8 HR Technology Trends Redefining the Future of HR

Given the unprecedented things that have happened in the last year, ‘prediction’ is a word that people refrain themselves from using. You can’t actually predict anything as things are so uncertain, and the year 2020 is the perfect example of this. However, you can always try to speculate about the trends that are going to shape the future of businesses.

The HR department undoubtedly plays a vital role in developing, reinforcing and enhancing the culture of an organization. From managing the payroll to basic HR activities, the department is responsible for efficiently managing the workforce. If done manually, these tasks can cost businesses a lot of money, efforts, resources and time. This is the prime reason why most organizations are making a shift toward HR technology.

Technology makes it easy to contact employees, store files or data and measure employee performance. Today, HR leaders are leveraging HR technology to attract, hire, and most importantly retain talent. Hiring can be easy, but retaining employees is often a more challenging task. According to new research of more than 600 US businesses with 50-500 employees, 63.3% of organizations say retaining employees is actually more challenging than hiring them. This is why employers have started focusing on employee engagement and wellness.

Besides employee wellness and engagement, there are other HR technology trends that are here to stay:

1. Smart recruitment

According to research by Jobscan, 98% of Fortune 500 companies use Applicant Tracking Systems (ATS). This is a huge number and states that organizations are relying heavily on new recruitment tools.

An ATS can help you manage every aspect of your hiring and recruitment process. From reviewing applications to sending automated letters or emails and even complete onboarding, an ATS can make your recruitment process smooth and efficient.

2. Employee wellness

Healthy employees support the health of your business. Evaluating employee moods, introducing wellness programs and providing mental and emotional support to the employees can help organizations in the long run. According to research, 85% of companies state that wellness programs support employee engagement. Healthy employees mean reduced absenteeism, higher productivity and improved employee satisfaction.

3. AI in human resources

Artificial intelligence can be used by HR in numerous ways. AI can be used in workforce planning, onboarding new hires, looking at tools employees use and can provide real-time feedback to HR about the overall morale of employees that can help them address employee-related issues without any delay. However, one common misconception about AI is that it’s going to replace workers. This isn’t true - AI developments are more concerned with helping workers get the most out of their role than replacing them.

4. Gig employees and freelancers

Organizations today have started to acknowledge that employees don’t need to be in the same physical space every single day to get the work done. Gig workers or freelancers can fill temporary skill gaps and can be used on a long-term basis for hard-to-fill positions. The gig economy also helps in promoting diversity and inclusion in the workplace as it gives you the opportunity to hire people across the globe.

5. Remote working is here to stay

Although many companies have resumed work from the office, there are a few organizations like Twitter that have introduced permanent remote working. High-quality video conferencing tools like Zoom and Google Meet are gaining attention as they help teams to connect and engage.

Employee engagement is the biggest challenge for remote working organizations. HR technology can help them cope with this challenge by offering employee self-service portals, remote access to paychecks and comprehensive absence and leave management functionality.

6. Upskilling

While many organizations failed to cope with the challenges the COVID-19 pandemic presented, there were many that managed to stay resilient. What made these organizations survive during these tough times was their swiftness to upgrade themselves with skills and knowledge that helped them adapt to new changes. Organizations must focus on prioritizing learning and development programs. These programs not only help employees to grow and become better professionally, but also benefit organizations in the long run.

7. Next-gen performance management

According to the McKinsey Global Survey, nearly 9 in 10 executives and managers say their organizations either face skills gaps or expect gaps to develop within the next five years. This makes it imperative for organizations to focus on measuring employee performance. Using HR technology, HR leaders can easily measure and track the performance of their employees. A robust performance management system help managers to set company goals and performance objectives, promote rewards and recognition and provide continuous feedback.

8. Self-service tools

People love autonomy, especially in the workplace. With self-service tools, employees can

• Access and update their personal information with an employee self-service portal
• Perform HR-related tasks without any intervention from the senior leadership
• Access payslips online
• View and print W-2 forms
• View other employee information

Self-service tools can also help HR leaders communicate changes in workplace policies, make company announcements and deliver other time-sensitive information.

The above-mentioned trends are going to impact and redefine the ways HR leaders have been functioning. Organizations that want to support workforce administration and optimize workforce management need to look for tools or solutions that can help them meet their objectives.