Over 75% of HR Leaders Will Use AI in the Next Year, According to New Paychex Research

Over three-fourths of HR leaders in companies with 20 or more employees say they’ll use AI in the next 12 months

Paychex, Inc., a leading provider of integrated human capital management software solutions for human resources, payroll, benefits, and insurance services, today released the results of its seventh Pulse of HR Report. The annual survey, which aims to understand the current and future state of the HR landscape, found that more than 75% of HR leaders at companies with 20-plus employees, and just over half (51%) at companies with 5-19 employees, plan to use artificial intelligence (AI) in the next 12 months. Respondents at larger companies (20-plus employees) expect they’ll use AI mostly for applicant tracking purposes (30%), followed by assessing employee satisfaction (29%).

The survey of U.S.-based business and HR leaders at companies with five or more employees found that investments in HR technology are expected to help increase employee productivity and improve the employee experience.

“We believe it’s a great time for employers to get back to basics, but with a modern approach,” said Jeff Williams, vice president of enterprise and HR solutions at Paychex. “Ground employees in the vision of their company and in the purpose of their work; fund benefits and retirement options that allow workers to feel secure and be present; cultivate and develop talent so they want to stay and thrive; and build leadership routines, operating systems, and human connections that meet people where they are today.”

The research revealed that the following employee issues are big challenges for leaders at companies with 20-plus employees:

• Employee burnout (32%)
• Quiet quitting (27%)
• Full-time employees working a full-time second job (25%)
• Boomerang employees (23%)
• Polywork (23%)
• Employees moonlighting with a second part-time job (20%)

Businesses with 20-plus employees plan to offer benefits that support employees’ overall well-being in the next 12 months, such as Employee Assistance Programs (30%), a shorter work week (28%), and childcare cost assistance (28%). They also shared that their top priorities throughout the rest of the year are improvements to customer service (80%), efficiency (78%), and employee engagement or retention (78%).

In further detail, the report also discusses:

How HR leaders plan to engage with emerging tech:

• Top HR technology priorities for businesses with 20-plus employees included increasing employee productivity (43%), improving employee experiences (42%), promoting training and skill-building (39%), and supporting employee retention (38%) or engagement (37%).

How businesses plan to improve workers’ experiences:

• Eighty percent of leaders at companies with 20-plus employees and 65% of those with 5-19 employees already have or plan to implement new employee pay methods for increased wage access, such as pay-on-demand, paycards, or shorter payroll cycles within the next 12 months to help meet employee needs.
• Almost half (47%) of businesses with 20-plus employees currently allow staff to work on a hybrid basis, and productivity (50%), well-being (44%), and retention (43%) are top motivators for these policies.

Other challenges associated with today’s labor market:

• Top recruitment tactics can vary by the targeted generation, with larger businesses (20-plus employees) using training as the top tactic to attract Gen Z workers (ages 18-26), while communicating the company mission is used to appeal to Millennials (ages 27 to 42), Gen X (ages 43 to 58), and Baby Boomers (ages 59 to 77).
• The role of HR in the workplace is changing, with many leaders in the space saying they plan to focus on strategy and communication while utilizing technology to enhance productivity. Still, the majority of businesses manage most HR tasks in-house either manually or with an application.

For more insights, please view the full research report. To learn more about the report’s findings, stop by the Paychex booth (West Hall, #3621) at the 2023 Society of Human Resource Management (SHRM) Annual Conference & Exposition, June 11-14, in Las Vegas.

Survey Methodology

The 2023 Paychex Pulse of HR Survey was conducted via an online survey from February 24 to March 31, 2023. The report reflects a survey of 1,350 HR leaders (chiefs of HR, people officers, VP/SVPs of HR, HR directors/managers, and directors of talent management) and business principals (owners, founders, CEOs, presidents, and partners) at U.S. companies with five or more employees. It is the seventh in an annual series of benchmark surveys investigating HR leaders’ challenges, priorities, and use of technology.

About Paychex

Paychex, Inc. (Nasdaq:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers business owners to focus on the growth and management of their business. Backed by 50 years of industry expertise, Paychex serves more than 730,000 payroll clients as of May 31, 2022, in the U.S. and Europe, and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting www.paychex.com and stay connected on Twitter and LinkedIn.

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