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?
- Increasing productivity at work with technology in HR
- Using HR technology adoption to reduce costs
- Improving employee relations in the workplace with HR technology
- Improving talent acquisition with HR technology
- Adoption of cloud computing in HR tools
- Use of Big Data analytics in HR technology
Increasing productivity at work with technology in HR
There are few concerns of global organizations as important as improving the workforce productivity. In a global economy such as United States, the productivity growth has declined since 2004 despite the widespread usage of digital technologies. Decision makers are now relying on various workforce tools to find an answer to this productivity puzzle. Email is an important tool for collaboration and communication in the workplace. However, workplaces are rapidly moving towards tools like Slack, Workplace by Facebook, G Suite, and other conversation-based systems which facilitate team-based communication in ways that email simply cannot match. These are mobile-friendly platforms purpose-built for teams with feature like Groups. Team-based tools improve productivity, enhance communication and complement a networked team structure and hence are finding widespread acceptance.
Using HR technology adoption to reduce costs
If you want to give your CFO one reason to invest in HR Technology, what would it be? Cost reduction is one of the most vital reasons because of which HR Technology has started to find favor even with the C-Suite of large enterprises. Till now HR professionals remained heavily focused towards routine based tasks. The day-to-day HR operations drained away majority of the time and energy and there was no time left for doing strategic tasks like fostering a good work environment, improving employee relations and planning talent acquisition. Since HR software now automates all the administrative tasks, it frees up valuable time, boosts efficiency and helps in complete utilization of resources, thus indirectly impacting the bottom line. Managing payroll with HR Tech tools also minimizes errors, and prevents any costs incurred due to human induced discrepancies.
Improving employee relations in the workplace with HR technology
The fact that business performance and employee experience are inextricably related to each other is no longer a secret. In most growing organizations, employees are not expected to just perform routine tasks repetitively. They are expected to create value through creative thinking and out of the box problem solving. For this to happen, employees should be motivated and engaged. Using technology to excite the unengaged employees can make an incredible difference to overall productivity. How can HR Tech tools help in that? By providing clear insights into the things they care about such as payroll and benefits, their performance metrics, professional trainings. Tools that provide quick query resolutions, required information and instantaneous communication are playing a great role in building great end-to-end employee experience. Read more: How to Increase Employee Engagement.
Improving talent acquisition with HR technology
From automation of manual tasks such as posting jobs on different job boards to smart screening of relevant candidates through resume parsing and intelligent search algorithms, HR technology has had the maximum impact on talent acquisition. Recruitment tools have decidedly improved recruiter productivity, and quality of hire while reducing costs. Another big advantage that has come out of adopting technology in recruitment is improved candidate experience. Every process, from applying to jobs to sending documents now happens online, on the fly. More importantly candidates no longer have to go through torturous wait as these tools send automatic notifications whenever their selection status changes. This is a win-win situation for both, employer and talent, as better candidate experience translates to a better employer brand bringing in greater quality talent.
Adoption of cloud computing in HR tools
Most HR Tech vendors are now providing their solution in the cloud. This has further accelerated the adoption of such tools as the benefits of cloud are immense. Getting freedom from the annoying upgrades every couple of years that makes the entire system go for a toss is one such advantage. In cloud based solutions, the vendor does the upgrade online seamlessly without affecting the user. Other benefits include quick deployment, reduced deployment costs, and better accessibility. Equipped with all these USPs, cloud based HR tech tools are surely going to get more attention of business leaders in the future also.
Use of Big Data analytics in HR technology
The desire to gain deeper insights from the huge datasets that every organization builds over a course of time through machine learning and AI is certainly a major push for such businesses to adopt HR technology. Any HR tool that is equipped with the promise of Big Data and Artificial Intelligence is certainly an “attention-seeker” among the lot and will attract some sort of buyer interest. Software providers are also catching up with the buyer sentiment and major vendors now offer integrated analytics, giving buyers the promise of a one stop solution for all their HR woes. Also Read: Artificial Intelligence in HR: Five Practical Applications