HR Technology has finally come of age and it is changing at a faster rate than ever. Cloud-based HR software are growing in number and more new companies than are developing AI-based tools to change the entire talent management landscape. Also, bigger multinationals like IBM, Salesforce, Google and Facebook are entering the space, which indicates that HR Technology is not a fringe phenomenon but is a mainstream trend.
However, it will be silly to limit HR Technology to just HR related tasks as it is the people-related challenges that companies face today, which are ultimately driving HR technology. From HR related tasks such as staffing, payroll, recruitment, to a new set of talent issues like diversity, inclusion, fairness, productivity and branding, each is now dependent on technology and can be revolutionized by it, making HR technology more important than ever.
Here are some top HR technology trends of 2019:
- HR Technology Trend #1: HCM Platforms will be more productive and engaging
- HR Technology Trend #2: Bigger Market for AI and Innovation
- HR Technology Trend #3: Bigger Focus on Employee Experience
- HR Technology Trend #4: Growth of Recruitment Marketing
Core HR platforms are by far the most essential part of the HR technology landscape. This includes cloud-based HRMS, payroll, and workforce management systems. It is an $8 billion market and includes large enterprise vendors such as ADP, Ceridian, Oracle, SAP, Ultimate, Workday in addition to dozen of mid-sized companies. While these systems were already good at core HR tasks such as payroll and record-keeping, companies now expect them to be equally useful for the workforce. Employees should be able to use these software to manage their information, benefits, and various other tasks. HCM vendors are therefore creating software that have an easy-to-use interface that provide employees with opportunities to engage. Executives are not afraid of asking tough questions before purchasing HR software, such as Can employees easily use the system? Is it useful for daily routine work? Does it have the potential to improve the work, and productivity of a highly mobile workforce? Is it flexible to scale up with the growing number of employees? The core HR platform market will continue to grow in 2019, and will become more employee-centric.
Organizations now face a variety of new challenges in talent management. It is not possible to address these issues with legacy systems and therefore there is a growing demand for a new generation of tools that are innovative, creative, and AI-based. These new talent applications are focused on improving every aspect of employee experience, whether it is recruitment, onboarding, performance and goal setting. While it is difficult for larger HCM vendors to innovate in all these areas, there are new startups, which often start from scratch and create innovative solutions with AI being at the center of their solutions. Entelo, Hiredscores, Hirevue, Textio, Pymetrics are some vendors innovating in the recruitment space. HireVue is a video interview assessment platform that assesses candidates through facial expressions and language. Textio uses Natural Language Processing to improve job descriptions by using language that is unbiased and best fit for similar jobs. Then, there is Mya, chabot that not only talks to candidates but also screens them based on the conversation.
The third major trend that is currently garnering a lot of attention and focus of companies is employee experience. It is a commonly used term that defines daily experiences, career expectations, and employee management relations. The executives are moving from processes and transactions based thinking to experiences and moments that matter. Thus, companies are no longer satisfied with HR platforms that only automate their daily processes. Companies are looking for platforms that can simplify employee experience through process management functions so that employees can manage a range of their tasks, from ordering a new PC, to changing a desk location, invoking actions that cross between HR, IT, and finance. Although this is not a novel idea, but we never saw this kind of functionality in the core HCM system, so companies are eager to take advantage of these new offerings. One such vendor that fits into this space is GuideSpark, which has built one of the most integrated systems for employee communications.
Recruitment is still one of the most important functions of HR and this year HR department will focus hard on devising and executing various marketing tactics for recruiting. Recruitment marketing will create the difference between a great hire and an average hire. It will be the deciding factor in this race to hire the best talent. In the face of talent crunch that the industry is currently experiencing, an organization with better recruitment marketing strategy will be the winner. From using niche channels for finding the right candidates to improving the employer branding, recruiters will don the hat of a marketing professional fulltime. Research indicates that 75% of job seekers research about a company’s reputation before applying to a job, and therefore, creating a strong brand and employee value proposition is going to be a priority this year. Various channels like career sites, social media, blogs, company review sites, forums will find prominent use to enhance the company’s employer brand.