The Digital Leap: Elevating HR Strategies with AI Solutions — 2024 HR Tech Series

The Digital Leap: Elevating HR Strategies with AI Solutions — 2024 HR Tech Series

Show Video

But we are also seeing on the generational  front, this is the first year that we've   seen Gen Z show up as part of the people who  responded to our survey, which means they're   either buyers or at least administrators of their  systems. And Gen Z. My son's a Gen Z and he's 24,   25. So we're at an age where we're starting to see  that generation get into the market as not just,   ooh, their employees, they're  now part of the buying community,   right? Which means they have a  say in it and a perspective on it. Welcome to Paychex THRIVE, a Business Podcast,  where you'll hear timely insights to help you   navigate marketplace dynamics and propel your  business forward. Here's your host, Gene Marks. Hey, everyone, and welcome to the second  episode of our four-part special series   on Paychex at HR Tech 2024. I'm Gene Marks  and I am so excited to share with you the  

latest insights right from the center of the  action with none other than our guest host,   Rob Parsons from Paychex. Rob dives deep into  the series and talks with leading analysts,   industry thought leaders, and Paychex partners.  And today we're thrilled to bring you an   enlightening conversation with Stacey Harris and  Cliff Stevenson from Sapient Insights Group. As   leaders in HR research, they share groundbreaking  insights into the latest trends and technologies   shaping the future of human resources.  So let's jump right in and hear from Rob. Hi, everyone. Welcome to the Paychex  THRIVE Podcast. I'm Rob Parsons,  

live from the show floor here at HR Tech  2024. I'm here today with Stacey Harris and   Cliff Stevenson from the Sapient Insights Group.  Stacey is the chief research officer and managing   partner of Sapient Insights Group, where she  oversees the industry research work, including   the esteemed Annual HR System Survey and White  Paper. Now on its 24th year, 27th, 27th year. 27th year. You can take three years off  our ages, not over a research report. Cliff is the director of research and  principal analyst at Sapient Insights   Group. He holds SPHR certification and  is a writer, researcher in management and   general business. And specialties include data  analysis, organizational design, compliance,  

human capital analytics, and innovation and  creativity. Cliff, Stacey, welcome to the podcast. Great to be back again. This is what I think  our third year now fourth, maybe third year. So, Cliff, Stacey, you're speaking a lot at  this year's conference. There's a lot going on.   How's it going, first of all? And then can you  give me some highlights what's been happening? Yeah, it's been a busy conference. Our feet are  sore. That's we all know that that happens. We had   some really great sessions. So, the first session  we did this year was actually done. by our CEO,  

Terry Zipper, and Daniel Booshan, who is one of  our clients at Sanofi, and they talked about data   governance. And that was a packed room, which  surprised us a bit because it's kind of a topic   that doesn't seem like it's going to pull in a  lot of people to kind of esoteric. But the room   was filled and so that was excellent. And then  the second session that we've done this year,  

which is our big reveal at the Annual  HR System Survey, we did the voice,   the customer focus. I had 20 minutes less than  I did last year, so I talked faster. But. And,   you know, Cliff could probably give a better  insight as to all that we were because I was   zipping through it. But it was really good to be  able to get a chance to share what the customers   are saying about the market and where it's at.  And there's been a lot of shake ups in the market,  

a lot of things going on, but a lot of focus on  what's beyond AI in the conversation. And then,   Cliff, we're going to be doing the next  session. You want to talk a little bit about it? Well, we are going to be talking about AI and  how that is being used in skills management. So,   skills management in the era of AI, in the age  of AI. And, you know, obviously we're going to be   talking about how AI is being used because for a  long time, for, I would say almost the last year,   the conversation about we have AI features.  We've got AI as if that solves the problem,   but it doesn't. Right. How do you apply AI  to the daily work that we're doing to solve  

business problems? And that's what we're  trying to get at. And I do want to mention,   you had 20 minutes less, but 20 minutes more  information. And one of the big sort of pops,   one of the times we noticed that one  taking pictures was from a moment when   you mentioned those that put AI into, you  know, their work had actually an increase in   business outcomes. It wasn't major, but  it does show that it is having an impact. It is showing it's having impact. And as we always  tell everybody the first year, it's interesting to   see it. What, you want to see this for several  years to make sure that it's statistically,   statistically significant, but we are starting  to see some outcomes from it, which is exciting.

That really is exciting. And it's. I like that  you brought up Cliff, that topic of skills and   AI. I feel like HR leaders, business leaders,  people implementing it have to think a little   differently. I mean, it's a different, it speaks  to the importance of data governance. Even,  

you know, garbage in, garbage out. What  did you see in the survey? What are you   seeing just out there around how HR leaders  and business leaders are having to adapt? Cliff, do you want to start with that. Yeah, I will. I think what, not just  the leaders, but the buyers, you know,   anyone that's in the market, that whole group  is really coming to understand the importance   of a true all in one platform. Now, I don't  mean that it's one platform does everything   we all know that doesn't exist. But those  that are able to unify the data from all of   these disparate inputs can get better outputs  because it is one system. There's fewer points  

of failure when you have that and when you can  have that sort of inbuilt data governance to go   along with hopefully your own processes to improve  the data governance, it's not just the tech then   you will get better uses of your AI because AI  can only be as good as the data that powers it.   It's not a system on its own. Right. It's just  the. The data is the fuel. Yes. There we go. Yeah. And I think the thing that we're calling  that kind of picture is more of a platform   cluster. Not best of breed, not enterprise. Right.  But all in one kind of solution, but a platform   cluster, which means you're kind of siloing the  key things that are important to your company,   getting a few key systems, and then you're making  sure you're working within the marketplaces.   Right. The partners that that organization  has. Right. And that really seems to be making  

difference in outcomes. We always tell people  no one vendor does any different or better than   others. I know they all would like us to tell.  Right. But they really don't because companies use   them all differently. Right. So the most important  thing is how are you sort of integrating that with  

all the other things you're doing and that sort  of cluster of data flow and making it easier   to access? And so that's been an interesting  thing to start to see in the data. It's not,   it's more about how you set up your tech  stack than what tech stack you have almost. So are buyers leading that charge understanding  the tech stack and setting it up differently?   Or is it really the realities  of how technology is evolving,   the workplace is evolving,  and they have to adjust? I think it could be a push pull. I know it seems  like an easy answer, but the buyers and the   current users, they're finding that they're not,  or they are being able to solve business problems,   and then they go back to the solution  providers that they're working with and say,   we need this, or they're going to move. So,  the market is going to react to that. So,  

we are seeing those that are also from the  solution provider side that are saying, okay,   let's get ahead of that. Let's not wait till  that ultimatum and let's move. So, I think if   you're a buyer and you're looking at that, look  at those that are kind of ahead of the game who   are thinking not just solving your current  needs, but what you might see in the future. Yeah. Roadmaps are really  important to ask about, right? Yes.

How is the workforce itself impacting  technology and technology choices? We know   it's multigenerational. We know millennials have  different expectations. They were digital first.   Gen Z is coming online. Gen Alpha's right around  the corner. Did your research reveal any of that? It had some interesting insight. Do  you want to go ahead? You can tell. No, no. This is such a big one. If this were like  pro wrestling, this would be the big pop that she   got from the announcement yesterday. And correct  me if I'm wrong, you're usually the one that has   all this top of your head. Over 58% of people  that are in charge of their HR systems, you know,  

that's their role. Charge of the HR systems have  been in that role for less than three years. Wow. So, it's not so much generational, it's in  tenure of experience. So that's affecting   a lot of how they approach, use,  and ask for systems out there. And it's also pushing a need for more services  because they need more guidance. It's pushing  

a need for more education because they expect to  get more from their vendors around, helping them   understand, because they just aren't hiring people  with that skill sets. They're not available. Right, right. But we are also seeing on the generational front,  this is the first year that we've seen Gen Z show   up as part of the people who responded to our  survey, which means they're either buyers or   at least administrators of their systems.  And Gen Z. My son's a Gen Z, and he's 24,   25. So we're at an age where we're starting to see  that generation get into the market as not just,   ooh, their employees. They're now part of the  buying community. Which means they have a say in   it and a perspective on it. And that's really, you  know, something that's, I think, an interesting  

conversation to have, which is different than just  what is Gen Z looking for to be hired. It's also   what is Gen Z looking for their own career  growth. And that's starting to come in line. That's. That's super interesting. A lot of times  we talk about succession planning, career growth,   and HR is never included in that conversation.  They're just supposed to think about it,   but it's never there for them. But what did  the survey reveal about what HR leaders are  

expecting or where they're trying  to go or what they're trying to do? Yeah. As you mentioned, Stacey, obviously  services is important and taking a holistic   view. And so even when it's something like AI, I  do think, think that this new generation is very   good about how does this help me solve a business  problem? And I think that's what they're looking   at more than anything else. It's not one thing,  it's not one service. They're not going, oh,   wow, what a huge jump in any one area.  Although skills has become still part   of the big conversation that kind of maybe  got subsumed a little bit while they talk,   but it's more, okay, what does this  do? We've been talking about? That's   how you become strategically minded, think in  terms of outcomes. And I think that's become  

a little more intrinsic in this younger  generation and a little more understood. It is. And I think for their own personal growth  in the HR space, we are seeing a distinct,   we call it the HR and it tug of war, right?  Because for a long time, and executives for small   businesses sort of sit in that middle ground,  right? So, if they have someone who oversees IT,   then they're and have someone who sees overseas  HR deciding who owns the technology around each   of those things is important. What's happening  as companies get bigger is that the IT function   who used to say, well, HR owns its stuff, I  own all the systems and operations and email.   And you know that those two things are actually  being, they're pulling more and saying, look,   I need to have oversight of all the cloud systems,  for the data structure, for the governance nature,   saying, well, wait a minute, don't touch my IT  or my HR technology budget. And they've got a   valid point in that because it gives them more  overview of what's happening. So, I do think  

we're going to see a lot more from a growth in  our own careers is HR is going to have to get   more it savvy so they can make the case that  they should own their own budget, but also it   is going to have to become more partner modeled  instead of mandated model. Right. And so, I think   those two things are going to have to go hand in  hand as the growth of individuals in this space. I love that, Stacey, because I think for  so long it's been part of the HR mindset.   We were both practitioners of, like,  what does HR need to do? And it's like,   maybe somebody else needs to finally.  Maybe. Maybe it needs to become a   little more people savvy rather than  us become just all on our shoulders.

Exactly. I think that's so interesting because we know  engagement is a huge deal. You know, we talk   about we got to find the good people, we've got to  keep the good people, and we've got to have them   engaged and productive while they're here. All  the tools I interact with when I'm at work impact  

that. It's not just an HR problem. It's not just  an IT problem. What are you seeing with technology   in terms of impacting engagement and what are  they leveraging? How are they making that happen? I think we're seeing it in actually the spending  dollars right now. So, one of the things we do   every year is we ask people, what are your plans  for investing in more HR technology? And then we   can split that by size of company and SMBs under  500. Their spending is very much on what we'd   call the talent centric solutions. So, a lot of  focus on learning, on recruiting, on performance  

management. They're also investing more in  benefits, and they're also investing more in   rewards and recognition. So that shows you that.  I think they're really focusing on that employee   experience in a way that we maybe haven't seen  as much because it's just been fundamentally get   the basics done. Right. But I think they're  now realizing that there can competing with   everyone. Right. They're going to have to have  some more of that. We're still seeing some of   that in the larger companies. Right. But it's,  they're shifting a lot more to getting their   architectures in place, and they've got a lot of  a mess. This is a place where SMBs actually are  

in a better position to some extent than the  big guys because they don't have as much. So,   getting it all together now isn't as hard. They  just got to make sure they don't create more of   a too many systems while they're going through and  getting more systems for the employee engagement.

But they can be more nimble,  they can be more flexible. Yeah, absolutely. Did I leave you nothing to answer? I'm always amazed by that. As  I said, she could always pull  

these off the top of her head, to  be fair. You're just giving them. I did just give the keynote. Yeah. Yeah. Well, Cliff, I'll give one to you.  Where are you seeing technology   being the most powerful lever? Where am I?  If I need to make the biggest impact quickly   or right away, where should I be putting  my dollars? Where should I be thinking? Obviously, and this isn't just me trying to  waffle out of the question. It will depend on your   industry and what business outcomes you're trying  to look at. But going back to what you said,   how can I affect that employee experience? It  does not have to be a sort of start to finish   project. I'm going to improve engagement,  improve employee experience. How do I build  

that into the day-to-day tactical activities? If  anything good came out of that 2020 dark times,   right, it's that we really started thinking about  where do we really have our touch points with our   employees? And that's going to be different  depending on your work from how you clock in.   Could be a point of engagement and a point  of activity for building that experience. It   could be how something written on your paycheck.  There's so many little touch points. You shouldn't   think in terms of, this is a strategic activity  and this is a tactical activity. Anything can   become strategic if you bring that right mindset.  So, I think when you're looking at technology,  

don't think about the specific type. Right. It's  not going to be your recruitment software. It's   going to be the type that you get and  how you build that into your processes. I love that. That makes so much sense.  I'm going to put you on the spot again,  

though. I love a top three list, and you guys  can split it if you want. You can each give   a top three. If I want to be a real talent-first  organization, you know, like you were touching on,   what are the top three things I should do if I  really want to be people first? Talent first? I think, and I know that now I'm going to,  I'm reversing the spot over to you. We did  

some actual, you know, we tried not to get  too unreadable and too nerdy in our report,   but we did do some correlations and those  that are aligned with, with being more   strategically minded HR organization. And  one thing that we've found is this is more   of a don't do so like a bottom three. One I  know is if you're only focused on compliance,   right. If you are buying with just that in  mind, if you're sort of playing defense,   if you're just thinking, I just need to make  sure that I'm regulatory compliant, that is   extremely important. But if that's all you're  doing, that will not succeed because you are not   thinking in terms of, again, the future of what  you're doing. So, you probably know it's 0.126.

That's a really good point, is that the other  thing we found at that same time is things   like how important mobile was. And for SMBs,  not spending too much time on just payroll,   make sure you outsource some of that  stuff. I think those are all just ways   to get things off your plate so you can  make sure that you're focused on that   employee experience. Right. And the talent.  And I would say there's three things every   organization does. They're starting to move  into that talent space, move into what we call  

more of a best practices or organizational  model around building out best practices. Proven practices even in certain cases. Well, and we're heading towards proven practices  in the research that we do. There's really,  

one is learning. You have to figure out how your  organization approaches development and how your   organization's learning platform works. It can't  be a compliance-based learning platform. It has to   be a learning platform that provides some view  into where they could go, not just what they   need today. I think the second thing is, is that  they've really got to focus on recruiting in the  

terms of making sure you can recruit internally as  well as recruit externally. For small businesses,   that's a little easier because you know more  of the people. But I do think oftentimes we   overlook the people in our, in our own because  we're afraid of losing them in their skill sets.   And so really figuring out what would it take  to replace that person if they want to move up,   because that's much more likely to keep the  person. And then the third thing I think is  

workforce management. And then time and  attendance doesn't seem like it's a real   tactical or it seems like it's more tactical  and not a big talent management thing, but we   find people are... time and attendance, touches  everyone. How you track, how you track projects,   how you track things. If you treat that not  just as a task or a thing they have to get done,  

but you treat that more as, hey, I'm  doing this because I'm trying to find   out how best to structure the work or how  to help make your work environment better,   or how to create an environment where you're  going to have opportunities to do more,   then I think that's a much better conversation.  And I think it leads them in a place where, oh,   I'm not just filling out timecards because  you're asking me to, but I'm filling this   out because it's going to mean something for  me. And you show them the data back. Yeah. You're showing how they're moving towards a goal.

Yes. Yeah. I know one of the buzzwords  a few years ago was gamification. Yeah. But it is still that idea of give them a  visual or any sort of cue that this is all   part of something. You are part of something.  Again, something that came out of 2020 a lot   is people are feeling isolated. So how do  I make them feel part of a grand movement,  

as part of a community. And that could be  done. Yes, exactly. As time management. Yeah. Great answers. Great answers. Okay,  last question. Crystal ball time. So, we did the whole thing, and the  keynote was, we can tell the future   because our data does have forward looking.  And I had a great t-shirt on that was like   a crystal ball fortune teller. Don't  have it on, but pull a picture of it.

So, it's 2027-2020-2028-2029  we're here at HR Tech. You're finally 30. Thank you. What is the big trend? What are we  seeing? What's the next big thing   or the most interesting thing that  we should be looking forward to? I think we're going to see as, and I think  that this doesn't necessarily require the data,   although it is in there, because we're starting  to see some companies come up. It is becoming   harder and harder to tell the difference, I think,  between HR tech and productivity tools. Work tech.  

We are even talking about how we structure our  inputs of data and our surveys and our outputs,   because if you just look around the floor,  you know, you want to use some anecdotal   evidence. There's everything from server racks  to stakes here because it all falls into that   employee experience could mean so many different  things to so many people. See big companies that   traditionally you don't associate with HR, they're  here, they're part of it. And at the same time,   those that maybe used to just be thought of, I  don't know, let's say just a payroll company. Wow,  

they do so much. And, you know, it's like, oh,  okay, well, then if we're talking about where   to meet someone at their work, well, that's  everywhere. Right. That's as you're going in,   as you're communicating, as an email. Is email  an HR tool? You know, and that sort of thing. I   think in 2029, it's going to be very hard  to tell exactly like what is the answer. And I think kind of adding on to that, one of the  things that we're going to see is because data is   so important, it's becoming more important, and  everybody wants to have AI help them. I think   what we're going to see a lot more of is more  environmental data gathering tools. That's going  

to be a way where people don't have to feed it  in, but it's getting it and not from the internet.   I'm not a big scrape the internet, because I  think there's a lot of junk on the internet,   but more realistic things. We're in our work  environment, we're filling out information anyways   in certain places so that it just automatically  captures it. Where it knows who's in a room and   it knows what meetings you've scheduled, and it  knows what tools you've sort of put in place. Just  

doing that kind of environmental scan so that  you don't have to re explain everything when   you're going into these environments. I think  that's going to be really big in a few years. Yeah, it's tremendous. Yeah. Stacey, Cliff, great insights as  always. I love it. I love it. I love it.

Always good to come and talk to you and let's  hope we can get back here again to next year.  There you go. There's a prediction in 2029, we'll be chatting  and just as wonderful as ever. This is amazing,   by the way. I don't know if this is  going to get picked up on camera,   but there's a Sapient Insights fingernail and I   did not notice it before. I thought  I had enough pink or corporate pink,   but this is amazing. You have to come in person  if you're not here. It is for those at home.

Fantastic. Well, thank you to our listeners. If  you want to learn more about Sapient Insights   Group and the research, we'll drop a link in the  show notes for you to connect to. Thank you so   much for joining the podcast today and listening  as always. Please stay happy and healthy. Thanks for joining us for this special episode  of THRIVE. What a great interview with Stacey  

and Cliff from Sapient Insights. You won't  want to miss the next two episodes in this   series for more valuable HR technology. And  I be sure to check back here on Thursday for   your Week In Review episode with me, Gene  Marks. We will see you then. Take care.   Do you have a topic or a guest that you  would like to hear on thrive? Please let   us know. Visit payx.me/thrivetopics and send  us your ideas or matters of interest. Also,   if your business is looking to simplify your  HR, payroll, benefits or insurance services,   see how Paychex can help. Visit the resource  hub at paychex.com/worx. That's W-O-R-X. Paychex   can help manage those complexities while you  focus on all the ways you want your business to   thrive. I'm your host, Gene Marks, and thanks  for joining us. Until next time, take care.

This podcast is property of Paychex,  Inc. 2024. All rights reserved.

2024-10-19 06:38

Show Video

Other news

20 Future Technologies That Will Change the World 2025-02-09 15:58
Google's Quantum AI Is Actually Mind-blowing 2025-02-09 16:23
10 Amazing Facts About Tech & Science in the Baroque Era [The Well-Tempered Cast] 2025-02-08 23:39