There was a time when HR’s function was largely to organize paychecks and hire new employees. But in today’s working world, jobs are more than just a way to make a living. Today’s professionals are more particular about what they do and the company they work for. This has led to an increase in the responsibilities of HR, who must now juggle a wider range of roles from recruitment to maintaining a positive culture and encouraging feedback.
This has placed increasing pressure on HR teams across various functions, with many organizations now choosing to invest in HR technology tools to manage this increasing workload more efficiently.
But if you’re yet to harness the power of these HR tools, we’re here to tell you why now’s the time to do so. In this HR tech guide, we'll cover the following chapters:
- What is HR tech?
- Why HR technology is vital
- The HR tech landscape
- Benefits of using HR software
- How technology is shaping the HR landscape
- Impact of automation and AI on HR
- 10 tech tools every HR professional needs
- Why invest in an integrated HR system
What is HR tech?
HR technology (HR tech) is an umbrella term for all software and its associated hardware that are used to automate various HR functions. For example:
- Recruiting technology
- Employee payroll and compensation
- Performance management
- Workforce analytics
- Cloud-based HR technology
These HR tools can take on some of the more labor-intensive roles by automating routine processes. They also help to increase efficiency and deliver a better employee experience by offering detailed analytics and insights.
Why HR technology is vital
For some organizations, HR tools can be a significant investment. Therefore, it’s crucial to understand why HR tech is vital and how it can add value.
1. Employees are an organization’s most important asset
Employees are the lifeblood of any organization. They’re the key to success, but how well they perform is largely based on how well they’re managed. As such, HR technology tools are vital for providing a seamless employee experience, from the moment they join to the moment they leave.
2. Managing HR operations manually is no longer feasible
Nowadays, HR and technology go hand in hand. Gone are the days where desks were covered in paperwork and surrounded by rows of filing cabinets. As the number of employees has increased, so has the need for automated systems to take some of the burden of manual administrative tasks. Growing companies simply can’t function without them.
3. HR technology could be crucial for beating the competition
You can pretty much guarantee that your competitors are using HR tech in one way or another, so if you don't embrace it, you could get left behind. An example of this is AI and HR technology, which can help teams predict what staff they’ll need in the future. It can also help them offer a better employee experience by providing more flexibility and choice to the workforce.
For example, cloud-based HR technology makes it easier for HR teams to continue communicating and sharing information with employees through mobile devices. This is something that talented professionals are going to be looking for. But if you want to hire the top talent and beat your competitors, you need to give them a reason to choose you.
It’s important to choose the right tech
HR technology isn’t going to work in your favor unless you choose the right software and systems. As such, you must take your time to work out what HR functions are most time-consuming and which areas of the organization need to run more efficiently. That way, you can ensure you choose and invest in the right HR tech stack for your teams.
The HR tech landscape
More organizations are investing in HR tech and as an industry, it’s growing exponentially. As of 2019, the HR tech market was valued at over $16 billion and this is expected to increase by at least 11.7% by 2027. And with 74% of HR and IT leaders saying they expect to see their spend on HR tech increasing over the next two years, these figures are hardly surprising.
Why HR tech is on the rise
There are several reasons why HR tech is on the rise. Firstly, IT advancements mean that new HR technology and software are always emerging and always finding new ways to help HR teams.
Secondly, HR tech can help organizations to solve some of their biggest management and administrative challenges, like attracting and hiring the top candidates, human capital management and aligning organizational strategies. This is why so many are choosing to invest in these tools right now.
Benefits of using HR software
Whether you’re looking to reduce costs or improve the day to day running of your department, the right HR tools can help you achieve this. Here are a few key benefits of HR technology and how these can positively impact your business.
HR software can automate and free up time
Automation in HR can be used to take on time-consuming and repetitive tasks, such as importing documents, filling in spreadsheets, maintaining files and organizing information. This frees up time that can be better spent on tasks that’ll help support employees and drive the business forward. This in turn can help to boost their productivity.
It can enhance employee experience
Investing in HR tech can also help to empower employees, which can be hugely beneficial for businesses. For example, cloud-based systems can be accessed anywhere, which encourages workers to have a more self-led approach and gives them better ownership of their personal data. Alternatively, chatbots and automated systems can quickly deal with queries or vacation requests without long, messy email chains. All of these aspects together can have a positive impact on employee wellbeing, happiness and retention. They also free up time for HR professionals.
Improved security and regulatory compliance
Another benefit of HR software is that it can maximize accuracy and improve security in HR functions. Some HR solutions can give you full document management so you can see who reads what and if any changes or different versions have been made. What’s more, cloud-based HR software comes with additional security features that can protect your data from physical catastrophes such as fires or theft.
Finally, HR technology tools can play a huge role in compliance, alerting HR professionals when action needs to be taken, such as reporting on the gender pay gap or staying GDPR compliant.
How technology is shaping the HR landscape
With new HR software and technology solutions being created all the time, we’ve seen a tech boom over the last few years that’s reshaped the way HR professionals work and the way we think about HR and its role within an organization.
Diversity and inclusion
Diversity and inclusion (D&I) in the workplace was once the job of HR and often wasn't one that took priority. But there’s been a huge shift in the last decade as evidence has shown that diversity can improve a company’s innovation and profitability. This has led many to prioritize D&I.
However, it’s one thing to say you're implementing D&I initiatives, but it’s another to actually take action, something that HR professionals are now having to come to terms with.
That said, thanks to new diversity and inclusion technologies, HR teams are taking back ownership of D&I initiatives, using these tools to support them in their goals. Better analytics and new HR technologies are boosting diversity and inclusion and helping these initiatives come to fruition through:
- Screening and sourcing tools which open them up to wider and more diverse talent pools
- Rewards and recognition schemes that promote visibility across the workforce
- Feedback and Voice of the Employee (VoE) platforms letting staff have their say and tell the real story
Performance management
Performance management is one of the biggest and most complex jobs for HR teams. Luckily, HR technology has streamlined these processes: performance monitoring, conducting reviews and asking for feedback and helped to eliminate a lot of unnecessary steps.
These tools have made it possible for HR professionals to gather people analytics and use this raw data to create more targeted, actionable insights, which ultimately will be better for the business and the workforce. These data-driven decisions could include promotions, bonuses, succession planning and more.
Smarter recruitment through AI
One of the biggest ways in which tech is shaping the HR landscape is how it’s transforming recruitment. The hiring process can be one of the most time-consuming and costly HR functions, but thanks to AI and automation, it’s becoming easier for teams to source and hire talented candidates. In fact, AI is starting to outperform humans when it comes to evaluating hard skills.
These tools aren’t only changing the way that HR teams recruit but also how they onboard new employees. They also free up extra time for hiring professionals to do more important tasks like building relationships with top candidates and new hires.
Impact of automation and AI on HR
The automation of HR processes is important because it can increase efficiency and reduce the risk of human mistakes. It also eliminates the need to waste time on mundane tasks, which is why AI and automation are set to be the future of the workplace.
In the short term these tools will improve accuracy, save money and improve user experience. In time, this will lead to better predictions and analytics for businesses, and in the long term will allow for better decision making and a boost in human activity.
