What is HR technology and how is it evolving?

What is HR technology and how is it evolving?

Shubham SharmaOctober 18th, 20236 min read

At a time when companies are trying to attract talented workers who can be available as needed, human-resource technology has become an increasingly popular area of investment.

The rising demand for remote human resource services has generated a multitude of ideas about how to digitally transform HR, and created an abundance of systems that are designed to address this need.

Fortunately, if you follow these basic principles when dealing with human resources issues, your business will be able to handle the difficult economic times and deal with its workforce in an efficient manner.

That's why we've compiled this guide to HR tech so that you can learn everything you need to know.

What is HR tech?

The term HR tech refers to all the software that human resources teams use in their work. As you can imagine, because of its role at the intersection between so many different areas within an organization—from recruiting and training employees to benefits management—HR is a department with diverse needs: every team has its own special technology stack.

But despite the different approaches, all HR technology has one goal: to improve employee experience and compliance. If it can also save employers money—all the better!

HR technologies can be used in the areas of payroll, travel and expense management, talent management (recruiting), performance evaluation/improvement systems and learning.

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Why should business leaders care about HR technology?

Successful HR departments use a wide range of tools to ensure that employee performance is maximized and payroll runs smoothly.

With HR technology, time-consuming tasks can be streamlined and automated without losing the human touch. Using the software automates everyday processes so that professionals have more free time to focus on other things.

Managing the entire employee life cycle allows HR departments to focus more intently on recruitment, give managers additional guidance and support, and shore up retention efforts.

With the rise of remote work and new telecommuting technologies, HR tech has focused on how technology can be used to meet these needs. Instead of spending time with spreadsheets and arranging calls across different time zones, cloud-based technology helps HR professionals by allowing them to automate workflows.

Different types of HR technology

While some HR technologies are all-inclusive and offer an array of services, others are more focused on a specific business element. The following functions can be implemented by the human resource team using various kinds of tech:

  • Payroll management to regulate and confirm payment (while remaining compliant)
  • Talent management to guide employees along a career path
  • Applicant tracking systems for the recruitment process
  • Learning and development for upskilling employees
  • Performance management to assist with overall productivity
  • Benefits administration to improve culture, performance, and wellbeing
  • Onboarding new employees

HR processes are multi-faceted and interrelated with other business functions, making it vital for human resources management to keep up with trends in technology. The following list of tech advances is worth considering when building HR systems or policies:

Self-service technology

People have grown accustomed to convenience and instant gratification, including in the workplace. Self-service technology meets this need by providing easy access to paperwork and documentation, such as pay stubs, tax forms, and more.

Remote work

The shift toward remote work has been supported by technology, and various types of Human Resource Information Systems (HRIS) are facilitating progress. From collaborative platforms like Slack to video-conferencing tools like Zoom—working with a global and dispersed team has never been easier.

Work-life balance and well-being

Businesses and employees are paying more attention than ever to the well-being of their teams, shaping how work will be done in years to come. HR management software helps companies create a culture and environment of engagement in which employees feel their contributions are valued. All this is achieved while ensuring that work-life balance is maintained at optimal levels for all team members.

How can HR tech improve company culture?

By lowering the pressure on HR leaders, there is more time and energy for improving company culture. HR software helps with payroll, compensation management, the hiring process—and much more. In doing so it improves employee experience, boosting job satisfaction.

Managers can also take steps to create and maintain a healthy company culture. For example, they can improve performance reviews by refining the benefits package and staying on top of employee data.

Why is HR tech critical in HR strategy?

Technology has an integral role in almost all aspects of modern life—including advertising, networking and business development. Of course technology also plays an important role when it comes to HR processes.

HR tech can help HR managers fulfill their mission: to promote the company's mission, values, and business goals. Optimizing processes such as onboarding or performance review allows HR to bring value—and grow the business. Recruitment, payroll, talent management, and other human resources activities can be improved by using technology.

Tips for HR leaders to embrace HR technology

For software and hardware to be effective, HR leaders must embrace the process of implementation as well as commit to it. Consider the following tips in order maximize benefit from your technology investment:

  • Keep up to date on technology advances and features by understanding them as well as possible.
  • As workplace technology evolves, it's crucial to review and update HR policies accordingly. Ensure that your policies reflect the changes brought about by technology and promote equal treatment for all employees.
  • Foster a strong partnership with your IT team. By working together, you can address any technical challenges faced by employees and improve their overall experience with HR technology.
  • Provide adequate training and resources to empower employees to understand and effectively use the HR technology at their disposal. This will enable them to adapt quickly to agile work methods and leverage the tools to their full potential.
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