This comprehensive guide covers everything you need to know about HR technology.
HR technology is advancing at a rapid pace, allowing businesses to automate key processes, make data-driven decisions, and focus on the future of their workforce.
In this resource hub, we’ll cover everything HR leaders need to know about the latest technology trends and advancements, from the different types of emerging technologies, to how they’re commonly deployed, to the potential impact they’ll have on the future of work.
What is emerging HR technology?
HR technology refers to a broad category of tools that help organizations with everything from running payroll and recruiting new workers, to managing employee performance and succession planning.
Emerging HR technology encompasses both advancements to existing kinds of HR software and new types of tools altogether. For example, recruiting software tools saw a wave of innovations when many businesses shifted to remote work in 2020, including the introduction of features that enable asynchronous interviews. Further, some payroll systems were upgraded to enable unified multi-country payroll and flexible earned wage access for employees.
In truth, all of the most-essential kinds of HR software tools (which are listed below) have been updated over the last few years to better accommodate hybrid work models.
As far as new kinds of tools go, there are voice of the employee (VoE) solutions (which use a variety of data sources to collect and analyze employees’ opinions and perceptions) and compensation allocation platforms (tools for line managers that recommend salary changes, assess and award employee annual merit increases, and allocate bonuses and equity based on company policies and guidelines) among other new platforms. We’ll look deeper into emerging HR tech platforms later on.
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How will emerging HR technologies impact the future of work?
The future of work is influenced by technological innovations, but the opposite is true as well—meaning, advancements are often inspired by changes to how we work. For instance, when the COVID-19 pandemic forced organizations to adopt remote work, features that enabled video recruiting were introduced to applicant tracking systems. In general, many kinds of software have been adjusted for remote work, which means HR leaders may need to rethink workflows and team structure to adapt to permanent hybrid work environments.
That said, the introduction of artificial intelligence (AI) to HR technology will have a significant impact on the way HR teams work. According to Gartner, automation is reported to be consistently high in value across the majority of recruiting activities[1]. For example, when it comes to interview scheduling and the screening of applications, 41% and 56% of recruiting leaders (respectively) indicate automation of these activities is of high importance for the future. Similar responses were seen in regards to evaluating assessment results (42%) and alerting a candidate to their application progression (44%).
What should HR leaders consider when adopting new technologies?
In “What HR Leaders Need to Know About Emerging Technology,” Gartner proposes actions that chief human resource officers (CHROs) should take to develop a basic knowledge of key types of emerging technology, identify common use cases for new tech, and understand the talent implications[2]. We’ve summarized these actions below:
Work with your organization’s board of directors and assess the impact of tech investments on your workforce.
In partnership with C-level leaders, align thinking and coordinate talent decisions based on function-specific impacts of tech investments.
Identify HR processes that need to change due to new tech investments.
Identify upskilling and reskilling needs within your workforce.
Communicate your organization’s strategic vision and need for technology to your workforce.
Adapt your work culture to drive adoption of new technologies.
Evaluate emerging technologies’ potential impact on the future of your organization.
Plan and budget for future tech investments.
Click here to download our eBook: Build an HR Tech Stack that gives your business an edge
Artificial intelligence in human resources
AI is becoming increasingly common in today’s HR departments, as well as in every other function of the business. In fact, almost all (94%) of chief information officers (CIOs) plan to deploy some form of AI within their organizations by 2025.[3]
AI is typically used to analyze patterns in data and suggest follow-up actions based on the results—this is the basis of HR analytics software. It’s also used to automate simple tasks, which means that HR leaders will have to rethink skill needs and redesign existing roles as they embrace AI within their workforce. So with that, let’s talk about the applications of AI for HR teams.
What are the applications of AI in HR?
Machine learning: Machine learning is a type of artificial intelligence that uses algorithms and statistical models to extract knowledge from data, and in turn, solve business problems. Machine learning can be used to predict turnover, build interview candidate personas, and determine how successful a new hire will be in their role.
Natural language processing: Natural language processing (NLP) is a form of AI that can process and produce human-style language. Chatbots, virtual assistants, and text-review tools all use natural language processing. NLP is also commonly used to screen resumes in applicant tracking systems.
Computer vision: Just like NLP is used to process language, computer vision is used to process visuals as a human would. Computer vision tools are built to capture and analyze images and video, and ultimately suggest actions based on the findings. One example of how computer vision can be used for HR is to evaluate how engaged an employee is based on their facial expressions.
Robotic process automation: Robotic process automation (RPA) refers to tools that can be programmed to perform routine tasks in the same way an employee would. RPA is currently used by HR teams to automate aspects of time-consuming processes such as onboarding, payroll processing, compensation changes, or exit management.
What are the benefits of AI in HR?
Time savings: Perhaps the most obvious benefit of AI for HR teams is the time savings it affords them. AI allows HR teams to automate tasks such as scheduling interviews, screening resumes, processing payroll, and administering benefits, freeing up HR departments to focus on more complex, strategy-oriented tasks.
Less bias in hiring decisions: Another benefit of AI is that it can remove unconscious bias from the recruiting process by judging an applicant’s fit based on how they measure up to candidate personas, or other quantifiable information from things such as skills assessments. However, AI has its flaws—make sure you read our content, Recruiters Beware: AI Can Discriminate Too to understand where things can go awry.
Better data analysis: There’s no doubt about it: Artificial intelligence is faster and more accurate than humans when it comes to analyzing data—and better data analysis means more-informed business decisions.
Learn more about artificial intelligence in HR with these related resources:
Small Businesses Aren't Ready for AI in HR—But They Need to Be
5 Tips for Evaluating AI Recruiting Software Vendors
What is the future of HR technology?
HR software has long been a necessity for organizations, but today’s software vendors are going beyond the basics and equipping HR teams with the tools they need to be a strategic partner to the business.
In fact, more and more HR software is being developed these days, which means features that were formerly hard to find are becoming accessible for small businesses with tight budgets.
That’s why we’ve written a series highlighting several key HR strategies and the features that enable them. Keep reading to learn how to take your business to the next level by embracing strategic HR.
The Gartner Hype Cycle
The features and concepts covered below were chosen from the Gartner Hype Cycle for Human Capital Management Technology (HCM)[4]. We focused our attention on features or aspects of HR technology that are truly accessible for small businesses, rather than cutting-edge innovations that might not yet be applicable for organizations of all sizes.
The Gartner Hype Cycle depicts the progression of expectations for any new technology or innovation, from inception through mainstream adoption[5].
Taking advantage of the Gartner Hype Cycle will put you in a position to adopt emerging HR technologies before anyone else, and as these platforms become more advanced over time, you’ll continue to reap the benefits.
While innovations such as blockchain in HCM and virtual reality in training software aren’t currently ready for small businesses to adopt them, you can take advantage of the following innovations now.
Talent analytics: Use data to improve your employee experience and workforce planning efforts
Talent analytics is a form of data analytics that uses applicant and employee data to gain insights into employee engagement, performance, retention, and attrition. Several subtypes of HR software offer talent analytics capabilities, including HR analytics, talent management, performance management, succession planning, and workforce management tools.
Businesses of all sizes can benefit from using talent analytics to make better decisions when it comes to improving their organization’s employee experience. For example, HR teams can collect feedback from their workers about their job satisfaction, confidence in leadership, and development goals in order to identify where their company culture can be improved.
You can also use analytics to better understand how successful your organization’s diversity, equity, and inclusion (DEI) efforts are. For instance, collecting data on the demographics of your employees (such as their race, gender, age, and sexual orientation) can help bring to light gaps in representation within your workforce. Some HR platforms even offer predictive analytics features that can forecast future diversity levels based on hiring and attrition patterns, which is useful when it comes to workforce planning.
What Is Talent Analytics?
Talent analytics help HR teams make better hiring decisions, boost engagement, and retain top talent.
Workforce planning: Refine your talent acquisition strategy through identifying current and future skill needs
Speaking of workforce planning, this strategy empowers you to make better decisions about how to effectively use the talent you have, as well as what resources should be allocated to recruiting efforts and when. If your business isn’t using this tactic yet, you’re missing out on the long-term benefits that doing so can afford your organization.
On that note, here are just a few examples of the tangible benefits small to midsize businesses can experience from workforce planning:
Increased employee retention: An effective workforce planning strategy aligns your employees’ career goals with organizational talent priorities, allowing you to support your workers’ aspirations while filling key roles.
Improved recruitment efforts: Having a clear picture of the skills your organization needs today and in the future empowers you to hire the right people at the right time.
Better alignment between HR strategy and business strategy: With workforce planning, the HR department is actively involved in the progression toward business goals.
Succession planning platforms, workforce management tools, and strategic planning software are all tools that are built with business intelligence and predictive modeling features to support workforce planning.
What is Workforce Planning? Examples and Tips for Small Businesses
Workforce planning is a strategy that can help your organization ensure a stronger, future-proof workforce.
Employee wellness programs: Foster a healthy work culture in order to retain top talent and strengthen engagement
Gartner’s 2021 Hype Cycle for HCM Technology reported that the use of employee wellness technology is on the rise and is expected to reach widespread adoption levels in the next two to five years [4].
Considering the widespread turnover organizations faced during The Great Resignation, it’s more important than ever to prioritize developing an employee wellness program. Effective employee wellness programs are built to support many aspects of your employees’ wellbeing, including their physical, mental, and financial health.
Businesses should begin their journey toward a robust wellness program with these three steps:
Use tools such as corporate wellness software and employee recognition platforms to take some of the heavy lifting out of your employee wellness programs.
Align your organization’s DEI efforts with workplace wellness efforts to make sure the entirety of your workforce is cared for.
Survey your employees to uncover gaps in your employee wellness program coverage.
What Is Employee Wellness?
Employee wellness program benefits go far beyond free lunches and gym memberships.
Virtual assistants: Save time through automating simple recruiting and HR tasks
Virtual assistants (VA) are digital programs that understand voice commands and human language and can perform repetitive tasks for a business. Gartner’s 2021 Hype Cycle reported that virtual assistants are just two to five years away from reaching a level of consistent use in HR and recruiting teams [4].
As of right now, virtual assistants can be used by employees to complete simple transactions (such as updating their personal information) or to obtain information about various HR policies. Recruiting teams can also use virtual assistants to source and screen candidates’ resumes, complete administrative tasks such as interview scheduling, or send communications to candidates to update them on the status of their application.
You can take advantage of virtual assistants with the help of artificial intelligence, robotic process automation, or conversational AI software.
What Are Virtual Assistants? Why You Should Care and What You Need to Know
Revolutionize your human capital management and recruiting with a virtual assistant.
Looking for human resources software? Check out Capterra's list of the best human resources software solutions.