Workforce pressures spark calls for merger between HR and IT functions (say IT bosses)

A growing number of IT leaders believe the solution to declining productivity and rising digital complexity in the workplace could lie in merging HR and IT departments, according to a new poll. A global study by digital employee experience firm Nexthink, based on a survey of 1,100 IT leaders, found that 93 percent of respondents believe closer integration between the two functions would improve productivity, employee engagement and satisfaction. Nearly two-thirds (64 percent) predict a full merger between HR and IT will take place within five years, while a further 31 percent expect significantly closer collaboration.

The findings come amid widespread concern over sluggish productivity and falling engagement levels, which the report claims is costing the global economy an estimated $430 billion annually. Complexity in the digital workplace appears to be a major factor, with employees now using an average of 11 different applications each day—up from six in 2019. That number is expected to rise by a further 43 percent over the next three years.

Respondents cited several potential benefits from aligning or combining the two departments. These include faster onboarding for new staff (95 percent), smoother adoption of digital tools (97 percent), and better outcomes from digital transformation projects (94 percent). Improved retention and employee satisfaction were also seen as likely outcomes.

Vedant Sampath, CTO at Nexthink, said: “Virtually every business is facing this crisis of falling engagement and sluggish productivity. This shows that businesses are considering radical changes in response. It’s about fundamentally reimagining the workspace to help employees do their best work.”

However, the report also highlights a number of barriers to integration, including unclear ownership of responsibilities (58 percent), poor communication between departments (50 percent), and conflicting priorities (49 percent). Despite these concerns, more than half of those surveyed (52 percent) said their organisation was “very ready” to begin the process of departmental integration.

Rather than placing a traditional IT or HR leader at the helm, 40 percent of respondents said a new leadership role such as Chief Experience Officer (CXO) should oversee the merged function. Responsibilities for the combined department would likely include digital employee training, ownership of collaboration tools and AI platforms, and analysis of workforce data, according to the report.

“We’re moving towards a future where the employee experience is going to be just as important as the customer experience,” Sampath added. “Businesses that address workplace frustrations and properly marry people and technology will be the ones that thrive.”