HR leaders turn to AI for employee wellbeing focus

New research from aconso has revealed a shift among HR leaders towards employing AI and automation to alleviate pressing challenges while focusing on employee-centric initiatives.

Increasing workloads, limited budgets, and a more complex workforce are prompting HR teams to embrace technology, thus freeing up time to enhance employee wellbeing, engagement, and satisfaction.

The research highlights that nearly 72% of senior HR professionals intend to enhance their use of technology, such as AI and automation, to improve efficiency and reallocate resources towards initiatives centered around employee experience.

The integration of AI and automation in routine HR processes is already underway, with 99% of HR leaders having incorporated these technologies. This enables HR teams to concentrate on strategic efforts that are employee-focused.

A significant 60% of HR leaders recognise automation as a pivotal tool that reduces administrative burdens, thereby allowing more time for wellbeing and mental health programmes.

Despite these technological advancements, 43% of HR leaders feel constrained by limited resources in fully addressing employee burnout and stress.

Generational diversity and the emergence of Gen Z are adding layers of complexity to HR tasks, a sentiment shared by 55% of HR leaders. Balancing these demands with the growing necessity to prioritise employee wellbeing has rendered AI and automation essential.

The report, "From Manual to Meaningful: Unlocking HR's Potential Through AI and Digital Transformation," surveyed 650 global senior HR leaders and found that 69% of respondents identify employee wellbeing, mental health, and stress as a top priority for the coming three to five years.

Although there is a strong inclination to enhance the employee experience, financial constraints remain. While 56% of HR leaders view employee wellbeing as a critical long-term consideration, 72% feel constrained by limited budgets and resources. These constraints, coupled with organisational change pressures, have led to low morale, with 41% of senior HR leaders struggling to manage their own work-life balance.

As a result, 43% of HR leaders report being unable to fully mitigate the effects of employee burnout and stress, highlighting a pressing need for more robust support and resources.

The complexities of today's workforce are further intensified by the evolution of remote and hybrid work models and increasing workforce diversity, identified by 50% and 51% of respondents respectively.

More than half of HR leaders (55%) express that managing multigenerational teams has considerably increased workload complexities.

To address these challenges, HR leaders are shifting their focus to investing in AI and automation to handle routine tasks more efficiently and concentrate on employee-centric initiatives.

Nearly three-quarters (72%) of senior HR leaders plan to expand their use of technology to boost efficiency, enabling more investment in employee experience programmes. This transition is crucial as 69% of respondents often divert resources from employee-focused initiatives to address urgent change-related business tasks.

With 99% of senior HR officials already adopting AI and automation, the emphasis lies on automating routine processes, allowing teams to invest in initiatives that bolster employee wellbeing, engagement, and long-term satisfaction.

Automation is regarded as a game-changer by 60% of HR leaders, reducing administrative tasks significantly, thus enabling HR teams to focus on more valuable employee programmes.

Ulrich Jaenicke, Co-founder and CEO of aconso, commented, "The findings highlight the growing recognition that a thriving workplace and sustainable business relies on supporting employees' emotional health, fostering engagement and ensuring they feel valued. However, senior HR leaders are facing a balancing act with managing strategic and operational demands with employee initiatives, often with the latter being deprioritised when resources and times are tight. By adopting the right tools, HR can focus less on repetitive, mundane tasks and more on designing employee experiences that maintain a culture of care and sustainable growth for all generations, plus have more time to adapt initiatives as the workplace evolves."