Index by Udder Insight Series
It’s a familiar story.
Organisations pour time and money into new HR platforms, automation tools, AI pilots, and dashboards—then wonder why things still feel… manual. Disconnected. Underwhelming.
The issue? It’s rarely the technology.
It’s the capability gap.
Our latest data from the Index by Udder shows that HR teams know exactly where they’re falling short—and it has little to do with tools, and everything to do with skills.
What’s Holding HR Back from Real Digital Transformation?
We asked respondents which areas of skill development were most needed in their teams. Their answers paint a clear picture:
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Data analysis and interpretation – 66.7%
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Strategic workforce planning – 50.0%
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Automation – 45.8%
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Digital HR tools and technologies – 45.8%
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Employee experience design – 33.3%
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Artificial Intelligence – 33.3%
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Digital communication and collaboration – 25.0%
These aren't fringe skills. They’re the bedrock of any digitally capable HR team.
Yet the numbers tell us that many teams are struggling to build foundational digital competencies—and that’s a big problem when your tech investment depends on the very skills you don’t yet have.
Why the Gap?
A few trends could be driving this:
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The pace of change outpacing upskilling efforts. New tech arrives faster than teams can adapt.
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Budgets for training aren’t keeping up with ambitions (we’ve seen this too—62.5% said training budgets are a major blocker).
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Learning and development still isn’t a strategic priority in some HR teams.
Whatever the cause, the message is clear:
If we want HR to lead digital transformation, we can’t just give them the tools.
We need to invest in building the capabilities that make those tools matter.
So, What Can You Do?
If you’re not sure where your team stands, you’re not alone.
That’s exactly why we created Index by Udder—a free, data-led diagnostic that benchmarks your HR function across seven key areas of digital maturity. It’s quick, practical, and packed with insights.
Because digital transformation isn’t about chasing the next shiny platform.
It’s about unlocking the potential of your people to drive change—with confidence.
