Thrive in The Future of HR Technology with AMS

Mar 05, 2024


Digitization is moving into every function of human resources. Though lagging behind some other industries, HR digital transformation is now the norm. The goal is to balance the principles of a people-first culture with fiscal discipline.

Luckily, technology has opened the door to many improvements. These include efficiency, better compliance, and enriched communication across the board.

But what is the current state of technology in HR? Where is it heading? As the CHRO of your organization, the future of technology in HR should be a primary focus. If not, you could fall behind your competitors, who are already driving success.

Technology Is Closing Its HR Gap

As of 2023, about 58% of companies used HR technology for employee management. That’s changing thanks to enhanced solutions, including out-of-the-box and custom-built products. As a CHRO, technology is your problem and your opportunity. Knowing when and how to invest is the critical balancing act you need to master.

Across the board, technology is the largest investment HR investors plan to make in 2024. Achieving a high return on investment (ROI) by carefully balancing investment and performance is not only possible but crucial. This balance is paramount for companies hesitant to allocate funds for new software because of economic unpredictability and the swift pace of technological advancements.

How HR Technology Is Becoming a Commodity

A CHRO should find HR technology to be a refreshing asset that streamlines day-to-day tasks. It can also provide better insights and tools for future human capital development, including

  • data-driven insights into daily operations,
  • streamlined processes that save time and money. and
  • enhanced employee experiences, reduced turnover, and happy employees.

That’s a lot to expect of software technology, yet the latest solutions deliver by leaps and bounds. Consider, for example, that human resources grew to become less of a siloed administrative function and more integrated into every part of the organization, including its people, customers, and community. For that to occur, HR teams must be able to juggle many hats and seamlessly fill various roles across the industry. According to Deloitte, the new, boundaryless industry will depend on high-quality HR technology.

What does HR technology truly offer?

HR technology improves organizational efficiency in multiple ways. Diverse and customizable solutions provide new ways to communicate and connect with employees. This helps organizations save in multiple ways. As a CHRO leader that adopts the right HR strategies, the potential benefits include:

  • improved compliance management with employment laws and other related regulations,
  • more efficient payroll processing with more features and better results,
  • automated time and attendance tracking to reduce workloads,
  • improved employee data record keeping, and
  • faster and more effective employee communications.

In one Paychex Pulse of HR Survey, leaders in the field plan to invest in technology to enhance training and skill building to boost employee productivity. It will also focus on improving employee experience and retention across the industry.

In each of these areas, two factors drive adoption: ease of implementation and use and having hands-on data in a format they can use.

We can't discuss HR technology growth without considering artificial intelligence. A 2023 Gartner benchmarking survey found that 52% of HR leaders are looking for ways to adopt AI at some level, not to replace people but to improve outcomes.

How Can HR Teams Improve Their Technical Skills, Including AI?

As a CHRO, an enormous obstacle in your mind may be the obvious question: “Do my employees have the skills to take on these new technologies and tools, or will I have to invest in training first?” The continued development of digital transformation in HR and other industries has long been thought to face limitations because of gaps in employee skills.

Yet, today’s HR solutions are easy to learn. They implement quickly and build on the core tech skills that most employees have today. Still, you must consider the skills you need to build your HR team.

To build technical skills, including AI, your organization needs to start with an assessment to find the skills gaps. With many technology-enabled learning tools available, it’s easy for any HR team to build out those skill gaps, helping create a robust organization that maximizes the use of HR expertise.

How Application Management Providers Are Moving Beyond Commoditization

Aren’t all software tools the same? From the CHRO's point of view, there are similarities across the board, but application management services providers are creating ways to expand their portfolios.

Commoditization is a genuine concern when you look at surface-level, out-of-the-box solutions. They're still effective for maintenance and support, but today's AMS customers are pursuing more. They need strategic partnerships to help them navigate the challenges and volatility of today's business environment.

AMS providers are rising to the occasion by expanding their capabilities in six ways.

1. A Transformation Focus

The relationship is changing from a service-provider model to a partnership that enables business growth, improves customer experience, and ensures constant availability. Key areas of expansion are cloud services, cloud integrations, and DevOps.

2. Partnership Models

A collaborative relationship focuses on business performance using outcome measures rather than process metrics. This will include joint planning, business goals alignment, and shared accountability.

3. Customized Engagement Delivery

Instead of defined service levels, operators are individually tailoring solutions for individual client needs.

4. Innovative Pricing

Providers now offer outcome-based pricing, subscription-based models, and pay-per-use contracts.

5. Governance

Emphasis on transparency provides visibility into performance and outcomes, enabling AMS providers to orchestrate the tech stack more effectively.

6. Immediate Capability

Rapid onboarding, seamless transition, and immediate impact are becoming critical for client satisfaction.

Future HR Tech Will Change Your Business

Ultimately, the future of HR tech will have more human-centric benefits. This will include using AI and faster adoption of new compliance and risk mitigation strategies. As a CHRO, you'll need to stay ahead of the game and ensure your AMS partners are future-ready and adaptable.

Yet, amidst these technological triumphs, we don't want to lose sight of the human-centric focus that remains at the heart of HR. Artificial intelligence isn't just a buzzword but a tool to harness better compliance strategies and swifter adoptions. The challenge for today's CHRO is not just to keep pace but to sprint ahead—anticipating shifts, adapting with agility, and making strategic decisions that will pave the path to the future.

Be the steward of this transformation. Engage with partners ready to build a dynamic, adaptable landscape for your HR needs.



About Pixentia

Pixentia is a full-service technology company dedicated to helping clients solve business problems, improve the capability of their people, and achieve better results.

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