3 out of 4 business professionals believe AI and HR function will coexist, reveals Keka’s Report

AI, Digital Transformation

More than 90% of Human Resource practitioners voiced their concerns about the ethical implications of AI in HR according to a recent survey of Keka, a leading HR Tech platform. The survey was conducted to understand the changing landscape of Human Resources and based on the survey Keka launched a report titled, HRs as Change Agents 2023 shedding light on the insights, challenges, and strategies HR professionals need to embrace in today’s dynamic market.

The report underscores the worries of over 90% of respondents about artificial intelligence ethics in HR, particularly issues of privacy and bias. It remains a prominent concern for HR professionals navigating this transformative landscape. Amid the predominant ethical concerns about AI in HR, 3 out of 4 business professionals believe AI and the HR function will coexist.

Key findings from the report further revealed that 32% of professionals believe more understanding of people analytics among HR professionals is needed to improve their ability to present persuasive cases to organisational leaders. Additionally, it is observed that 25% of organisations predominantly utilise people analytics for recruitment and 21% for employee engagement. And overall 55% of respondents believe that their people analytics endeavors are somewhat effective indicating that challenges persist.

The report further introduces the People Well-being Compass, an assessment tool that measures
emotional, mental, physical, and social well-being within organisations. It also highlights concerns about
pay parity within HR functions, with 54% of respondents perceiving a pay gap.

In terms of strategy, the report emphasises the pivotal role of HR professionals in cultivating business acumen, aligning HR objectives with overall business goals, and fostering employee retention. It also highlights that only 30% of business professionals believe that HR actively engages in business discussions, with 75% finding it challenging for them to acquire business acumen. The report introduces the concept of HR acumen fabrics, which includes aspects like financial literacy and market awareness.

The report also identifies significant challenges in employee retention, including competitive compensation (31%), a lack of career development opportunities (18%), and maintaining a positive organisational culture.

Vijay Yalamanchili, Founder and CEO of Keka, said, “Empowering HR professionals with technology and insights is at the core of Keka's vision. This report is a testament to our commitment to providing HR
professionals with the knowledge and tools they need to navigate the ever-evolving HR landscape. It discusses the importance of aligning HR values with business goals and institutionalising purpose throughout the organisation. Further, this report contains advice for HR professionals to build trust, assess passion, and explore options when working with others.

The report suggests that HR professionals can enhance their business acumen through cross-functional projects, mentorship, workshops, conferences, online courses, certifications, and reading industry publications. Finally, the report emphasises the importance of aligning efforts with the objectives and key results (OKR) of the functional head, sharing wins, and staying ahead of changes to anticipate economic shifts, industry trends, or technological advancements.

As for factors that contribute to making work fulfilling, 31% of HR professionals believe opportunities for growth and advancement are the most important. Apart from this, burnout of HRs is another significant concern, believe the business professionals. Around 85% of them said HR burnout has a more severe impact on organisations than burnout of any other employee. Further, they assert that being not valued enough is the primary cause of burnout among HR professionals.

Keka’s HRs as Change Agents, 2023 report has been divided into three core themes – Technology, Strategy, and Workplace – and provides invaluable insights and statistics into the evolving role of HR professionals in the modern business landscape. Of the total participants, over 80% of the respondents are actively working as human resources professionals out of which 30% are HR managers and 20% HR heads. Other respondents include founders, CEOs, directors, business professionals, and students.

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