7 Trends in HR technology today
A.I. Chat bots. Predictive software. Software is evolving daily, making it easier to use and support. Except HR technology. HR tech is the least interesting part of a company’s tech stack, since it’s just something that just “works”. Until now. Tech companies are now turning their attention to HR tech, and are diving in, to the tune of $2.2B in the last two years according to CBInsights.
New and existing companies are starting to shift their focus from serving the organization to serving employees. They’re incorporating disruptive technology from other areas of technology and trying to bring stand-alone software applications under the umbrella of HR platforms. Let’s take a closer look at some of the trends in HR technology today.
Trends in HR technology today
It’s about productivity, not just automation
Over the last few years we’ve been automating everything, including in HR practices. Automation is good, but if you’ve got a bad process, then it doesn’t matter that you’re automating it. Your employees still aren’t as productive as they could be. There will be a shift in HR to increase productivity by using HR apps that work together,as well as an increased focus on self-service portals to reduce friction for HR professionals (like Direqlink‘s self-service recruiting platform for staff at enterprise companies and talent agencies). HR platforms have started bringing in other stand-alone applications, and that should accelerate in the next few years.
The rise of intelligent HR apps
Not only is the latest round of HR tech bringing together applications to increase productivity, they’re using AI and other machine learning applications to make the tools more intuitive to use. Many AIs sit between the software and back end technology (like databases), and make it easier to integrate the two areas.
There will be more self-service tools that will use AI to retrieve and process the information needed for HR management, like chatbots that handle many of the front-end talent acquisition activities, leaving HR pros to handle the more in-depth activities like interviewing and assessments.
Future innovations in intelligent HR apps will include (but won’t be limited to): high-volume recruitment apps automated by chatbots; automated and intelligent applicant tracking systems; and self-service assessment systems that handle all assessments before human intervention is required.
The shift to the cloud
Enterprises are increasingly using cloud services for many of their software solutions, but hesitate when it comes to HR tech. Which explains why there aren’t many integrated HR portals that bring everything together for HR teams; everything’s an individual app that uses its own set of data and portals. Forward-thinking organizations will take HR needs into account as they accelerate agility within their companies and drive collaboration through cloud implementations.
Integrating HR tech better into the tech stack
Taking that idea further, organizations that are better able to integrate the new HR tech into their tech stack (whether on-premise or in the cloud) will do well with the next generation of HR solutions. They’re already dealing with an influx of information into their large data stores; additional solutions will be required once they bring HR solutions into the mix. Organizations will need to prioritize data storage and transfer, data integration points with HR processes, and develop protocols to eliminate and manage duplicate records.
Creating wellness HR apps
Wellness apps and solutions are dominating the personal landscape with FitBits and other wearable devices. This mindset is taking over our professional lives too as we try to find respite from the cognitive overload of work, try to stay as productive as possible, and keep up with exercise, healthy eating, and more. It’s a challenge to say the least, and employees are looking more to their employers for help.
Wellness add-ons to the HR tech stack are going to become more important to organizations. Vendors like Oracle, Ceridian Dayforce, and SAP are realizing this and are driving a lot of value for their customers as organizations come on board. The tools are being adopted more and more by employees, so the innovation and competition in this vertical will only increase.
Dealing with the gig economy
The gig economy isn’t just for freelancers any more. Organizations are relying more and more on temporary or project-based workers, yet HR systems are struggling to keep up. Some platforms like SAP Fieldglass, PeopleFluent, and Beeline integrate with gig work platforms like Rallyteam and Legion, but the majority are lagging behind. With all of the freelance and gig workers being employed by companies today, HR pros are looking for more integrated solutions that will help support and manage these kinds of workforces.
Fostering employee engagement
Employee turnover is one of the biggest issues with companies, as it costs so much to source, hire, and onboard new employees. It costs significantly less to keep the employees you have happy, and you’re looking for solutions to help you do that. Companies are looking for HR solutions that facilitate continuous listening of employees beyond the annual survey; provides ways for employees to talk to each other about their work; and gives HR pros ways of analyzing the data and talk they’re hearing. It should be in the core HR system, but it’s not there just yet; look for this area to expand in the next while too.
Technology’s always evolving, and HR tech is the latest area where changes are happening. With all the investments being made in the industry, it’ll be interesting to see where things go. See what trends take off and which fade away.
What trend are you interested to see more of? Any you’re tired of hearing about? Let us know in the comments, we’d love to hear from you.