PERSOL Work Switch Consulting Survey Finds Over Half of Large Companies Face HR Staffing Shortages as Generative AI Adoption Expands

PERSOL Work Switch Consulting Co., Ltd., part of the PERSOL Group whose vision is “Work, and Smile,” conducted the third edition of its Benchmark Survey on HR Departments at Large Companies, officially titled the Third Survey on the Status of HR DX Promotion. The survey targeted companies with 1,000 or more employees on a standalone basis, aiming to understand the state of HR digital transformation at major companies and analyze the current and future development of strategic HR in Japan. As in the previous survey, the study examined corporate and HR department structures, HR budget scale, the use of outsourcing and consulting firms, IT and digital adoption in HR departments, and employee-focused initiatives. The findings show that more than half of companies feel understaffed across most HR functions. Compared with the previous fiscal year, departmental budgets and IT system spending are trending upward, yet around 30% of companies still feel their budgets are insufficient. Some functions are increasingly using outsourcing and consulting firms, reflecting efforts to improve productivity and strengthen expertise. In HR IT and digital adoption, more than 80% of companies use systems for attendance management and payroll calculation, while around 70% use core HR systems. Usage of performance evaluation and talent management systems is increasing, suggesting growing demand in this area, while adoption of recruitment management and learning management systems remains largely flat. For generative AI, more than 40% of HR departments have already introduced it, and around 30% are considering adoption. Compared with the second survey, the share of companies that have already adopted generative AI rose by about 10 percentage points, while more companies are also considering adoption, indicating further expansion ahead. The survey also found that just under 60% of HR departments are working on DX, although the share saying they are actively working on it decreased while the share saying they are somewhat working on it increased. Fewer than 30% of companies actively conduct BPR when changing organizations or operations, introducing systems, or implementing outsourcing. This suggests that many companies are pursuing DX by reviewing processes only minimally and adopting best practices embedded in standard system functions. For employee initiatives, listed companies are more than 20 percentage points more likely than unlisted companies to be working on improving employee well-being. While well-being initiatives are advancing among large companies, onboarding remains an area with unresolved challenges. PERSOL Work Switch Consulting commented that advances in technologies such as generative AI are steering corporate management toward an “AI-native era.” HR is no exception: AI is increasingly expected to handle large volumes of administrative and routine tasks, allowing people to focus on advanced decision-making, creativity, and organizational development. This shift goes beyond operational efficiency and represents a major turning point that will force companies to reconsider HR staffing structures, roles, and budget allocation. The company emphasized the importance of tracking the same indicators at the same level of granularity over the long term, accumulating subtle changes as a time-series asset, and continuously providing decision-making materials for companies designing the future of their HR organizations. The survey was conducted from September to October 2025. Respondents were people in HR departments at companies and organizations with 1,000 or more employees who were able to answer questions about staffing levels, workforce composition, and cost structures within their HR departments. The analysis covered 165 valid responses.