With the advent of technology, the landscape of HR is witnessing a transformation like never before. Technology is not only changing the way HR works but also the way it is perceived in the external world. Today, HR works with meaningful and insightful data for an enhanced alignment with organizational goals and has become an equal contributor to crucial business decisions.
As per Josh Bersin, HR technology has become a $400 billion industry and it increased by a staggering 10% in the last one year itself. The industry is evolving as the complexities of the HR function are broadening. Changing employee demographics and greater demand for transparency and fairness are some of the challenges faced by HR. AI, cloud-based hr systems and hr analytics are making a remarkable difference in the lives of HR professionals.
The fact that corporate giants like Google, Facebook, Microsoft etc. are investing in HR technology is a testament to its importance in current times. Here is how technology is disrupting and changing the way HR functions.
Faster and Smarter Hiring
In the face of changing demographics and candidate-driven recruitment markets, organizations are fighting talent wars from the frontline. It is one of the top challenges that worries top executives as was evident in PwC’s CEO survey report 2017.
Automation and AI are rapidly changing the scenario with faster turnaround time, reduced costs and better hiring decisions. Companies like P&G, Hilton and AT&T have used AI and automation to revamp their hiring process and achieved a higher success rate.
With AI-powered recruitment tools, recruiters can access a wider pool of applicants and also fast-track their application process. CareerBuilder is an astounding example of an AI tool that simplifies the job of a recruiter. It can make job descriptions and a resume in less than a minute.
Chatbots are other tools that are revolutionizing the recruitment industry. They are smart and can engage candidates by answering 70% of their queries. These chatbots can assess the candidate’s skills through short and immersive conversations. Recruiters are also adopting other techniques like technology-powered personality questionnaires and video interviews to identify the right job-fit and organisational-fit. Due to these significant changes, recruiters have more bandwidth to focus on other productive and strategic tasks.
Better Performance Management
Performance management is a crucial HR deliverable to see if the needle of human capital has moved on a year-to-year basis. What was once restricted to giving employee ratings has now evolved into a more complex system powered by 360-degree feedback and individual development plans. Technology has streamlined the process by providing continuous performance tracking and feedback mechanisms. However, it is the power of analytics that has made a more powerful impact on PMS. It has converted chunks of raw data into meaningful insights to support better business decisions pertaining to promotions, compensation and learning needs of the organisation.
Improved Employee Experience
As technology and AI take over the operational and repetitive tasks, HR professionals are seeing a shift in their way of functioning. They are focusing more on creating better employee experiences and a more productive environment. This is in stark contrast to their earlier responsibilities that comprised more of handling employee queries and grievances.
Technology has aided the development of sophisticated self-service systems, also called HCM systems. The new platforms in the market are of top-notch quality and allow integration between HR, IT, finance and compliance. While this is only one aspect of enhancing employee experience, the future holds more intelligent functions powered by voice and chat interactions. Imagine having an Alexa or Siri in your office to replace your troublesome laptop within a few minutes. That is the level of intelligence, speed and engagement we are talking about.
Efficient Payroll and Compliance
As organizations expand and grow their foothold in other geographical locations, payroll and compliance become more complicated. Jewell Christensen, Avitus Group Payroll Manager points out the advantages of a cloud-based payroll technology system. He says automation has improved both the efficiency as well as the accuracy of payroll. Besides, web-based payroll information can be accessed from anywhere and at any time.
Cloud-based payroll systems do not require any extra infrastructure and are also cost-efficient. Moreover, payroll technology also simplifies compliance by incorporating any changes in the local or government rules and regulations.
Insightful Analytics
HR analytics has gained such humongous popularity that there are separate teams dedicated to this task. With the intelligent use of data, organizations are taking a preventive approach by diagnosing problems way earlier. For instance, analytics can indicate a widening gender disparity or plunging engagement levels. As Diversity and Inclusion are gaining more prominence, we will be seeing effective tools to counter such challenges in the near future.
Automation and technology are taking over the administrative tasks of HR professionals. In this scenario, their roles will take a more strategic turn towards the achievement of business goals.