We live in a world that is unusually connected via the internet and generates a humongous amount of data almost every second. This indeed throws light on how we communicate and consume information.
Not just this, but the amount of data generated is likely to fundamentally change business operations, and HR is no different.
HR has always been a key player in organizational success. Not just involved in recruitments, HR is highly responsible for strategic planning, branding, company image, performance, training, and several other elements necessary to keep the business up and running in both good and bad times.
Since data rules the world, modern HR relies more on data analytics, predictive capabilities, automation, and reporting. Deploying modern technology helps HR to make decisions that power better business and people outcomes. Now the million-dollar question is, are companies really implementing data-driven technologies?
And the answer is a resounding yes.
Multinationals like Google, IBM, Juniper Networks, and more make use of big data and technology to transform a plethora of HR processes.
Let’s find out how companies used it for their benefit.
- Google used it for evaluating the hiring process
- Xerox used it to bid data to increase employee retention
- Juniper Networks implemented HR analytics to track career path
- IBM did so to define successful salespeople
This was a sneak-peek into how some popular names in the industry make the most of HR technology.
The broader picture
Are businesses investing in the right HR technology?
Even during the worst human nightmare (the pandemic) and increase in layoffs, businesses in the US continue to invest in HR technology. You will be surprised to know that two-thirds of them expect continued expenditure into 2022.
But as these employers’ plan for future needs, most of them are not making the most of the existing technologies and capabilities that they have already spent on.
On the other hand, over 90% of HR leaders mentioned that HR tech was helpful in reinforcing workforce well-being during the pandemic situation. In a more precise way, the technology was most helpful in basic administrative functions such as payroll at 59%, mobile access at 37%, and time and attendance at 48%.
HR tech focus areas with weightage until 2022
- Employee experience/portal layers – 48%
- Talent acquisitions tools – 49%
- Intelligent recruiting – 45%
- Skill mapping/career pathing – 46%
- Business insights – 37%
- Tailor learning journeys – 36%
- Intelligent automation/process automation – 45%
Source: PwC’s HR Technology Survey 2020
Three impact areas HR technology is expected to alter
HR is a crucial element in every business. No matter how tech-savvy industries become, the human touch can never be lost.
Involved in a variety of activities like talent management, employee engagement, wages and salaries, employee welfare, and a lot more, there are certain aspects that HR tech needs to focus on.
Let us understand what these impact areas are.
Employee engagement and productivity
Today, the most intriguing and the most fascinating example of excellent human engagement are platforms like Netflix and Amazon Prime that can keep users glued to their device and leave them absolutely intrigued. So, what if the same technique is implemented to help employees learn and keep themselves updated?
Employee engagement and productivity exercises are extremely important. But on the other hand, it is essential to learn that employee engagement is not just about improving productivity; it is also helpful in improving the quality of work and employee health.
The use of paperless onboarding and digital signature can make the entry extremely smooth. And social collaboration tools, virtual conferencing options, and continuous feedback sessions also work extremely well.
Compliance and risk mitigation
Every year, dealing with HR compliance gets a little tougher, and 2020 is no exception to it. Today, states are surging with compliance regulations, and each one of them is different and unique. At the same time, the human resource arena continues to grow and transform rapidly as each industry sector has its own set of issues and challenges to deal with.
So, how can employers keep sane and operate? Well, one easy way is to implement the most suitable HR tech solutions to automate and optimize labor compliance.
It is important to know that compliance is essential to maintain balance and uniformity and not something to be afraid of. Therefore, for the person responsible for taking care of compliance, HR tech should broadly work on,
- Adding transparency to paper processes
- Deliver timely reports without chaos
- Monitor regulator updates and process changes
- Maintain precise timesheets and synchronize with payroll
Employee retention is one of the most essential activities every business must focus on. Retaining loyal and talented employees helps businesses go a long way in terms of success.
Therefore, HR tech that collects data and analyzes why employees are leaving can play a primary role in employee retention.
Retaining employees can save businesses from hiring costs, training costs, and preserving the much-needed experience and key performers.
When HR and management get insights on employees moving on and about key performers, efforts can be taken on time to retain them.
HR has always been the focal point for every business. And the 21st century (especially 2020) calls for more HR technology solutions to keep up with the HR trends to improve aspects like employee engagement and talent management strategies necessary to maintain the best place in the market.
As mentioned at the very beginning of the article, data is the key and to transform data into action, implementing suitable HR tech solutions is the only option. Remember, using automation or analytics should be an ongoing process. So, don’t forget to break it down into small and doable processes to perfectly align HR tech to effectively transform your organization.
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