Human Resource technology (HR technology) is an umbrella term that comprises of all the automation software associated with HR functions in an organization. It includes smarter recruitment, employee payroll and compensation, talent acquisition and management, employee engagement, workforce analytics, performance management, people analytics, business intelligence, cloud migration, and benefits administration.
HR technology, often referred to as HR tech has developed a lot in recent years. Many of the employers have started migrating their HR processes to cloud platforms. As businesses are focusing to maximize potential, they are adopting smart people management solutions by incorporating technology into HR functions.
Forbes research reports that the global human resource management sector will reach US$ 30 billion by 2025.
This infographic helps you get a whole picture of the HR technology market.
“HR professionals often see their largest job challenges as sourcing talent, improving performance management, defining compensation, and providing training programs and other HR systems,” says Dave Ulrich, Professor of The University of Michigan.
Accordingly, HR leaders and CHROs priorities are changing. They are embracing technologies into their system and the transformation process is becoming aggressive day by day.
To support HR transformation with data, the infographic throws light on the present status of the Human resource professionals using technology.
- 43% of HR professionals are seeking culture change solutions
- Implementation of the recruiting technologies is the priority for more than 42% of HR executives Artificial Intelligence (AI) is the main focus for 47% of HR executives
- 53% are investing in Artificial Intelligence for smart recruitment
In brief, HR technology is changing HR roles, processes, and functions. It is becoming more sophisticated and accurate. To elaborate, HRs are opting for smarter recruitment through Artificial Intelligence, introducing more efficient and sophisticated compliance, improving performance management through analytics, and involving analytics to boost the inclusive and diverse workforce.
Some of the trends in HR technology to watch in the near future is:
- Show me’ approach to Artificial Intelligence for accessing employee data per authorization E.g., Employee’s job history, team information or performance rating
- Employee engagement through conversational Artificial Intelligence to update employee’s information, perform business transactions and give access to reports for managers
- Bring change in organizational culture by enabling diversity programs and inclusive workforce
- Use of IT applications such as server hosting, databases, exchange protocols, interfaces, etc.
- Migration of core HR systems to the cloud to access data from anywhere
- Renewing interests in point solutions such as talent assessment, acquisition, rewards and recognition, performance management, etc.
- Using AI to push recommendations to the targeted employees like updates, feedback, and, etc.
- Implement succession planning and promote career profiles based on market research and learning experiences
In a nutshell, understanding HR and digital transformation journeys with reference to the industrial revolution and the digital economy is crucial for the success of an organization. Standardizing the processes, systems, data, and strategy is necessary to create a positive business impact. It is time to implement the digital mindset on operating models and work frameworks to witness a people-centric transformation.
Infographic Source: https://www.topchro.com/article/how-tech-is-transforming-hr