Human resources is all about people. The term Human Resources (HR) Technology is an umbrella term that is used to describe all the tools HR departments use to deliver a better, smoother employee experience.
Living in the 21st century, using HR technology is no longer optional. It is imperative for an organization’s success. Research has shown in the past companies that use HR technology perform far better than companies that do not. Moreover, the HR technology space has changed dramatically in the last year, since the pandemic hit. It has become integral and more integrated to business activities than ever before.
Here are the latest trends in the HR technology space in 2021:
1. Remote work
Thanks to the COVID-19 pandemic, 2020 became the year we moved work from our offices to home. It’s one of the biggest trends that’s taken the industry by storm in the past year. Even before the pandemic hit us, nearly 70 per cent of the world’s professionals worked remotely at least one day a week, while 53 per cent worked from home for at least half of the week, according to a study conducted by IWG (70% of people globally work remotely at least once a week: IWG study (cnbc.com)). While working from home is a sought after employee perk, it’s also an administrative challenge. This means the need for HR technology that anyone, employer or employee can access from anywhere, anytime.
2. Cloud-based HR
When you have teams working from home, it is likely that your HR department is also working remotely. This is where the future of HR management – cloud-based HR platforms – come into play. 2020 was a realization that all businesses must go for digital transformation. That includes HR, too. Business leaders are moving to all-in-one HR platforms that provide several benefits such as payroll, time, benefits management, recruitment and other core aspects of HR. Some of the benefits of working with cloud-based HR are-
Scalable
Better for fast-growing businesses
It allows the HR department to work with real-time data.
3. Focus on mental health
One of the things the pandemic has highlighted is the importance of mental health. The wellness of an employee has a huge impact on the company’s productivity and job performance. It’s a huge trend in HR at the moment to work on projects that help employees avoid work burnouts, breakdowns, and place a greater focus on employee physical and mental health. This will ultimately lead to a higher employee retention rate.
4. Online Employee management
With more and more businesses shifting to remote working, it has become imperative for companies to shift all their HR systems online in order to manage their employees officially – be it time and attendance software for racking, scheduling meetings, request for leaves etc.
5. Better onboarding experience
A company’s culture differentiates it from other organisations in its industry. But when people are working from home, how to pass on that experience to candidates? From resumes to interviews, everything has become digitized in the recruitment process. A new HR trend is the emergence of candidate experience platforms that allow for connections and conversations to take place between the employer and talent.
Today, more and more businesses are finding it hard to fill in vacancies. The first generation of a digital native, the millennials, expect employers to provide up-to-date technology, including HR software to make their work seamless. It is also becoming more and more difficult to retain valuable employees and this is where HR technology comes in. It enables HR departments to connect to new resources and solutions to improve their global reach.
6. AI-based analytics
Artificial intelligence (AI) is revolutionizing the HR space. Today, most decisions are based on data and its importance in human resources is unquestionable. From simple employee tools and surveys to complex analytics platforms, there is a huge range of tech available to HR teams. A new trend in this space is augmented analytics – it is being seen as more user-friendly to analyse employee data and produce deeper insights.
Now, AI is regularly used in recruitment, HR delivery, learning and development etc. Many companies are using AI-powered HR technology to target new talent efficiently and base conclusions on data, not guesses.
7. Increased security
Keeping all data pertaining to employees, including their pay-slips, means that companies have to embrace new ways of securing their data. Organisations need to ensure the data is correctly managed and processed. Functions like digital signatures can secure pay-slips and contracts, for example.
Experts hope that blockchain technology will reshape this. It can be applied to anything including financial details, work history, personal data etc.
8. Self-service technology
For a long time, HR technology has sought to provide self-service tools to employees and managers. But many believe companies will need to reconsider its use as line managers often feel the burden when HR teams try to introduce more independence. They often feel it when the responsibilities shift from the HR managers to the line managers. Sometimes too many choices on the employee self-service (ESS) menu, can overwhelm the employees.
9. Chatbots
In line with self-serving employees, chatbots have seen rapid growth in the HR space. It gives the HR department to answer repetitive questions without wasting their time. Not only do chatbots answer questions, but they can also automate complete tasks. Today we see complete onboarding done through a chatbot. This makes for an efficient and uniform onboarding experience for every employee. Chatbots today act as digital assistants for the HR department.
Conclusion
There is a tendency to believe that the more we incorporate technology into our lives, the less we lose touch with being human. However, if one takes a closer look, the opposite may be true. HR technology or HRMS software in 2021 is helping organisations to maximise employer and employee benefits. The biggest trend in the HR technology space is not to replace human interaction but to facilitate meaningful connections among professionals, co-workers and new talent to create a more satisfying job experience where all can grow.
