How businesses are using tech in 2023

In 2023, companies are utilising tech across many business functions to streamline processes.

ELMO Software discussed some of the key trends in the 2023 HR Industry Benchmark Report, in partnership with the Australian HR Institute (AHRI).

Data and HR

According to ELMO, HR leaders are relying more on data, as there is an increase in professionals using metrics to make decisions.

In 2021, 27 per cent of HR professionals were using data in decision making. In 2023, that figure rose to 33 per cent. Similarly, in 2021 just 5 per cent were tracking HR metrics and analysing historical data to make decisions. That figure jumped to 33 per cent in 2023.

Recruitment

HR departments are relying heavily on technology to assist with recruitment.

According to the report, 96 per cent of HR professionals have or are in the process of implementing an applicant tracking system. These systems automate repetitive manual tasks and streamline the recruitment process.

This could be influencing the effectiveness of internal recruitment, as 38 per cent said their internal recruitment was excellent. This is up from just 14 per cent who answered the same in 2022.

Onboarding

ELMO revealed that onboarding is a high priority for 46 per cent of HR leaders. With this in mind, plenty are turning to technology to make the process simpler and more effective.

The report found that 51 per cent have fully implemented onboarding technology, up 2 percentage points from 2022. Meanwhile, 46 per cent are in the process, up from 44 per cent in 2022. Just 2 per cent aren’t considering implementing this tech at all, proving it is a popular consideration for hiring teams.

Performance management

The number one challenge facing performance management was manual processes, according to the report.

It is unsurprising then that 46 per cent of respondents have introduced performance management technology to their workplace. Meanwhile, 51 per cent are in the process of implementing, and just 2 per cent aren’t considering it at all.

ELMO said it’s an important system to have as it offers a better experience for everyone involved and reduces the burden of manual processes. Respondents agree, as 90 per cent agree tech is important for dealing with performance management in 2023.

Remuneration

HR professionals were confident in their remuneration processes, with 97 per cent rating them positively.

Technology used was fairly common, with 46 per cent having fully implemented remuneration tech, and 49 per cent in the process. Just 3 per cent aren’t considering implementation at all.

According to the report, large companies are much more likely to have remuneration tech, “where managing the salaries of 2,000-plus employees becomes almost impossible without a digital tool in place. In fact, there were zero respondents from enterprise businesses who said they were not considering implementing remuneration technology.”

Payroll

Technology is assisting HR leaders in dealing with payroll challenges. ELMO found that 44 per cent of respondents used payroll software at their company.

Those who implemented systems were more likely to understand legislative procedures, had better flexibility, and had an easier time managing things like rosters, attendance, and time.

Companies who used this software had fewer errors too. The payroll error rate for those with software was 3.7 per cent. Those without was up to 5 per cent.

“It’s not so much that payroll has increased in complexity; it is more about the need for payroll professionals to understand the complexity. Now that Single Touch Payroll (Phase 2) is sharing the data with other government agencies, the requirement for accurate reporting has become paramount,” said Simone Dixon, ELMO’s compliance manager.

Payroll processes have improved, with 38 per cent rating theirs as excellent, up from 21 per cent last year. A total of 88 per cent had a positive payroll experience.

To read ELMO Software’s full 2023 HR Industry Benchmark Report, click here.