Only 1 in 10 Organizations Fully Unlock the Power of HR Tech - New Study by HR Research Institute

Despite rising investments in HR technology, most organizations still struggle to implement AI-enhanced and fully integrated systems that drive business strategy and innovation, according to the newly released research report, HR.com’s State of Today’s HR Technology and Integrations 2025.

In fact, only 10% of HR professionals rate their organization’s HR technology as being at an "expert" level of maturity. There are various factors that impede success. These include:

• Lack of alignment between HR systems and broader business goals

• Lack of system integrations

• Inadequate budgets

• Difficulty accessing accurate, actionable data

Despite these challenges, 60% of organizations have increased HR tech investments over the past two years, with continued growth anticipated.

Key priorities for HR technology moving forward:

• Expanding employee self-service (54%)

• Improving user experience (50%)

• Integrating AI capabilities (39%)

• Enhancing data quality (38%)

AI is expected to play a major role in the near future, with organizations aiming to use it to:

• Boost HR productivity (77%)

• Automate repetitive tasks (71%)

• Improve workforce analytics (57%)

"HR leaders are investing in technology, but without strategic alignment and full integration, these tools fall short of their potential,” said Debbie McGrath, CEO and Chief Instigator at HR.com. “Fragmented systems and siloed data continue to be major roadblocks.”

REPORT DOWNLOAD

The recording of the research webcast presentation, How Technologies Give HR More Superpowers in 2025, is available for viewing 24/7 on demand.

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The HR Research Institute (HRRI) helps you keep your finger on the pulse of HR! Powered by HR.com, the world’s largest HR community, the HRRI identifies key trends and best practices to help more than 2 million HR professionals and their organizations make strategic decisions with informed and insightful research findings. Among the most productive and respected HR research institutes globally, the HRRI publishes dozens of high-quality reports every year across a wide array of HR topics. HR.com’s free membership offers many benefits, including access to over 250 exclusive primary research, state-of-the-industry reports, and infographics. These resources are published based on surveys developed with the assistance of a panel of thought leaders and industry experts on the advisory boards. Visit hr.com/hrresearchinstitute to maximize your HR potential.

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