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Driving the adoption of HR Technology

What is driving the Adoption of HR Technology?

HR Technology is now a hot marketplace. $5.5 billion have been invested in HR startups since 2014 through VC investments. This shift in investment towards new HR and workplace tools signals a growing trust in the benefits of having a digitally driven HR process in the organization. What are the main drivers of HR Technology adoption? Let’s examine.

A massive wave of innovation is sweeping the HR industry. Many organizations are adopting cloud-based technologies and building digital infrastructure for HR. Results of Sierra-Cedar research reflects that 45 % of large organizations and 51 percent of mid-sized companies are going to increase their HR Technology budget. It’s an exciting time for HR Technology. But what is driving this excitement?

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5 HR Trends To Watch Out For In 2018

5 HR Trends To Watch Out For In 2018

2018 is going to be a watershed year for HR and recruitment in particular. With most organizations already switching to cloud based HCM and HRMS, advanced and cutting edge technologies like Artificial Intelligence and Big Data Analytics will make a definitive impact on how regular business in HR is conducted. Multiple research papers and expert opinions all point towards a growing significant role technology will play in talent hiring and management.

Let’s watch out for these HR trends in 2018:

Creating a positive candidate experience is one of the Top HR Trends for 2018

Creating a positive candidate experience is one of the Top HR Trends for 2018

The competition for talent is on the highest right now. If you want to hire the best, you need to provide the best possible candidate experience. While one way to attract top talent is to work on your employment brand, most are still unaware that without providing good candidate experience, you can easily ruin the employer brand also. Vague application instructions, broken communication, delayed response and incorrect job description are just few of the things that create a bad rep and perception in the candidate’s mind. A survey by Software Advice reveals that candidate’s topmost demand is to have a clear communication about certain aspects of hiring such as the timeline of the job vacancy, notification if the position is filled, timely replies after screening and interview and notification if not selected.

(Also Read: How to improve candidate experience with HR technology)

Bridging the workforce diversity gap is a Human Resources Trend for 2018

Bridging the workforce diversity gap is a Human Resources Trend for 2018

Recruiters are also human and thus suffer from behavioral prejudices. They have their personal bias deep rooted somewhere owing to a personal experience or surrounding environment. The new year is a perfect excuse to kick out these prejudices and resort to just and bias-free recruitment so as to create a more inclusive and diverse workplace. A diverse workforce brings rich experiences to the table, enhances productivity and increases the bottom-line. While you can add to the case of a diverse workforce largely by eliminating bias at different stages of hiring, there is more to creating a healthy diverse manpower which is inclusive of all strata of society, age and gender.

What can you do exactly? Fixing the job descriptions would be a good place to start. Most recruiters do not know and don’t even imagine that seemingly innocuous words they use to describe a particular position can influence the decision of certain candidates applying to that job. For example, words like “Ninja” are mostly associated with masculinity and female candidates or for that matter, an experienced “baby boomer” will definitely give it a second thought before applying to such a role. Improving your candidate screening standards will also help eliminate a great deal of bias.

Enrolling in a training program that helps you identify the unconscious patterns that promote bias will also help. Whether the prejudice is based on race, ethnicity, age, gender or some other criteria, it pays to review your choices at every stage.  The new age recruitment solutions use smart AI and big data to match CVs as per their eligibility and quality and as long as the code is free of any inherent bias, can guarantee a fair match for a particular role. Using such recruitment software will also help bridge the diversity gap in workforce.

(Also Read: How Recruitment Software Works, its Benefits and Main Features)

Working towards improving workforce productivity is an Emerging HR Trend for 2018

Working towards improving workforce productivity is an Emerging HR Trend for 2018

The modern workforce is mobile and tech-savvy which means they are increasingly dependent on their mobile smart devices to accomplish a task. Eventually e-mails are going to give way to real-time conversation based tools such as Slack, Workplace by Facebook and others. Intelligent chatbots are also a move in the same direction. These workplace tools are more like social networking channels where employees can post status, use a display picture, create groups and start a conversation without leaving the mobile ecosystem. Not only this creates better collaboration within teams and across different functional departments which eventually has a positive impact on productivity but it also results in a more connected and healthy work culture.  In future, we can expect HR technology companies to come up with either an option to integrate these tools with their HRMS or with their own versions of instant messaging and collaboration tools so as to create a more cohesive experience.

(Also Read: Benefits of Using Bots for Recruiting)

Using big data analytics in human resources is a New HR Trend 2018

Using big data analytics in human resources is a New HR Trend 2018

The time of Big Data in HR has finally arrived. While experts will argue about the use of the term Big Data in context of Human Capital Management, the truth that no one is doubtful about is the usefulness of data for HR professionals. From devising methods of boosting employee retention to creating better performance metrics for workforce, big data offers a range of opportunities for improvement. This is in addition to the predictive abilities that have been developed only with the help of data analysis of your most successful employees. Leveraging performance data to predict future success of your employees will essentially help you make better hiring decisions.

(Also Read: Role of Big Data Analytics in HR)

Enhancing employee engagement is one of the Key HR Trends 2018

Enhancing employee engagement is one of the Key HR Trends 2018

Improving employee experience is going to be a big agenda for HRs in the coming year.  The first step in this direction is HR technology vendors making their existing tools easier to use for employees. HR tech tools vendors have to put in firm thought towards improving the user experience, making the interface and functionality more intuitive and effortless. With HR tool vendors doing their bit, recruiters and hiring managers have to find ways to drive better employee engagement without creating too much noise. The challenge will be to come up with drivers that matter most and how to create the maximum impact.

(Also Read: Employee engagement ideas that work)

 

Big Data in HR: Why it's here and What it means

Big Data in HR: Why it’s here and What it means

Without a doubt, big data, predictive analytics and data science are some of the most used terms in the tech space these days. Many will tell you that the future of every industry, leave alone recruitment, lies in exploring the “immense potential and possibilities” offered by these technologies. While this might be very true for some sectors, (healthcare, banking and finance), is recruitment also one of those industries is the big question. Does big data spell big changes for recruitment in the future, or all we are witnessing is a false rhetoric? Let us examine.

What is Big Data in HR?

When the term ‘Big Data’ was being used in the lunch table conversations in 1990’s at Silcon Graphics, even John Mashey, the person attributed to popularizing it must have not imagined in his wildest dreams that this would become one of the hottest topic of discussion in the near future. Beyond 2002, big data has emerged as the strongest contender for becoming “the transforming technology” for every industry. The growth in its significance over the last few years can be attributed to its pervasive nature, with applications ranging from meteorology to preventing epidemics, revolutionizing healthcare to preventing crimes. Yet, there is little that is defined about Big Data, except for its definition, may be. Majority of us know big data as

“Big Data is high-volume, high-velocity and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision making, and process automation.”

The 3V’s of Big Data as defined by Gartner are:

      Volume: Volume refers to huge amount of unstructured datasets to the tune of many terabytes and petabytes

      Velocity: The data is being generated at speeds far greater than we can process.

      Variety: Data comes from a number of sources in a number of forms. New forms of unstructured data are being generated.

Where does all this fit in the scheme of HR related processes like recruitment?

We have found divided opinions when it comes to the usability of Big Data for HR. Experts believe that in the current situation, there is not much utility that can be extracted out of big data and analytics. First of all, going by its popular definition, Big Data needs to be a collection of huge unstructured datasets. Now not many organizations have thousands of employees and even that number is not big enough to be considered for a reason to use sophisticated tools and software associated with big data. These analytics tools are still “work in progress” and moreover, it can take months to set them up before they are able to spew out any useful information. Does HR have this kind of time at their disposal?

Role of Big Data Analytics in HR

Those who think Big Data and HR analytics have the answer to all hiring problems of the HR are forgetting that these questions have been a part of discussion right from the history of recruitment. What makes a good hire stay?  Which qualities constitute a top class employee? These questions have been dealt with in detail through multiple researches and surveys throughout the history of recruitment across industries. If we hope to add some new insights to the already available information by spending thousands of dollars on developing analytical tools, we might be fooling ourselves. Google’s Project Oxygen is one such example.

(Also Read: 5 HR Trends To Watch Out For In 2018)

Yet why such huge noise about Big Data in recruitment? There are many HR software providers who swear by the power of Big Data and HR analytics. Surely, there must be something more that meets the eyes.

Start by making sense of the basics first. Use small data to its fullest potential.  Most ATS or Recruitment Management Systems provide a variety of data in form of candidate sourcing reports which have various parameters that keep a track of channels that bring in the best candidates. These automatically generated reports carry a wealth of information and do not require any manual intervention. Also monitor stage-to-stage hiring metrics and identify bottlenecks if any that are causing the process to become slow.

In HR, data is of key importance without any doubt. Whether it is recruitment or human resource management or performance management, it’s the numbers that matter. However, the data associated with all these processes resides in different databases. Until we are able to combine these databases in a compatible manner, we might not be able to answer even the simplest questions. Once you have a common database, it becomes easier to analyze it and identify predictive patterns.  You should be able to understand the relationship among the data to really make sense of it.

Importance of Big Data in HR

Every recruiter wants the best numbers against their names when it comes to measuring their performance through a host of recruitment metrics such as offer acceptance ratio, retention rates and cost per hire or quality of hire. What if data could help you in driving all these metrics to their best conclusions? Wouldn’t it be a value proposition to use data driven approach to recruitment if it guarantees you a better success rate by

Importance of Big Data in HR

more than 300 percent? (Precision Metrics). Benefits of data driven recruitment are plenty for the recruiters. They can benefit from a data driven approach to hiring in terms of improved employee retention rates, reduced hiring errors and a bird’s eye view of the overall recruiter performance.

Impact of Big Data on HR

Let’s look at a big data hr use case. Take talent acquisition for example. A number of stakeholders are involved in the talent acquisition process and also a number of man-hours that are spent in zeroing on who you think is the right candidate. However diligent you might have been in your pursuit, there were few ways to tell that the person you have hired will stay for the long term, or will prove a valuable resource for the team.  This challenge was always a sore point for the recruiters, and still remains so, but those who have been able to develop the ability to harness and understand the data about their hires are making the most impact and have been partly able to offset some of the uncertainty that comes with talent acquisition. Hence, some of the benefits that you can experience with big data predictive analytics are

1) Reduced recruitment time

2) Reduced human bias and increased workforce diversity. According to McKinsey, for every 10% increase in diversity, profits can grow by up to 3.5%.

3) Improved hiring quality. Engage with the best talent before competition.

Implementing an Effective Data Driven Recruiting Strategy

Data in itself is not the game changer. The ability to collect, analyze and use this data for improved decision making facilitates limitless possibilities for enterprises. Collecting data is not a new exercise, even in HR. Most HR management software provide the most essential recruitment metrics like cost per hire. The need is to move further from simply collecting data to letting it drive decisions.

1) Develop a formal data driven strategy: Once you have a holistic view of the data, it’s important to identify the key takeaways that you want from the data analysis. For the same, it will be good to have a formal strategy. While every organization will have its own priorities, long term objective and ongoing goals, the strategy should be able to clearly define how recruitment is driving business results.

2) Integrate the data:  If your recruitment data is disintegrated, it won’t make much sense in itself. Any hiring manager would face challenges in fully realizing the potential benefits of a disjointed set of data. Thus the first step is to gather data that relates to different parts of the recruitment process as well as measure the performance of any and every tool being used. The easiest way to achieve this objective will be to connect all forms of recruiting technologies, with data from each solution accessible from one centralized location.

3) Choose HR analytics solution provider:  HR organizations rarely create their own talent analytics tools; instead they prefer to find worthy vendors who have a proven track record of driving performance. Owing to these vendor based tools, the potential of data and analytics in talent acquisition is being exploited by companies of all sizes and the benefits are not limited only to the largest organizations.

In terms of functionalities, you should be looking at:

 

Implementing an Effective Data Driven Recruiting Strategy

There are no two thoughts about the fact that the future of recruitment will be driven by data and analytics. Yet, we do not see a heartwarming adoption of data based tools in recruitment organizations currently. Meager 14% employers are currently using advanced analytics to make talent decisions. LinkedIn, in its research, reveals that three out of four organizations do not use data at all for any of their talent acquisition decisions. But the future is going to change all of this and that too at a breathtaking pace. As an HR manager, it shouldn’t be a problem for you to build a strong business case for tools and technologies that will support end to end business goals.

(Also Read: The Importance of HR Analytics in an Organization)