How can you decide which of the cutting-edge solutions and tools your business needs and avoid making a mistake in your choice? In this article, we will look at the key HR technology trends that can bring tangible benefits to your company.
HR Technology Trends to Benefit Your Company
According to Business Wire, nearly half (46%) of today's companies use HR platforms like SaaS or hybrid solutions. This indicates serious technological progress in the field of HR management. This is not surprising, as adopting an IT solution in HR processes helps improve recruitment methods and personnel management, as well as increase employee satisfaction.
How can you decide which of the cutting-edge solutions and tools your business needs and avoid making a mistake in your choice? In this article, we will look at the key HR technology trends that can bring tangible benefits to your company.
How Things are Going Today at HR Tech
Digitalization of HR processes has enabled organizations to optimize human resources through social, mobile, analytics, and cloud technologies. Let's take a look at some of the key processes:
Human resource management system (HRMS)
HRMS is a comprehensive solution for automating and simplifying HR management processes, including hiring, time tracking, payroll and bonus calculation, and performance evaluation. Such systems facilitate HR management and are widespread in modern companies.
Learning management system (LMS)
LMSs allow you to create, manage, and track employee training programs. As more companies recognize the importance of continuous learning, they increasingly seek to implement LMSs within their organizations.
Talent management system (TMS)
Talent Management System is a software solution for managing a company's human resources potential, including recruitment, assessment, development, and motivation. This software automates processes, helping improve performance and create conditions for company and employee growth.
Performance management system
This tool helps companies track and manage employee performance, set and track goals, conduct performance reviews, and much more.
Recruitment system
This system automates hiring activities, including posting jobs, tracking candidates, conducting interviews, and more. It is widely used in today's companies to simplify and speed up the hiring process. Nearly 99% of Fortune 500 organizations use applicant tracking systems(66% of large and 35% of small businesses).
HR Technology Trends to Consider
1. Leveraging artificial intelligence and machine learning
Artificial intelligence (AI) and machine learning (ML) are helping to create algorithms that automate recruitment processes. These systems can analyze large amounts of data about candidates, such as work experience, skills, and education. Based on the results, companies identify the most suitable talent and can even predict the likelihood that they will be successful in the company.
Another example is when AI and ML analyze employees' past actions and reactions to various situations. This allows HR to retain key employees and improve overall employee satisfaction.
Additionally, chatbots may be integrated to automate answers to frequently asked employee questions and surveys and notify personnel about important events and changes in company policies. This improves communication within the company, saves employees' time, and increases overall business efficiency.
2. HR business process automation
HR systems provide tools for reporting, analyzing employee data, monitoring employee hours, and coordinating the hiring process for new talent. These systems help minimize the need for human intervention in routine processes, reduce time and resource costs, and reduce the likelihood of errors.
3. Remote work
The development of tools for organizing remote work offers more than just the functions of simple video calls or file sharing. Tests and assignments offered through remote platforms help to effectively assess employees' knowledge and skill levels and monitor their professional growth. Personalized onboarding programs are tailored to the specifics and requirements of each department or position, ensuring effective onboarding of new employees.
Performance monitoring systems help analyze employee activity online. They track task completion, time spent working, and activity levels during business hours. This data helps managers assess the performance of the remote team, identify potential problems, and take action to resolve them.
4. Data analytics in HR
The use of Big Data and analytical tools makes it possible to analyze vast amounts of employee data, including information about their performance, job satisfaction, feedback, and preferences.
Moreover, data analytics can identify areas for improvement in HR processes, which may include:
- Optimizing the hiring process
- Improving training and development programs
- Changes in corporate culture
5. Development of emotional AI (Emotional AI)
An emotion recognition system within an integrated communication platform is an innovative tool based on machine learning algorithms and natural language processing (NLP) analysis. It allows the system to automatically recognize and interpret employees' emotional states expressed in messages.
The system process involves scanning a text or audio recording to identify keywords, intonations, expressions, and other indicators of a person's emotional state. The system then analyzes this data and determines the employee's overall mood.
Based on the findings, company management can take steps to improve the work environment and support employees. For example, if the system detects signs of stress or fatigue, the company can reduce their workload, implement stress management programs, or arrange for extra time off.
This technology can also help identify problems in communication and employee relations, allowing conflicts or misunderstandings to be quickly resolved.
6. Personalized learning and professional development programs
Learning management systems offer a personalized approach to employee development. This system uses machine learning and data analytics algorithms to automatically analyze employees' previous work experience, professional goals, and current skills. Based on this analysis, the system recommends personalized training courses that meet the needs of each employee.
Besides recommendations, such a system selects various opportunities for growth within the company — for example, participation in projects, mentoring programs, or opportunities for promotion.
7. Expanded onboarding
Companies that seek to ensure effective onboarding of new employees can put in place innovative and interactive onboarding software to create an engaging experience for new hires.
Interactive onboarding software can include virtual tours around the office where new team members can familiarize themselves with the company's office premises, including common areas, work areas, and basic amenities.
Introducing key employees is also essential, allowing newcomers to understand the company's organizational structure better and build valuable connections. Also, training on the company's basic processes and policies helps newcomers quickly adapt to the corporate culture.
Moreover, the company can develop personalized onboarding programs specifically tailored for different organizational roles and departments. These programs take into account the specific tasks, requirements, and characteristics of each employee group, providing them with the necessary knowledge and skills to perform their duties successfully.
For example, adaptation programs for technicians may include training on specific technologies and tools, while programs for salespeople may focus on customer communication and deal-making skills.
8. Focus on employee experience
A company can implement specialized employee experience management platforms - tools for collecting feedback and ideas from staff.
Such platforms can be implemented in the form of web or mobile applications where employees offer their ideas for improving the work environment and share feedback on various work aspects, including processes, communication, corporate culture, and more.
One of the benefits of such platforms is the automatic analysis of feedback using machine learning. It helps identify common problems, trends, and areas for improvement in a company's work environment and processes.
For example, the platform can analyze the frequency of certain topics or problems mentioned, identify the most discussed ideas or solutions, and identify adverse trends and suggestions for improving the work environment.
9. Environmental and Social Responsibility in HR
A key technology in this trend is monitoring systems for resources such as water, electricity, and fuel in different parts of the company. They automatically collect data on resource consumption and help identify where savings can be made and reduce environmental impact.
HR tools for sustainability management help assess a company's climate impact by tracking greenhouse gas emissions and energy consumption. This helps identify major sources of pollution and develop strategies to reduce it.
Companies can also use technology to track their participation in charitable and social programs. For example, they can automate donation accounting or create online volunteering platforms to effectively manage social responsibility and demonstrate their contribution to community and charitable initiatives.
How HR Technologies Help Companies Achieve Goals and Shape the Corporate Culture
As many as 74% of companies plan to increase spending on HR technology. Most companies already use, or plan to use, these technologies to improve their HR processes. Let's find out why:
Increased recruiting efficiency
Automating recruitment processes helps reduce time spent on finding and attracting qualified candidates. Machine learning algorithms help identify the most suitable candidates among a large flow of resumes.
Improved HR management
HR technologies provide an opportunity to automate employee evaluation and performance management processes. This allows for more accurate identification of employee strengths and weaknesses, identification of areas for training and development, and effective performance reviews.
Reducing bureaucracy
Digital HR systems reduce the need for manual record-keeping. As a result, the likelihood of errors is minimized, and communication between the HR department and employees is prompt.
Developing corporate culture
HR technology can help companies create and maintain a positive corporate culture. An online platform for knowledge sharing, training, internal events, and feedback between employees and management can help achieve this.
Analytics and forecasting
HR technology can collect and analyze workforce data to help companies forecast employee needs, identify trends in layoffs, and adapt HR strategies to meet changing business needs.
Two Real-Life Examples of How HR Technology Has Helped Businesses
SAP SuccessFactors has strengthened HR management at Girteka
Girteka, a prominent transportation logistics company, has initiated the digital transformation and automation of its HR processes with SAP SuccessFactors (SAP SF). The collaboration between Girteka, SAP, and LeverX has reshaped their approach to HR management and has driven a number of changes.
Automation not only simplified HR processes but also enhanced data analysis and time management capabilities.
It started as a small project that grew into a large-scale transformation of the entire company. The implementation of SAP SuccessFactors produced the following results:
- Optimization of HR management
- Enhanced HR analytics capabilities
- Attracted talented specialists
- Improved training process
The time management solution that LeverX implemented is easily scalable to cover 13,000 drivers in the transportation department.
Future plans include improving the educational culture through SAP SF Learning Management, ensuring fair compensation through SAP SF Compensation and Variable Pay, and expanding the project's geographic scope. This project exemplifies a successful digital transformation to better manage a growing headcount.
Espresa — a Custom HR Solution for Effective Collaboration
Espresa is a platform for collaboration between employees, HR professionals, and contractors. It provides a wide range of services, including convenient access to corporate insurance programs, wellness initiatives, social events, foreign language classes, and interest groups. Company employees can book a place to participate in an initiative with one click.
The client's primary objective was to add value to companies by providing employees with quick access to corporate programs, sporting events, reimbursements, and internal communities.
The implementation of the Espresa platform has resulted in solid metrics:
- User retention rate of 98%
- User satisfaction rate is 99%
- Average annual engagement growth of 98.5%
- Favorable recommendation rates of 99%
What LeverX Offers
LeverX offers comprehensive services to develop cutting-edge HR technologies to meet your needs and help you optimize your HR management. There are two main areas in which we specialize: the implementation of SAP solutions in the field of human resource management (SAP Human Capital Management (SAP HCM), SAP SuccessFactors) and the development of custom solutions.
SAP solutions implementation
SAP HCM is a complex solution for automating HR management processes, including timekeeping, personal data administration, payroll, and vacation management. SAP HCM implementation allows you to reduce time on routine operations and increase the efficiency of your HR department.
SAP SuccessFactors is a cloud-based talent management platform that includes modules for recruitment, employee development, performance management, and motivation. Implementing SAP SuccessFactors helps optimize recruitment, employee development, and talent management processes, which increases the company's competitiveness in the labor market.
Custom development
We also offer custom HR software development tailored to your company's unique needs. Our specialists will analyze your business processes, develop a solution to meet your requirements and help you achieve your goals. In addition, we provide ongoing support at all project stages.
Conclusion
Modern HR technologies hold an essential position in forming a successful and competitive company. They not only help to optimize HR management but also significantly improve business efficiency as a whole. The evolution of technology in the field of HR allows companies to create a comfortable environment for employees, attract and retain talented professionals, and achieve high results in human resource management.
Successful implementation of modern HR technologies can bring significant benefits to your company. Our team is ready to assist you in this process by providing comprehensive solutions that meet your needs and business objectives.
