According to the India Retail Report released last September, India has replaced China as the top retail destination. This has led to an increased global participation, with Indian retail space witnessing a number of big ticket deals.
With digital disruptions becoming the norm of the day, future of Indian retail has received strong headwinds for a transformed landscape led by huge investments & technological advancements. These disruptions are new normal applications of emerging technologies like Blockchain, Chatbots, Artificial Intelligence and Machine Learning, and are increasingly becoming strategic to Talent & People management functions for the retail sector.
According to the research conducted by PeopleStrong, more than 53 percent of CHRO’s representing over 500+ retail enterprises in India believe that their HR verticals are still 6 quarters away from embracing AI in their day-to-day work. Leading the way, PeopleStrong is transforming & advocating growing use of Digital aids and has seen major benefits delivered by these transformations in some of the largest enterprises in Indian Retail sector.
Analyzing the research findings, Prakash Rao, Founding Member and VP, HCM, PeopleStrong said, “There is a tremendous potential for this number to see a hike in the coming months. We are already seeing the change in the mindset of CHROs for adopting new age HR Technology solutions shifting away from Traditional ERPs”
Here are top five trends of HR tech deployment
- More than 53 percent of CHRO’s representing over 500+ retail enterprises in India believe that their HR verticals are still 6 quarters away from embracing AI in their day-to-day work
- One of the major reasons, as observed by around 59% of the respondent CHRO’s, is the absence of seamless flow of data between different HR functions as the information lies in Silos and different platforms making it difficult to have a unified view of this data for better insights
- While only 24.49 percent of organisations spend more than 10 USD per employee, this number is expected to significantly increase in the next two years when organisations from the 5-10 USD spend bracket (currently 45 percent of the organisations are present in this spend bracket) would hike up their per employee spend on HR technology
- Of all the HR functions, 55.1 percent of CHROs allocate a major portion of this spend towards Core HR functions that includes Human Resource Information System because this supports their need of maintaining a centralized repository of employee master data. However, only 18.37 percent of CHROs dedicate this spend to Recruitment & Onboarding because they are still accustomed to the traditional ways of hiring. The spend allocation towards workforce management which includes leave and attendance management (currently stands at 10.2 percent) is expected to increase in the future because CHROs are now understanding the full impact of HR technology on speeding up time-taking tasks and simultaneously increasing employee productivity
- Around 59. 18 percent of these retail companies are already using cloud to store their HR Data, a number that will only increase given that by adopting cloud they are enabling data availability anytime, anywhere
- According to the respondent CHRO’s, with the number of HR Tech Solution Providers in the market on the rise, it becomes essential to focus on vendors that have a standing credibility and expertise in the industry. Therefore, more than 50 percent of the CHROs invest in evaluating less than 5 vendors before selecting an HR Tech Solution Provider