21 Top HR Automation Statistics and Trends in 2025

HR automation is transforming the way companies manage their human resources. HR performs many crucial yet repetitive tasks daily, such as resume screening, payroll management, benefits administration, performance management, and learning management. 

At Deel, we understand the uphill battle HR professionals face, from managing global payroll to implementing learning solutions at scale. That's why we’re diving into the latest game-changing HR automation statistics and trends for 2025, offering actionable insights into how automation and AI redefine efficiency, reduce costs, and drive organizational success. 

With these insights, companies are already cutting onboarding time by up to 80% and saving thousands on cost-per-hire. Let us show you how HR automation can free up time, drive results, and position your team as a strategic growth driver in today’s competitive landscape.

The growing need for HR automation

Firstly, we will discuss why HR automation is necessary for any growing business:

1. More than half of HR departments are understaffed and working beyond capacity

HR department staffing is a major issue for many organizations. More than half of HR departments are understaffed. As a result, 57% of HR professionals report working beyond normal capacity. And there is no immediate solution for this.

Only 19% of HR executives expect their department will be able to increase their headcount (2023-2024 State of the Workplace Report, SHRM).

Automation is not just an innovation but a relief for this overworked staff, reducing their workload and enabling them to focus on more strategic tasks.

2. HR staff spend up to 57% of their time on administrative tasks

HR staff spend as much as 57% of their time on administrative tasks, leaving little time for more strategic tasks (Modernizing HR: Design Thinking and New Technologies to Help Enhance Employee Experience, Deloitte).

With automation, many administrative tasks can be automated. So, the HR team can focus more on initiatives that lead to business growth.

The current state and rise of HR automation across verticals

Discover the current size of the HR automation market and adoption rates below:

3. The global HR technology market will grow up to $39.90 billion by 2029

The global HR technology market is at a boom. It is expanding at a compound annual growth rate of 7.5% and is expected to grow from $23.98 billion in 2022 to $39.90 billion by 2029 (Human Resource (HR) Technology Market Size, Share & Industry Analysis, Fortune).

Clearly, the demand for HR tech and automation is on the rise.

4. 98% of companies consider all skills-based hiring tools to be effective

81% of organizations are moving towards skill-based hiring rather than relying on resumes. By observing these changes in recruitment methods, 98% of companies consider all skills-based hiring tools to be more effective than resumes (The State of Skills-based Hiring 2024, TestGorilla).

5. 96% of large and mid-size companies use learning management systems

Companies are moving to online learning management systems (LMS) to run learning programs. 96% of large and mid-size companies use LMS. 81% of small companies use LMS (2023 Training Industry Report, Training magazine).

An LMS provides a centralized hub for training content, assigning and tracking progress, and assessing performance. It supports organizations in running learning programs at scale.

6. 51% of organizations have a performance management module

Companies are using performance technology to systemize their process. 51% of organizations have a performance management module bundled into their existing HRMS/HRIS. 17% of organizations have built their own custom performance management software. (The Future of Performance Management 2023, HR.com*)*

7. 90% of employers use a technology platform to manage benefits functions

Benefits administration is among the fast-growing categories of the HR technology market. More than 90% of employers use a technology system/platform to manage some aspect of their HR or benefits functions, up from 70% five years ago. (12th Annual Guardian Workplace Benefits Study, Guardian)

8. 29% of employees have access to a recognition system

Companies are moving away from the manual recognition process. 29% of the employees already have access to recognition software to systemize the praise process. (Employee Recognition Statistics, Nectar)

9. AI usage across different HR verticals

According to Deel data commissioned with YouGov in June 2024, 38% of HR decision-makers currently employ AI in their practices and workflows.

When further asked about the process where they use AI:

• 46% of HR leaders said AI boosted their analytics
• 35% said AI elevated employee learning and development
• 32% used AI for performance management
• 28% used AI for employee onboarding

Benefits of HR automation and technology across verticals

What difference has HR automation made to different departments? The statistics below show the benefits of HR automation across verticals:

Hiring

10. Companies are saving 30% cost-per-hire through AI recruitment augmentation

Using AI at different stages of candidate screening and hiring saves manual efforts and directly amounts to 30% cost savings per hire. (Power Human Resource Service Delivery with AI, Deloitte)

11. 94% of employers agree that skills-based hiring is more predictive of on-the-job success

Employers have started using skill-based platforms to optimize their hiring and it is showing outstanding results:

• 98% agree that skills-based hiring is more effective for identifying talented candidates than resumes
• 87% of employers who use skills-based assessments before resumes are satisfied with their hires
• 94% of employers agree skills testing is more predictive of on-the-job success than resumes
• 90% of employers have seen a reduction in mis-hire
• 81% have reduced time-to-hire
• 91% observed employee retention
• 90% observed improved diversity (The State of Skills-based Hiring 2024, TestGorilla)

12. Employers are saving $2,342 in cost of hiring per role with skill-based tools

81% of employers are observing lower time-to-hire with skills tests, and 78% saw a reduction in cost-to-hire. On average, employers save $2,342 (USD) in the cost of hiring per role and 792 hours per hire on average through skill-based hiring. (The State of Skills-based Hiring 2024, TestGorilla)

13. Software tools can reduce onboarding time by up to 80%

Outfittery, a leading online personal shopping service in Germany, faced budget challenges when hiring tech talent domestically and started using a global hiring platform for cost/time optimization. With this advancement, they reduced onboarding time for new hires by 80%.

Payroll

14. Companies using payroll software are observing 37% time savings

Effective payroll administration is the backbone of HR functions. Technology support is important in this space. Companies that started using a payroll solution saw:

• 46% improved management of payroll and employee data
• 41% enhanced and consistent employee experience across geographies
• 39% easier ability to hire in global locations
• 38% easier payroll and employee decision-making
• 37% time-savings for payroll administration
• 37% improved employee mobility (Is Global Payroll Truly Global?, Forrester)

15. A global payroll platform can save 120 hours monthly in admin work

Mynewsdesk, a PR and communication company, operated in multiple countries, and manual payroll management was becoming too time-consuming for the company. They shifted to Deel for payroll management, and it turned out to be a game-changer for them. From having a full-time employee taking care of payroll, it reduced to only needing 4-5 working days in a month. That meant saving 120 hours per month on payroll administration alone.

Learning

16. Automated onboarding can result in a 50% reduction in time to productivity

DataGuard, a global leader in security and compliance software, created a learning journey for new hires using Deel Engage. With an online learning solution, the learning experience was consistent across physical and remote locations, and time to productivity was reduced by 50% for new hires.

Performance management

17. Companies can save 180 hours in the feedback process by using a performance management solution

Aquatic, a capital management firm, uses Deel Engage to automate peer reviews, check-ins, and feedback reviews. By using Deel Engage, Aquatic saved up to 180 hours in the feedback process alone.

Benefits

18. 80 % of employees having access to benefits technology are thriving in their current roles

Having access to benefits technology brings transparency. 82% of employees who have access to benefits tech feel their employer cares about their health and well-being. And 80% of employees who have access to benefits tech are thriving in their current role or organization. (Benefits Technology 2023 report, Mercer)

Recognition

19. 59% of employees with a recognition system get praise weekly from their manager

Having a system to recognize employees makes it easy for managers to praise employees. 59% of employees with access to a recognition system get praise weekly from their manager compared to only 42% of those without access to it. (Employee Recognition Statistics, Nectar)

Emerging trends in HR automation

How are HR automation systems evolving with time? AI is playing a major part. Consolidating AI in HR statistics and other emerging trends below:

20. 41% of business leaders expect to redesign business processes within the next years with AI

41% of business leaders expect to redesign business processes from the ground up with AI. And not doing it would lead to business loss. 76% of HR leaders believe they will be behind their peers if they don’t implement AI solutions in 12-24 months. (AI in HR: The Ultimate Guide to Implementing AI in Your HR Organization, Gartner)

21. 56% of HR leaders confirmed the need for new HR technology solutions

56% of HR leaders confirmed their HR technology solutions do not match their current and future business needs, such as digital transformation. So, they need new technology solutions that better suit their requirements. (Top 5 HR Trends and Priorities for 2024, Gartner)

For instance, the PostHog team was using various HR tools, which provided an unsatisfactory experience. They switched to Deel for a consolidated and effective solution.

Automate your HR processes with Deel

HR automation is not just a trend but a necessity for modern organizations. These HR automation statistics underscore the profound impact on efficiency, accuracy, and overall workplace satisfaction.

With Deel, you can easily automate the HR processes mentioned below in just one platform:

• Onboarding and offboarding
• Time, attendance management, and time-off tracking
• Employee data management
• Talent sourcing and recruitment
• Background checks
• Compliance and other documentation management
• Payroll processing
• Employee training and performance management
• Reporting

For instance, Nomic Foundation was managing all HR information manually through different spreadsheets and switched to Deel in need of a one-stop tool for everything. The team saved $120k+ in HR admin processes.

Deel also advanced AI features to provide instant HR answers and set up competencies, career paths, and career frameworks. With extensive features, Deel saves time and money for businesses.

Book a demo to get a complete solution for all your HR needs.

Sources:

1. 2023-2024 State of the Workplace Report, SHRM
2. Modernizing HR: Design Thinking and New Technologies to Help Enhance Employee Experience, Deloitte
3. Human Resource (HR) Technology Market Size, Share & Industry Analysis, Fortune
4. The State of Skills-based Hiring 2024, TestGorilla
5. 2023 Training Industry Report, Training magazine
6. The Future of Performance Management 2023, HR.com
7. 12th Annual Guardian Workplace Benefits Study , Guardian
8. Employee Recognition Statistics, Nectar
9. Power Human Resource Service Delivery with AI, Deloitte
10. Is Global Payroll Truly Global?, Forrester
11. Benefits Technology 2023 report, Mercer
12. AI in HR: The Ultimate Guide to Implementing AI in Your HR Organization, Gartner
13. Top 5 HR Trends and Priorities for 2024, Gartner