State of Digital Maturity of HR Functions: Leena AI’s Survey 2022

Leena AI, an innovative technology solution that’s transforming the employee experience, launched a report on the ‘2022 – State of Digital Maturity of HR Functions’.

The survey sheds light on the current state of digital maturity of HR functions across various regions, industries, and sizes of organizations in the US. With the onset of the pandemic, digital transformation has become one of the top priorities for organizations. It has further turned into a huge gas pedal for workforce and workplace transformation.

User Experience (of employees) as a business dimension is integral to a business’s success. As per the report, HR leaders across different industries and sizes scored the overall Digital maturity of their respective departments as 3.8. The report further goes on to analyze the digital maturity of HR processes i.e. Talent Acquisition, Employee Onboarding, HR Service Delivery, and Employee Engagement, across various sectors including Manufacturing, Retail, Tourism, Communications, BFSI, and the Media & Entertainment industry.

Talent acquisition: frontrunner for tech adoption!

Digital maturity of TA (Talent Acquisition) processes is a crucial factor in an organization’s ability to attract top talent.

  • The TA process appears to be the most digitally mature for the Media and Entertainment industry, and the least for the BFSI Industry.
  • Retail and Tourism Industries are most agile in implementing digital transformation initiatives.
  • The BFSI industry is still emphasizing cloud and mobile-friendliness in their TA process.

Employee onboarding adjusts to pandemic-related demand

Over the past 2+ years, organizations across all sizes – from SMEs and startups to enterprises with 10,000+ employees – have each been undergoing an operational transformation. In this scenario, the future of employee onboarding has emerged as a process of focus.

  • The BFSI industry is still on the verge of implementing digital transformation initiatives for their Employee Onboarding processes.
  • The Media & Entertainment Industry leads in digital advancement across the levers for Employee Onboarding processes.

Digitally mature is the way forward

It is evident that the pandemic has accelerated digital transformation across most industries. However, though a majority of organizations in the US ensure they are on the path of digital maturity, a large number still don’t have a strong hold on the technological front.

  • Technology as a business dimension is a key factor dragging mid-size organizations from becoming digitally mature.
  • While HR departments of medium-size organizations are leading the digital maturity game on the Organization & Culture front, their user experience is a key factor dragging them down.
  • HR service delivery appears to be most digitally mature for the Retail Industry and the least for the Communication industry.
  • The Retail industry with an overall score of 4 is truly living through digital transformation.
  • User experience is the key inhibitor in the Manufacturing Media & Entertainment industries making it the least digitally mature in their HR department.
  • The communications Travel & Tourism industries appear to be least inclined towards technology, which drags down their overall digital maturity.
  • Matured operations play a significant role in making Travel Tourism and CPG industries more digitally mature.
  • Retail and Tourism Industries are most agile in implementing digital transformation initiatives.

Adit Jain, Co-founder, and CEO, of Leena AI, commented, “The Covid-19 pandemic accelerated the way businesses function across all fronts, including HR. We are now living amidst a digital age suffused with existing and emerging technologies. Organizations are at a pivotal moment, where they have the opportunity to establish their way forward, in terms of digital transformation. That said, digital transformation in itself is not an outcome, it is a process. While many organizations are still in the nascent stages, some have not even begun their journey. Our report on the State of Digital Maturity of HR Processes in the US has demonstrated how essential and foundational technology is to employee experience. This is the right time for organizations to take one step forward.”

Methodology: The survey was conducted across the US. More than 400 HR decision-makers fully employed at a company with a minimum of 1000+ employees, with the title of AVP and above, participated in the survey.

digital transformationinnovationPandemictechnology
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