HR TECH 2020: Top 5 trends to look out for
“Companies still want integrated HR systems, but what they don’t want is complex and vague integrated ERP software(s) that makes everyone’s lives more complicated. In fact, they want life to be simpler”.
– Josh Bersin, Principal and Founder of Bersin by Deloitte.
Industry experts and professionals have declared that HR Tech is one of the hottest sectors in the world, however gradual concerns have cropped up relating to the seamless integration of intelligent tools (Artificial Intelligence, Machine Learning, NLP etc.), efficiency of management systems and overall skills required to analyse data.
The HR Technology industry is poised for further growth in 2020, as it recently climbed past the USD 400 Billion mark. As the market begins flooding with new players and competitive rivals, organisations across the globe will start looking at solutions with higher efficiency and increased productivity gains.
So, here are the top 5 trends in the field of HR Technology to look out for!
1) Era of Self-Service Technologies
One of the biggest introductions into the employee experience was the acquisition of both Employee Self-Service (ESS) and Manager Self-Service (MSS) tools, in order to make HR related information more easily accessible.
However, studies and surveys have shown that despite the initial excitement surrounding ESS and MSS tools, organisations have begun to roll-back on the product altogether. A Sierra-Cedar HR Systems survey report, for the year 2019-2020, showed that even though companies are still purchasing ESS and MSS tools, they aren’t being fully utilised.
A detailed study revealed that a persistent problem was the mounting pressure on Managers, to fulfil HR related activities. By inculcating MSS tools, the organisation had inadvertently placed a massive burden on Managers to deliver on these tasks, which further placed the HR department in a bad light.
Hence, the company’s hand was forced to retract these tools and switch to open and shared-service platforms, where HR administrators could assist the Managers.
One of the most promising iterations of ESS and MSS tools would be to gauge Learning and Development (L&D).
Learning and Development is provided to employees in a menu card format, with dozens of learning opportunities and career choices. This has either confused the employees or left them feeling overwhelmed.
Organisations will need to investigate the specifics, to recommend the right learning options to ensure an employee can achieve their most desirable career-path.
2) Expanding horizons for AI deployment
The words Artificial Intelligence (AI) and Machine Learning (ML) have become household names over the last 5 years.
AI-embedded HR products have passed real-world tests and will continue to be a governing backbone for diverse functions in the HR space. However, analysts are trying to comprehend the pace at which HR Tech adoption will progress.
HR professionals all over have said that in the next 2-5 years, more than 50% of organisations all over will be using AI-based HR Tech products for at least one critical function. This could either be for L&D, business insights, workforce insights or recruiting.
Yet, some individuals feel the adoption timeline is severely optimistic, like that of HR Cloud Services, which took over ten years to attain its current level of mass adoption. This is primarily due to the lack of ethical standards and functional regulations around AI implementation.
However, a majority of the industry believes that AI adoption will only spike, especially in the field of Talent Management and Talent Acquisition. As the world is facing a talent shortage, AI will become instrumental in sourcing the right talent. Also, organisations will need to study employee behaviour and comfort to prevent attrition. Time management for recruitment will also become a core functional benefit of AI.
As opposed to screening thousands of resumes, whilst battling employee churn rates, to find the right talent, AI will start looking at employees who are most likely to stay and recruit them accordingly.
3) Workforce of the future
Every single HR professional is currently onboard the ‘Workforce of the Future’ agenda, without realising the primary pain-point.
Establishing a healthy working culture for employees will fall flat on its face, unless coupled with the ability of the workforce to upskill / reskill themselves in order to meet incoming business demands. The technology wave has grabbed the global industry by storm, and countless technical graduates haven’t equipped themselves with the right set of skills and education.
AI enabled HR technologies can be deployed to gain a cumulative view of all the available skills in an organisation, predict incoming business demands and deduce the shortage of key skill sets needed to tackle evolving enterprise needs. And by understanding this, AI algorithms can make necessary upskilling/reskilling recommendations to employees to become the workforce of the future.
AI-ML programming, DevOps, Data Compliance, Java Programming and Cyber-security are some of the skills that will become highly relevant in the coming years. Organisations will either have to work hard to find the right talent or revamp their L&D process to ensure their employees are better prepared.
4) Continuous Performance Management (CPM) will oust Single-Day Appraisals
The ancient and archaic system of Single Day Appraisals worked wonders for over 100 years. It provided a systematic check-and-balance, where an employee’s performance for an entire year was evaluated before awarding suitable compensations, appraisals and rewards.
With the influx of the Gen-Z and Millennial crown, the single day appraisal system has lost its sheen and viability.
More than 83% of new hires quit their jobs within the first 6 months, citing either deplorable working conditions, opaque communication channels or higher salaries. These employees belong to the ‘New Age Working Order’ and hence refuse to conform to age old practices.
CPM, powered by AI-ML algorithms, help the managing personnel to collate data from diverse sources and extract the most relevant data from it. The difference here, is that the AI-ML algorithms remove all the human biases present in the data, making it fair and efficient.
Continuous Performance Management not only helps Managers to monitor an employee’s performance, but also helps in setting long-term and short-term goals, increase communicative transparency and contend against competitive salaries from rivals.
5) Data Privacy
Since Data is now considered the newest form of Gold, why isn’t it being treated like gold?
Personal information and data, pertaining to all the employees, are now managed on digital clouds. Long gone are the days when personal details were manually written on slips and handed over to the HR department. However, a pressing concern which has cropped up is how are organisations managing this data?
Employees will be expecting better control over their own data, heightened security of corporate clouds, as well as increased transparency regarding how their data is being utilised by the organisation.
Companies will start looking at Distributed Ledgers (Blockchain) to improve overall data security and transparency regarding personal data.
Content Development Specialist