The rapid advancement of HR technology has revolutionized how organizations manage their workforces. From streamlining recruitment processes to enhancing employee engagement, HR technology is an all-but-indispensable tool for success-driven businesses.
In this article, we’ll take a look at the dynamic and ever-changing landscape of HR technology, exploring the latest trends, innovations, and strategies that can help you stay ahead of the competition in both 2023 and beyond.
Many of the trends touched on below overlap. Effective people analytics, for example, is a current HR trend that can help businesses make data-driven decisions – which is itself another current trend. This means that the right technologies can have an exponential positive effect on businesses, working in tandem with one another to bring about increased benefits in shorter amounts of time.
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People analytics is a ‘high priority’
Powerhouse organizations such as Deloitte and Google have highlighted the importance of people analytics for both the present and future of HR tech, with 71% of companies viewing it as “a high priority.”
People analytics, Deloitte, writes, “involves using digital tools and data to measure, report, and understand employee performance.” These tools include learning management systems (LMS), skills management software, and performance management systems – all of which are designed to better enable organizations to manage their workforces.
Used effectively, people analytics tools can help organizations:
- Make informed decisions based on objective data, leading to more effective talent management strategies and improved business outcomes
- Recognize patterns and trends, enabling them to make better hiring decisions and implement targeted retention strategies
- Discover valuable insights into workforce demographics, skills gaps, and succession planning, enabling HR teams to proactively address future talent needs and optimize resource allocation
- Identify factors that drive employee engagement and satisfaction, leading to targeted interventions and initiatives that enhance the overall employee experience
- Predict future trends and outcomes, such as identifying high-potential employees or predicting turnover risks, allowing for proactive measures to be taken
Employee engagement as a business strategy
A January article from the Society for Human Resource Management, top HR executives from around the world provided insight into the current HR tech trends that will drive future success for organizations.
A growing number of companies, the article reads, “will make the employee experience a broad strategic objective in 2023, removing it from its human resource silo.”
“Employee experience has become a business strategy, not just an HR strategy,” adds John Kostoulas, a vice president in Gartner’s HR practice.
From employee self-service platforms to talent management systems to learning and development (L&D) tools, HR tech aimed at improving the employee experience works to bring about positive results to organizations by:
- Providing employees with easy access to relevant information, such as benefits, policies, and company updates, empowering them to make informed decisions and stay connected
- Enabling employees to manage various HR-related tasks independently, such as requesting time off, updating personal information, and accessing training materials, increasing efficiency and autonomy
- Offering tools and resources for employees to explore career paths, set goals, and access tailored learning and development opportunities, fostering professional growth and satisfaction
- Facilitating continuous feedback loops and engagement surveys, allowing employees to provide input and share their experiences, leading to improved communication, collaboration, and a sense of belonging
- Allowing flexible scheduling, remote work capabilities, and wellness programs, promoting work-life balance and well-being, which in turn enhances employee satisfaction and retention
Recruitment strategies must be reprioritized
Recruiting is a top priority for 46% of HR leaders, with 36% reporting that their organization’s recruiting initiatives are “insufficient for finding the skills they need,” according to Gartner research.
As such, 2023 and the years in the immediate future will see organizations “reprioritizing recruitment strategies,” leveraging HR tech such as applicant tracking software, onboarding and integration systems, and recruitment analytics and reporting tools to develop targeted strategies.
These tools and software can help organizations:
- Streamline recruitment processes, automate administrative tasks, and provide centralized data, saving time and resources while ensuring a smooth and efficient hiring process
- Provide a seamless and user-friendly experience to candidates, from online applications to virtual interviews, enhancing engagement and leaving a positive impression
- Use analytics and reporting capabilities, enabling recruiters to track and analyze recruitment metrics, assess the effectiveness of sourcing channels, and make informed decisions to optimize recruitment strategies.
- Leverage data insights into employee performance, skills, and potential, facilitating succession planning by identifying high-potential candidates and ensuring a pipeline of talent for critical roles within the organization
- Build and maintain talent pools, capturing candidate data and leveraging it for future job openings, creating a proactive approach to talent acquisition and reducing time-to-fill positions
Data-driven HR decision-making is key to success
Organizations that leverage data-driven HR analytics strategies “are 45% more likely to achieve desired results,” according to research from HR firm McLean & Company. They are also 86% more likely to “score highly in their ability to enable innovation.”
The data used to develop these strategies is often collected and analyzed by HR tech such as human capital management (HCM) systems, employee survey and feedback tools, and data visualization and reporting solutions. Organizations can then use this information to:
- Enable accurate and reliable data collection, reducing human errors and ensuring the integrity of information used for decision-making, leading to more precise and reliable insights
- Use advanced analytics tools that can process large volumes of data quickly, uncovering valuable patterns, trends, and correlations to generate meaningful insights for informed decision-making
- Leverage workforce analytics to anticipate future talent needs, identify skills gaps, and develop proactive strategies for talent acquisition, development, and retention
- Analyze employee performance data, identify top performers, and understand the factors contributing to their success, enabling effective talent management and optimization.
- Base their decisions on objective data rather than subjective opinions or assumptions, increasing the likelihood of making informed and evidence-based choices that drive positive outcomes
How does AG5 fit into the HR tech landscape?
AG5’s skills management platform combines top features from many of the HR tech platforms and solutions in this article, providing organizations with a comprehensive solution that will help them stay ahead of the curve in a fast-evolving professional environment
With AG5, you will receive:
- Full oversight of the skills and qualifications that are present within your organization
- Insight into the skills your organization needs, helping you identify and close skills gaps by planning training or targeted recruitment initiatives
- An easy-to-read overview of certifications and qualifications that will soon need renewing or refreshing, helping you avoid skills gaps altogether
- Insight into employees who need upskilling or reskilling – preparing you for the future by better enabling succession planning
Want to learn more? Schedule a free, live, 15-minute demo today to see what AG5 can do for your organization.
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