While HR technology may not be a topic that many people outside of the HR industry know about, did you know that the industry is expected to reach $35.7 billion in value by 2028. This figure is huge, and perhaps sheds light on the revolutionary nature of technology that can be used in the HR world.
Technology is changing many aspects of many industries, and HR is no different. It is crucial to adapt to the fast changing pace of this revolutionary industry, and it is only by understanding it that HR professionals are able to leverage, interact and maximise it.
The following article will detail 5 of the most important things to know about HR technology, from how best to utilise AI to improving employee wellbeing.
Let’s jump in!
5 things you need to know about HR tech:
1. Generative AI in HR
In the age of AI, it only seems right that it should have its place in the HR industry. By definition, generative AI refers to algorithms that generate new content, whether that be text, images or even code, based on data that it has been fed. Many of us use it our day to day lives with the rise of ChatGPT and Co-Pilot.
What can it do for HR?
- Automate processes: AI has the ability to automate some of the mundane, time consuming aspects of HR. This could include but is not limited to the process of sending out and writing personalised letters to candidates.
- Data summarisation: Because of its ability to manage and process large amounts of data, AI can aid in condensing volumes of information about candidates for roles and can summarise them.
- Decision making: It can also help in providing data driven insights that can aid decision making processes, and give hiring managers evidence to make calls one way or another.
All in all, AI can increase efficiency and reduce workload for HR professionals, and even help with more complex tasks like decision making.
Some helpful AI platforms: HireVue, Synthesia, ChatGPT and Co-Pilot
2. Headless HR Systems
Perhaps less well known than generative AI, headless HR systems are invaluable in aiding HR professionals. Put simply, they decouple back end functionality from user interfaces, allowing greater flexibility and customisation for users.
Their advantages:
- Integration: These systems can easily integrate with front end interfaces, allowing a greater sense of control for users.
- Customisation: Professionals can tailor headless systems to match their unique business needs, without constraint by predefined user interfaces.
- Maintenance: It is easy to update and maintain these systems, meaning that HR professionals can save time and resources.
Some great examples of headless HR systems are Workday, Hibob and Bamboo HR.
3. Total Workforce Intelligence (TWI)
TWI involves consolidating data from various sources to provide a comprehensive view of the workforce, including both permanent and contingent labour. Whilst this sounds complicated, technology simply allows HR professionals to have a view of how their company is working.
Components of TWIs:
- Integration: TWI systems allow HR people to integrate data from multiple sources into a single system, from HR systems to payroll to external market data, allowing a comprehensive view of several important data sources.
- Analytics: They also allow one to gain important insights into workforce trends, performance and productivity through advanced analytics.
This section of HR technology is really useful in many elements of HR. It can help in workforce planning, cost management and talent optimisation, among several other things. It can help in making data driven decisions that align with business goals.
Examples of TWIs: Manpower Group and Randstad.
4. AI Powered Recruitment and Performance Management
We’re back to AI. As we said before, AI is useful in helping complete mundane tasks. But it also has the ability to completely revolutionise recruitment and performance management by providing insightful data and enhancing decision making.
AI in recruitment:
- Resume/ CV screening: AI has the power to filter candidates based on given criteria, meaning recruiters do not have to waste time reviewing candidates who do not have the desired skills for a role.
- Candidate matching: Another key thing AI can do is to match candidates to roles based on their skills, values and aspirations for a certain job.
- Predictive analytics: Based on its ability to process data, AI can provide hiring managers with predictive insights into how candidates would fit into a role, and how well they would be able to perform.
Performance management:
- Continuous feedback: Consistent performance insights can be created and shared with necessary individuals with the help of AI, which are unbiased and based solely on data.
- Development plans: Using data, AI has the capacity to develop individualised development plans for potential and existing employees.
As you can see, AI can play a fundamental role in the recruitment and management of employees. It can create a more fair and equitable process to select talent by, removing human bias and error from the hiring process.
Whilst AI has so many amazing advantages, it is important not to let it overtake the role of humans, as it has limitations and relies solely on the information it has been fed. It also has biases built into it, indicating that it should not be able to make decisions, but rather feed into
Day One and Workable are two great examples of companies that have integrated AI ethically into HR tech.
5. Employee Wellbeing Tech
Post pandemic, employee wellbeing has become increasingly important, both to companies and to individuals. Employees who feel like their mental wellbeing is being prioritised are likely to be more productive and engaged, and retention levels are likely to increase.
The technology:
- Mental health apps: Apps that can provide mental health support are invaluable in supporting employee wellbeing. Whether it be meditation or stress management or something else entirely, employers can help with mental wellness in this form.
- Wellness platforms: Employers can provide wellness platforms that suggest resources, fitness programs, nutrition tips and health monitoring in order to support their employees.
- Remote support: It is often hard to stay connected in remote companies, and employers must do what they can in order to create a feeling of togetherness and belonging at such companies. They can use virtual collaboration platforms, or support with ergonomic assessments to ensure comfort.
Happy, healthy employees are less absent from work, are more productive and there is a higher sense of employee satisfaction. Creating a vibrant and supportive workplace ensures an engaged and loyal workforce.
Some great apps are Unmind and Spill.
As we navigate the ever-evolving landscape of HR technology, it's clear that embracing these innovations can transform the way we manage our workforce. From the power of generative AI streamlining recruitment processes to the flexibility offered by headless HR systems, the potential for positive change is immense. Total Workforce Intelligence provides a holistic view of workforce dynamics, while AI-powered tools enhance both recruitment and performance management. Prioritizing employee wellbeing through advanced technologies not only boosts productivity but also fosters a happier, more engaged workforce.
Ready to revolutionize your HR practices? Dive into these cutting-edge technologies and see the difference they can make in your organization. Stay ahead of the curve, reduce bias, and create a supportive work environment that attracts and retains top talent. Visit dayonework.com to start hiring better with HR technology.
