Top 5 HR Tech Trends in 2023 improving business efficiency!

Top 5 HR Tech Trends in 2023 improving business efficiency!

We hosted the Gitex trade show in Dubai, which is one of the largest technology events
including technology for HR. There we observed 5 major trends that should be taken into account by managers who care about business efficiency and its continuous development.

Technology in HR?

HR tech is a term that covers software and hardware that are used to simplify various daily HR functions. They can be cloud-based, automated or provide analytics, to name a few, and cover a wide range of functions such as recruitment, development and training, payroll and benefits (insurance, paid time off, reimbursements, etc.)

There are many advantages to integrating HR technology into your business operations. For starters, you'll save time - allowing you to focus better on strategy and running your business. Second, you'll be able to save on costs. HR technology minimizes the chances of human error - some of which can cost you a lot.

Building on this abbreviated and general explanation of what technology is in HR, I will now go on to explain why HR technology is essential for any company.

What are technologies in HR?

Data integration

Data integration occurs when data from different sources is combined to give users a single view of it. In addition to centralizing all data, this allows for a smoother transfer of information between systems, resulting in better data quality and increased efficiency. With manual systems, there is an increased risk of errors, fraud and overall poor quality work. Now, with data integration, this risk is reduced because there is a central network with better security and automation.

In HR, an example of data integration would be the use of a single system that combines leave and attendance, payroll, IT support and so on. All-in-one platforms are becoming increasingly popular because of convenience and security. Integrated HR platforms are cost- and time-saving, provide an excellent user experience at all levels, and show HR insights and analysis - something that is critical to future business decisions. They can also provide local compliance assistance, keeping you up-to-date and ensuring compliance with tax, corporate, labor laws, etc.

Digitizing employee well-being

There is no doubt that having healthy, happy employees is key to running a successful organization. However, since the outbreak of the pandemic, employee health has suffered as people try to adjust to the new norms. A survey by the Society for Human Resource Management found that 40% of 1,099 participants felt "hopeless, burned out and exhausted" because of work-related problems. 55% of the same participants said they had little interest or enjoyment in their daily lives.

As a result, companies around the world have taken a number of measures to take care of the mental well-being of their employees. Some have adopted hybrid work arrangements or shortened work days to provide a better work-life balance. Some companies have also introduced ways for employees to relax and refresh themselves during working hours.

Technology comes into play here in various forms - online therapy/counseling for employees, adding mental health days off to the vacation portal, or having a reward system that can be exchanged for employee benefits, to name a few. Google, for example, has a points system that employees can redeem for massages or spa sessions.

Cloud-based HR services

As hybrid/remote workplaces become the norm, companies have adapted methods to support their employees remotely. One way to do this is through cloud-based HR services, where basic HR functions such as leave, payroll and benefits such as bonuses and awards can be accessed on a shared server. An extension of this is employee self-service (ESS) platforms, which allow employees to easily access leave, pay stubs, IT/administrative support, etc.

Cloud-based HR services are a must, as all data will be consolidated in one place. Speaking of data, it will all be stored securely, so you won't have to worry about security. Using cloud-based software also means that you can reduce costs and time that would normally be spent on manual tasks.

Payroll, for example, can be a challenge to handle manually because it's multifaceted, even more so if your company is based in different locations. A cloud-based self-service platform would be helpful because it can process payroll from each client's respective human capital management (HCM) system through integration with those HCMs - automatically making things easier for those companies that have employees in different locations or employees working remotely.

Training and development

It is important to provide your employees with adequate learning and development opportunities. When employees improve their skills, they not only hone their talents and acquire new ones, but also increase productivity at work. According to the Association for Talent Development, companies that offer comprehensive training programs have 218% higher revenue per employee than companies without formalized training. In addition, they reported that these companies enjoyed 24% higher profit margins than those that spent less on training.

To provide employees with a more personalized learning experience, you can use a learning management system that can be accessed at any time. Employees can choose the courses or training they want to attend, or receive recommendations based on their preferences. A good learning management system will have high-quality content (e-books, videos, assignments, etc.) that employees can use from anywhere at any time.

Artificial intelligence

More and more tools using AI to manage employees are being developed. There are already solutions using AI, with the help of which it is possible to verify an employee's fit with the organization's culture, his attitude to new tasks and professional challenges.

This will allow better matching of candidates to work in the company and matching to professional tasks not only declaratively but based on the analysis of non-verbal communication, which verifies the veracity of the declarations made.

For now, AI-based solutions for HR are still piecemeal, but observing the development of AI and its use to manage large, complex systems, harnessing AI for workforce management and education is already very close.

Why should leaders and HR care about HR technology?

Easy adaptation to change

Any growing company will constantly evolve. HR tech allows for flexibility and scalability - meaning that as your company grows, the technology you use will be able to adapt to that growth. Once again, it saves you the time and expense of having to make room for these changes on your own.

Enhances the employee experience

Much of HR technology not only benefits the company, but also the employees. By incorporating technology into daily workplace functions, you will be valued as an employer that wants to give its employees the best. This will improve employee engagement, which in turn will have a positive impact on employee retention.

Gain data-driven insights into your business

The right analytics software will be able to show you what you're doing right - and what you're not. This will help you decipher what you need to improve and how to better utilize your human capital. These analytics will also let you know if you're doing a good job when it comes to diversity and equality.

What is the future of HR technology?

With new trends constantly emerging, we can expect to see the introduction of more HR technologies, as well as the ones mentioned above, which will be improved from time to time. In the next 10 years, HR experts also expect developments in areas such as machine learning, blockchain and reverse recruiting.

For new and growing companies, adapting to new trends and changes can seem daunting, but they are crucial for growth. At Heuresis, we can offer a comprehensive HR solution that is tailored to specific needs and based on current trends.