure smooth workflow transitions. Work with IT teams and vendors to facilitate integration, minimize disruptions, and maintain data security throughout the process.

Step 6: Train HR teams and employees

Successful HR technology adoption depends on how well employees and HR teams understand and use it. Provide comprehensive training sessions, user guides, and resources to familiarize everyone with the new system. Also, encourage hands-on practice and address any questions or concerns to build confidence in effective HR tech use.

Step 7: Monitor and optimize

Once you’ve implemented HR tech, continuously track its performance to evaluate whether it is still meeting your objectives. Collect feedback from users, analyze key performance metrics, and identify areas for improvement. Regularly update and enhance the system to optimize processes and maximize the value of your HR tech investment.

To fully harness the benefits of HR technology, you need a well-defined architecture and clear roadmap. Too often, HR professionals fail to optimize technology, leaving us stuck in MVP mode — never fully maturing or realizing its intended value. To break this cycle, start with a clear overarching goal, develop a structured step-by-step roadmap, and ensure you have the right blend of HR and tech expertise to guide you.

Dr. Dieter Veldsman, Chief Scientist (HR & OD), AIHR

Best practices for successfully using HR technology

Here’s how you can use different types of technology in HR effectively:

Start with an HR technology strategy

An HR technology strategy aligns HR processes and goals with HR tech solutions to improve efficiency, support organizational objectives, and drive innovation. Creating this strategy should be your starting point. We’ve written a guide to help you develop your HR technology strategy, which you can refer to before you begin.

Prioritize training

Once you’ve established your HR tech strategy and started executing it, offer comprehensive training and support to everyone using the technology to help them become comfortable and proficient. This applies to both your HR team members and employees outside of HR.

Consider partnering with an HR tech consultant

There are many HR tech solutions to choose from, making it impossible to stay up-to-date with everything happening in the field. So, when designing your organization’s HR tech strategy, you may want to consider calling in an expert consultant. This person can support you in aligning HR tech solutions and tools with organizational goals.

To sum up

HR technology will continue to change to make workplaces more efficient and employee-focused. AI, predictive analytics, and blockchain will streamline hiring, engagement, and data security. As hybrid work has become the norm, cloud-based tools will help manage remote and in-office teams seamlessly.

This presents both an opportunity and a challenge for HR. It’s important to remain abreast of the changes but also to carefully evaluate the ethical use of HR technology. Take the time to understand how you can implement HR technology in your organization and consider what skills you need as an HR professional to successfully use it within your own HR function.

The post What Is HR Technology? Benefits, Examples and Implementation in 2025 appeared first on AIHR.

In this article, we discuss 18 succession planning tools and software. We’ll highlight their main features and what’s unique about them to help you find the right tool for your organization.

Contents
What are succession planning tools?
Best succession planning tools & software
1. Simple succession planning template in Excel
2. CEO succession planning template
3. 9 box grid
4. Arcoro
5. Built
6. ClayHR
7. Cornerstone OnDemand
8. Dayforce
9. ELMO Software 
10. Empxtrack
11. PageUp Succession Planning
12. PeopleFluent
13. Plum
14. SuccessionNow
15. SumTotal
16. TalentGuard
17. Qooper
18. Workzoom
FAQ

What are succession planning tools?

Succession planning tools are software applications, platforms, or templates designed to help companies identify, prepare, and develop employees who will fill critical roles in the organization in the future.

Put simply, these tools support organizations in their navigating succession planning process, which focuses on: 

• Critical roles only: Not every role in the organization is relevant for succession planning. 
• Selecting and developing key talent: Companies select their best people to nurture and train them so that they can one day take over when someone else leaves. 
• Ensuring continuity: The whole idea behind succession planning is to ensure that when someone in a critical role decides to leave the organization, the position can be filled smoothly by someone ready to take over.

As such, succession planning tools and software assist in the strategic workforce planning process and help organizations minimize disruptions and maintain business continuity.

Best succession planning tools & software

Succession planning tools can range from simple Excel templates for tracking potential candidates to sophisticated platforms with features like AI-driven analytics, competency mapping, and development plans. The right tool depends on the organization’s size, needs, and budget.

We’ll start with free “offline” tools and then look at popular succession planning software solutions.

Please note that this list is compiled based on publicly available information. We have not tried the software solutions ourselves, with the exception of AIHR’s tools.

1. Simple succession planning template in Excel

If your organization is just starting out with succession planning, a simple spreadsheet can be a great way to create a clear overview of key positions and potential successors. This basic template helps you map out essential details and get started. It includes fields like:

• Position for succession
• Current position holder’s name
• Timeline for successor to fill the role
• Key competencies required for the role
• Succession candidates’ names
• Readiness rating for each candidate
• Brief description of each candidate’s development plan
• Performance metrics and KPIs for the succession plan and candidate performance
• Performance monitoring frequency (e.g., monthly, quarterly)
• Contact person (supervisor or manager) to notify if the role becomes suddenly vacant.

It is straightforward and easy to customize, making it ideal for organizations in the early stages of succession planning.

2. CEO succession planning template

A CEO succession planning template serves as a detailed roadmap for the board of directors to ensure smooth leadership continuity. It organizes the process of identifying, evaluating, and preparing candidates to fill the CEO role while factoring in key considerations specific to the organization’s future.

This template helps define the ideal CEO profile based on the organization’s strategic priorities, anticipated challenges, and future goals. A well-structured template also ranks potential candidates—both internal and external—based on readiness and alignment with the company’s needs.

A CEO succession planning template is an indispensable tool for creating alignment among board members by clarifying priorities, expectations, and processes for selecting the next leader.

3. 9 box grid

The 9 box grid is a helpful framework for identifying top employees best suited for succession. This tool evaluates employees based on two key factors: performance and potential, helping you pinpoint your “stars”—those who score high in both areas. These high-potential, high-performing employees are the ones who will drive the future success of your organization.

This tool provides a structured way to assess readiness and suitability for key positions, ensuring that when roles become vacant, there is a strong pipeline of talent ready to step in.

You can download our free 9 box grid template and guide. Fill in employee names and assess each individual’s performance and potential levels. Then, they will be automatically sorted into the right talent segment.

4. Arcoro

Arcoro is an HR software company that provides solutions for construction companies, contractors, municipalities, and manufacturers. 

What’s unique: Arcoro highlights its succession planning software’s ability to let companies review employee readiness and performance for promotion with 9 box talent matrices and scorecards. This enables organizations to leverage performance data, development plans, and competencies.

5. Built

Built is a succession planning tool that helps companies create accurate, automatically updated succession plans and receive critical alerts when action is required.  

What’s unique: Built’s succession planning software integrates with a company’s Human Resources Information System (HRIS). This means plans get updated automatically when people change roles or leave the organization. The tool also allows for collaborative, real-time access so that key stakeholders and managers can access plans anytime and actively contribute to the process.

6. ClayHR

ClayHR is a company that provides a comprehensive, cloud-based HRM solution that helps mid-sized and large-sized enterprises manage their entire employee life cycle, from onboarding to employee records and from performance management to retention, all in one integrated platform. 

What’s unique: “Nurture tomorrow’s leaders with ClayHR’s AI-driven succession planning.” This is the company’s promise to its clients. Something that caught our eye is the tool’s ‘Ask HR’ feature. Next to many other conversational and information retrieval capabilities, this virtual assistant enables employees nearing retirement or transitioning to document and share their vital insights by uploading key documents and knowledge. This, in turn, ensures a seamless knowledge transfer and a smooth, well-prepared start for successors.

7. Cornerstone OnDemand

Cornerstone OnDemand is a cloud-based learning, talent management, and talent experience software provider headquartered in California. Their succession planning tool is designed to help companies ensure they have the right people for key-role continuity and avoid talent vacancy costs by increasing bench strength. 

What’s unique: With Cornerstone, you can “Prepare your organization for tomorrow by identifying top talent and creating development paths today.” Their tool, among other things, allows businesses to create succession plans that identify skill gaps and then fill them.

8. Dayforce

Dayforce is a global people platform providing payroll, HR, benefits, talent, and workforce management solutions all in one place.  

What’s unique: Dayforce highlights various interesting features on its succession planning page. One is around ‘promotion readiness,’ meaning that the tool allows organizations to clearly identify where employees are in their development path and readiness for promotion, enabling them to keep their top performers happy and boost retention.

9. ELMO Software

ELMO Software is a cloud-based HRIS provider that helps companies automate and streamline HR processes such as payroll, benefits, recruitment, onboarding, and performance management. It’s particularly popular in New Zealand, Australia, and the UK. 

What’s unique: One of the things that the company highlights is the tool’s ability to easily filter and sort employees for future succession development based on their criticality, readiness, flight risk potential, and performance ratings. ELMO also mentions its ability to cater to every organization’s level of maturity and to scale with the organization as it evolves or needs change.

10. Empxtrack

Empxtrack is a comprehensive HR product that covers an organization’s entire employee life cycle. Its succession planning tool offers a systematic process for identifying key leadership positions in the organization and identifies high-potential employees using 9 or 12 grid matrices.

What’s unique: Empxtrack’s software lets companies make not one but several succession plans for people. This means that they can create a short-, medium-, and long-term succession plan for each critical role and involve multiple stakeholders in the process.

11. PageUp Succession Planning

PageUp offers a complete talent management solution from recruitment marketing to performance management and learning. Their succession planning tool helps companies get to know their people to reduce flight risk and plan ahead. 

What’s unique: PageUp’s succession planning software allows organizations to regularly review their talent and calibrate live using the 9 box tool. Companies can use this information to identify and nurture people with the potential and desire to fill roles required now and in the future.

12. PeopleFluent

PeopleFluent is a talent management and learning solutions provider that helps organizations hire, develop, and advance their workforce. Its succession planning software equips companies with a complete, flexible, and functional toolset that gives them what they need to make the right decisions about their organization’s future. 

What’s unique: PeopleFluent’s flexible succession planning toolset caters to mid-sized and large companies, giving each type of organization exactly what it needs to make the right decisions for the future. 
In a large company, for example, this could mean focusing on leadership vulnerabilities, while in the mid-enterprise segment, it could mean focusing on mentoring and career pathing.

13. Plum

At Plum, they are on a mission to empower organizations to be successful by getting the right people in the right roles. Their solution offers scalable strategic workforce planning and upskilling that prioritizes an outstanding experience for every employee. 

What’s unique: Plum distinguishes itself by emphasizing that Industrial/Organizational Psychology and AI power its software. By identifying critical skills such as strategic thinking, problem-solving, and adaptability, the tool gives companies insights they can use to fast-track leadership development and build a resilient team.

14. SuccessionNow

SuccessionNow is a platform that caters to the succession planning needs of organizations of all sizes and provides an easy-to-use solution to the complex problem of leadership transition and replacement. 

What’s unique: One thing that immediately caught our interest is that the platform is built by succession planning professionals with over thirty years of experience in the field. Who better to develop a succession planning solution than the people whose job it has been to take care of precisely that: succession planning, right?

15. SumTotal

SumTotal is a talent management and learning software provider. Its succession planning tool makes it possible for organizations to understand skills and competency gaps across their workforce, develop talent pools, and align succession management needs to the goals and strategic objectives of the organization. 

What’s unique: Among other features, SumTotal mentions the option to leverage their n-box grid for team visibility. By doing so, companies gain critical insights into readiness and potential, which helps them identify top talent and model succession implications.

16. TalentGuard

TalentGuard is a leading provider of AI-powered workforce intelligence solutions designed to help organizations optimize their talent management processes. Its succession planning software enables companies to determine key roles, identify high-potential employees who can fill those roles, create dedicated talent pools, and accelerate the development of skills required for success. 

What’s unique: TalentGuard explicitly mentions the option to create an unlimited number of dedicated talent pools as one of their tool’s key features. They also mention the option for companies to keep their talent pools up-to-date with real-time data on candidate availability, skill levels, and performance metrics.

17. Qooper

Qooper is a company that provides corporations, associations, and universities with employee mentoring and training software. However, the company also is a one-stop-shop for all succession planning initiatives. 

What’s unique: Qooper focuses more on executing a company’s succession planning program than the other succession planning software providers mentioned in this article. As such, it brings together learning paths, mentorship and peer learning, workshops, discussions, and learning activities in one simple platform.
A cool feature that caught our eye is the tool’s smart matching algorithm that suggests the best mentorship matches for an organization’s employees. 

18. Workzoom

Workzoom provides HR, payroll, workforce, and talent software to help companies automate and consolidate their people management.

What’s unique: Workzoom emphasizes the importance of ‘bringing your succession plans to life.’ To do this, their solution focuses on three things:

• High plan visibility
• Helpful reports and; 
• Opportunities for regular communication.

These elements combined ensure that an organization’s leadership better understands the importance of dedicating resources and time to developing future talent. 

Before you go

Succession planning is an important yet underused method for companies to ensure their critical roles remain filled and the business can continue as usual. 

If you’re looking to get started with or enhance your company’s succession planning efforts, exploring the tools for succession planning listed in this article is an excellent starting point. Based on your company’s size, budget, and (future) needs, you can choose a simple standalone solution or one that is part of a full-suite package.  

FAQ

The post 18 Succession Planning Tools and Software [2025 Edition] appeared first on AIHR.

Generative AI, in particular, is changing HR workflows, acting as an ‘intelligent co-worker’ that can assist in many areas. Yet, despite the hype, AI adoption has been slow and inconsistent.

This article dives into the various ways HR professionals are using AI today, the challenges they face, and the four unique adoption profiles—from skeptics to champions—that shape how AI is integrated into HR functions. Where do you fit, and what can you do to leverage AI’s potential?

For practical ways to start using AI in HR, download our ChatGPT Prompts for HR Guide and get ready-to-use prompts that streamline workflows and boost productivity.

Contents
Adopting AI beyond individual use: Key success factors
4 AI adoption personas in HR
1. The Skeptical Avoider
2. The Reluctant User
3. The Active Explorer
4. The Adoption Champion
Next steps to get started in your AI adoption

Adopting AI in HR beyond individual use: Key success factors

Our research in AI adoption has identified some of the common barriers HR professionals face: 

• Limited use of AI in HR practices, which leads to less exposure and familiarity with the technology
• Emphasis on individual AI applications for efficiency instead of broader, strategic implementation
• AI is mainly applied in recruitment, resulting in limited experience with more complex, company-wide solutions.

You’ve probably faced some of these barriers to adopting AI in your role. To overcome these challenges, you’ll need first to understand the critical success factors for adoption.

AI must be a strategic priority for business and HR

The key to successful AI adoption is making sure it is a top priority for both business and HR. If an organization is slow to embrace AI, it will be challenging to drive adoption within HR. Additionally, using AI in HR to meet business objectives should be a strategic choice. Without this focus, efforts to implement AI in HR will struggle to gain the support and momentum needed for success.

Exposure to AI in your role

Personal curiosity can encourage the use of AI, but our research indicates that exposure to AI in your job plays a significant role in its adoption. For instance, HR professionals in senior roles tend to have a more positive outlook on AI applications because they often have a broader perspective on how technology can improve organizational efficiency.

We also found that Talent Acquisition Specialists are more likely to use AI across all their tasks, likely because they encounter AI in recruitment processes. So, being exposed to AI in your role is essential for driving its adoption.

Your sentiment toward AI

Human behavior, including how we adopt new technologies, is influenced by our thoughts and feelings. To embrace AI, you must recognize its value, understand its benefits, and have a positive attitude toward using it. Along with hands-on experience, having an open mindset is essential.

With this in mind, we’ve identified four adoption profiles that represent different stages in the AI adoption journey in HR and key behaviors and actions you can take to move forward. Let’s take a closer look at these profiles.

4 AI adoption personas in HR

Not all HR professionals are embracing AI at the same speed or with the same enthusiasm. By understanding these four profiles, you can identify your current approach and discover ways to advance in your AI adoption journey.

1. The Skeptical Avoider

Skeptical Avoiders don’t see the value and use of AI or fear what this might mean for them and their future. They often find themselves in environments where AI is not used, meaning AI remains distant from their current reality. The most significant risk for Skeptical Avoiders is being left behind as AI will continue to impact their future.

Are you a Skeptical Avoider?

1. Do you question AI’s value? Skeptical Avoiders doubt AI’s benefits and view it as an overhyped trend.
2. Do you avoid AI discussions? Skeptical Avoiders steer clear of AI conversations, showing discomfort or disinterest.
3. Do you resist learning about AI? If you are reluctant to engage in AI training or upskilling, then you could be a Skeptical Avoider.
4. Do you focus more on the risks of AI? Skeptical Avoiders focus on potential downsides like job loss or privacy concerns.
5. Do you prefer the way things worked before AI? If you choose to follow manual processes and instead emphasize AI’s failures, you could be a Skeptical Avoider. 

What Skeptical Avoiders can do: 

• Start with the basics: Learn AI fundamentals through accessible resources like articles, videos, or courses.
• Experiment with AI tools: Use simple AI tools for low-risk tasks like scheduling or email drafting.
• Explore success stories: Review case studies or testimonials to see AI’s benefits and share examples with your HR colleagues.
• Engage in discussions: Join conversations with an open mind, ask questions, and address misconceptions.
• Seek mentorship: Connect with an AI-savvy peer or mentor to learn from their experience and gain guidance.

2. The Reluctant User

Reluctant Users are often seen as unwilling participants. While they may have access to AI tools, they don’t see their value or fear using them. If they had a choice, they would steer clear of AI use. This reluctance can lead to stagnation in their AI adoption, as they are not intrinsically motivated to fully embrace it.

Are you a Reluctant User?

1. Are you reluctant to use AI? Reluctant User engages with AI only when it’s mandatory, often with hesitation.
2. Do you express discomfort using AI? If you frequently voice skepticism about AI’s accuracy and impact, then you could be a Reluctant User.
3. Do you use minimal AI features? Reluctant Users stick to basic AI functions and avoid the more advanced tools.
4. Do you prefer manual methods? Seeking traditional workarounds and bypassing AI when possible could make you a Reluctant User.
5. Do you avoid learning about AI? Reluctant Users show little interest in AI training or giving feedback on AI tools.

What Reluctant Users can do: 

• Start small with AI tasks: Use AI for simple, low-risk tasks to see immediate value.
• Gradually explore features: Experiment with new AI functions that address daily challenges.
• Blend AI and manual methods: Integrate AI into specific parts of tasks to complement traditional approaches.
• Engage in training and give feedback: Participate in upskilling initiatives and provide feedback on AI tools, sharing your concerns and suggestions for improvements.
• Explore AI’s impact with data-backed insights: Challenge your perceptions by reviewing the measurable improvements or efficiencies gained from AI tools.
• Connect AI to daily challenges and goals: Set personal goals and use data-backed insights to see AI’s impact on your work.

3. The Active Explorer

Active Explorers are excited and curious about how they could utilize AI. They often see the potential for AI to transform their day-to-day tasks, their roles, and how HR can operate. However, they might have limited opportunities to use AI beyond personal use because of the slow adoption of AI into HR functions. Given the chance, though, Active Explorers can become advocates and catalysts for AI adoption.

Are you an Active Explorer?

• Do you actively experiment with AI? Active Explorers seek out and test new AI tools and features independently.
• Do you share AI ideas with others? If you regularly propose new AI uses and show enthusiasm for its potential in HR, you could be an Active Explorer.
• Do you actively learn more about AI? Active Explorers engage in self-directed AI education and seek involvement in AI initiatives.
• Do you advocate for AI? If you promote AI adoption to colleagues and management and suggest integration strategies, that indicates you may be an Active Explorer.
• Are you frustrated by slow adoption? Active Explorers express impatience with the organization’s limited support for AI.

What Active Explorers can do: 

• Lead AI pilot programs and advocate for using AI in HR: Volunteer for AI initiatives in HR to demonstrate quick wins and tangible benefits.
• Create and share use cases: Develop detailed examples showing how AI can improve HR processes and share them with the team.
• Collaborate cross-functionally: Partner with other departments to explore AI’s impact on broader challenges.
• Participate in formal AI training: Pursue training or certification in AI and data analytics to build expertise.
• Experiment, explore, and share how you use AI: Keep experimenting with and using AI tools and solutions, share successes, and advocate for broader adoption.

4. The Adoption Champion

Adoption Champions are the greatest supporters of AI adoption in HR. They have a positive attitude toward AI and actively work to improve their skills and find ways to create value. They usually work in environments that promote and use AI in HR processes, allowing them to apply and experiment with AI. Adoption Champions have the potential to drive AI adoption and transformation within HR. 

Are you an Adoption Champion?

1. Do you promote AI’s benefits? Adoption Champions advocate for AI use in meetings and communication with colleagues, emphasizing its value and impact.
2. Do you lead AI initiatives? If you take charge of AI projects and drive new HR applications and improvements, you could be an Adoption Champion.
3. Do you influence decision-makers? An Adoption Champion engages with leadership to highlight AI’s strategic value.
4. Do you seek out continuous learning? Actively pursuing advanced AI training, certifications, and conferences to stay current indicates you may be an Adoption Champion.
5. Do you mentor and support peers? Adoption Champions guide colleagues to help them successfully use AI tools, fostering a collaborative environment.

What Adoption Champions can do: 

• Expand AI integration: Identify and implement AI opportunities across various departments through cross-functional projects and workshops.
• Form AI working groups: Create or join committees to align AI goals and share best practices company-wide.
• Advocate for AI investments: Showcase AI benefits and success stories to secure broader organizational support and funding.
• Foster external partnerships: Build relationships with organizations, vendors, or industry groups to explore new AI solutions.
• Drive AI culture: Promote a pro-AI culture through impactful events and initiatives, encouraging innovation and participation.

Next steps to get started in your AI adoption

The four adoption personas help identify how you and your colleagues engage with AI at different levels. Recognizing where you and others fall in the adoption journey can help guide how you approach AI implementation and transformation. 

Here are some practical steps you can take to play a more active role in AI adoption within the HR function. 

• Step 1: Promote collaboration and knowledge sharing: Actively share AI insights and best practices through meetings, workshops, and knowledge platforms, encouraging team members to contribute and learn from each other.
• Step 2: Address concerns and build trust in AI: Create a safe environment for voicing concerns about AI, listening actively, and providing evidence-based reassurance about AI’s role in enhancing rather than replacing human tasks.
• Step 3: Encourage experimentation and exploration: Start with small, manageable AI projects and experiment with accessible tools to build familiarity, advocate for AI exploration, and demonstrate its long-term benefits and alignment with organizational goals.

Over to you

The journey towards AI adoption in HR is not just about implementing technology. To use AI to its full potential, you’ll need to cultivate a culture of learning, innovation, and collaboration that empowers you and your colleagues to contribute to the transformation actively. 

These four adoption profiles provide a valuable framework for HR professionals navigating the AI adoption journey. By understanding these profiles, you, your HR leaders, and your team members can take intentional steps to foster greater AI adoption and use. 

The post Which AI Adoption Persona Are You in HR? [Take the Quiz!] appeared first on AIHR.

The advantages of digital transformation and disruption in HR are well-documented: enhanced efficiency, broader employee reach through on-demand self-service, and improved business decision-making enabled by advanced analytics. 

Despite considerable investments in technology, these efforts have often failed to deliver the expected value to employees and have not substantially enhanced the digital agility of HR professionals.

This article explores why digital disruption in HR often fails to create the desired impact, highlights the importance of investing beyond just technology, and outlines three key actions HR professionals should take.

Contents
What is digital disruption in HR?
Why do businesses struggle to capitalize on digital disruption in HR?
How to successfully navigate HR digital disruption

What is digital disruption in HR?

Digital disruption in HR refers to the transformative impact that digital technologies have on Human Resources practices, processes, and strategies. This disruption is characterized by the rapid introduction of new digital tools, platforms, and systems that significantly alter how HR functions are performed.

Rather than an evolution or improvement, HR digital disruption represents a fundamental shift that can make the existing way of doing things obsolete or considerably less effective.

In essence, digital disruption in HR is “disruptive” because it forces organizations to rethink and often overhaul their established processes and strategies to keep pace with rapid technological changes. Those who fail to adapt may find themselves at a competitive disadvantage.

We discussed HR technology trends with Vinay Singh, Talent, Organization & Digital AI expert. Watch the full interview below:

Why do businesses struggle to capitalize on digital disruption in HR?

Many organizations find it challenging to fully benefit from the disruptive changes in digital HR because the developments and advancements are often abrupt, leaving little time to properly align technology adoption with business objectives or prepare the workforce. This rapid pace leads to underutilized tools and missed opportunities for effective transformation.

Here are three reasons why organizations struggle to fully harness the potential of digital disruption in HR:

Reason 1: Misalignment between technology adoption and employee experience

86% of HR leaders identify digital transformation as a strategic priority for their organizations, with 63% emphasizing that these investments aim to improve the employee experience. However, while adopting AI and digital tools in HR is often seen as a direct path to enhancing employee experience, this assumption is simplistic and potentially misleading.

While AI and digital transformation can streamline processes, improve efficiency, and offer more personalized services, these benefits do not automatically translate to a better employee experience. A recent report notes that although 79% of U.K. leaders have deployed multiple AI applications, many organizations struggle to achieve the expected outcomes.

The relationship between technology adoption and employee experience is complex and multifaceted. For instance, implementing new tools without considering the specific needs and preferences of the workforce may lead to frustration rather than satisfaction. Moreover, digital tools can sometimes create a sense of alienation if they replace the human touch in areas like performance management or employee support, where personal interaction is crucial. 

The success of AI and digital initiatives in HR depends on how well they are integrated with a company’s culture and how effectively they enhance—not replace—human connections. To truly improve employee experience, HR must ensure that these tools are user-friendly, inclusive, and supportive of employees’ wellbeing while providing flexibility to address individual needs. Therefore, adopting AI and digital solutions should be carefully planned, with a clear focus on enhancing the human experience within the organization rather than solely on technological advancement.

What does digital transformation look like? Don’t try to say, “I’ve got to catch, you know, Elon Musk or Microsoft, Google.” Look at where you’re at, and then figure out, “Were have we systemically been lacking? Where have we put no advancement in?”

And sure, we could leapfrog, but take a look at what your digital transformation is now. And if you don’t have a digital transformation, what’s it going to take for you to get there?

Vinay Singh, Talent, Organization & Digital AI Expert

Reason 2: The “unconsidered” cost of adopting AI and digital HR

The promise of digital transformation in HR is alluring: driving cost efficiencies, streamlining processes, and enabling a more strategic focus. However, the journey to achieve this transformation is fraught with challenges, particularly regarding securing the necessary budget. 

Despite the clear benefits, HR departments often struggle to justify the financial investment required for these technological advancements. Recent research reveals that while 75% of HR leaders acknowledge the necessity of digital transformation, only 25% feel confident they have the budget to pursue these initiatives effectively. This financial constraint forces HR to create in-house solutions that are not integrated or seamless rather than procuring readily available tools and technologies that are more efficient and tested.

Developing these in-house solutions demands significant time, effort, and resources, often pulling HR professionals away from their other critical responsibilities of talent management, employee engagement, and more. This situation is further amplified by the perception of HR as a “cost center,” a view that pressures HR to automate not to enhance capabilities but rather to reduce headcount and operational costs. 

Such pressures can lead to a culture of distress within HR departments, where the focus shifts from innovation and employee experience to merely cutting costs. This hampers the potential benefits of digital transformation and also risks demoralizing the HR team, who may feel undervalued and overburdened. For HR to thrive in the digital era, organizations must shift their perspective, recognizing HR’s strategic value and ensuring that technology investments are made to enhance, not diminish, the department’s capabilities.

Reason 3: Overlooking the importance of digital mindsets in HR technology adoption

Investments in digital HR often prioritize technology, tools, and data. While these elements are crucial, they alone are insufficient. HR professionals struggle to fully utilize these tools without proper upskilling, leading to a lack of confidence in applying new technologies and underutilizing these resources. Our data reveals a concerning trend: only 23% of HR professionals feel confident in their digital skills, and a mere 2% prefer engaging in digital activities over other HR-related tasks.

Building digital agility requires technology and a concerted effort to develop the mindset and skillset necessary for HR professionals to thrive in a digital environment. Our study of over 850 HR professionals showcased that only 64% use HR technology to fully deliver on business strategy and that most cite a lack of confidence and competence as barriers to success.

How effective is this brand-new technology to your agenda? I can’t tell you how many times a senior executive will say they bought something, it wasn’t as advertised: “We bought something, but we didn’t have the capabilities to actually be using it. We could use it, but we were so busy with these other things that were more pressing that we bought this extra component onto our platform, and we just didn’t get around to it.”

Vinay Singh, Talent, Organization & Digital AI Expert

How to successfully navigate HR digital disruption

Embracing digital disruption in HR should always begin with a clear business case that highlights the rationale and intent behind why HR wants to drive digital transformation. The business case needs to be closely aligned with business objectives, highlighting how digitalizing HR will benefit the business, where it will focus, and what will be required to achieve success.

Adopting AI and digital HR in a process that does not contribute to the overall strategy would lead to project failure and may result in loss of time and investments. Decision-making should be based on organizational priorities, employee feedback, and data. 

In addition, when investing in HR technologies, a more holistic approach is required regarding enabling HR professionals with the right skills, equipping users of HR technologies to optimize their value, and delivering against a set digital HR roadmap that develops and matures HR technology over time.

We propose three actions that HR needs to take.

Action 1: Prioritize investments aligned to a digital roadmap

Investing in HR technology must be a strategic and evidence-based process rather than a series of ad-hoc decisions. Unplanned investments often result in fragmented systems, poor integration, and a gradual decline in digital maturity. To avoid these pitfalls, HR leaders must develop a comprehensive digital HR roadmap that aligns with the organization’s broader goals and ensures that each technology investment contributes to a cohesive, efficient HR ecosystem.

A well-crafted digital roadmap should include a thorough assessment of the current HR technology landscape, a clear vision for the future state, and a focus on integration and interoperability. This roadmap serves as a guide, helping organizations identify which technologies align with specific areas of their HR architecture. Additionally, it ensures that new systems work in sync with existing infrastructure, improving data flow, user experience, and decision-making.

Furthermore, successfully implementing HR technology requires attention to change management and continuous evaluation. Technology investments should be accompanied by a robust change management plan that fosters adoption and minimizes disruption. Regular reviews of the digital roadmap, emphasizing metrics and KPIs, will ensure that the organization remains agile and adapts to new opportunities and challenges.

Action 2: Focus HR technology investment in four core areas

HR can optimize AI and digital adoption by tailoring strategies to the specific needs of each function and being more specific and intentional in where HR invests. We see four key areas of investment:

• Internal HR operations: AI can automate repetitive tasks such as payroll processing and attendance management, freeing up time for HR teams to focus on more strategic initiatives.
• HR services: AI-driven chatbots and self-service portals enhance the employee experience by providing instant support and answers to common queries, improving efficiency and accessibility.
• HR advisory: AI offers valuable data-driven insights, such as identifying potential high-performers who are at risk of leaving the company. These insights can inform retention strategies, succession planning, and targeted development programs, enabling more proactive talent management.
• HR project management: Digital tools streamline project management and collaboration, making it easier for teams to work together effectively and meet deadlines efficiently. With the help of these tools, HR teams can complete tasks on time, effectively collaborate across departments, and gain clear visibility into project progress, leading to more efficient execution.

HR should assess the complexity, data requirements, and impact on (digital) employee experience in each area to maximize value and ensure alignment with overall business objectives.

Action 3: Develop digital agility within HR as a core competency

Our T-shaped HR Competency Model highlights digital agility as one of the five core competencies required to be a successful HR professional.

Developing digital agility in HR goes far beyond operating software, implementing HRIS, or automating tasks like Excel sheet management. It’s about fundamentally transforming how HR operates to unlock new levels of efficiency and effectiveness through technology. Being digitally agile requires fully integrating technology into every aspect of HR, from optimizing routine processes to enabling data-driven decision-making. 

We see digital agility as the outcome of successfully being empowered to utilize and scale technology, building the skills to gain digital confidence, and creating opportunities to experiment with and gain exposure to digital ways of working.

When HR becomes digitally agile, it positions itself as a crucial driver of organizational success, leveraging technology for automation and innovation in managing people, developing talent, and building a future-ready workforce. This mindset requires continuous learning, adaptability, and a commitment to aligning digital strategies with overall business objectives, ensuring that technology enhances, rather than replaces, the human element in HR.

Final words

Human Resources teams must approach HR transformation and digital disruptions with a fresh perspective, aligning these innovations with the organization’s strategic goals. Being intentional about how and where to invest sets HR teams up for success by adopting a holistic view that considers people, processes, and technologies. 

The post Digital Disruption in HR: 3 Actions for Sustainable Value appeared first on AIHR.

Let’s take a look at HR digital transformation through the lens of the current HR and technology landscape and how you can successfully navigate it.

Contents
What is HR digital transformation?
Benefits of HR digital transformation
HR digital transformation challenges
Examples of HR digital transformation
The stages of HR digital transformation
How to create your HR digital transformation strategy
FAQ

What is HR digital transformation?

HR digital transformation refers to the process of changing and digitalizing existing HR processes. The goal is to automate them, make them data-driven, and create a better (digital) employee experience.

Initially, digital transformation in HR was mainly about turning manual processes into digitalized alternatives. Think, for instance, about employee records. They were once kept as physical documents in file cabinets but are now often converted to, or recorded into, electronic formats. In today’s world of work, however, digital transformation in HR goes well beyond simply digitalizing manual processes. It now also involves using AI-powered HR tools and generative AI to better cater to employee expectations throughout the employee lifecycle and work more efficiently as a People function.

Benefits of HR digital transformation

Automating and digitalizing HR processes benefits the organization, its people, and the HR department in multiple ways. Examples include: 

An improved employee experience

There are countless examples of how digitalizing HR processes can improve the employee experience. Here are a few of them: 

• Chatbots: The use of HR chatbots in recruitment, onboarding, helpdesk inquiries, and other HR processes enhances accessibility as they offer employees 24/7 access to information.
• Employee self-service: Digital HR can create all sorts of employee self-service, like helping employees manage their own leave requests and benefit plans, updating their contact details, and downloading their tax forms. 
• Onboarding software: Employee onboarding software can help create a more efficient and well-structured pre- and onboarding process, hence providing a smoother experience for new hires.   

A more efficient and productive HR department

One of the biggest advantages of HR digital transformation for the HR department is that it makes processes more efficient and, therefore, the team more productive. 

Thanks to HR automation, things that used to take a lot of time, either because they required manual interventions or were very repetitive, can now be done in the blink of an eye.  

A more attractive employer brand

Employees today are accustomed to a seamless digital user experience in their personal lives. They have instant access to entertainment, food, news, and everything in between with one tap on their screen or command of their voice. 

They increasingly expect the same experience from their employer. As such, a smooth digital candidate and employee experience can be a valuable asset for your employer brand and help to attract talent. 

Streamlined HR processes 

Another significant benefit of digitalizing HR processes for the HR department is that they can be streamlined.

Consider recruitment, for instance. HR teams can now use an Applicant Tracking System (ATS) instead of manually tracking applicants and their current stage of the process.

Systems vary in terms of what they can do, but usually they include tasks like: 

• Vacancy postings on various job boards
• Connecting with and staying in touch with applicants
• Interview scheduling
• And much more.

Better data management and data-driven decision-making

Digital HR processes significantly reduce the risk of data loss when compared to manual alternatives, provided that people know where the data is stored and how to access it. An HRIS (Human Resources Information System), for example, will likely lead to better data management than a manual ‘system.’ 

Digitalizing HR processes has another data-related benefit. Most, if not all, HR software today has an analytics and reporting feature that comes with it, enabling HR teams to analyze internal data and, by extension, make more data-driven decisions.

HR digital transformation challenges

While HR digital transformation has important benefits, it also comes with certain challenges that can limit its effectiveness. Common HR digital transformation challenges include:

Unclear objectives

Whatever process is digitalized or automated, there has to be a clear objective behind it, and it needs to make business sense. Let’s look at an example of what this can look like in practice.

Arvato Bertelsmann experienced unwanted, high turnover across several locations and wanted to address this issue. After some research into why employees left prematurely, they found that this was mainly due to a disconnect between what candidates expectations of the role and the actual reality of it.  

Arvato introduced a pre-employment assessment tool to address this disconnect. Candidates could take the assessment online and get a realistic job preview—a virtual peek into their future work environment and company culture. The result: Arvato’s employee turnover decreased by 63%.

HR may not have the right skills

HR is often expected to play a key role in executing the organization’s HR digital transformation roadmap. To be successful, HR professionals would need to master specific (digital) skills. However, our research indicates that organizations of varying sizes have improved HR’s digital skills by only 7% on average over a period of four years.

Some examples of these essential skills required by HR include digital agility, HRIS knowledge, knowledge of other relevant HR software, and GenAI prompting. Change management is an additional critical skill for HR professionals to master, as employees and stakeholders will need to be guided through the transformation process.

Ethical dilemmas and misuse of AI

The introduction of legislation like the EU AI Act and the New York AI Bias law has highlighted the potential risks of using AI in HR processes. What’s more, since the advent of ChatGPT and similar generative AI solutions, employees are increasingly integrating these tools into their daily workflows.

Organizations need to develop a clear stance on using AI to avoid ethical dilemmas, productivity issues, and the misuse of generative AI and other AI technologies. At the same time, they must manage these risks in a way that doesn’t prevent the company from benefitting from these tools.

Getting users on board 

For any tool or technology to be effective, those who will use it regularly must understand its purpose and recognize its value. Without their support, your initiative is unlikely to achieve the desired outcomes.

This underscores the importance of having a robust change management plan and involving a knowledgeable member of the HR team or an external consultant who can effectively guide people through these transitions.

Securing sufficient resources

Implementing software or tools demands both financial and human resources. Before starting the process, securing sufficient budget and people support is crucial for an HR digital transformation to succeed.

However, this can be challenging due to potential budget constraints and difficulties finding skilled personnel to execute the transformation. Additionally, aligning the HR digital transformation goals with the overall business strategy and getting buy-in from stakeholders can further complicate the process.

Examples of HR digital transformation

Digital transformation in HR can impact a range of HR functions, from recruitment and onboarding to payroll, benefits, and beyond. This transformation can vary in scale, occurring in just a few days or unfolding over the course of a year.

The following HR digital transformation examples highlight three types of of ‘transformations’ that occur.

Example 1: ATOS 

At Atos, an IT and consulting firm, a disconnect existed between the data in the company’s core HR system and that in its employee document management function. To bridge this gap, the organization wanted a tool that would facilitate seamless end-to-end HR service delivery for employees, managers, and HR personnel alike.

Atos chose a cloud-based solution that was rolled out simultaneously in 70 countries. This software integrated the organization’s Employee File Management system with the recruiting module of its HRIS, allowing for streamlined HR operations and automation of the offer letter process.

As a result, managers can now access the HRIS directly and generate an offer letter with the push of a button, eliminating the need to email HR for approval of new hires.

Example 2: Healthcare digital transformation

A leading healthcare provider in the UK previously operated with three separate HR systems, each used differently across its 120 locations. To enhance efficiency, the organization wanted to consolidate these disparate systems into a single solution that would meet its specific requirements.

They introduced a new HR system featuring employee self-service capabilities, providing training for all 120 site administrators to familiarize them with the updated platform.

This digital transformation has successfully transitioned all HR processes online, leading to reduced costs. One of the biggest advantages has been that employees can book their annual leave remotely, saving administrators significant amounts of time each month.

Example 3: Nikkei Inc.

Nikkei Inc., a media company, faced the challenges of intense competition, a new generation of talent with varying interests, and new media formats. In response, the company looked to transform its organizational structure and employee mindset, among other things.

To drive this change, Nikkei established a Digital Transformation Committee comprising HR, IT, and corporate teams, and chose to implement Workday HCM along with the HR component for managers, partnering with Accenture for the rollout.

This resulted in Nikkei’s HR department now leveraging training data to match its employees with the best programs and gain relevant new skills or boost their current skills. Employees can also share tips regarding internal training on a forum, enabling Nikkei to create new offerings.  

Through this ongoing digital transformation, Nikkei is now well-positioned to nurture the next generation of talent.

The 6 stages of HR digital transformation

A typical digital transformation involves six different stages, as defined by research done by Brian Solis for Cognizant and Altimeter. In HR. These stages are: 

1. Business as usual 

In this stage, HR operates as if the solutions it currently uses will stay relevant in the future. 

This stage is often characterized by:

• A lack of awareness among leadership about the need for a shift toward digital
• An almost non-existing impact of technology on the business and HR processes and a scattered HR technology landscape
• HR processes that aren’t streamlined or standardized yet.

2. Present and active 

In this stage, various (groups of) people start to experiment, hence boosting digital agility and creativity within the HR organization.

Actions during this stage include: 

• Developing a shared vision of digital HR together with the organization’s leaders
• Building an HR technology roadmap for the future
• Identifying your key objectives to redesign existing HR processes. 

3. Formalized

During the third stage, experimentation becomes intentional and garners more support from leadership.

Elements that are important in this stage include:

• Support from executive leadership to secure resources required to start building a formal digital HR strategy
• Buying or building software solutions to start replacing existing systems and determining whether to proceed with the assistance of an implementation partner
• A systematic clean-up of existing HR processes. This means, among other things, automating and eliminating time-consuming (non-essential) steps. 

4. Strategic 

During this stage, HR departments recognize the power of collaboration, and most digital HR initiatives are executed by multidisciplinary teams.

Actions to take during this stage include:

• Aligning the HR technology roadmap with the organization’s overall digital roadmap
• Training (part of) the HR team in design thinking and the lean startup experimentation method
• Integrating digital skills within all HR roles and, if necessary, attracting key digital talent. 

5. Converged

In the fifth stage, a dedicated digital transformation team is created to guide the digital support of the HR strategy and operations.

Elements to keep in mind during this stage:

• Regularly align with business developments and needs
• Work towards an integrated set of platforms and tools and ensure that all relevant HR tools are easily accessible for everyone involved
• Use pulse surveys to collect feedback from employees and business stakeholders on the effectiveness of your processes and optimize where necessary.

6. Innovative and adaptive 

By now, digital transformation has become a continuous process in the organization and the new ‘business as usual.’

Actions to consider at this point are:

• Optimize your employee experience so that HR processes are virtually invisible
• Assign a dedicated individual or a small team to oversee the growth and ongoing delivery of innovation within the HR department.

How to create your HR digital transformation strategy

While all of this sounds great in theory, initiating the journey toward an HR digital transformation strategy can still feel daunting.

Here are a few ingredients for a successful start:

1. Evaluate your current HR processes

Before you initiate any changes, whether digital or not, it’s important to assess the current situation within the HR department.

Begin by evaluating the tools or HR software currently in use, such as an ATS and an HRIS. Create an overview of all existing HR solutions used within the company and identify whether they can communicate with each other and how they do so.

Identify the areas where digital HR can have the most significant impact. For example, implementing a digital performance management system can streamline employee evaluations and improve feedback mechanisms, leading to better talent development.

Also, investigate who is responsible for maintaining the technology—whether it is HR or IT—and whether updates occur automatically.

2. Get stakeholders on board, define objectives & metrics

Share the outcomes of your audit and prioritization exercise with the key stakeholders in the company and use this as an opportunity to get them on board with your digital transformation plans. Examples of key stakeholders include senior management, HR leaders, IT department heads, and representatives from key business units.

Once everyone is on board, you can determine your objectives and priorities together and define success metrics. These will differ from one organization to another. 

For example, you may want to reduce the time to hire, improve the candidate experience, and decrease new hire turnover. The following metrics could help you gauge the success of your initiative: 

• Time to hire: This is one of the most well-known recruitment metrics. It measures the number of days between a candidate applying for a job and the moment that same person accepts a job offer. 
• Candidate Net Promoter Score (cNPS): The cNPS indicates how likely candidates are to recommend a company based on their experience during the recruitment process. It provides HR insights into people’s overall satisfaction with the process. 
• First-year attrition rate: A high turnover rate within the first year of employment can indicate inconsistencies in talent acquisition techniques.

3. Create an HR digital transformation roadmap

With your priorities and objectives in mind, and in collaboration with your stakeholders, you can develop a comprehensive HR digital transformation roadmap.

The benefits of using an HR digital transformation roadmap include:

• It allows you to adopt a phased approach where you can start small, test, and refine your HR digital transformation strategy
• It enables you to plan for the potential scaling of certain HR software or tools if the organization grows
• It serves as a guide for everyone involved that outlines timelines, key milestones, and responsible parties, hence creating clarity and structure.

4. Develop digital HR skills

To successfully execute your organization’s digital transformation strategy, it’s essential for at least one member of the HR team to master the necessary digital HR skills – even if you plan to collaborate with an implementation partner or external consultants throughout the process.

Start by assessing the level of digital competencies within your team (for example, through our free T-Shaped HR Assessment) and create personalized employee development plans for your HR employees to improve their skills.

5. Draft a change management plan 

Digital HR transformation has an impact on most, if not all, people in the organization. HR should create a digital change management plan to prepare everyone for upcoming changes and boost the chances of adoption and successful transformation.

6. Focus on building an integrated HR tech stack 

One of the key aspects to consider when embarking on your HR digital transformation strategy is the creation of a well-integrated HR tech stack. Over time, it’s highly likely that your organization’s HR tech stack will consist of a blend of software and tools from various categories:

• Core HR solutions like HRIS and payroll software
• Recruiting tools, for example, ATS
• Employee experience software such as learning management systems and employee engagement platforms

You need to ensure that the various elements of your HR tech stack are integrated and can communicate with each other, allowing smooth data flow and reducing the need for manual interventions.

7. Assess performance

With the objectives and metrics established in your HR digital transformation strategy, you can critically evaluate what is effective and what isn’t. More importantly, you’ll be equipped to make timely adjustments wherever necessary.

On a final note

HR digital transformation is a continuous journey rather than a one-time event. Once a new solution is implemented, it’s crucial to stay agile and responsive to changing business needs and technological innovations. This ongoing commitment to improvement not only fosters long-term success but also creates a significant competitive advantage.

FAQ

The post HR Digital Transformation: An HR Leader’s Guide appeared first on AIHR.

What is digital HR?

Put simply, digital HR is the integration of digital technologies into Human Resources processes to make these more efficient, effective, and connected. It’s the strategic combination of the HR department and technology that leads to streamlined operations, improved decision-making, enhanced employee experience, and a more agile and responsive organization.

According to Dave Ulrich, the digital HR journey of a company is characterized by four phases:

• HR efficiency: In this stage, organizations invest in technology platforms that efficiently manage HR processes. The key question to ask yourself in this phase is: To what extent do we use technology to streamline administrative HR work? 
• HR effectiveness: At this phase, companies use HR technology to upgrade existing people practices such as performance management, talent acquisition, and training. The critical question is, ‘To what extent do we use technology to innovate our HR practices?’
• Information: Organizations start leveraging people analytics to create business impact. Their data is accessible, and internal data is combined with external data. The most important question to ask in this stage is, ‘To what extent do we use technology to access information?’
• Connection/experience: In this stage, companies use digital HR software and tools to foster a connection between people. Experiences between people are created, social networks are leveraged, and technology enables a feeling of belonging. The question to ask yourself during this phase is, ‘To what extent do we use technology to create connections?’

At the end of their digital HR journey, organizations will have undergone an HR digital transformation, transforming HR operations on the one hand and the workforce and the way work is done on the other. 

How is digital HR different from traditional HR?

Digital HR differs from traditional HR in that it digitalizes manual tasks such as record-keeping, data analysis, and answering employee questions.

The difference between digital and traditional HR is best illustrated with an example. 

Benefits of digital HR 

Digital HR not only gives organizations a competitive advantage, but it also has multiple other benefits. 

Saving time and improving productivity for HR

As we’ve seen in the LASD example mentioned above, digitalizing HR processes can be a huge time saver. This, in turn, will also improve the department’s overall productivity, making it one of the biggest benefits of digital HR.

Streamlining HR processes

Digitalizing HR processes helps to streamline and structure them. Think about recruitment, for example. Rather than manually trying to keep track of your applicants and their process stage, you can use an Applicant Tracking System (ATS) instead.

Depending on the ATS, the system can take care of tasks such as:

• Posting vacancies across multiple job boards
• Connecting with candidates
• Scheduling interviews with potential candidates
• Nurturing candidates through the recruitment funnel
• And much more.

Boosting (digital) employee experience 

The employee experience consists of three key components: 

1. The physical experience 
2. The digital experience 
3. The cultural experience.

The massive surge in hybrid and remote work since 2020 and the continuous digitalization of work, in general, have made the digital employee experience more and more important. 

Digital HR can significantly improve the employee experience, for example, by enabling employee self-service. Workers can easily:

• View and download their pay stubs, tax forms (e.g., W-2s), and other related documents
• Enroll in, change, or manage their benefits plans, including health insurance, retirement plans, and other perks
• Update their contact details, address, emergency contacts, and other personal information directly in the HR system
• Clock in and out, log work hours, and track their attendance records.

These self-service features empower employees to manage their HR-related needs efficiently and independently, reducing the administrative burden on HR departments and making their digital employee experience smooth and user-friendly. This enhanced autonomy fosters greater employee satisfaction and engagement.

Better data management

Digitalizing HR processes reduces the risk of data loss. Provided that people know where the data is stored and how to access it, using a software solution such as a Human Resource Information System (HRIS) or an ATS will allow for better data management than using a manual alternative.  

Enhancing talent acquisition 

If there is one area within the HR field that is abundant in terms of digital HR solutions, apps, and software, it is talent acquisition. 

Many aspects of the candidate journey can be digitalized and (largely) automated, from candidate sourcing and job posting to candidate pre-selection, interview scheduling, and onboarding. 

Enabling data-driven decision making 

Most, if not all, of the digital HR software today comes with analytics and reporting features, making it much easier for HR to analyze internal data and make data-driven decisions.

Lower administrative costs 

The use of HR technology can significantly reduce the time HR professionals spend on administrative tasks such as payroll processing, employee data management, and benefits administration. As such, digitalizing HR processes will lower administrative costs.

Digital HR examples

Let’s explore some examples of digital HR in practice, looking at how technology is integrated within HR processes and practices. 

1. Human Resource Information System (HRIS)

The HRIS is one of the most well-known examples of digital HR. It’s a system that stores, collects, processes, and manages employee data. HR teams use it to work more efficiently and make more data-driven decisions.

HRIS features typically include: 

• Benefits administration 
• Employee data management 
• Employee self-service 
• Payroll processing 
• Reporting and analytics 
• Time & attendance. 

Using an HRIS is particularly interesting for organizations of a certain size, starting with companies that have between 30 to 50 employees. 

Some of the biggest benefits of working with this kind of software include: 

• Improved efficiency: The fact that all employee data is stored in one place saves time and increases accuracy. 
• Better record-keeping: At its core, an HRIS is a record-keeping system. As such, it tracks all changes related to the organization’s employees and is considered the single source of truth for staff data.  
• A better employee experience: The HRIS can offer self-service tools to managers and employees. This means that they are in charge of things like requesting leave or updating their information, which, in turn, positively affects the employee experience.   

You can think of the HRIS as the backbone of digital HR.

2. Collecting employee feedback 

Employee feedback has become vital for evaluating the success of nearly every single HR process: recruitment and selection, onboarding, performance management, L&D, and so on. 

There are different ways to gather feedback from people, each with its benefits and limitations. Depending on your strategy, what you want to achieve, the target audience, and the timing of the feedback, the decision about which approach—and platform—to use will differ.

Examples of the digital methods that companies use to collect employee feedback include:

• Employee pulse surveys 
• Point-in-time surveys (i.e., the traditional annual survey)
• Topic-driven surveys
• Exit surveys.

3. HR case management 

HR case management refers to the process that a company’s HR department has in place to resolve the questions and inquiries that employees send to them. 

There are many different issues or queries that employees may run into. Some of these may be related to: 

• Benefits
• Onboarding 
• Payroll and taxes
• Performance
• Policies and procedures

A dedicated HR case management software is indispensable, particularly in medium—and large-sized organizations, to ensure reliable HR case management and handle the volume and complexity of the various inquiries well.   

Benefits of working with this kind of software include: 

• Immediate access: The software gives employees immediate access to HR, so they no longer have to wait for a meeting to ask their questions.
• Quick escalation: The HR case management software collects all the relevant information for each query, making it easy to pass the case directly to the right person or team. 
• Status tracking: The software’s ticketing system allows both employees and HR to follow the status of each case. 
• Workflow automation: Common questions are answered in FAQs and in an HR knowledge base that people can easily access. This saves the HR team a lot of time that they can use on more complex queries. 
• Improved employee experience: All of the elements mentioned above contribute to a better employee experience as they improve transparency, access to HR, and overall problem resolution.

4. AI-based coaching

AI-based coaching involves using artificial intelligence to enhance, support, or take over the coaching relationship.

The coach can use AI to get insights into their coachees’ needs and to provide recommendations. In other cases, employees interact only with AI, for example, through a chatbot.

5. Succession planning software 

An effective succession planning process enables organizations to identify, select, and develop the right people for critical roles to ensure business continuity when an individual holding that role leaves.

In the era of digital HR, there exists an array of succession planning tools that companies can use to streamline their succession planning process. 

The exact features differ per tool and provider, but here are a few examples of what is possible: 

• Proactively identifying critical roles 
• Visualizing your bench strength 
• Creating dedicated talent pools
• Focusing on leadership vulnerabilities 
• Creating a short, medium, and long-term succession plan for each key role.

The process of HR digital transformation 

Leveraging digital in HR is not as simple as implementing a few software solutions here and there. It is a complicated process that requires time, effort, and resources.

So, how do we approach a project of this magnitude?

Stages of HR digital transformation

Every organization engaging in digital transformation will go through six stages. Here’s what they translate to in HR:

1. Business as usual: HR acts on the belief that current solutions will remain relevant.
2. Present and active: In this stage, different experiments throughout the company create digital literacy and creativity.  
3. Formalized: Experimentation becomes intentional, and there is more support from leadership.
4. Strategic: In this phase, multidisciplinary project teams execute most digital HR initiatives. Collaboration increases, leading to the development of strategic HR digital transformation roadmaps.
5. Converged: A dedicated digital transformation team guides digital support of HR strategy and operations.
6. Innovative and adaptive: By now, digital transformation has become the organization’s new ‘business as usual’ and a continuous process.

Understanding these stages is crucial for several reasons. Firstly, it helps organizations assess their current position in the digital transformation journey and identify the next steps to progress further.

Secondly, it ensures that efforts are aligned with the broader business strategy, maximizing the impact of digital initiatives. 

Lastly, it facilitates a structured approach to change. That way, organizations can adapt to new technologies and practices systematically and ultimately achieve the goals they’ve set.

Best practices for digital transformation in HR 

Starting with such a complex process as digital HR transformation can seem overwhelming. The following best practices are the core of your HR digital transformation and will be the key drivers for success.

Assess your current HR processes

Start with an audit of the current situation. Here are some questions to ask yourself and steps to take:

• What kind of HR software or tools are you currently using to run various HR processes? Do you already use an HRIS and an ATS, for example? 
• If nothing is in place yet, then what are the areas where digital HR will have the most impact? Try to see if you can align here with the company’s business goals.
• If digital tools are in place, create an overview of all the current HR solutions your organization is using and whether these systems can communicate with each other. If they can, how?
• How is each solution and tool maintained? Does HR take care of this? Does this happen automatically?

Based on your audit, you can decide what the priorities are right now and where to start.

Develop digital HR skills within your team 

HR practitioners need the right digital HR skills to drive the company’s digital transformation, starting with digital agility. This refers to the ability to rapidly adapt to and leverage digital technologies and tools to enhance HR processes, improve efficiency, and drive innovation.

Here are a few ways to develop digital agility: 

• Familiarize yourself with different types of technology
• Collaborate with other departments on innovation
• Work on your change management skills
• Dare to experiment
• Get certified in Digital HR.

Define clear objectives and success metrics for the transformation 

As with any new project, you should define clear objectives and success metrics before embarking on your digital transformation journey.

The objectives and metrics will differ per organization. Let’s say that your goal is to improve operational efficiency, allowing HR to complete work at a lower cost, in less time, and with fewer people involved.

You could use the following metrics to measure whether you achieved this objective:

• HR cost per employee: This metric calculates the total HR expenditure divided by the number of employees. A reduction in HR cost per employee would indicate that the digital transformation has made HR processes more cost-effective.
• HR service delivery time: This tracks the average time taken to complete various HR services, such as processing leave requests or resolving employee inquiries. A reduction in service delivery time reflects enhanced operational efficiency and faster response times due to digital tools and processes.
• Employee self-service utilization rate: This metric tracks the percentage of HR-related transactions (such as leave requests, benefits enrollment, and personal information updates) completed by employees using self-service portals or applications. A high utilization rate signifies that employees are effectively using digital HR tools to manage their needs independently, which reduces the administrative workload on HR staff and enhances overall productivity by minimizing time spent on routine tasks.

Adopt a phased approach 

A phased approach to digital HR transformation allows you to correct course where needed. Before digitalizing a particular HR process, start with a pilot project. This will enable you to test and refine your HR digital transformation strategy.

Let’s say your company wants to automate its payroll process. Before making the switch for all the employees in the organization, test the new solution first with just one or two teams, starting with your own HR team, for example.

HR tip

Develop your HR digital transformation roadmap. An HR digital transformation roadmap serves as a guide when implementing digital HR technologies at your organization. This document outlines key milestones, timelines, and responsible parties, facilitating a structured approach to adopting and integrating new technologies within the HR function.

Implement scalable solutions

Whether you implement digital HR software or digital HR tools, you want them to be scalable. The process of selecting, buying, implementing, and launching digital tools is too costly, in terms of time and money, to repeat countless times. So, if the organization grows, you want the software you use to grow with it.

Create cross-functional teams 

It is unlikely that you, as an HR team, will be able to achieve a successful digital transformation on your own. Get the right people on board from the start – think of IT, Legal, and other stakeholders – and build a cross-functional transformation team. 

This collaborative approach not only improves the implementation and adoption of digital solutions but also ensures compliance, security, and alignment with broader organizational strategies.

Prepare a change management plan 

Digital HR transformation impacts many people in the organization. HR should consider creating a digital change management plan to prepare people for upcoming changes. 

Elements to think of in that regard include:

• Communicate with stakeholders to understand how the change will impact your company
• Use the decision-making Cynefin framework to navigate your change project with actionable steps
• Base your change communications on the competing values framework
• Use a stakeholder management template to help you manage your various stakeholders.

Focus on employee experience 

Most of the time, the company’s employees are the ones who will have to use the digital tools on a daily basis. Therefore, it is crucial that the software, apps, and other types of technology you roll out improve your employees’ work experience.

To ensure this is the case, involve them from the start, ask for their opinion, and, most importantly, listen to it.

Build an integrated HR tech stack  

There is a digital HR software solution for virtually every HR process. If we had to categorize the various technologies, we’d distinguish three main categories: 

• Core HR solutions: HRIS, payroll, compensation and benefits management software, etc.
• Recruiting: ATS, pre-selection tools, referral software, etc. 
• Employee experience: Onboarding, LMS, performance management software, rewards, etc.

Most companies use software and tools from each of these categories; this is what we call their HR tech stack. 

Make sure you build an integrated tech stack. This means that all your HR tech stack elements should work together. For example, your HR management system (HRMS) should integrate with your payroll software, allowing for smooth data flow and reducing the need for manual data entry.

A set of tools that can’t communicate with each other will be counterproductive. You also don’t want the inefficiency of separate destinations for every HR process.

HR digital transformation examples

Let’s take a look at some HR digital transformation case studies where organizations worldwide successfully used HR tech to tackle a specific business challenge. 

New Moms: Improving efficiency and transparency using an HRIS

New Moms is a non-profit organization based in the U.S. that supports young mothers who are struggling with homelessness and poverty. 

The organization spent hundreds of hours tracking down personnel information, funding stream data, and other essential documents. 

The non-profit then decided to implement a streamlined HRIS that enabled them to store and access all of their data on one platform. 

As a result, New Moms was able to:

• Find and present compelling data on their daily operations to key stakeholders
• Reduce turnover by 37%
• Secure additional funding for their projects
• Shift from a paper-based annual review to weekly coaching for its employees.

Global energy company: Using digital HR to improve EX 

A global energy firm noticed a considerable difference between its external and internal digitalization. For example, their Learning delivery and Compliance training was extremely outdated and ineffective. 

The company’s Interim HR Change and innovation Director decided to shake things up and use gamification to tackle the issue. 

This led to a new training app that allows employees to collect badges and obtain high scores that are visible to the entire employee base.

As a result, the energy company saw: 

• An almost 100% uptake on the tests
• Their compliance training was completed in 3 months rather than in the 9 months it used to take.

KPMG Belgium: Starting the employee journey right after the signature 

This HR digital transformation case study focuses on preboarding, an important yet often overlooked step towards happy and engaged employees.

KPMG Belgium didn’t have a preboarding process for new hires. For graduates, in particular, this could lead to relatively long periods between the moment they signed their contract and their first day on the job.

To solve this problem and to create a more structured process, the company decided to use an integrated and secure onboarding software solution.

Now, the organization’s onboarding—or preboarding, actually—starts as soon as the candidate signs the contract. The app sends new hires all the practical information they need to know before they start, including contact details of their new colleagues.

After two years of preboarding, KPMG saw:

• New hires rate their experience at 4.45 out of 5
• New hires rate their first week at a 4.12
• An app activation rate of 81%.

Digital HR skills

In order to implement digital HR and execute the organization’s digital HR transformation roadmap, HR practitioners need to master specific skills. Essential digital HR skills include: 

Digital agility

This is the ability to use technology to increase the impact of HR and prepare the organization for the adoption of digital practices.

There are three dimensions of digital agility: 

• Technology empowered: HR practitioners who master digital agility are able to integrate technology to build efficient, scalable, and impactful HR solutions.
• Digital aptitude: Digitally agile HR professionals are motivated to learn and experiment with digital ways of work. 
• Digital adoption: HR professionals who have developed digital agility (co) create an environment ready for digital adoption.

Digital agility is one of the five core HR competencies identified by the Academy to Innovate HR; the other four are Data Literacy, Business Acumen, People Advocacy, and Execution Excellence.

These core competencies form a solid foundation for every HR professional to build on and should, therefore, be part of HR’s skills starter kit. 

If we focus more on specific digital HR skills and technical skills, then there are a few more that come to mind: 

HRIS knowledge

As we saw earlier, the HRIS forms the backbone of a company’s digital HR. In today’s digital world, HR professionals must be familiar with and knowledgeable about an HRIS solution.

Knowledge of relevant HR software

Depending on your role within HR, you will need to know how to use specific software.

As a talent acquisition specialist, for example, you want to know how to use an Applicant Tracking System (ATS) and how to use different social media platforms.

As someone overseeing the organization’s talent management strategy, you want to familiarize yourself with Talent Management Software (TMS).

Cloud technology

Almost every HR software solution out there is cloud-based. This means that as an HR practitioner, you need to know how to operate a cloud-based HRIS, ATS, TMS, or LMS.

Prompting

Prompting is becoming an essential digital HR skill due to the growing use of generative AI-driven tools in work processes.

These tools rely on clear prompts for tasks like generating candidate outreach messages, creating onboarding plans, and analyzing employee feedback. HR professionals need to master prompting to ensure accurate outputs.

As AI tools evolve, effective prompting enables HR professionals to leverage advanced capabilities fully and strategically.

Digital HR trends

What does the future of digital HR look like? These key emerging digital HR trends will shape how HR works. 

Generative AI in HR 

In the future, generative AI will enable true HR business partnering. 

Until now, HR automation technology has mainly focused on highly repetitive and not very complex work. The issue is that a lot of work in HR is neither simple nor repetitive, and that’s where GenAI comes in.

For example, GenAI can assist in crafting personalized employee development plans, analyzing complex workforce data to provide actionable insights, and generating tailored communication for diverse employee needs. This enables HR to become a more strategic partner within the organization.

Personalized employee experience 

Employees today expect to have access to what they need when they need it at the tap of a screen. They want a personalized experience tailored to their needs. In many organizations, this is not yet the case.  

This is why there will be an increased focus on employee experience design, and HR technology will play an essential role in facilitating this.

AI bias awareness 

As the use of AI in HR continues to increase, so will people’s awareness of bias. In hiring, there are some examples of how AI bias has affected decision-making due to biased training data, algorithmic design, or biased human involvement. 

HR will have to mitigate AI bias as much as possible. This can be done using fairness-aware algorithms and improving overall data collection and human oversight.

HR chatbots and virtual assistants 

HR chatbots offer two main advantages. On the one hand, they save HR teams from answering frequently asked questions and providing commonly requested information.

On the other hand, they can significantly improve the employee experience by responding 24/7 to employee queries about, for example, leave policies or benefits.  

Therefore, it is no surprise that the HR chatbot market is expected to grow significantly between 2023 and 2030.

Automating onboarding tasks

Recent employee onboarding statistics show that HR practitioners see technology as the missing piece in their onboarding toolkit, with 68% planning on using it in the near future.  

According to the statistics, organizations with a formal onboarding process have a 50% higher retention rate than those without. This percentage increases by another 16% when specific onboarding tasks are automated. 

Thus, further automation of the onboarding process is likely to occur in the near future.

Digital HR certification 

Completing a digital HR certificate program will help you develop the skills, expertise, and experience needed to lead the digital transformation of HR in your organization. 

If you want to learn about the impact of digital on how, when, and where we work and how HR can capitalize on this to remain relevant and effective, AIHR’s Digital HR 2.0 Certificate Program can help you with this.

The program will teach you how to create a digital HR strategy that delivers an excellent employee experience and efficient HR service delivery.

You will learn:

• How to design effective and memorable employee experiences by applying design thinking methodology
• How to effectively implement digital projects, minimize resistance to change, and drive digital adoption
• How to analyze, optimize, and automate HR processes to increase efficiency and reduce errors
• How to develop the expertise to become a digital innovator and drive digital HR initiatives. 

The benefits of this program are:

• It is self-paced – you can learn when and where it suits you best
• Access to a global HR practitioners community to connect with peers and HR professionals from all over the world
• Real-world projects and case studies to develop practical skills
• Competency assessments that help you track your learning progress and fill your skills gaps
• Resource library full of templates, toolkits, and checklists to help you apply what you’ve learned in your work 
• Accredited, globally recognized education
• Your own personal coach who will be your point of contact at AIHR throughout the program.

FAQ

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In this article, we’ll explore what generative AI (artificial intelligence) in HR looks like, how it works, its impact on HR as a whole, generative AI tools for HR, and how to start integrating generative AI in your HR department. For a practical way to start leveraging AI, download our ChatGPT Prompts for HR Guide and get ready-to-use prompts to streamline your HR tasks today!

Contents
What is generative AI in HR?
How generative AI is used in HR
Top 5 generative AI tools for HR
5 generative AI in HR examples
How to start using generative AI in HR

What is generative AI in HR?

First, let’s explore generative AI and, specifically, what it means for HR. 

What is generative AI?

Generative AI is a subset of AI that primarily focuses on content creation, data analysis, and generating programming coding that mimics human-like creativity and output. 

Traditional AI mainly analyzes and processes existing data to make evidence-based decisions or predictions. Generative AI, on the other hand, produces new content through learning patterns and structures obtained from large datasets. This data can include text, images, videos, music, and more.

What is generative AI in HR?

Generative AI’s application can have significant implications for four main areas of HR:

1. Content: HR professionals can use generative AI tools to increase efficiency and value in various stages of employee life cycle — from creating engaging job descriptions based on skill profiles and writing personalized emails to job candidates to drafting HR policies and creating training content.
2. Data: Generative AI tools can summarize and extract key insights from data. For example, it can help HR analyze and aggregate performance ratings, salary data, and more.
3. Communication: Using generative AI chatbots, HR can improve employee engagement, increase access to the HR knowledge base, and offer individualized learning recommendations based on skills gaps. You can also use these chatbots to improve efficiency and the individual employee growth and development experience. 
4. Coding: You can also leverage generative AI to compile various data sources and analyze large datasets for organizational analysis and planning. Examples include determining the probability of attrition rates, identifying high-potential employees, and pinpointing future skills gaps. 

How does generative AI work? 

In a word, generative AI uses neural networks, which are systems inspired by the human brain. These networks are trained on large datasets to recognize patterns. They then use these patterns to generate new content.

For example, if trained on a large number of images, a generative AI can create new images that resemble the originals. Similarly, for text, it can write new paragraphs based on the style and structure of the text it has learned from.

How will generative AI impact HR?

Generative AI will have a major impact on HR as technology continues to evolve and businesses rely on it more. According to a Gartner survey, 76% of HR leaders believe their organization must adopt AI solutions within two years to ensure organizational success, while 38% have already explored or implemented such solutions to increase process efficiency. 

The more technological advances arise, the more administrative tasks will be automated. However, more administrative HR roles are at higher risk of replacement compared to less repetitive and more complex specialized roles. 

Generative AI holds much HR potential, including greater productivity. A LinkedIn survey suggested it could increase HR productivity by 30% while creating a more strategic and knowledgeable HR organization.

AI will reduce low-level administrative tasks, and many key roles—including HRBPs—will pivot toward storytelling and high-value insights that help drive the business forward. It will also streamline HR processes, including the use of language learning models (LLMs) to craft job descriptions, interview questions, and communication with candidates and employees.

How generative AI is used in HR

Recruitment and hiring 

Some applications, such as ChatGPT, can help create accurate and compelling job postings or generate customizable screening questions tailored to specific roles and candidate profiles for a more targeted and effective interview process.

HR and talent acquisition professionals can also use generative AI to draft various types of emails in the recruitment process, for example, outreach emails and rejection letters.

What’s more, some talent intelligence platforms are now incorporating generative AI functionality that enables you to search within their databases with a question instead of a complex Boolean search string. You can also analyze candidate profiles relative to the job descriptions of your vacancies.

Onboarding 

During onboarding, AI-powered chatbots can act as virtual onboarding assistants to provide new hires with real-time support, answering questions related to company policies, compensation and benefits, requesting leave, and other vital information. This support can enhance the onboarding experience and help new employees settle in more quickly.

Training and development

Combining generative AI and HR can positively impact employee growth and development. For example, generative AI can provide customized learning and development suggestions for employees by analyzing their skills, performance data, and career aspirations.

AI-based coaching is also growing in popularity. AI coaching tools can mimic the benefits of in-person, one-on-one coaching by offering employees real-time feedback, answering questions, and offering insights.

Generative AI technologies are also useful in updating and adapting training materials in accordance with industry requirements. This means learners have access to the latest content, and organizations remain compliant. Generative AI can also be used to create realistic, varied training simulations that operate dynamically based on user decisions. This would facilitate experiential learning and boost decision-making skills. 

Employee engagement

As an HR professional, you can use generative AI to brainstorm employee engagement survey questions that will allow you to gather actionable insights into how you can improve workplace satisfaction, enhance productivity, and address specific areas of concern within your organization.

You can use the already mentioned AI-powered chatbots to engage not only new but also existing employees. They can handle routine employee queries regarding essential company information (such as benefits and policies) and enable HR to offer employees more intuitive self-service applications. This gives HR professionals more time to spend on more valuable face-to-face interactions.

Policy and document generation

Generative AI for HR solutions can be immensely helpful in creating and updating policies and documents. It can help speed up document drafting, provide foundations for contracts and agreements, and accelerate research and writing by drafting documents based on company policy. At the same time, generative AI can help accurately complete forms, reducing typically tedious administrative tasks and paperwork for HR personnel.

HR data analysis

Generative AI can analyze large datasets and uncover key patterns. It can also create visually appealing data insights and images that convey complex information in a simple and engaging way.

An example of using generative AI for analyzing HR data would be looking at anonymized salary data for any trends and anomalies or exploring unusual patterns in employee attendance or performance, which may indicate potential issues that you need to address, such as dissatisfaction or poor management. You can also create scripts for more advanced data analysis with generative AI.

Internal communications 

Generative AI allows you to quickly generate content tailored to the organization’s and its employees’ needs. This includes determining a voice and tone that aligns with company values, personalizing messages to resonate with the individual, and using inclusive language. This helps HR ensure all communications across the business are consistent in tone, inclusivity, and engagement.

Gen AI can also customize messages based on factors like role, interests, location, and professional development stages. Whether you’re engaging with candidates or existing employees, generative AI can help ensure every aspect of your communication is deliberate and effective. 

Speeding up tasks 

If used properly, generative AI enables HR professionals to finish many tasks faster, freeing up a significant amount of time. This allows them to focus on more strategic and value-added activities such as employee development, talent management, and organizational planning. Not only does this help HR teams feel more valued and purposeful, but it also makes them more integral to business growth. 

HR tip

Invest in a course or training workshop to accelerate your AI knowledge if you want to learn more about leveraging popular generative AI tools like ChatGPT to increase HR productivity and business impact.

AIHR’s ChatGPT for HR online and entirely self-paced course is a great example of a practical application course to take.

Top 5 generative AI tools for HR

HR software providers are increasingly incorporating generative AI into their solutions. Here are some AI software and tools examples.

5 generative AI in HR examples

Let’s look at how companies are successfully applying generative AI in HR.

Example 1: Large transport & logistics company

A large company in logistics and services struggled with the scale of HR policy documents that were often difficult to understand. They needed an effective policy retrieval system that would reduce HR’s workload and boost efficiency.

Using generative AI, it created the HR Policy Document Query Assistant. The company used an LLM model to convert text from PDFs and simplify the content of policy documents. Advanced techniques and an orchestration framework (LangChain) improved the HR assistant’s intelligence and responsiveness,

The company saw a 30% decrease in HR queries and a 20% decrease in compliance-related incidents. This led to a more positive employee experience at work, time and cost savings, and improved compliance. 

Example 2:  RingCentral

RingCentral — a cloud comms and collaboration software business —  knew their talent search wasn’t fast enough to meet recruitment targets or DEI goals. Enter Findem’s talent search solution: a generative AI approach to deliver detailed talent insights and trends by combining external and internal data, and automating candidate matching and outreach. 

The advanced talent data cloud with attribute-based search enables RingCentral to find and hire the right talent and create highly targeted and diverse talent pools. They’re also able to gain insight into what could motivate each candidate to consider taking the job, then create targeted outreach campaigns based on their findings. 

RingCentral increased their pipeline by 40%, their pipeline quality by 22%, and increased interest in their vacancies from underrepresented groups by 40%.

Example 3: Manipal Health Enterprises

Manipal Health Enterprises wanted a solution that could provide 24/7 support to nurses, doctors and other employees for all their HR queries. Using Leena, MiPAL was born — a virtual assistant that automatically answers all queries relating to payroll, taxes, leave management, benefits, and more.

This has saved the HR team over 60,000 hours in time manually replying to repetitive questions, reduced the average response time for employees to 24 hours, and reduced the annual new hire attrition rate by up to 5%.

Example 4: Straits Interactive

Straits Interactive is an organization that creates data governance solutions. The company wanted to improve data privacy and governance. Before partnering with Foundry for AI by Rackspace (FAIR), their software helped users to access information relating to data privacy and summarize legal texts. However, trained data privacy experts were needed to interpret the output.

Using GenAI, FAIR created an AI-driven Data Protection Officer assistant to guide global data governance and compliance. Now, anytime anyone has a law-related question, the DPO assistant is available 24/7 to help, no matter how complex it may be. 

Example 5: Heluna Health

Heluna Health — a champion of public health and innovation — was struggling to communicate, collaborate, and engage with a workforce spread across a vast range of projects. By implementing CloudApper’s hrGPT, a personalized communication tool, Heluna Health could deliver targeted, customized messages and updates to specific groups of employees. 

hrGPT is able to mimic human interactions and engage in natural conversations with employees, which retains the quality of human touch without the need for actual human input. This helped improve communication and engagement across the company and create a stronger sense of belonging. Additionally, many HR tasks have been automated and the company has seen improved information consistency, and minimized delays.

How to start using generative AI in HR

Here are some best practices to familiarize yourself with before you begin using generative AI in your HR operations:

Step 1: Start small and experiment 

ChatGPT is one of the amazing free tools you can use to dip your toes into the world of generative AI. Try using it to brainstorm employee survey questions or interview questions, draft emails to candidates, or update a job description. This is a solid way to test the waters of gen AI and get familiar with it before making a significant investment into a generative AI tool.

Step 2: Learn how to prompt effectively

There are three key elements to keep in mind when creating a prompt for ChatGPT:

• Objective: The purpose of the prompt. It clarifies what you want to achieve with your query.
• Context: Any relevant background information that provides a framework for your query. This might involve specifying the topic or including necessary details that can guide the response.
• Format: Specifying any particular formatting requirements (e.g., list, essay, summary).

An example of a prompt would be “Draft a job description for the role of HR Administrator at Mastercard covering responsibilities and what we offer”. Enter different types of prompts for the same purpose to see which prompts result in the most suitable results.

Step 3: Evaluate and refine based on the AI outputs

It’s important to remember that generative AI is always evolving. Review the AI-generated responses, gain insights into the effectiveness of your queries, and identify areas for improvement in prompt crafting to get more accurate and relevant information.

Also, when using AI-generated content, lean on your own knowledge, expertise, and industry standards to assess the correctness of the outputs.

Step 4: Integrate AI gradually

Integrate AI into your workflow at a slow and steady pace. For example, you can start by using it to draft policy documents, then for a simple data analysis a week later. This approach will soften the learning curve for the whole HR team. 

Step 5: Always keep data privacy in mind

As discussed, data privacy is one of the primary concerns when sharing data with gen AI tools. HR professionals have a huge responsibility here, as they frequently deal with sensitive employee information. Ensure that you comply with data protection regulations and maintain confidentiality at all times.

As GenAI becomes more widely used within your HR department and the organization, consider developing a generative AI policy to guide how you work with technology.

Step 6: Collaborate with IT

The final step is to work with your IT team to better understand the technical aspects of GenAI tools. Not only will this help you integrate them properly into your existing HR software and systems, it will minimize technical issues and facilitate smooth operation.

To sum up

As generative AI continues to evolve, it will become an even more integral part of the work landscape. Stay ahead of the curve by implementing generative AI tools and software in your HR operations to help you reduce your team’s admin workload so they can spend more time on work that truly matters.

The post Generative AI in HR: Examples & How To Successfully Start Using AI appeared first on AIHR.

In this article, we take a closer look at the Human Resources Information System, share best practices for HRIS management, and provide ideas to take your HRIS analytics efforts to the next level. 

Let’s dive in! 

Contents
What is an HRIS?
HRIS vs HRMS vs HCM
HRIS functions
Benefits of an HRIS
HRIS examples
HRIS implementation in 6 steps
HRIS management best practices
How to get the most out of your HRIS data
The HRIS analyst role
HRIS certification
FAQ

What is an HRIS?

A Human Resources Information System, or HRIS, is a software solution that is used to collect, manage, store, and process an organization’s employee information. Essentially, HR teams use an HRIS to work more efficiently and make more data-driven decisions.

In most cases, an HR information system includes the basic features needed for end-to-end HR management. This system helps companies manage and automate core HR processes, such as: 

• Employee data management
• Benefits administration
• Payroll processing
• Time and attendance management
• Reporting and analytics
• Employee self-service

In the past, HRIS software used to be on-premise, meaning that it ran on the company’s own technical infrastructure. Nowadays, it’s almost always cloud-based, making it much easier to update, among other things.

HRIS vs HRMS vs HCM

The terms HRIS, HRMS, and HCM are often used interchangeably. And while there is some overlap in core HR areas that run on basic employee data, they aren’t the same thing. Rather, they build upon one another and offer increasingly sophisticated features as the company’s needs evolve.

Put simply, an HRIS offers basic data and workflow automation. An HR Management System (HRMS) offers all the functionalities of the HRIS and, on top of that:

• Recruiting & applicant tracking 
• Onboarding 
• Performance management
• Employee engagement

A Human Capital Management (HCM) system offers all the functionalities of the HRIS and the HRMS, as well as additional features. It offers a complete suite of HR applications to improve the employee experience and is focused on strategy and planning. 

As such, it usually includes: 

• Learning and development 
• Compensation management 
• Succession planning 
• Industry data and benchmarks 
• Advanced data & analytics 
• Business intelligence 

Bear in mind that the exact features and functionalities of an HRIS, HRMS, and HCM differ per provider. The ones listed in this article are just a basic example of what the different types of HR software can look like.

HRIS functions

Depending on the HRIS provider, the exact functionalities of the system will differ. For clarity and consistency, we will discuss the features listed in the section explaining what an HRIS is, which are the core HRIS functions.

Employee data management

Employee data management refers to the collecting, organizing, and storing of employee data and is arguably the number one feature of any HR information system and the reason why so many organizations use one.

It allows businesses to reduce paperwork, keep the information up to date, as well as enhance searchability and accessibility of information.

Benefits administration

Another feature of the Human Resources Information System is benefits management. Employee benefits are an essential aspect of compensation and are also managed in this system.

HRIS simplifies benefits management by automating enrollment processes and tracking employee eligibility. It serves as a centralized platform for managing various benefits plans and enables employees to easily access and modify their benefits selections.

Payroll processing

The payroll feature automates the pay process of an organization’s employees. Contractual data and information about new hires is often entered into this module of the system – sometimes combined with time and attendance data – and at the end of the month, payment orders are created. 

Time and attendance management

This module gathers time and attendance data from employees. These are especially relevant for shift workers who clock in and out. 

Back in the day – and as we’ve seen earlier, in some companies still today – employees often wrote down their working hours on a piece of paper. Their manager would then manually enter the data into a time-tracking system. Based on this data, payment orders were generated and paid to all employees. 

In today’s more digitalized work environment, workers often check into work by fingerprint or with a card synced with the company’s HRIS. This gives an exact time for people’s arrival and departure. Any issues with lateness can easily be detected.   

Reporting and analytics 

This feature enables the creation of automated HR reports on various topics like employee turnover, absence, performance, and more. Analytics involves the analysis of these insights for better-informed decision-making. 

Employee self-service

As we’ve mentioned above, companies are increasingly focusing on having employees and their direct supervisors manage their own data. 

Employees can, for example, request PTO themselves. Once approved, these requests are then immediately saved into the system (and registered to track for payroll and benefits purposes).

Benefits of an HRIS

Using an HRIS has multiple benefits for the organization, HR, and the employee.

Working with this kind of software typically becomes interesting when the company has between 30 to 50 employees. Managing the basic employee information in Excel becomes cumbersome at this point and simple procedures like approving employee time off need to be standardized.

Using an HRIS is especially beneficial for large organizations, which typically use more advanced HRIS systems to support different HR functions. Small businesses would suit a more basic HRIS.

Let’s look at some of the main benefits of working with an HRIS:

• Improved record-keeping: An HRIS is a record-keeping system that keeps track of changes to anything related to employees. As such, the HRIS can be seen as the single source of truth regarding personnel data.
• Compliance: Some employee data is collected and stored for compliance reasons. Think, for instance, of material for the identification of employees in case of theft, fraud, or other misbehaviors, first contact information in case of emergency, citizens identification information for the tax office, and expiration dates for mandatory certification. Organizations can store all this information in the HRIS. Data must be stored safely and securely, in line with GDPR regulations.
• Efficiency: Having all this information stored in one place benefits accuracy and saves time. Some companies still keep a lot of data about employees as physical paperwork. Finding the correct folder and locating the right sheet can take up a lot of staff time. In the US, for example, around 38% of employees still use paper timesheets and punch cards. In Canada, this is 58%.  
• HR strategy: The HRIS permits the tracking of data required to advance the HR and business strategy. We’ll discuss examples of how to leverage HRIS data later in this article. 
• Self-service HR: Another benefit of the HR information system is its ability to offer self-service HR to employees and managers. This enables employees to be more autonomous and manage (most of) their own affairs, like updating their information or requesting leave.
• An improved employee experience: When done right, the self-service opportunities and easy access to HR information that an HRIS offers can positively impact your digital employee experience and, with it, your overall EX.

HRIS examples

The HRIS software market is fiercely competitive. There are many vendors to choose from depending on your organization’s needs.

Gartner lists the most popular Human Capital Management suites for organizations with 1,000+ employees. These include:

• SAP SuccessFactors
• Workday
• Ceridian Dayforce
• Oracle
• UKG

Other well-known HRIS vendors for large companies are ADP, Cornerstone, and Cegid.

Examples of Human Resources Information Systems for small and medium-sized businesses include: 

• BambooHR
• Paycor
• TalentHR
• Zoho People 
• Personio

HRIS implementation in 6 steps

HRIS implementation is a complex process that involves not only a lot of research and multiple stakeholders but also requires a significant amount of change management.

We’ll have a look at a high-level, 6-step overview of the HRIS implementation process.

1. Search

Find out what your different stakeholders need from an HRIS. Based on these requirements – and after you’ve checked out our HRIS requirements checklist, you can shortlist potential providers.

You can then ask these providers for a proposal. Ideally, you’ve chosen a suitable HRIS provider at the end of this phase. 

2. Plan and align

In this phase, you select an implementation partner and create a steering committee and an implementation team. The steering committee usually consists of senior delegates from your chosen HRIS provider, the HR director from your organization, the internal project manager, and preferably a senior user from your business.

The implementation team’s primary responsibility is working on the day-to-day tasks that come out of the implementation.

3. Define and design

At this point, you need to specify your user groups and map out your processes and workflows. Define the functional and technical requirements for your HRIS infrastructure and security.

Also, note that you might need to build an integration between your HRIS and other existing systems during this phase. This is why it’s essential to have an HR Information System with integration capabilities to accommodate existing and future systems.  

4. Configure and test

In this phase, you need to create a core test team to test your new HR Information System and provide feedback for potential improvements. After this, you should also create a user acceptance test, where you can bring in a number of users to provide final feedback.

5. Train and communicate

Before the go-live, you will need to prepare training for your technical staff, a communication plan, a Frequently Asked Questions page, and other support documents. 

6. Deploy and sustain

Once all your support processes are in place, you can officially launch your HRIS. Remember to constantly collect feedback and update your training material in line with the evolving systems. Constant, accurate communication is key here.

HRIS management best practices

Once you’ve implemented your HRIS, you need to make sure that it continues serving its users effectively. Let’s take a look at some best practices for HRIS management. Think, for example, of: 

• Customization for organizational needs: Customize the HRIS to align with the specific needs and workflows of the organization, such as configuring fields, forms, and workflows to accommodate unique processes and reporting requirements. Some systems (and vendors) will allow for more customization than others. This is something to keep in mind and ask about when selecting providers. 
• Regular data maintenance: Implement regular data audits and clean-ups to ensure the accuracy and integrity of HRIS data, including employee records, payroll information, and performance evaluations.
• User training and support: Provide comprehensive training sessions and ongoing support to HRIS users to maximize utilization and ensure employees are proficient in using the system for tasks such as time tracking, benefits enrollment, and performance management.
  This, too, is something to be mindful of when selecting an HRIS provider. Ask them what support will look like once the system is fully implemented, i.e., will there be a dedicated person you can reach out to for support, or will you have to first talk to a chatbot or go through a customer service team?
• Continuous data security: Implement robust data security measures, including encryption protocols, user access controls, and regular security audits, to safeguard sensitive employee information stored within the HRIS from unauthorized access or breaches.
• Performance monitoring and optimization: Regularly monitor system performance metrics, such as response times and user satisfaction surveys, to identify areas for improvement and optimize system performance through enhancements or upgrades as needed.
• Regular system updates and maintenance: Stay current with system updates and patches provided by the HRIS vendor to ensure optimal system performance, access to new features, and compliance with evolving regulatory requirements. Regular maintenance tasks, such as database and system backups, should also be performed to prevent data loss and system downtime.

How to get the most out of your HRIS data

Beyond easier workforce administration, HR departments can (and should) leverage their HRIS data to create more proactive talent management and retention strategies. Here’s how:

• Integrate your HRIS with other relevant systems, such as performance management, learning management, and recruitment systems, to consolidate data and gain a comprehensive view of employee life cycle data.
• Use historical HRIS data to identify patterns and trends in employee turnover, engagement, and performance. Analyze factors contributing to turnover, such as tenure, job level, department, and performance ratings.
• Leverage HRIS insights to develop personalized interventions for at-risk employees, such as targeted training, career development opportunities, or adjustments to workload or job responsibilities.
• Encourage collaboration between HR and line managers in leveraging HRIS analytics for talent management and retention strategies. Provide managers access to relevant HRIS data and insights to support data-driven decision-making at the team level.

The HRIS analyst role

In terms of job functions, there is one role in particular that involves working with the organization’s HRIS a lot: the HRIS analyst.
The HRIS analyst occupies the unique position of being the IT and data expert in the HR field.

Other job roles related to HRIS are HRIS manager and HRIS specialist.

What does an HRIS analyst do?

The HRIS analyst provides support for the HRIS. This includes researching and resolving HRIS problems and liaising with other parts of the business, like finance and payroll. 

Analysts also generate standard and ad-hoc HRIS reports and improve HRIS processes. This means improving the employee experience using the system, coming up with user-friendly adjustments, and implementing new policies to be reflected in the system. 

However, in today’s work environment, knowing the basics of working with an HRIS is an essential skill for all HR employees. This is especially relevant in small and medium-sized organizations without a dedicated HRIS team.  

HRIS analyst salary

The expected HRIS analyst salary differs based on location and seniority.

For example, a junior HRIS analyst in New York (NY) will have a salary ranging between $49,000 and $84,000, with an average of $70,300, according to Payscale. An experienced HRIS analyst will earn somewhere between $64,000 and $108,000.

Ziprecruiter reports that the average annual pay for HRIS analysts in the U.S. is around $90,000.

HRIS certification

If you want to learn more about HRIS implementation and building and managing a digital HR strategy, we recommend looking into our Digital HR Certificate program, which will provide you with a solid understanding of these topics. 

Depending on the HR information system your organization uses, at least one person in the HR team (and IT department) will probably want to opt for a vendor-specific certification. 

People interested in specializing in HRIS systems may consider studying IT and HRM. It is useful for understanding the complexity and particularities of the system, while HRM helps understand the processes that the HRIS is supporting. 

Combining both enables you to make better decisions regarding system implementation and operation. 

FAQ

The post HRIS 101: All You Need To Know in 2025 appeared first on AIHR.

Contents
What is AI-based coaching?
Types of AI-based coaching
What are the benefits and limitations of AI-based coaching?
5 HR considerations for implementing AI-based coaching

What is AI-based coaching?

AI-based coaching is the use of artificial intelligence to support, enable, augment, complement, or take ownership of the coaching relationship. To get slightly more technical, researchers define AI in coaching as the “machine-assisted, systematic process of helping clients set professional goals and construct solutions to achieve them”.

As practical applications of AI in HR continue growing, so do challenges concerning bias, lack of transparency, and ethics. A case in point refers to New York City incorporating new legislation to regulate the use of AI within hiring practices. To overcome these challenges, we need to become familiar with the different uses of AI in HR to make the most of it in an effective and ethical way.

In our video series HR Dialogues, we discussed the future of coaching with Dr. Glenn Wallis from a business coaching company Exigence. See the full interview below:

Types of AI-based coaching

There are three different types of AI-based coaching based on the role AI plays in the coaching relationship. Let’s take a closer look at these.

AI-supported coaching

What is it? AI-supported coaching means that coach uses AI to gain insight into coaching needs and provide recommendations to inform the coaching relationship.

Example: A coach utilizes AI-based assessments and asks the coachee to engage with AI-driven tools to provide information to the coach. This data improves the quality and effectiveness of the coaching process.

Vendor example: Coachhub

AI-augmented coaching

What is it? AI-augmented coaching refers to the practice where coachees engage with AI-based tools between formal coaching engagements with a human coach. AI plays the role of a guide to promote further development and helps the coaching process continue beyond face-to-face sessions.

Example: A coachee engages with their coach once a month for a 90-minute session. In between, they access an AI-driven journey of developmental tasks that pushes content to the coachee based on assessments and priorities and tasks that their coach identified. The coach can also access these insights and uses the AI-driven journey to complement the human-led sessions.

Vendor example: Exigence, Centrical

AI-as-the-coach

What is it? AI-as-the-coach is a practice where AI is the coach and individuals only engage with AI. There is no or limited interaction with a human coach, and the coaching relationship sits between AI and the coachee.

Example: A coachee uses a recognized AI coaching system to improve their current level of self-awareness. 

We believe that “AI-as-the-coach” approaches will become more commonplace in the future with the development of AI tools with more advanced language generation capabilities. Still, the research on the effectiveness and ethics of “AI-as-the-coach” without human oversight is not yet conclusive.

Given the shortage of coaches and the increasing need for coaching services that are affordable and scalable, coaching will likely become more democratized in the future.

Vendor example: Coach Vici, Replika

What are the benefits and limitations of AI-based coaching?

All three applications of AI coaching have different benefits and limitations. It is essential to understand these when incorporating AI into your coaching practices.

When used effectively and in the right way, organizations can gain significant value from introducing AI-based coaching practices. But where do you start? And what guidelines can help you consider what is the right fit for your organization?

5 HR considerations for implementing AI-based coaching

We propose five considerations for HR to identify whether AI-based coaching is a good fit for your organization and how to approach it ethically and responsibly.

1: Clearly define the purpose of coaching and the scope

The first guideline is to be clear on the purpose of the coaching process, its scope, and its boundaries. Organizations can benefit from using AI for coaching objectives related to leadership development, personal growth, and performance, to mention a few examples.

AI is unsuitable for dealing with serious mental health challenges and should not, in any event, form part of your practice. Certified healthcare practitioners should always design and implement clinical matters interventions. While a certified healthcare professional could potentially benefit from AI support, AI should not be used for direct engagement with the coachee.

2: Consider the complexity and potential risk for harm

Once you’ve identified the purpose of the coaching engagement, evaluate the complexity and potential risk for harm.

Simply put, this refers to the potential risk to the coachee if something goes wrong with the AI interaction. A registered coach works from the perspective of “Do no harm”; yet this is not necessarily true for AI.  For example, dealing with mental wellbeing challenges poses a higher risk of potential harm than managing a career transition.  

Using these two criteria, the figure below helps you understand how and where to apply the three approaches.

• AI-as-the-coach is applicable in low-complexity and low-risk situations as it struggles to understand context and nuance. It is, however, effective in dealing with “narrow” and predictable situations. We see great applications of this practice for general developmental purposes for entry- or mid-level individuals.
• AI-augmented coaching is suitable for dealing with low/medium complexity and low/medium risk situations, given the oversight of a professional that complements the engagements with AI. This can be very useful for mid to senior-level general development.
• AI-supported coaching is best for dealing with high-complexity and high-risk situations, as the traditional oversight and principles will guide the coach/coachee relationship. The role of AI here is based on improving the quality of the coaching relationship through data and evidence-based practice. However, the limitation is that this approach is time-intensive and not scalable. Senior/executive-level coaching practices could benefit most from this approach.

3: Create the appropriate awareness, oversight, and controls

When using AI-based coaching approaches, it is crucial that all parties clearly understand how AI will be used as well as its limitations.

For example, the coachee needs to be aware of what data shared with the AI will be visible to the coach, how the data will be used to inform the coaching relationship, and the purpose of their interaction with the AI tool. Similarly, coachees need to understand how AI complements the relationship with the human coach and that the principles of maintaining clear boundaries, confidentiality, safety, and avoiding harm still apply. 

In addition to clearly defining roles, it is also essential to implement appropriate oversight and controls.

For instance, if an individual being coached by “AI-as-the-coach” expresses suicidal thoughts or discusses topics that require the expertise of a mental health professional, there has to be a mechanism in place that escalates this matter for intervention. This is similar to what organizations such as Meta use to identify keyword content that could require the attention of a healthcare practitioner on their platform.

4: Ensure using a recognized coaching model with transparency on what data is used

When deciding on an approach, you need to assess the credibility of the coaching models and frameworks. Considering the quality of the data that will be used to inform the coaching process is also key. Incorporating AI into coaching requires an understanding of the coaching model that the AI is drawing from to produce its responses.

When working with vendors, ensure that they are able to supply sufficient evidence of the coaching framework and approach used. They should also explain how these are integrated into the sources that the AI utilizes to learn and respond. 

Similarly, it is important to understand how AI utilization is validated over time. For example, how frequently does the vendor assess the quality of the AI responses?

In other words, to make an informed decision, you need to have confidence in the coaching approach and understand how AI works within its context. By assessing the credibility of models and frameworks, the quality of data, and the AI validation process, you can ensure that your coaching program is effective, efficient, and reliable.

5: Treat AI-based coaching as a complement to your other people development activities

Lastly, AI-based coaching needs to be incorporated into the organization’s larger development philosophy and activities. This sounds logical, but it becomes a lot trickier when we start evaluating the existing content and development paths within the organization.

At a minimum, you should be able to highlight how and where coaching is used in conjunction with other developmental activities. At best, the actual content should have a similar theoretical foundation to ensure consistency and alignment with your internal leadership and competency models.

As AI gets more advanced, this will become easier. However, for now, it is key to help coachees understand how AI-based coaching fits into the broader employee development plans and activities. When using AI-supported coaching, it is a good idea to brief the coach on the internal philosophies and how they can leverage those as part of the practice.

A final word

As we move forward, AI will start to play a more significant role in democratizing, scaling, and making coaching accessible to more people around the world.

By adopting a responsible approach to AI-based coaching, using it appropriately, and adhering to set guidelines when integrating it into wider people development practices, HR can capitalize on a valuable opportunity to bolster its impact on professional and career development.

The post AI-Based Coaching: 5 Considerations for HR appeared first on AIHR.