Report suggests AI in HR software could help — but less than half of Canadian employers actively use features available
Retaining talent is the top operational challenge facing human resources teams over the next 12 months, according to a recent report.
Talent retention narrowly surpasses employee upskilling as the most pressing concern. Other key priorities include attracting talent, safeguarding worker well-being, and boosting employee engagement, finds Capterra.
The survey involved more than 3,200 HR professionals globally, including 289 respondents from Canada.
Could artificial intelligence (AI) help with employee retention?
According to the report, organisations that have successfully adopted AI-integrated HR software report enhanced productivity, stronger insights from company data, and a more positive employee experience.
Notably, 33 per cent of respondents who use AI features in HR software say these tools help increase employee satisfaction or engagement, compared to only 22 per cent of companies that do not use such features.
Additionally, 39 per cent of AI users report improved employee retention, versus 26 per cent among non-users.
AI is also playing a pivotal role in recruitment success for HR teams.
However, while two-thirds (67 per cent) of Canadian organizations report having AI features in their HR software, less than half (41 per cent) actively use them.
“This hesitation means companies are not benefiting from tools that could address their biggest challenges,” says Capterra.
Most employers are still far from benefitting from the full potential of AI, according to a recent IBM report.
Top AI challenges for HR teams
Training new users is expected to be the biggest HR software challenge over the coming year, according to Capterra.
Other leading challenges include:
- increasing employee use of HR self-service tools (40 per cent)
- identifying the right HR software to adopt (40 per cent)
- assessing the value and risk of AI (40 per cent)
- implementing HR software effectively (39 per cent)
Despite these concerns, only 34 per cent of Canadian HR leaders cited training resources as a key factor when evaluating software—this, even as many anticipate rising costs and recognise the need to upskill their teams.
“Organisations can close skills gaps and boost productivity by training employees and using AI to make self-service tools more intuitive and accessible. In the current volatile and uncertain context, upskilling employees can be more productive and faster for companies than looking and hiring for specific roles,” the report adds.
Canada lags when it comes to AI literacy, confidence, and trust, according to a previous KPMG report.
To bridge the skills gap, Capterra recommends that employers do the following:
- Develop comprehensive training programs: Work with leaders and people managers to build continuous upskilling initiatives.
- Invest in training technology: Focus on software with strong integration and AI capabilities, and upgrade existing platforms as necessary.
- Monitor performance: Regularly assess the impact of software integrations on employee performance and skills. Ensure tools are compatible with the organisation’s existing HR tech stack.
- Leverage talent management and analytics: Support seamless integration and maximise the return on AI investments.
Previously, Google Canada announced it is investing $13 million to help upskill Canadians in the field of AI.
