New technologies: Key to attracting and retaining talent
With organizations trying to navigate the shifting industry landscape, talent has become a notable concern. Companies are competing to attract the best talent and keep the best employees in an increasingly competitive labor market with widening skill gaps.
To solve this, the HR industry is looking up to technology to be the savior. As such, it is of very little surprise that the HR Tech industry is witnessing the most disruptive periods it has seen in this decade.
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HR tech trends in 2018
Eyeing the potential for the next big thing in breakthrough technology, investors have pushed as much as much as $3.1 billion investment in 2018 alone (and 2018 is not even over yet). In fact, Q3 2018 alone saw over $1.1 billion, which is more than the total VC investment seen in 2017.
We’ve witnessed tech trends in HR that have reshaped recruiting in 2018. With 2019 just a few weeks away, let us see what the trends indicate about the future of HR Tech in 2019.
What are the top HR tech trends for 2019?
Here is the list of the top 10 HR tech trends that will transform the HR industry in 2019:
HR tech trend #1: Robotic process automation
While Artificial Intelligence has managed to automate the Talent Acquisition process, Robotic Process Automation aims to transform the manual processes involving the HR department.
The robotic process automation (or RPA technology) is looking to compress time-consuming processes like employee onboarding, so that new employees can spend more time on the job function than with the HR department.
RPA technology is targeting at the 93 percent of HR executives time repetitive tasks like creating a new employee record in the employee database, gathering employee documentation and adding a new employee in the payroll system.
HR tech trend #2: HR analytics
Data has attained marked significance in the last few years. HR Tech will completely transform the HR role into a data-driven function. This applies to everything right from hiring candidates by leveraging talent acquisition analytics to giving promotions and from employee management to employee performance.
HR Tech aims to improve company productivity by studying data about existing and potential employees. Analytics models help company unearth important metrics related to employee performance. Using analytics companies can predict employee retention, identify employee job changes that are likely to result in high-performance outcomes and recommend the necessary training for employees to close the skill gaps.
However, the validity of the predictions from the analytic models is completely dependent on the data that it is fed with. Moreover, organizations will require resource people to understand these models and apply them effectively.
HR tech trend #3: Workforce planning and optimization
Given the indications that we have seen in 2018, we can safely assume that 2019 will be the year with a renewed focus on recruiting from within thereby increasing retention rates. Companies will depend on HR Tech solutions to forecast the workforce demand, calculate the employee turnover rate and even predict attrition.
Companies are putting in a lot of effort to properly plan their workforce as constituting skills which can help them to quickly respond to business needs. Also forecasting the requirements for future requirements is playing an essential role in increasing the utilization of employees.
Further, there is an expected increase in the bench utilization as most of the resources on the bench will be matched to existing demands internally, thereby reducing the dependency on external recruitment.
HR tech trend #4: Talent management
Companies are increasingly realizing the value of a people-first approach to business. This has resulted in not just investment in good talent, but active support for both the personal and professional development of their employees.
Companies are using HR Tech to provide clarity to employees on how their contributions impact the business. This results in memorable employee experiences that drive recruiting and retention.
However, the most important change that is expected in this domain is that of performance ratings. The age-old process is expected to be completely replaced by dynamic goal setting, continuous performance check-ins, and crowdsourced feedback. Using HR Tech, employers will be more active in pushing accountability down to the employees, valuing conversation over documentation, measuring iterative progress.
This level of employee engagement along with data analytics will help organizations access gaps to future-proof the workforce. This transition into a digital workforce is expected to aid in solving the retention problem.
HR tech trend #5: Learning and development
In a bid to create a digital workforce, L&D will receive a huge boost. Employee training will be made digital and technology will change the way employees immerse themselves with L&D using AI and AR/VR solutions.
While L&D is conventionally concerned with skills required on the job, several new initiatives offer it externally to candidates that identify themselves with interest in a career path, thereby helping companies identify and assess which candidates are committed to the path.
Also moving away from primary core competencies, companies are now also developing their employees' soft skills, such as emotional intelligence, collaboration, and negotiation.
Moreover, with a gamified L&D system, companies are trying to incentivize the online training experience for even the most jaded learner using badges, points, leaderboards and community involvement.
HR tech trend #6: Payroll management
Technology will continue to have a huge impact on payroll management. Basic calculations and processes like tax deduction and benefits will be completely automated, leaving no room for error.
Also, the transition to cloud-based services makes payroll management for organizations spread across the globe, making it universal managed while being processed locally.
There is more focus on deeper integration with the HCM systems offering a two-way communication between the systems. When managed correctly, HCM integration will enable organizations to achieve a global perspective on the workforce with the security of local compliance.
HR tech trend #7: Recruiting experiences
Talent Acquisition has seen a lot of disruption over the last few months. However, with technology, it is now being perceived as an experience. This year will see candidate participating in a fully immersive experience that is a blend of current onboarding practices and virtual, illusory experiences.
The entire recruitment lifecycle will be transformed digitally. Everything right from resumes to interviews is set to be digitized using technology. This will ensure that the candidates have a seamless candidate experience.
HR tech trend #8: Recruitment marketing
This will be the year that the HR department will focus on implementing marketing tactics for recruiting. This includes nurturing and attracting talented individuals to the organization. This is expected to be the answer to the talent crunch that the industry is currently experiencing.
An important aspect of this would include Employer Branding - the organization's reputation and popularity as an employer, and its employee value proposition.
With research indicating that 75% of job seekers research about a company's reputation and employer brand before applying, this is becoming the need of the hour for HR departments.
HR departments are also leveraging Social Media like never before. Social recruiting means more than just promoting your employer brand on the traditional Social Media channels like LinkedIn, Facebook, and Twitter.
Blogs, forums, job boards and company review sites are also being used to enhance the company’s employer brand.
HR tech trend #9: Remote workforce
Technology has been a key enabler for organizations to spread out globally using a remote workforce. This has drastically reduced the infrastructure costs and has helped access otherwise inaccessible talent.
This trend is only going to keep picking up. At the current rate, remote platforms will become preferable to face-to-face communication, owing to the additional capabilities they provide.
While studies already indicate that technology is useful in ensuring the productivity of remote workers, AI will help manage remote staff in a more organized manner helping them prioritize their workload and offer instant feedback.
Moreover, replacing video conferencing with VR conferencing will make communications more real.
HR tech trend #10: Employee wellness
Wellness traditionally meant attending to the health of employees via step programs, exercise plans, and better eating habits. However, with the evolution of HR Tech, employers are putting added focus on addressing the emotional, physical, financial and professional needs of employees.
Using the data from software platforms, wearable, and other data sources, HR professionals are now able to avoid burnout and retain employees. Unique solutions include doctor consultation, preventive health check-ups, financial health advice, positive psychology, behavioral science, stress and anxiety coping mechanism.
How many of these HR tech trends will you implement in 2019?
What do you think of these trends? Anything we may have missed according to you? How many of them apply to your organizations?
Technology can make HR teams more productive in many ways. Implementing these HR tech strategies will make your life easier and ensure that you stay ahead of your competitors!
About the author
Jonathan is a strong believer in the HR innovation movement. At EdGE Networks, he is striving to help enterprise companies find the right candidate for the right job using Artificial Intelligence and Machine Learning. He can be reached on LinkedIN.