With Generative AI, Skills Technology and Data Analytics, the human resource ecosystem has changed remarkably in the last few years. There are large scope of robust automation and constant upskilling is required to stay on top of the competitive ladder.
HR leaders today refer to both the software and hardware tools used to automate human resource functions as Human Resource technology.
Technology plays a pivotal role in streamlining the human resource processes and in achieving excellence through enhancing employee engagement and improving decision-making opportunities.
There is a sudden realization regarding the importance of investing in human resource infrastructure globally throughout all business segments, in the last decade or so. More and more organizations are focusing on technological innovations and keeping an eye on the latest trends or upcoming tools in order to gain a competitive edge among their peers.
01. Software as a service
It has been surveyed that around 75% of companies around the world are using SaaS-based human resource software to improve efficiency and meet their specific needs for enhancing employee collaborations across all levels of their organization.
In 2023 itself, the market size of SaaS-based human resources was around 307 billion USD and this trend continues to grow on a regular basis.
02. Employee Engagement Applications
HR professionals are shifting their focus on utilizing employee engagement applications to create a positive environment at work aimed at increasing the overall productivity of the employees and reducing the rate of attrition.
It is interesting to note that the employees now have better decision-making power since there is a shortage of skilled labor in the global market. The idea is to give the employees access to such platforms and applications wherein they can voice their opinions and feedback via posting and commenting.
The employees then feel that their voice matters and also they conclude that they are valued in their particular workplace.
03. Artificial Intelligence
Organizations are now on the lookout for how AI tools can make the work of the HR team easier and less time-consuming.
In fact, the emerging AI phenomenon is becoming a tool for innovation and according to an IBM survey, around 40% of their entire workforce is in dire need to upskill their current learnings as a result of implementing AI over the next few years.
04. Workforce Management Tools
There is a growing trend in implementing better employee scheduling and tracking methods by HR professionals in all industries.
The automated systems being used by HR these days work as tracking software to help avoid scheduling conflicts or handle leave requests in a better manner plus monitor the availability of employees throughout their working hours.
This becomes a crucial tool for every organization looking to grow with the help of enhancing their employee strength.
05. Recruitment Trends
There has been a complete shift in the ways the human resource department is handling hiring matters these days. The recruitment decisions are now more or less data-driven in nature and use resume screening enablers to save the time and effort of the concerned hiring team or HR leader.
The development of various online job portals and applicant tracking systems has given way to a market trend wherein 77% of workers are willing to accept a job offer virtually which means that they do not need to visit the physical office space to make their decision.
06. Training Digitalisation
There is an emerging trend of online training, webinars and other e-learning platforms to ensure that the human resource team can provide equal opportunity for skill advancements to all its employees irrespective of how remote their location is or whether or not their roles require being physically present in the office premises.
This is a very important Human Resource trend since according to a Forbes survey, it was observed that 22% of workers quit their current organization due to lack of proper training and learning opportunities.
07. Transformation of Performance Management
Technology-driven solutions with interactive features that enable continuous feedback are in trend these days for managing and monitoring employee performance on a real-time basis.
These systems help HR leaders chart a decent career path for every employee depending upon their recorded performance data and also areas of improvement.
08. Cloud Technology
The shift towards a paperless infrastructure has been on the mind of industry experts for a few years and now it has become a top priority for most business empires.
These cloud-based HR solutions help companies store their data in a smart, secure and safe manner with flexible options to opt for services that meet their customized requirements.
09. Hybrid Model
The relevance of opting to have work-from-home or hybrid models has increased nowadays. Companies have also started realizing that they do not need to own huge office spaces since most of their workforce is not required to report to work physically.
Even if people are reporting to work, there is a clear division in terms of which employees are coming in and who are working remotely on any particular day. Around 30% of office space is said to be reduced by companies accordingly.
10. Payroll technology advancement
Human resource professionals have been forced to compensate for a dynamic workforce since there are no more limitations to hiring people from nearby regions only.
So, the distribution of salaries and other perks have to be now adjusted in order to cater to employees living across geographies.
Also, as there is increase in remote business global payroll management has become a regular practice. There are technologies to manage payroll for local as well as geologically diversified business.
You may check our comprehensive list of top payroll software solutions to find the right one for your business.
11. Tech Enabled Onboarding
The HR team is focused on providing a more positive onboarding experience as per the latest market trends since it has been proven that using effective tools to hire new people makes them stay longer within the organizations as they are the most vulnerable during this stage of their employment journey.
There are large pool of very handy onboarding software to choose from to make the entire onboarding process simple.
12. Blockchain
This will help offer standardization, trust and a high level of security for HR teams. This technology can be used to encrypt company data before allowing employees to share the same and also make a sophisticated level of verification possible for employers looking to hire new people.
13. Machine Learning
Machine learning usage is helping businesses grow and build a participative workplace. Thus attributing their success to the involvement in adapting to such new-age human resource technology.
Machine learning has become a very useful tool when it comes to talent acquisition. Organizations can scan through hundreds of resumes and find the right potential talent in a very limited time.
In fact, machines can completely automate the entire process from identifying the right talent to scheduling interviews.
14. Metaverse
The development of a virtual environment is helping HR professionals conduct online meetings, training or discussions in an innovative manner. This helps in facilitating a better overall employee experience and helps boost motivational levels throughout the company hierarchy.
15. Employee Self Service
The idea is to make employees do HR-related tasks on their own without much dependence on assistance from the HR team. Self-service portals are a boon in the world of modern-day human resource technology.
16. Deskless Workers
There has been an increase in pushing a large percentage of the workforce to work away from a desk or a monitor. This is based on the trend of a Human Resource tech-driven future wherein employees are more connected and also work-driven as a whole.
17. Digital Identity Management
The use of innovative technology for identity management of employees and fraud detection systems by HR professionals signifies that the demand is increasing to ensure data privacy in a more robust manner throughout the world.
18. Analytics
There is a significant growth in using data-driven technology to take HR-related decisions and powerful analytics have given rise to reporting tools that are much advanced in nature.
Data-driven approach to managing the workforce has a significant impact on the overall growth of a business. HR professionals can make informed decisions about staffing requirements based on historical attrition rates, training needs and other aspects of workforce management.
Read this article about how HR Analytics can help businesses.
19. Diversity and Inclusion
Most organizations have now started building a workforce based on people from diverse backgrounds, genders and cultures in order to stay in touch with the latest DEI trends in Human Resource technology.
Organizations that embrace diversity will always have a larger talent pool as compared to the ones that are more conservative.
20. Cybersecurity Threat
With more and more access to information on various levels, there is a growing concern regarding the trend of data breaches and cyber threats among HR leaders across the globe who are now realizing that data security is a serious issue.
So, there is a rise of data secure related technologies as well to counter this increasing threats.
Conclusion
It can be safely concluded that the innovations and technological advancement in the sphere of human resource automation are here to stay.
The trend of depending more on machine than human interaction has just started but it can lead to a much more competitive world wherein there will be a constant struggle between human dependency and the use of artificial intelligence resources.
The world is surely heading in the direction of empowering Human Resource professionals with the right set of tools to make their work easier and way less time-consuming.
This can be seen in the manner in which the companies, however big or small, are ready to invest their full resources to enhance the use of Human Resource tools and adapt to this ever-changing digital era in which we currently live.
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