To understand how automation affects human resources, HR automation statistics can help us shed a light on it.
Is it helping to save money, is it making employees more productive, and how many companies are already using AI? Moreover, do HR professionals believe in the importance of automation?
To find out about these matters, continue reading this article!
Let’s get started!
Key HR Automation Statistics
- 38% of companies are already using AI in the workplace.
- 77% of companies think automation will result in better jobs.
- By 2022, 47% of companies will utilize AI in HR.
- 51% of companies use AI to save money.
- Only 5 out of 21 HR functions could not be improved by automation.
26 HR Automation Statistics
1. Almost four in 1o companies (38%) are already using AI in their workplace.
While almost four in 10 companies (38%) were already using AI in their workplace in 2017, the remaining 62% were expecting to start using it in 2017 at the earliest. Moreover, to automate time-consuming tasks, companies are using recruitment automation software in HR.
Source: Personnel Today
2. 33% of companies expect people to do more human jobs with the increase of AI and robotics.
Once companies start using robotics and artificial intelligence, 33% expect that employees will be able to concentrate on more human tasks. For instance, automation and robotics will take over the repetitive tasks so that employees can focus on other, more meaningful tasks.
3. 77% of companies believe automation will result in better jobs.
While 20% see automation as a reason for job reductions, 77% believe that with automation, better jobs will be available for humans. Moreover, 50% of companies are planning to retrain their workers to work alongside the machines.
4. By 2020, employers predicted 17% of work to be automated.
When it comes to getting work automated, 17% of work is estimated to be automated by 2020, according to 17% of employers who took part in a study by Willis Towers Watson. According to that, in 2021 the real number might be even larger.
Source: Willis Towers Watson
5. Almost half of the companies (47%) have HR software older than seven years.
For almost half of the companies (47%) that took part in a Deloitte study in 2014, the human resource information system (HRIS) was older than seven years. Moreover, HRIS is software with the company’s repository of data on employees. With the help of HRIS, human resource management can conduct core HR processes.
6. More than four in 10 companies (45%) are only in the early stages of automation.
According to the High Impact Human Resources research by Josh Bersin, almost half of the companies (45%) are still in the early, basic stages of automation. This research is from 2017, so things have ought to have changed by now.
Source: Josh Bersin
7. For 67% of companies, the top benefit of AI for recruiting and hiring is saving time.
The top benefit of AI in recruiting and hiring is saving time, for 67% of companies. Moreover, 43% say AI in hiring and recruiting helps them remove bias. Moreover, 31% use it to get the best candidate match, and 30% also say it saves them money.
8. Around 36% of HR professionals cite insufficient technology as a reason the onboarding programs are not effective and the inability to automate.
According to a Kronos study from 2018, 36% of HR professionals blame their inability to automate and to create effective onboarding programs on insufficient technology. Furthermore, this also means that companies are unable to give managers proper training through onboarding programs.
9. HR managers lose 14 hours a week manually completing tasks that could be automated.
A CareerBuilder study from 2017 found out that HR managers lose around 14 hours per week on average completing tasks that could be automated. Moreover, 28% waste more than 2o hours and 11% spend over 30 hours on such tasks.
10. Out of all the tasks in the HR department, 56% can be automated with existing technology.
The human resources department could easily focus on doing more complex tasks if they automated all the tasks that can be automated. For instance, a McKinsey study shows that 56% of the tasks in the HR department can be automated.
11. By replacing paper processes with an automated workflow, a medical company saved $4,000 every month.
A Gravity Flow study found that a medical company saved every month by replacing paper processes with an automated workflow. In detail, they managed to generate $4,000 in cost savings every month by ditching paper processes and, instead, working with automation.
Source: Gravity Flow
12. In HR, 47% of companies will utilize AI-based solutions by 2022.
While 17% of companies already use AI-based solutions in HR, the number is estimated to go up in the future. By 2022, 47% of companies should be using AI-based solutions in HR.
13. Almost six in 10 companies that use AI in HR, use it to improve the employee experience.
With the help of AI, companies can make more money. However, it can also help improve employee experience, another important component of a successful business. For instance, if artificial intelligence is used to deal with repetitive tasks, employee experience will be enhanced. How? Employees will have more time to focus on more engaging work. Finally, 57% of companies that use AI in HR also improve the employee experience.
14. In 2019, 57% of HR departments expected to invest more in AI in the following five years.
When it comes to using AI in HR, 57% of HR departments reported they would invest more in it in the following five years after 2019 when the KPMG research study found this. The study interviewed 1200 professionals about the use of AI in HR.
15. 76% of recruiters believe that AI will play a key role in HR in the upcoming years.
According to a KPMG study from 2019, 76% of recruiters agreed that artificial intelligence will play a key role in HR in the upcoming years. This is a good enough indication to tell companies that it will be important to work towards automation in HR.
16. Only 14% of HR departments invested in AI prior to 2019.
The majority of HR professionals believe AI has an important role, but not many have dared to invest in it before 2019. For instance, a KPMG study found that only 14% of HR departments invested in AI before 2019.
17. More than half of companies (51%) use AI to save money.
According to Gartner, 51% of companies use AI to save costs. Also, not only does it save money, but artificial intelligence also helps companies automate repetitive tasks.
18. Only 7% of HR managers think a robot could do their jobs.
Over one-third of HR managers (35%) said the thought of AI in HR makes them nervous. On the other hand, for the rest of them, this is not the case. Yet, only 7% of HR managers think a robot could do their jobs.
19. 57% of companies do not use an applicant tracking system due to costs.
When asked about whether they use an applicant tracking system (ATS), many companies said they do not. Moreover, when asked about reasons for not using ATS, 57% of companies said the main reason were costs. Usually, ATS helps companies control the whole hiring process in a single application.
Source: Finances Online
20. Half of today’s work can be automated.
According to McKinsey, half of today’s work that people are paid to do could be automated with the technologies we have available. However, only about 5% of occupations can be fully automated.
21. Only 5 out of 21 HR functions could not be improved by automation.
According to a study from KPMG in 2018, most of the HR functions could be improved by automation. In fact, only 5 out of 21 HR functions could not be improved by automation.
22. 98% of organizations have a payroll software solution that automates repetitive payroll tasks, at least partially.
According to a survey by Sierra, 98% of small and big companies have a payroll software solution. This payroll software automates repetitive payroll tasks, at least partially to help companies out.
23. More than four in 10 recruiters think AI will aid their jobs.
Around 43% of recruiters think artificial intelligence will make their jobs better and easier, according to Jobvite. With the help of AI, recruiters can store huge amounts of data generated through applicants and their applications, making their work easier.
24. Almost one-third of companies have completely automated at least one process.
McKinsey’s findings from 2020 tell us that 31% of organizations have already automated at least one process in their business. Moreover, 66% of companies reported they are increasing automation efforts.
25. For 74% of leaders automation saved 11-30% of employees’ time on manual processes.
According to Salesforce, 74% of leaders agree that automation helped save their employees’ time. Furthermore, they identified that it saved 11% to 30% of the time employees previously spent on these manual processes.
26. Nine in 1o companies believe automating tasks in their organizations has its advantages.
Around 90% of companies believe that automation of tasks has its advantages. Moreover, 48% of them say it reduces manual errors, 42% believe it speeds up the time needed to complete a task, and 38% say it results in a better quality work product.
Source: WorkMarket/KRC Research
To sum everything up, HR automation statistics tell us about the important role automation has in human resources and how it is developing over the years. Also, we can find out about the advantage and benefits of HR automation and the use of artificial intelligence. Finally, HR statistics and HR technology statistics can tell us more about the state of the industry and how HR uses technology.