Both HR departments and business leaders are witnessing the impact of technology on HR – a trend that seems to be growing at an exponential rate. According to business consulting firm Grand View Research, by 2025, the market for HR technology will be worth an estimated $30 billion, with a growth rate of 11%.
Let’s see how technology impacts HR in multiple ways.
HR Workflow Tools
The impact of technology on HR is evident not only when executives make workforce-related decisions, but also on how HR itself does its job. For example, companies such as Workday or SAP SuccessFactors provide workflows.
Moreover, digital HR tools help firms build out their organizational chart and accountability structure as well as build, maintain and track projects.
Businesses are trying new ways to build procedures by leveraging intelligent technologies like AI and machine learning. Over the next few years, more organizations will adopt the best HR practices and tools with the integration of new innovative technologies.
HR Process Automation
HR technology has also automated some of the labor-intensive paperwork and freed up HR professionals to take on more strategic and important work. Not only does HR technology streamline internal processes, but it also provides employees with easy digital access to benefits, payroll, retirement accounts, and learning tools.
HR handles job postings, candidate screenings, onboarding, company benefits, performance tracking, offboarding and more. When a company scales, has multiple locations or works remotely- it’s impossible to survive without automation.
Digital HR tools help firms build out their organizational chart and accountability structure as well as build, maintain and track projects.
HR automation offers several benefits including helping to reduce printing and physical storage costs while offering convenient access to online files at any time and from anywhere.
With an increasing number of user-friendly technology systems on the market, HR teams and business leaders have greater power to assess what is working and what is not.
HR technology has enabled the democratization of data, said Mirco Gros, assistant vice president of talent management at telecommunications company RingCentral. He further said that complex information and analytics no longer rest solely in the hands of data scientists. Hence, decision-makers themselves can now directly access the data they need.
With user-friendly analytics, not only can HR get better insight easily but also business leaders can.
As the world of work changes, the workplace also needs to transform. The new work environment necessitates workplaces that are flexible, collaborative, and well-connected. Employees now primarily use digital technologies and devices to carry out knowledge-intensive work from anywhere and everywhere.
Increasing numbers of employees are now dependent on these digital devices and collaborative technology tools to carry out non-routine tasks. They rely on social interaction, collaboration, and creativity to do their jobs.
Over the years, routine jobs became less common, primarily because of increasing automation and digitalization of entire HR operations and processes.
Technological developments such as big data, cloud computing, IoT, robotics, AI, and immersive communications are likely to have a significant impact on the new world of work. These trends are likely to become even more marked in the coming months and years, driven by the exponential growth in digital technologies.
A successful transformation to a modern workplace should integrate multiple dimensions of the workplace ecosystem. These include not only the physical workplace but also talent and technology that enable employee performance and cultivate engagement for employee satisfaction.
Engagement and Collaboration
Digital technologies are central to modern-day workplaces, especially in this era of remote working. Digital platforms enable managers to develop trust, collaborate and drive team performance. The effectiveness of a new economy workplace depends on two main factors. First, the availability of digital devices like laptops and smartphones, along with secure external access to all company data, information, and processes, essential to work independently from any remote location. Second, the employees need additional tools and software that foster engagement, promoting virtual collaboration. Hence, when it comes to virtual meetings, secure tools offer unified communication and collaboration platforms that combine workplace chat, video meetings, file storage, application integration, and more.
To sum up, the future of any HR department is connected to technological advancement and the challenges it offers for innovators inside and outside the industry to create and redesign the workplace and employee experience.