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Whitepaper

HR Trends
Report
A statistical analysis of
HR technology trends,
challenges and solutions

A DocuSign eBook 1
DocuSign HR Trends Report

Over the course of 2020, organizations have learned that they need to be
ready to adapt to change at any moment. Whether it’s a pandemic, a series
of tumultuous political events or a social movement, there will always be
forces impacting how businesses hire, onboard, develop and otherwise
engage their people. Plus, there's the typical day-to-day challenges HR
teams face, from being bogged down by paperwork to having to identify
and fill skills gaps. How can they not only survive but also thrive in the face
of change? It comes down to adaptability.
Over the years, HR teams have been taking steady steps toward digital
transformation, increasingly embracing technology and automation. But
the past year demonstrated this transformation still has a long way to go.
Digital technology can help HR teams be more adaptable by automating
manual processes, organizing data, providing resources to employees and
simplifying many other tasks that take up HR bandwidth. DocuSign research
shows that HR teams have turned to technology for support—especially at
the onset of the COVID-19 pandemic. Despite their investments, challenges
remain. Though companies are implementing new tools, many aren’t used
to their full potential. HR teams that fully embrace digital technology
now will be better prepared for a future where being a strategic business
partner within the organization is expected.
A DocuSign survey of more than 1000 HR professionals and the report
that follows offer a look at the state of HR, highlighting the obstacles
teams continue to face and offering two key recommendations to
maximize adaptability:
1/ Unlock the full potential of technology to achieve HR goals and drive
organizational success
2/ Empower HR as a strategic and collaborative department, essential
to the organization’s future

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DocuSign HR Trends Report

Methodology and participant demographics North America


30% United States (N=319)
DocuSign surveyed 1068 HR decision makers and influencers during November 2020. 8% Canada (N=82)
Participants spanned 10 countries on five continents and represented a mixed sample of
industries, titles and organization size.
LATAM
The most respondents (30%) were from the United States, while others came from Canada, 8% Mexico (N=85)
Mexico, Brazil, Japan, Singapore, Germany, France, the Netherlands and the United Kingdom. 8% Brazil (N=85)
More than half of the respondents (51%) were from companies with 501–5000 employees,
but SMBs, mid-sized companies and enterprise firms were also represented. APAC
8% Japan (N=81)
Company size 8% ANZ/Singapore (N=84)

51% MAJ (501–5K) N=540


EMEA
21% MM (126–500) N=261
7% France (N=78)
16% ENT (>5K) N=171
8% Germany (N=83)
9% SMB (>126) N=96 8% Netherlands (N=85)
8% United Kingdom (N=86)
HR department size

45% 11–50 employees


33% <=10 employees

22% 50+ employees

Finally, participants held varying roles, ranging from individual contributors to the C-suite,
with most (81%) identifying as managers, senior managers or directors.

Roles

29% Senior manager


28% Manager/team lead

24% Director

7% Executive/C-level

7% VP
5% Individual contributor

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DocuSign HR Trends Report

The state of HR 38%


of respondents in the
business services industry
Manual processes and inefficiencies have plagued HR for some time, especially in areas such as
primarily sign electronically,
new employee onboarding, navigating legal or compliance reviews and managing training and the most of any industry
development for workers. These obstacles slow HR teams down, leaving them little time and
bandwidth to serve as strategic partners to their organizations. As a result, many are turning to
technology for help—especially in light of the COVID-19 pandemic.
23%
of respondents in the
financial services industry
Below are the two trends that define and drive HR technology use today.
primarily sign electronically,
the least of any industry
1/ Manual processes abound and automation is a priority
Outdated, arduous processes delay various HR functions, from completing forms required for
North America processes
compliance to documenting mandatory training. the most monthly agreements
One area particularly prone to bottlenecks is employee agreements, where collecting physical
signatures on offer letters, benefits packages and other materials significantly slows down HR >50%
teams. Only 6% of HR teams obtain signatures for all forms electronically. processing more than 500
agreements per month
With the majority of HR teams completing 100-500 agreements per month, the wasted time
adds up. When asked which specific areas of employee agreements slow them down the most,
HR teams blame manual paperwork (44%), data entry (31%), securing signatures (31%)
and legal review (30%) as some of the top culprits.

Processes that slow down HR teams

44% Manual forms and paperwork


33% Reviewing and clarifying responses from employees

31% Data entry (getting data from agreements into the right systems)

31% Getting the signatures

30% Risk and compliance review

30% Legal review


30% Layers of agreement approvals

29% Getting a verified approval signature for a specific agreement

26% Customized agreement terms

26% Taking actions like activating service or internal handoffs after signature

24% Number of stakeholders involved

23% Verifying signer identity

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DocuSign HR Trends Report

It’s no surprise, then, that HR teams consider hiring and onboarding—the areas perhaps most
plagued by paperwork—to be ripe for automation. Almost half (48%) say hiring (i.e. triggering an offer
letter) is a high priority for automation, followed by onboarding (44%), which entails automatically
triggering enrollment setup, payroll and other functions. Performance planning rounded out the top
three priorities for automation, but there’s opportunity for further automation across the board. The
percentages of respondents with “fully automated” tools are in the single digits across all processes.

Processes HR teams are High Medium Low Fully


looking to automate priority priority priority automated

Hiring: A decision is made to hire a candidate which 48% 35% 11% 5%


triggers the sending of an offer letter, etc.

Onboarding: A new employee offer acceptance 44% 40% 11% 4%


triggers benefits enrollment, IT setup, payroll and
auto deposit setup, etc.

Performance planning: Triggers the timeline for 41% 38% 15% 6%


monitoring and reviews, places evaluations in
employees files, etc.

Promotion: Triggers records updating, salary/ 40% 40% 14% 6%


compensation updating, other benefits updating,
package delivered to employee, etc.

Firing/layoff: An explanation of termination of 34% 41% 18% 5%


benefits, notices to government and/or legal entity

Transfers: An employee transfer to a new location 34% 40% 21% 4%


triggers moving benefits, records updating, etc.

Marriage/has child: Triggers new benefits packages 31% 39% 22% 6%


for spouse/child, insurance updates, etc.

2/ Technology adoption is on the rise—and COVID-19 increased this urgency


HR teams are adapting to the remote work transition with a focus on providing the best experience
for employees. Looking at current priorities of HR teams, around half of respondents are currently
focused on attracting, developing and retaining internal talent and keeping employees satisfied.

Current Priorities of HR Teams

52% Retaining talent

50% Developing talent

49% Attracting talent

47% Improving employee satisfaction

40% Improving staff productivity/ROI

39% Adopting new technologies

34% Reducing cost per hire

33% Improving benefit satisfaction

32% Ensuring compliance/reducing risk

32% Improving/sustaining employee engagement

29% Updating legacy technologies

22% Filling open positions more quickly

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DocuSign HR Trends Report

As companies pivoted to remote work at the onset of the pandemic, just 19% felt “very prepared.” 63%
Those equipped with modern technology were better prepared to adapt and face the changes. say adopting new technologies
has increased in urgency as
While 41% of prepared organizations say their suite of tools supported their shift to remote work,
their organization prepares for
39% of companies that weren’t ready attribute their unpreparedness to a lack of systems, tools future disruptions
and technology that enable remote work.

For many, the pandemic revealed the need for new tools—43% implemented new technologies 91%
to better manage their workflows and another 43% explored new technologies. of HR teams aren’t fully
capitalizing on the technology
they already own, even though
Why was your company prepared for the challenges of the pandemic? they realize the power
of technology
61% Our departmental or organizational leadership is forward looking

50% We were already supporting a partially remote workforce


41% Our suite of existing tools supported the shift to remote work HR preparedness for adapting
to COVID-19
28% We were able to quickly identify and acquire new tools to support the shift to remote work

Why was your company not prepared for the challenges of the pandemic?
19%
Very prepared

53% Could not meet the required rapid speed of change


46%
45% Departmental or organizational leadership was not prepared to move quickly Somewhat prepared
39% A lack of systems, tools and technology that enable remote working

38% Difficulty creating and sending information/forms due to manual processes of paperwork
16%
Neutral
35% Difficulty ensuring policy updates reflect compliance with labor laws

29% Company unwilling to implement new technology to assist with remote work transition 15%
Somewhat unprepared
26% Mistrust between employer and employees

As companies emerge out of the initial shock of the pandemic, the pressure to introduce new
3%
Very unprepared
technology remains. Sixty-three percent say adopting new technologies has increased in urgency
as their organization prepares for future disruptions.

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DocuSign HR Trends Report

The crux of the problem: investing in technology


isn’t enough
Despite companies' investments in technologies designed to make HR teams more agile, many
aren’t fully unlocking the potential ROI of their toolsets.

Below are the two primary reasons why they’re missing this opportunity.

1/ Integration complexity makes adoption tough


When asked about the extent to which HR teams are using their existing tools, just 9% of
respondents say they use most of the capabilities of their existing toolsets. While some respondents
cite insufficient training (37%), software that isn’t intuitive (37%) and other factors, the top
obstacle preventing HR teams from fully utilizing their HR software is the lack of integration with
other systems and tools (39%).

Percentage of HR teams capitalizing on technology Total

<25% of capabilities 6%

26–50% of capabilities 43%

51–75% of capabilities 42%

76–100% of capabilities 9%

Reasons for not fully leveraging HR software

39% Lack of integration with other systems/tools


37% Insufficient training

37% Software needs to be more intuitive

28% Insufficient IT support

27% Poor adoption within the company


27% Insufficient executive support

23% Poor partner utilization

21% Software does not deliver enough value

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DocuSign HR Trends Report

Even when integration is in place, it’s often partial rather than complete. About a third of Enterprise organizations
respondents say their benefits management, employee performance solution and applicant face more frequent barriers
tracking software, among others, are only partially integrated with their human resource to digitizing HR processes
management suite (HRMS). Just over half of contract lifecycle management tools were fully
integrated with respondents’ HRMS tools. 42%
due to integration with
legacy systems
Integration with HRMS

Tools/ Fully integrated Partly integrated Not integrated 39%


systems used with HRMS with HRMS with HRMS due to compliance/
security risks
Benefits management 64% 30% 6%

Identity verification 63% 32% 5%

E-signature software 63 % 28% 10%

Employee performance solutions 61% 34% 4%


(e.g. testing/monitoring)

Applicant Tracking Software (ATS) 58% 36% 6%

Customer Relationship Management 58% 35% 5%


System (CRM)

Training management 57% 37% 6%

Contract Lifecycle Management (CLM) 57% 37% 6%

Expense management 53% 40% 6%

To see the full benefit of the systems companies have invested in, they must make integration
the central focus. HR is a unique department in that its work has an impact on every individual
in the company—if HR teams can’t reap the full benefits of their toolsets, it can affect everyone
at the organization.

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DocuSign HR Trends Report

2/ When technology use is limited, HR is less strategic


As part of the survey, DocuSign set out to identify the organizational perception of HR—how
respondents view and understand the role of HR within their company. Based on answers to
questions about their organizational role, respondents were sorted into one of two groups:
strategists and executors.

For the purpose of this report, “strategists” are defined as those who answered that their HR
department is viewed as a “strategic partner” to the organization and frequently looks for ways
to innovate through new solutions and tools. Other respondents were classified as “executors,” or
those who execute the existing functions of HR, such as hiring.

While two thirds of respondents (64%) considered themselves to be strategists, a significant


portion (35%) view HR as an executor of programs, policies and processes for an organization’s
success. These two groups behave quite differently with regard to goal setting, collaboration
and technology use. For example, HR strategists collaborate more than executors across
departments, including legal, procurement, finance, IT and even engineering.

While hiring is the primary activity for both groups, strategists’ attention is somewhat more evenly
distributed between other tasks, including development and employee benefits.

Strategists and executors also measure department success differently. For example, while 62% of
strategic HR teams use employee engagement as an indicator of success, just 50% of executors
look to it as a success metric. In fact, strategists are more likely to consider all of the KPIs below.
This indicates that strategists look to a broader range of metrics to evaluate performance.

HR task performance: strategists vs. executors

Task Strategists Executors Difference

Hiring 32% 42% -10%

Employee benefits 21% 5% 16%

Development 13% 9% 4%

Operations 8% 6% 2%

Payroll/compensation 6% 11% -5%

Onboarding 4% 6% -2%

Employee experience 6% 4% 2%

Resolving internal conflict 5% 8% -3%

Health and safety 1% 0% 1%

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DocuSign HR Trends Report

Important HR KPIs: strategists vs. executors

KPIs used Strategists Executors Difference

Employee satisfaction 67% 56% 11%

Employee productivity 64% 59% 5%

Quality of hire 62% 56% 6%

Employee engagement 62% 50% 12%

Employee retention rate 59% 45% 14%

Benefits satisfaction 58% 41% 17%

Cost per hire 46% 40% 6%

Speed at which open jobs are filled 48% 37% 11%

ROI of training 41% 32% 9%

Total overtime hours 30% 30% 0%

My department does not use metrics 0% 1% -1%


to measure its success

Overall, strategists are more deeply entrenched in their organizations and its goals than their
executor counterparts. This affects not only what they focus on, but also how they use technology.

When asked about priorities, for example, strategists are more likely to prioritize areas such
as talent development (59% vs 46% of executors), compliance (37% vs 29%), adopting new
technologies (47% vs 37%), and updating legacy technologies (34% vs 26% of executors).

With regard to specific tools, the most stark usage differences exist with applicant tracking
software, training management, benefits management and electronic signature software use.
However, strategists are more likely to use every tool or system—this is a logical result, since
these digital solutions aim to unify, simplify and automate tasks, enabling strategists to be the
collaborative, cross-functional and adaptable partners they aim to be.

HR collaborations: strategists vs. executors

Department/team Total Strategists Executors Delta (S–E)

Leadership team 67% 72% 67% 5%


(C-Suite, Board of Directors, etc.)

IT 46% 51% 43% 8%

Finance 44% 49% 41% 8%

Legal/Compliance 42% 48% 37% 11%

Customer success 32% 35% 31% 4%

Procurement 32% 39% 29% 10%

Marketing 31% 36% 29% 7%

Sales 25% 28% 27% 1%

Engineering/Product Development 18% 24% 16% 8%

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DocuSign HR Trends Report

HR priorities: strategists vs. executors

Priorities Strategists Executors Difference

Retaining talent 54% 47% 7%

Developing talent 59% 46% 13%

Attracting talent 57% 47% 10%

Improving employee satisfaction 52% 44% 8%

Improving staff productivity/ROI 45% 41% 4%

Adopting new technologies 47% 37% 10%

Reducing cost per hire 32% 39% -7%

Improving benefit satisfaction 39% 33% 6%

Ensuring compliance/reducing risk 37% 29% 8%

Improving/sustaining employee 40% 27% 13%


engagement

Updating legacy technologies 34% 26% 8%

Filling open positions more quickly 25% 20% 5%

Percentage of executor and strategic teams using HR tools and systems

Tools/systems used Total Strategists Executors Delta (S–E)

Human Resource Management System 73% 75% 73% 2%


(HRMS/HRIMS)

Benefits management 48% 56% 42% 14%

Training management 45% 53% 41% 12%

Employee performance solutions 37% 42% 37% 5%


(e.g. testing/monitoring)

Enterprise Resource Planning System 37% 45% 36% 9%


(ERP)

Customer Relationship Management 35% 43% 33% 10%


System (CRM)

Expense management 33% 40% 30% 10%

Applicant Tracking Software (ATS) 32% 40% 26% 14%

Identity verification software 27% 32% 26% 6%

eSignature software 25% 32% 21% 11%

Contract Lifecycle Management (CLM) 19% 23% 18% 5%

One key takeaway is that HR teams that are leveraging technology are freed up to play a more
strategic role in the organization.

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DocuSign HR Trends Report

Technology is essential for overcoming challenges


and meeting long-term goals
As the pandemic dust slowly starts to settle and HR teams consider what the new, more remote
world of work entails, technology will play a crucial role in meeting their short- and long-term goals,
which are varied.

At the moment, HR teams are juggling a number of challenges, all pointing to the need for more
adaptability. Two in five organizations recognize the trend of technology as both a way to attract
younger generations of workers and increase the agility of hiring teams.

Industry trends impacting HR teams

41% Modern use of technology to attract and retain talent (i.e. millennials/Gen Z)
40% Hiring agility (i.e. filling gaps as needed with contract workers)

39% Skills gaps in workforce (i.e. company hiring expectations vs reality)

37% Competitive job market

36% Social equality/gender diversity

36% Increasing time savings/efficiency

35% Utilization of employee/performance date analytics

33% Increasing mobile/global workforce

32% Technology adoption by hiring orgs

30% Increasing compliance/regulation

Looking five years into the future, HR teams see an even sharper focus on attracting, developing and
retaining talent. Around 70% of respondents say those areas will be more of a focus. These priorities
look very similar to current priorities, except for one important change—adopting new technology
skyrockets to the top of the list. That focus on new solutions does not take the focus off internal talent,
it’s clear that the future of HR uses cutting-edge tools to allow employees to do their best work.

Five-year priorities for HR teams More priority No change Less priority

Adopting new technologies 74% 20% 6%

Developing talent 71% 25% 4%

Attracting talent 70% 25% 5%

Updating legacy technologies 70% 21% 10%

Improving staff productivity/ROI 69% 27% 3%

Improving/sustaining employee engagement 68% 29% 3%

Retaining talent 68% 27% 4%

Improving employee satisfaction 64% 32% 4%

Improving benefit satisfaction 62% 31% 7%

Reducing cost per hire 61% 29% 9%

Ensuring compliance/reducing risk 59% 37% 4%

Filling open positions more quickly 57% 35% 6%

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DocuSign HR Trends Report

Technology will be instrumental in achieving HR’s goals, both in the short and long term. As the volume of documents
Already, teams are looking to technology to save them time (57%), reduce errors (55%), in HR surges, tools such as
eSignature and Contract
improve employee experience (51%) and solve other problems.
Lifecycle Management will
become increasingly important
Desired outcomes of HR technology

57% Save me time >50%


of respondents say these
55% Reduce errors technologies will be crucial
51% Improved employee experience

47% Reduce compliance risk

46% Increased mobility (will allow me to work anywhere, anytime)


43% Improved collaboration

39% Automated agreement related tasks

35% Creation of audit trails

In fact, HR teams consider tools like human resource management systems (85%), enterprise
resource planning systems (77%) and customer relationship management systems (66%),
among others, to be critical to their success over the next five years. And emerging, targeted
technology will be crucial as well.

Critical HR technology 5 years from now

85% Human Resource Management System (HRMS/HRIMS)

77% Enterprise Resource Planning System (ERP)

66% Customer Relationship Management (CRM)

61% Employee performance solutions (e.g. testing/monitoring)

59% Applicant Tracking Software (ATS)

58% Training management


56% Identity verification

56% eSignature software

56% Benefits management

53% Contract Lifecycle Management (CLM)

45% Expense management

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DocuSign HR Trends Report

The future is uncertain—but tech and strategy


will help HR teams adapt
To ensure that HR teams are able to reach their goals and adapt to whatever comes next,
investing in the right technology is just a first step. HR teams are seeking new tools with urgency,
searching for solutions that automate, simplify and add efficiency to their workflows.

A fully digital system of agreement can eliminate waste, error and delay that are part of their
current manual workflows, giving HR teams more time to focus on other priorities and goals—
including employee development, experience and satisfaction.

But finding the right solution only gets HR so far.


A properly integrated technology system allows HR teams to become more adaptable in the face
of change. It also provides a solution to the growing pressure to fill positions, close skills gaps and
deliver positive experiences to employees. In order for HR teams to become strategic leaders,
they need the right technology and automation to perform their jobs.

Learn more about the DocuSign Agreement Cloud for HR.

About DocuSign DocuSign, Inc. For more information


DocuSign helps organisations connect and automate how they prepare, sign, act on and manage agreements. As Level 8, 126 Phillip Street apac@docusign.com
part of the DocuSign Agreement Cloud, DocuSign offers eSignature: the world’s #1 way to sign electronically on Sydney NSW 2000 +61 2 9392 1998
practically any device, from almost anywhere, at any time. Today, more than 750,000 customers and hundreds of Australia Toll-free (within Australia)
millions of users in over 180 countries use DocuSign to accelerate the process of doing business and to simplify 1800 255 982
people’s lives. docusign.com.au

2021.03.08 14

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