Technology has proven to be a key factor in the performance of companies.

More and more companies across Europe are continuing to fully digitize their internal processes, which were accelerated by COVID-19. However, there is still a percentage of organizations that have only taken a partial leap or have made no changes at all. How does digitization affect a company's performance?

Technology has proven to be a key factor in the performance of companies. The latest HR Study by Personio, the leading Human Resources software company for small and medium-sized businesses in Europe, reveals that 66% of executives consider it necessary for their business to be more efficient and productive.

But how can this be achieved?

The study, which surveyed 500 HR managers and 250 executives in Spain, shows that the vast majority of executives (70%) are open to the power of AI and believe it will have a significant impact on making their HR department more efficient. Recent widespread access to ChatGPT and other AI technologies has changed not only the way we think but also the way we work. In fact, 72% of executives intend to incorporate AI for HR within the next five years.

According to a previous study by Personio, 40% of Spanish employees spend at least 2 hours on administrative tasks such as hiring, managing absences, or accessing information. In this regard, HR automation frees up time for teams and employees by turning routine and repetitive tasks into processes that can be completed with a single click. These tasks include report generation, candidate tracking and searching, onboarding and offboarding, performance management, time tracking, and payroll processing.

The use of specialized digital software and tools not only saves time and resources but also reduces the possibility of errors and allows HR professionals to focus on strategic and higher-value tasks. In fact, 73% of HR managers already say they need more technology to keep up with data demands.

Every delay is a missed opportunity, and currently, 69% of HR managers say that keeping up with HR developments is a challenge. Therefore, an all-in-one HR software like Personio helps companies connect tools and teams, promoting maximum labor productivity and higher-quality people data for more informed decisions.

Digitalization in the field of HR benefits not only HR departments but also employees themselves. The implementation of management software promotes employee autonomy, increases transparency, and streamlines internal processes, improving the workplace experience and thus becoming a present-day necessity.

HR digitization should be a task of the present — even the past — and not the future. Process automation, real-time information access, and improved employee experience are some of the advantages it offers. With a 'administration-only' setup, it is almost impossible for HR to reinforce its role as a key strategic partner. Although administrative tasks still need to be processed, HR automation can handle them, leaving teams the time they need to focus on more strategic activities related to people, explains Angelina Gentili, Head of People Operations at Personio.