Today, People Matters unveiled its SHRPA 2024 report, offering insights into the HR landscape of the Middle East and Asia Pacific, two regions that are fast becoming engines driving global growth. 

The report highlights a growing gap in HR readiness and effectiveness during this transition, noting that, “While HR teams are prepared to embrace change, the biggest challenge is executing it effectively.” It also underscores that while technology holds the potential to drive the next wave of growth, true success will rely on skills, agility, and a digital mindset to help HR and businesses scale. In this light, the key areas where HR effectiveness often falls short include:

Finding the gaps in HR execution: SHRPA Research 2024

Change readiness vs. Change execution: The research shows that HR effectiveness in APAC and the Middle East is falling short, especially in execution. In the Middle East, 52 per cent of HR leaders are dissatisfied with their progress in using AI and advanced analytics to boost productivity. Even more concerning, only 17 per cent are successfully executing digital transformation initiatives, and just 21 per cent are proactively assessing skill shifts and creating effective learning programs.

Tech-enabled change execution challenges: When analysing HR's effectiveness in managing ongoing changes and meeting business expectations, a similar trend of dissatisfaction when it comes to leveraging HR technology to enhance execution. About 43 per cent Learning and Development (L&D) leaders are dissatisfied with their use of LMS and e-learning tools, and 48 per cent with more advanced technologies to provide better learning experiences. 44 per cent Compensation and Benefits (C&B) leaders struggle with embedding tech into their strategy execution. Additionally, 34 per cent of Talent Acquisition (TA) leaders find it challenging to deploy effective tools for recruiting the right talent. These trends reflect that HR is not fully leveraging advanced technology to support key service areas during disruptive changes. 

Tech maturity and HR performance: The report identifies the reasons behind HR's struggle with execution. While basic automation is important, true tech maturity is critical for improving HR service delivery. It highlights a clear link between an organisation’s HR tech maturity and the effectiveness of its HR teams in managing change. Companies with advanced HR technology systems, like integrated analytics and AI, are better equipped to handle the complexities of talent management. On the other hand, organisations relying on basic automation or outdated systems face significant challenges in achieving optimal performance. 

Investments in HR technologies: The report highlights that as HR technology becomes more central to business success, there is a growing investment in HR tech solutions. HR tech partners are optimistic about the future, with 38 per cent of leaders expecting market growth of up to 50 per cent in the next 12-18 months. This optimism reflects the crucial role technology plays in driving effective talent management and organisational growth.

Misalignment in tech evaluation and utilisation: The report also highlights the misalignment between HR leaders and tech partners when it comes to technology evaluation priorities and utilisation challenges. While 76 per cent HR leaders focus on cost optimisation, HR tech partners prioritise analytics and reporting. Perception gaps also exist in key areas like system configurability, compliance, and integration. Addressing these misalignments is essential to maximise the value of sustainable HR tech investments.

The SHRPA Research 2024 report offers a roadmap to help CHROs address emerging gaps in the HR industry. To succeed in a rapidly changing business landscape, organisations should prioritise several key areas:

Enhancing HR and change execution: HR leaders need to focus on turning change plans into action by closing the gap between being prepared and actually implementing those changes. This means using the latest HR tech and making sure talent strategies align with the company’s goals.

Investing in HR tech solutions: Companies should invest in scalable, responsible HR technology. Innovations like AI and analytics can lead to smarter decisions and better overall HR performance.

Aligning HR upskilling and tech strategies: HR teams should improve both their skills and tech knowledge to fully benefit from advanced HR tools.

The People Matters SHRPA Research 2024 provides valuable insights for HR professionals and business leaders in the Middle East region, emphasising how talent and technology are essential for future growth. As the business environment changes, staying informed and adaptable will be crucial to overcoming challenges and making the most of new opportunities.

DOWNLOAD the SHRPA 2024 report now for more insights. 

About People Matters SHRPA Research 2024

The People Matters SHRPA Research 2024 is a comprehensive report that examines the state of the HR industry, offering insights into the latest trends, challenges, and opportunities. Drawing from extensive surveys and expert interviews, the report provides a detailed analysis of talent management practices and technology utilisation across the Middle East region.