A new report from Strada and ISG highlights the transformative impact of modern Human Capital Management solutions on HR operations. Organizations that have adopted HCM platforms, particularly those using Workday HCM, report significant improvements, including a 500% surge in AI and machine learning usage and a 44% increase in data-driven decision-making. This study, which surveyed 190 global companies, demonstrates the real-world benefits of HCM transformation in optimizing HR functions.
Insights from the Report:
Measurable Improvements with HCM Transformation:
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500% Increase in AI and Machine Learning Usage: HR teams now leverage AI for enhanced automation, analytics, and decision-making.
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66% Growth in System Integration: Streamlined connectivity between HR tools, improving workflow efficiency.
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55% Boost in Process Automation: Routine HR tasks are now automated, saving time and reducing manual errors.
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49% Reduction in Complex HR Processes: Streamlined workflows have made HR processes easier to manage.
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44% Rise in Data-Driven Decision-Making: HR teams rely more on data insights for strategic planning and talent management.
Success Factors for HCM Transformation:
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Simplified Processes: Organizations that achieved the best outcomes began by standardizing and streamlining HR processes.
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Best-Practice Configuration: Using industry-proven configurations helped maximize the effectiveness of HCM platforms.
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Modern Operating Models: Companies adopted future-ready models that support business growth and agility.
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Significant Ease in HR Operations: Post-deployment, the percentage of companies describing their processes as “easy” rose from 12% to 45%.
The Role of Automation and AI:
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Increased Automation Levels: The proportion of “mostly automated” processes nearly doubled, rising from 25% to 45%.
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Enhanced Digital Skills: 90% of organizations have focused on upskilling their teams in AI and machine learning.
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Continued Barriers to AI Adoption: Despite progress, 68% of companies still use AI and ML only “rarely” or “sometimes.”
Expert Insights:
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Sean Campbell, Strategic Advisor at Strada: Emphasized that HCM success begins with strong foundations effective configurations and modern operating models.
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Gaurang Pagdi, Principal Analyst at ISG: Highlighted that HCM transformation is about enabling HR to drive business growth and workforce engagement.
The Path Forward:
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Overcoming AI Adoption Challenges: Organizations must address data security concerns, build trust in AI insights, and enhance internal expertise.
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Continuous Learning: Companies should prioritize ongoing skill development in AI, machine learning, and data analytics.
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Strategic HR Leadership: HR professionals who leverage data and automation will be best positioned to lead the future of work.
The Strada and ISG report demonstrates that modern HCM transformation is not just about technology it’s about reshaping HR to drive business growth, improve employee experiences, and unlock workforce potential. As organizations continue their digital journey, those that embrace automation, data-driven decisions, and continuous learning will lead the way in the evolving HR landscape.
