HR wants to go digital. But 36% say there's just no budget for it.
We talk a lot about ambition in HR. Vision. Innovation. The future. But when we ask HR teams what's actually holding them back from aligning digital transformation with business strategy, over a third (36%) point to one simple thing: budget.
That's the top blocker—according to the latest data from the Index by Udder, our free self-assessment tool designed to benchmark digital maturity across HR functions.
Surprisingly, it's not lack of vision. Not skills. Not even resistance to change. It's money. And people.
When we asked, "What is the biggest challenge you face in aligning HR digital transformation with your overall business strategy?" the responses were revealing. A full 36% of respondents cited insufficient budget or resources as their primary obstacle. This dwarfed all other challenges, with just 12% each pointing to a lack of clear digital vision, difficulty integrating solutions, resistance to change, or lack of process optimization. Only 8% cited a lack of skills or capability, with another 8% selecting "Other."
The takeaway is clear: Most teams know what they want to achieve—they just don't have the financial or human support to do it.
You might have a roadmap. You might have the right platform shortlisted. But if you don't have the backing to fund, staff, or scale your transformation—you're stuck in neutral.
What's worse is that this budget gap often masks the real cost: missed opportunities. Consider the implications: clunky workflows that drive candidates away; disconnected tools that frustrate HR teams; poor data visibility that undermines strategic decisions; and lagging employee experience that impacts retention.
These aren't just inconveniences—they're genuine business risks. And ironically, many of them could be addressed by the very transformation projects that don't receive funding.
We're not going to pretend there's a silver bullet solution. However, there are three practical approaches that can help you make progress despite budget constraints:
First, get brutally clear on ROI. Show exactly how digital investment impacts hiring speed, engagement, retention, or compliance. Don't just ask for budget—build a comprehensive business case that links directly to the company's bottom line.
Second, prioritize integration over expansion. You don't need a dozen new tools. You need the ones you already have to communicate effectively with each other. Focus on optimization and integration before requesting additional technology.
Third, benchmark where you stand. This is where the Index by Udder comes in. It provides a clear, objective view of your current maturity across seven key areas—including tech infrastructure, process optimization, and digital ambition. You can use the report to support your case for investment—or to identify low-cost, high-impact wins to improve your digital foundation.
It's easy to talk about transformation as if it's merely a mindset issue. But let's be realistic: transformation requires budget, people, and time. And right now, many HR teams are being asked to transform with none of these essential resources.
If you find yourself in that challenging position—you're not alone. The first step toward progress is knowing exactly where you stand.
We're here to help you figure that out—and move forward, one smart decision at a time. Take the assessment today (it's free).