Use of Digital Technologies for HR Management in Germany: Survey Evidence

Abstract

Using a survey with 57 German firms, we evaluate the level of digitalization of the HR management function and document perceived benefits and barriers of technology adoption from organizational and individual users’ perspectives. The results give a reason for optimism. Most of the companies report that the core HR processes are digitized. We do not observe adverse effects of the digital HRM tools on users’ job satisfaction and work stress. Still, more than half of companies do not yet use digital tools for strategic HRM decisions. Respondents appreciate the increased speed and cost-efficiency of digital HRM processes and associate it with a competitive advantage in talent acquisition. The most prominent adoption barriers are lack of qualified professionals, high costs, and uncertainty regarding the legal framework. Moreover, we test if small and medium-sized enterprises differ systematically from larger organizations in how they use digital HRM tools.

Keywords: digital HRM tools, human resource management, digitalization, artificial intelligence, Germany

JEL Classification: M12, M15, M50, O33, O52