HR's relationship with technology

I’ve worked with HR directors and heads of L&D for the best part of 30 years. They are – hands down – the best people to work with. They are purpose-driven; they have energy and commitment in practically everything they do; they understand the importance of investing in learning, engagement and performance management; they are fun to be with, are passionate about community and collaboration, and are often the last to leave a party. But there’s one thing about them (sorry, massive generalisation) they aren’t so good at - numbers.

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Well, not all numbers. More the numbers that makeup business cases, in other words, money. One consultant I worked with described his HR client as ‘financially illiterate’. That may be harsh, but it’s an indicator of a problem that comes up again and again in my world of SaaS solutions: an inability to get agreement on investments in technology for HR and L&D.

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Gartner published a report recently that identified six factors slowing down or stopping investments in HR tech, two of which related to the ability to articulate value or recognise the importance of explaining the value to a broader stakeholder group:

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‘Less than half (43%) of HR software buying teams developed a business case based

on KPIs.’

‘Sixty per cent of the buying team participants are from outside the HR function.’

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The paradox for all of us in the tech sector is fundamental. HR and L&D have more groundbreaking tech available to them than any other business area. More than marketing, sales, and finance? Well, yes, because many of those areas have been benefiting from new tech solutions for years. It’s only been in the last five years that tech solutions have grown exponentially.

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In 2019, AWS published a report estimating the HR tech market alone at $8bn. It’s now said to be worth $40bn, representing hundreds, if not thousands, of products.

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So why is it so hard to adopt technology in HR and L&D? Well, as the Gartner report suggests, HR and L&D people may not be brilliant at articulating the ‘why’ and benefit of deploying technology in quantitative metrics. But here’s the thing: my dad used to say to me: ‘If you discover something you’re not too good at, seek out someone who is and ask for help.’ The quickest and smartest way to acquire skills for creating a business case for IT investment is to ask an FD or CFO for help. And unless they are a psychopath or sociopath, they’re likely to welcome you with open arms. And the double plus is that if you ask a CFO to help you build a business case for tech investment, guess what? They also become one of your biggest advocates, addressing Gartner's second point.

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HR and L&D have huge benefits to gain from deploying tech now – particularly now that AI is being applied in areas where, historically, spreadsheets and bits of paper tended to be the norm. If you think the time is right for investing in tech and you’re unsure you have the wherewithal to push it through, talk to your friendly CFO. What’s the worst that could happen? Failing that - talk to me!