[Global] Top investment priorities for HR in 2023

According to new research, investment in HR technology has emerged as top of HR leaders' list of priorities this year, HRD reports.

Findings from Gartner revealed that, of the 118 HR leaders surveyed, 46 per cent plan to increase the budget for HR technology in 2023. This is the second year in a row that HR tech investment is the highest level of priority for HR leaders.

The significant investment is reportedly due to growing costs in HR administration following pandemic-related tasks such as vaccine mandates, remote work arrangements and contact-tracing programmes.

"Our research shows yearly spend on HR administration increased from $155 per employee in 2021 to $194 per employee in 2022," Seyda Berger-Böcker - director in the Gartner HR practice said in a statement. 

"This is alarming considering HR functions have been trying to reduce the burden of administrative tasks through the use of technology."

Other investment priorities for HR leaders

The research showed that HR leaders are also trying to increase the budget for the following:

• Staffing and recruiting (45 per cent)
• Total rewards (41 per cent)
• Learning and development (41 per cent)
• Diversity, equity, and inclusion (36 per cent)
• Talent analytics (33 per cent)
• Talent management (31 per cent)
• Organisation development (27 per cent)
• Payroll and employee administration (23 per cent)

According to Gartner, total rewards ranked higher on this year's list than last year. It attributed the cause to the challenge for HR leaders to offer support to staff amid rising costs of living.

Gartner said total rewards would involve further investment in "compensation planning technologies, pay equity tools, or smart wearable technology to monitor employee stress and fitness levels."

The research findings come after 72 per cent of HR leaders previously agreed that cost of living increases are stressing out employees, according to a study from Reward Gateway.

"Total rewards strategies must holistically support employees as people – not just as workers – which includes physical and mental well-being," Hanne Nieberg - director in the Gartner HR practice - said.

Source: HRD

(Links and quotes via original reporting) 

According to new research, investment in HR technology has emerged as top of HR leaders' list of priorities this year, HRD reports.

Findings from Gartner revealed that, of the 118 HR leaders surveyed, 46 per cent plan to increase the budget for HR technology in 2023. This is the second year in a row that HR tech investment is the highest level of priority for HR leaders.

The significant investment is reportedly due to growing costs in HR administration following pandemic-related tasks such as vaccine mandates, remote work arrangements and contact-tracing programmes.

"Our research shows yearly spend on HR administration increased from $155 per employee in 2021 to $194 per employee in 2022," Seyda Berger-Böcker - director in the Gartner HR practice said in a statement. 

"This is alarming considering HR functions have been trying to reduce the burden of administrative tasks through the use of technology."

Other investment priorities for HR leaders

The research showed that HR leaders are also trying to increase the budget for the following:

• Staffing and recruiting (45 per cent)
• Total rewards (41 per cent)
• Learning and development (41 per cent)
• Diversity, equity, and inclusion (36 per cent)
• Talent analytics (33 per cent)
• Talent management (31 per cent)
• Organisation development (27 per cent)
• Payroll and employee administration (23 per cent)

According to Gartner, total rewards ranked higher on this year's list than last year. It attributed the cause to the challenge for HR leaders to offer support to staff amid rising costs of living.

Gartner said total rewards would involve further investment in "compensation planning technologies, pay equity tools, or smart wearable technology to monitor employee stress and fitness levels."

The research findings come after 72 per cent of HR leaders previously agreed that cost of living increases are stressing out employees, according to a study from Reward Gateway.

"Total rewards strategies must holistically support employees as people – not just as workers – which includes physical and mental well-being," Hanne Nieberg - director in the Gartner HR practice - said.

Source: HRD

(Links and quotes via original reporting)