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How HRtech Trends Will Transform The Industry By 2020

How HRtech Trends Will Transform The Industry By 2020

Globally, approximately 71% of organizations believe that people analytics technology is a high priority

58% of office going Indian employees work remotely at least one every week

Today approximately 9% of the 3 billion strong global workforces have access to workplace wellness programs

In an age of digital disruption, technology is transforming every aspect of the organisation including employee recruitment and managing the 21st-century workforce. This has marked a greater shift in HRtech trends as well. The HR professionals no longer have to be bogged down by manual processes or overwhelming amounts of data. With a shift towards HRtech, the HR department is now more nimble through technology and has greater freedom to make a significant impact on corporate culture.

According to KPMG report, by 2020, adopting new technologies in a workplace will not only change the way of recruitment but will also decrease the manual workforce. A decade ago, HR was only about recruitment but now HR is a strategic partner, and that is reflected in new age HRtech trends as well.

Some of the expected HRtech trends for 2020 and the foreseeable future, that HR professionals need to be aware of, are listed here:

People Analytics Technology

This is one of the most significant of HRtech trends observed by the industry pundits. The HR department’s job is significantly more than just recruiting the right people with the required skillset. The HR division of a company must ensure that those it recruits are motivated to work and remain with their new organisations for the expected duration if not longer.

This is why a growing number of companies are using people analytics software in HR to recruit talent. Globally, approximately 71% of organizations believe that people analytics technology is a high priority of which 31% said it was very important to their organization.

HRtech softwares powered by algorithms is more effective at screening candidates than human beings are. This has been demonstrated by McKinsey’s People Analytics Team. People analytics software is being adopted by HR departments because it removes unconscious bias that may distort a recruitment process. Software powered by algorithms assesses every applicant as objectively and fairly as possible making it impossible for unconscious bias to distort the recruitment process.

The HR department of Unilever is already using recruitment tools powered by people analytics technology to fill entry-level jobs. Individuals who click on a Unilever advertisement on Facebook or a career guidance site need only use their LinkedIn profile to complete a form after which an algorithm selects suitable candidates.

Candidates selected by the algorithm play online games that evaluate their skills and those who do well enough are requested to submit video interviews using an app or website. Those who clear this hurdle give a face to face interview with a recruitment manager.

The online games played are part of HRtech that can accurately judge how successful a candidate would be in certain roles. Gradually, the use of gamification to select candidates will grow in the years ahead.

The HRtech trends suggest that HR is also using people analytics technology to design remuneration packages that companies think are fair. Additionally, when any interpersonal challenges arise, the HR department is regularly tasked with solving them. Using predictive analysis, HR departments can learn what is likely to happen next.

Predictive analysis uses tools like regression analysis, multivariate statistics, predictive modelling, forecasting, and pattern matching to allow organizations to make better workforce decisions. Hence, it is used to take effective actions in hiring, retaining, managing and remunerative decisions. The use of HRtech has been picking up rapidly to manage a workforce and is projected to grow over the next few years as well.

The potential of people analytics software in HRtech is nearly endless and in the future, it will be used to generate deeper insights about prospective candidates, existing employees and employee retention, as shown by the future HRtech trends. Yet technologies role in HR isn’t restricted to people analytics software, far from it. Technology is allowing people to enjoy a permanent vacation while working full-time.

Remote Working

Statistics about remote working reveal its popularity among employees and organizations, as observed by the industry analysts, predicting HRtech trends. An IWG study shows 58% of office going Indian employees work remotely at least one every week.  Clearly, a growing number of people are opting to work from home or even from exotic locations around the country or across the globe.

Those who opt for such a lifestyle are growing in number, most are well educated and hence able to enjoy what is to many an idyllic balance between work and play. According to a Gallup poll, 37% of respondents have already worked virtually. To attract more such candidates, HR departments have created recruitment policies around the expectations of such workers.

An important reason why many HR departments have allowed employees to work remotely from home is those who do so report lower levels of stress, suggests the latest HRtech trends. Studies by PGI reveal that 82% of those who work from home reported they were less stressed than when they worked in their office.

The same study also revealed that 80% of workers working from home had higher morale than they did when working in an office. Crucially, working from home lowers absenteeism by nearly 63%.

HR departments facilitate such workers using remote working technology including software that facilitates collaboration between teams in different locations. The popularity of such technology is likely to grow significantly next year.

Wellness Apps

Healthy and happy employees aren’t just more productive, they’re also more fun to work with and be around. This is why wellness apps that measure employee’s health and happiness will be used by more and more HR departments next year. Today approximately 9% of the 3 billion strong global workforces have access to workplace wellness programs. Wellness apps are a part of such wellness programs.

Wellness apps allow workers to remain as fit as possible. Wearable devices powered by software platforms allow employees to monitor fitness levels. HR departments are using data collected from such wellness apps to create suitable fitness challenges for every employee. Because wellness apps collect data daily for a significant period of time they allow HR departments to create tailor-made fitness challenges that are fun and make employees fitter.

Organizations that use technologies like people analysis software and wellness apps have a good chance of hiring the best people and of ensuring they thrive in their roles. Technologies like remote working are valuable because they allow companies to hire the best people from anywhere in the world. HR departments that use these 3 technologies are likely to add significant value to their organizations and create a productive and happy work environment.

The new generation of employees isn’t scared of technology but rather sees it as a huge enabler. The fact that technology continues to grow in sophistication making even complex tasks effortless has allowed it to be intimately linked to human activity. This presents the HR department a way to maximize their contribution to organizations. Hence next year and in the decades ahead, technology and HR departments will become even more interwoven.

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

Author

Karan Jain

Community
Founder at HR-One

As a thought leader, he has held many key leadership positions in Uneecops across business development, sales activities, and strategy shifts. He has in-depth knowledge of technology trends and loves to interact with industry leaders and analysts.

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