Credit: https://1dayreview.com/

The role of technology in the HR industry continues to grow and evolve as HR professionals adapt to the changing needs of both the workplace and the workforce.

The increasingly competitive market is also attracting not only an ever-growing number of startups, but also considerable interest (and financial backing) from the investment community. One industry analyst estimated last year that the global HR Tech market could be worth a whopping $400 billion.

Here are five key trends driving HR Tech and ultimately changing our industry:

    1. Online Reviews have become your Company’s W.O.M. Reputation
      As consumers have grown accustomed to reading online reviews for everything from restaurants to refrigerators, they’ve broadened the habit to also include checking out what others are saying about potential future employers. Only one in three candidates said that they would apply to a company that had fewer than three stars from online reviews, according to a study last year by CareerArc. The recent $1.2 billion purchase of employer-review site Glassdoor illustrates the increasingly relevant role online reviews play in recruiting. This trend works both ways as employment marketplaces are starting to give the employers a turn at ranking work performance.
    2. Turns out there’s an AI in HR
      From chatbots helping employees navigate the open enrollment process to automated reference checking, and applicant matching, artificial intelligence appears poised to penetrate HR processes at every level. Two-thirds of CEOs believe that cognitive computing can drive value in human resources, according to a recent survey by IBM. At Finalist, we built our platform on the premise that advanced AI can match vetted silver-medalist candidates to roles at other companies for which they might be a better match.
    3. Access means 24/7
      Employees are increasingly demanding the ability to independently complete basic HR tasks–like managing PTO or updating their personal information–online without having to hand in paperwork or speak in realtime to an HR rep. Nearly three-quarters of workers said that they wanted their employer to provide a high-level of self-service for such tasks, according to a May Paychex survey. The same survey found that only about half of smaller employers offer such functionality. That share should increase as the shift to cloud-based and digital HR systems continues to gain traction.
    4. Move from Collecting Data to Using Data
      Big data has transformed nearly every industry, and human resources is no exception. HR managers are using internal surveys and data on everything from employee turnover to benefit update to craft their policies to better meet the needs of their workforce while reducing costs, increasing productivity, and lowering turnover. Two-thirds of middle-market companies surveyed by Telemetrix said that they’re correlating HR data to business outcomes, and nearly half expect to tie more HR data to business results.

      That also means a growing emphasis on how HR impacts a company’s bottom line. At Finalist we offer a way to HR to generate revenue. Companies that refer a candidates into our system who are placed at another firm receive a portion of our referral fee.
    5. Work/Life Integration means tools for a Distributed Workforce
      As more companies allow a portion of their workers to work remotely some or all of the time, they’re using technology to maintain the engagement of offsite workers, and manage HR tasks such as scheduling, training, and benefits enrollment. HR managers who work with a remote team also have access to a more diverse candidate pool, since they’re not constrained by geography. They may also get better candidates: teleworkers are more productive than their peers and less likely to take time off when they’re sick, according to a SHRM survey of HR professionals.

In addition to the trends highlighted above, there are myriad other ways that tech is changing the way that HR business happens. Some trends on our radar include using VR in HR training, social-work offerings from the likes of Facebook and Google, and tools that enable better wage transparency. One thing is obvious: HR Tech is rapidly transforming every facet of the way that companies hire and manage people, and the pace at which change is happening continues to advance.  

Interested in learning about Finalist? CLICK HERE to read how we’re redefining talent acquisition or contact me at mike@finalist.io.

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