Imagine a scenario where a mid-sized firm, say one with 50 to 100 employees, decides to overhaul its traditional HR processes by adopting a modern cloud-based HR system from a local startup. Within a year, the company significantly cuts administrative costs, saving millions of shillings. That is exactly what happened when one firm partnered with a local HR solutions provider. The results did not just improve operational efficiency; they also reflected a growing shift in how organisations approach human resources—leveraging technological innovation to enhance, not replace, human input.
Globally, companies are beginning to understand that the future of work depends not solely on machines or people, but on how effectively the two can complement one another. Technology can automate processes, analyse vast amounts of data, and offer real-time insights—but it cannot replicate empathy, cultural awareness, or human judgment. The challenge, therefore, is not whether to adopt technology, but how to do so in a way that still prioritises people.
Despite such success stories, many SMEs continue to grapple with fragmented HR systems. According to 2025 BrighterMonday HR Trends Report, over 60 per cent of public institutions utilise a blend of manual and automated HR systems, while approximately 9 per cent still rely solely on manual processes. This often leads to inefficiencies such as data duplication, omissions, and delayed reporting. These inefficiencies not only impact day-to-day operations but also undermine long-term strategic decision-making, limiting organisational productivity and preventing HR experts from unlocking employee potential in an era where technology and innovation are no longer optional but essential.
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While low digital literacy and infrastructural challenges are significant obstacles, it is imperative for stakeholders, business owners, HR leaders, and policymakers, to recognise that for the HR sector to thrive, embracing technology is not just a competitive advantage. It is a necessity. So, how can SMEs overcome resistance to technology adoption amidst budget constraints, limited training opportunities, and rising concerns about privacy and data safety?
The most sustainable solution lies in finding the right balance between technological tools and the human touch. Truth be told, no matter how advanced AI becomes, it will never fully replace human beings. While tech can bring structure, speed, and efficiency, it cannot offer empathy, emotional intelligence, or cultural sensitivity, qualities that remain foundational to effective people management. Achieving the right blend ensures that systems are not only efficient and scalable, but also human-centered and inclusive.
In a diverse and youthful nation like Kenya, this fusion becomes even more critical. It can help organisations save not just time, but also financial and administrative resources that are traditionally allocated to tasks like recruitment. Consider the scenarios we have witnessed where hundreds of young people queue for job applications or interviews, for overseas opportunities. Integrating automation and AI into these recruitment processes could save up to 70 per cent of the time and resources used while improving transparency.
HR technology can also transform how companies manage performance, learning, and employee engagement. For example, a study on Safaricom highlighted how their emphasis on participative management, reward and recognition systems, and targeted training, enabled in part through digital platforms, significantly boosted employee engagement and organisational performance.
Ms Nyambura is a HR expert
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By Nyambura Muhoro