Understanding why businesses are hesitant to adopt high technologies.
More than half of Russian companies find it difficult to assess the impact of HR automation. A recent study by the HRtech platform Jinn indicates that HR automation is progressing very slowly. Let`s look at the results of this research, which covered companies from 13 sectors including IT, finance, retail, construction, industry, telecom, education, transport, medicine, consulting, services, and even the public sector.
It turns out that 94% of small and medium-sized businesses face difficulties implementing digital tools in HR. One might think everyone is already using AI, right? The main barriers are insufficient budget and resources within HR teams, as well as a lack of digital competencies, even among IT companies and businesses in the fintech sector.
According to the study, a surprising 20% of Russian companies have not yet automated any HR process! This is true even for companies with over 500 employees. Even large market players are not undertaking a simultaneous setup of many processes, preferring a phased approach to automation.
Over the next year, the surveyed companies plan to prioritize digitalizing `onboarding,` followed by performance evaluation and training. Individual development plans and employee goal setting will be addressed as a second priority.
Furthermore, 11% of respondents state their intention to postpone the implementation of digital tools until 2026. The key reasons cited for this decision are lack of budget for HR automation (37%), insufficient digital competencies among HR specialists (34%), lack of labor resources (25%), absence of methodological knowledge (17%), and low awareness of existing HR automation platforms on the market (16%).
HR Digitalization Maturity by Sector
The most mature sectors in HR digitalization are: finance (43% of companies are at a mature stage), IT (35%), and telecom (33%).
The lowest level of automation process maturity is found in: manufacturing (0%), education (11%), services (12%), and medicine (17%).
The main barrier to modern digitalization is not technology itself, but budget and HR team resources. Entrepreneurs are willing to allocate these only after a clear argument is made for the impact of digital platforms on achieving business objectives.
