HR technology has seen exponential growth in the last few years. While a majority of companies have come to rely on various applications of HR technology to build efficient hr processes, a significant portion of companies is still skeptical about investing in HR applications or are on the way to incorporate HR tools in their operations. Either way, HR technology is gaining more traction and adoption among companies.
Let’s see what are the other trends in the HR tech industry.
- Cloud-based HCM markets will grow exponentially
So far Cloud-based HCM (SAP, Oracle, Workday, Gusto, and many more) have dominated the market. These applications have matured and even incorporated talent features, making themselves an end-to-end application for enterprises. However, ‘employee experience’ which has emerged as an important area of focus for organizations is still missing in these applications. Since employee experience is a priority for enterprises, existing HCM solutions are working with partners to incorporate it.
2. Employee experience and talent experience platforms have arrived
Employee experience and talent management tools still exist, but a new version of experience tools is available in the market. The traditional employee experience and talent management tool focuses on learning, training, and talent development. The new version has much more to offer, to accentuate employee experience.
- The recruiting market is on fire
Recruiting is the biggest AI market in HR. With AI-powered tools for sourcing, screening assessment, interviewing, and candidate management experience tool, recruitment tools are moving up a notch by notch. The investment in recruitment tools is more than ever before.
Recruitment teams are now expected to be system integrators, who can find ways to integrate applications with existing systems to make their work more efficient and productive.
Many recruitment applications are moving toward internal talent mobility, career management, and other related areas. Why? Recruitment technology is a competitive market and integrating internal mobility is working for many vendors. The internal mobility is increasing due to the ever-tightening labor force.
4. Learning technology has come off age
Reskilling and upskilling is an area of concern for CEOs and all C-suite executives. Learning management systems are playing an important role in helping C-suite executives address this issue; the number of LMS in the market is huge. Learning experience platforms are increasing steadily and now feature collaborative learning, video authoring, AI-based content recommendation, self-described skills assessment, and amazing micro-learning tools.
5. Well-being and health tech are emerging with HR tech.
Employers are increasingly focusing on employee health and wellness. To effectively address this area, wellness and health tech have emerged a great solution for organizations. However, this market, which is worth $48 billion, is highly fragmented. Software and mobile applications for mental and emotional health, stress reduction, physical fitness, diet, and financial well-being are everywhere. Health tech and wellness providers are investing in new AI-based automated tools to make them fit for a large workforce. Virgin Pulse, LimeAde, MEquilibrium, and other tools can work together to bring real behavior change.
6. Tools to promote inclusion, diversity, and reduce harassment
This market didn’t exist until a few years ago. Now this market is expected to flourish beyond 2020. Thus, employers should research the market and see what’s available because inclusion, diversity, and sexual harassment are critical issues that companies need to address, both from employer branding and growth point of view.
HR technology, in many ways, has influenced how human resources departments operate today. A few years ago investing in tools and applications sounded like waste of money for companies. However, the way HR tech is evolving, not integrating tools in HR function would mean missing out on a lot of opportunities for growth.