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This article was originally posted in Dutch on Hans Mangelschots' LinkedIn.
The ultimate Digital Employee Experience aims to enhance the Employer Brand by attracting, hiring, supporting, developing, valuing, and retaining talent through an engaging experience, insights, and analysis. However, research suggests that many companies have yet to fully realize the potential of digital HR solutions.
In 2021
According to Delaware's research, HR was not initially a leader in digitization, with only 50% of companies using digital "employee files." The fragmentation of HR technology posed a challenge for policy, focusing more on existing processes rather than optimization through digital solutions. Other findings from the study include:
45% of companies were working on digital projects, with only 15% fully implemented.
69% felt that both staff and HR were not ready for AI.
30% engaged in daily reporting or dashboarding.
SD Worx's research from the same year indicated that 37% of companies considered themselves digitally mature, 30% achieved only moderate digitization, and 25% felt a need for urgent improvement. Payroll was reported as the most digitized function in 2021. Other findings included:
30% of companies considered themselves highly advanced in transactional digitization.
Recruitment & Selection were the least digitized.
At the European level, only 25% focused on employee-related digitization (EX, self-service, engagement, well-being), with Ireland and Poland surprisingly leading in this area.
In 2022
Acerta's post-corona research found that 31% of companies increased their investment in HR digitization during and after the pandemic compared to before. Meanwhile, 34% planned to invest more in the coming years, suggesting Belgium is lagging behind. Key results included:
Top three investment areas: time tracking, expense management, and performance management.
7.9% valued employee well-being as worth the investment (40% had a well-being policy).
8.3% were willing to digitize the learning process, with a lack of vision in training and development plans cited as a possible cause of low investment.
SD Worx's 2022 data showed that 59% of companies focused on digitizing all HR processes, but 53% of employees under 35 and 47% overall felt that workplace digitization still needed improvement. Other findings:
27.6% of employees found fully digital compensation acceptable.
65.5% preferred a human approach to learning new skills.
On average, 20% of employees under 25 supported fully digital HR processes and support.
In 2023
The latest SD Worx research shows that 66% of Dutch companies use cloud technology for payroll, compared to just 30% in Belgium, which lacks mobile-friendly access for employees and self-service (despite 95% of employees owning a smartphone). Positive trends include:
72% plan to further digitize, focusing on training employees in digital experiences (33%), introducing new products or services (32%), and effectively digitizing the workplace (37%).
However, 39% of employees struggled with general digitization, and 57% expected the most innovative digital applications at work, while 45% believed employers still had a long way to go for optimal digital experiences.
In the meanwhile, another new technology became trending and top of mind at most businesses: generative ai.
Research from Workday: AI Adoption Trends in 2023
Workday's study, titled "Preparing to Power Up: EMEA Leads the Way to an AI-Driven Future," reveals that while more than half of Dutch leaders welcome AI and ML, there are notable differences in adoption rates and perceived benefits among C-level executives. Key findings include:
Optimism and Investment: 56% of Dutch leaders embrace AI and ML opportunities, compared to 50% in the US. Austria (62%) and the UK (60%) are leading in AI and ML enthusiasm, while Norway (40%), Denmark (44%), and Germany (45%) are less enthusiastic. EMEA organizations are investing an average of 17% of their annual budget in AI and ML, with 42% investing over 20%.
Role-Specific Adoption:
CEOs: 53% of CEOs in EMEA are supportive of using AI and ML but are concerned about potential errors these technologies might introduce.
CFOs: Finance teams are the front runners in implementing these technologies. 19% of CFOs report their teams are scaling or have matured in AI use, nearly three times higher than their American counterparts (7%).
HR Leaders: HR shows the slowest adoption of AI. While 44% of HR leaders are enthusiastic about AI's potential, 49% have yet to start its adoption.
IT Leaders: 51% of IT leaders believe AI and ML will enhance their ability to support other teams and provide more strategic value, indicating a positive cultural shift towards these technologies.
Challenges: Data silos and bureaucracy are significant barriers. 60% of EMEA organizations report data is stored in silos, complicating real-time access to actionable insights. Only 34% of Dutch organizations have made substantial progress in reducing bureaucratic hurdles that delay decision-making.
Pro tip: Maryjo Charbonnier, Chief Human Resources Officer at Kyndryl, emphasizes that AI and ML should not be standalone tools but integrated into business, culture, and HR strategies.Conclusion
It is striking that by 2021, companies believed they had found all the digital HR solutions while still lacking knowledge in HR Analytics and digitization. Often, the wrong profiles were involved or there was a lack of comprehensive focus, raising questions about the process of selecting digital HR solutions.
While 72% of Belgian companies are digitalizing and seeking new technologies—leaving room for self-service, gamification, and artificial intelligence—the choice of solutions was not always well-informed. With over 1,700 digital HR solution providers worldwide, including more than 670 in the Benelux, the challenge is substantial. Employee satisfaction with digital experiences remains mixed.
As the market evolves and new technologies outpace old ones, the gap between HR challenges and solutions may be narrowing, but the process remains complex and costly. The risk is that sub optimal choices are made, leading to internal hires for validation and persistently low employee satisfaction.
As highlighted by the research, aligning needs and expectations with innovative HR solutions is still a work in progress. Business decisions made without thorough internal and external research can result in high costs. A customer-focused approach benefits all parties involved.
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