Technology is the crowned change-maker for almost all industries that are leading some huge business transformations. The HR department had been late to the party until recently. It was spared from the sweeping changes that other functions like marketing or finance witnessed. Thanks to the two-year hiatus, HR tech has slowly become a priority for many organisations. Technology solutions related to software, cloud, digital platforms, AI & ML are transforming the entire function to become more effective and efficient.
A recently published report by PWC reveals HR leaders are realising the need to invest in emerging technologies in their efforts to craft an impactful people strategy. Recent projections state that the HR software market is expected to grow and exceed $10 billion by the end of 2022 at a CAGR of 10.4% for the sector as a whole. The current HR landscape has evolved to consider the various facets of technology and combine them with the traditional HR practices.
Following are the few primary trends that will continue in the near future:
Organisations need to increase their focus on the outcomes and use different KPIs to define a top performer. The traditional system of using annual or bi-annual performance reviews is no longer relevant and can lead to a decrease in employee motivation and productivity. HR tech has the potential to review the entire mechanism making it more integrated and real-time in nature. Multiple demands and preferences can be effortlessly integrated with a tech-powered performance management system.
Increased use of AI and machine learning
One of the most significant trends in HR tech is the increased use of artificial intelligence (AI) and machine learning. These technologies are being used for a variety of tasks, including recruiting, performance management, and employee retention. Many companies are now using chatbots to answer common questions from candidates during the recruiting process. Additionally, AI is being used to identify top candidates by scanning resumes and social media profiles. Machine learning is also being used to create predictive models that can help organisations make better decisions about things like hiring, promotions, and compensation.
Agile team building
With a unified HR engagement software, interaction and collaboration between cross-functional teams become more efficient and streamlined. This leads to what is known as an agile team, where people from different departments work together quickly and efficiently to achieve a common goal. The benefits of agile team building are many, including increased innovation, better decision making, and improved communication. Additionally, agile teams are better able to adapt to change and handle unexpected challenges.
The application of data is shifting rapidly beyond description to prediction. While core HR data cannot change much, what is expected to change is the vast troves of data available - how employees interact, their interests and how they spend their work hours. This will enable HR to test new programs virtually and forecast behaviour in very precise ways. HR programs will become more customised, and algorithms will drive more HR decisions.
Digital assistants are playing an important role in automating HR processes and tasks. They can help with a range of tasks, including scheduling interviews, sending reminders, tracking employee leave, and providing information about company policies. Additionally, they can help answer common questions from employees. Digital assistants are becoming more and more common in the workplace, and they are only going to become more prevalent in the future.
As an extended arm of data science and analytics, people analytics has the potential to change the entire HR landscape in its entirety. A focused approach for studying people, processes, opportunities and functions with a strong data foundation in place, people analytics can be merged with enterprise-wide technologies to create new platforms, revise existing frameworks, draw insights etc, directly contributing to the organisation’s long-term impact, success and continued growth.
In HR, blockchain is being explored as a way to store employee data such as qualifications, employment history, and performance reviews. Additionally, blockchain can also be used for tracking employee training and development. The use of blockchain in HR has the potential to improve the accuracy and security of employee data. Additionally, it could help to streamline HR processes and make them more transparent.
Technology in itself will not change the role of HR. To experience a fundamental shift, it needs HR leaders who are willing to pursue the digital transformation of their business and its people, which means unleashing HR from its silo to help business leaders navigate the complexities of the new era surpassing the physical boundaries of the workforce.