Even in normal times, managing people is difficult. Managing teams is perhaps the single biggest concern after revenue losses in a moment of extreme disruption that has impacted every sector, every organization, and every professional. HR Tech is on the rise and is heavily used by mature organizations that are looking past the crisis to keep their flock together while also assuring team productivity.
Individuals find it easier to work from home than organizations. To imitate a virtual office atmosphere, managers are reorienting their procedures and improving the connection.
Understanding HR Tech
HR tech (Human Resources Technology) is a broad phrase that refers to the software and hardware used to automate several key HR operations.
Most industries, including Human Resources, have been disrupted by technology. Hiring today is very different from hiring in the past. Business dynamics are also rapidly changing, making it difficult for businesses to stay current.
Several startups are utilizing new-age technologies such as Artificial Intelligence (AI), Machine Learning (ML), and analytics to solve these gaps and company recruitment demands.
HR Tech and Benefits
Ease of Communication– This is arguably the most evident benefit that technology devices have on a company’s human resources department. Because of the various means that have been established, technology has made communication easier. Emails, text messages, and other messaging apps make it simple to communicate in a matter of seconds.
Many businesses stick to a single mode of communication and exchange data and messages through several internet forums.
Better Analysis- Another way that technology aids our HR is through effective data analysis. What used to be a time-consuming procedure has now been simplified to a few mouse clicks.
Any HR professional knows how exhausting and time-consuming the recruiting process can be. Not to mention prohibitively expensive. Fortunately, Artificial Intelligence (AI) has simplified the procedure.
Automated Hiring- Companies use automated screening software to detect talents on a resume. In the early stages of recruiting, this has made hiring decisions incredibly simple.
Increased Efficiency– Data is kept in a more organized manner and is easily accessible when needed. Furthermore, HR time that was previously spent on administrative activities can now be spent on matters that demand more attention.
HR no longer has to shuffle through stacks of paperwork; communications may now be created online.
Factor Behind Rising HR Tech
Workforce Shift- One of the major reasons HR Tech is on the rapid rise is an increase in the number of freelancers and remote employees. Since one is not present in the same city or even the same country, HR Tech comes as your aid to evaluate/analyse the suitable candidate.
COVID-19- Covid 19 disrupted the whole economy left, right and centre. With companies forced to work from home and remotely, HR Tech came as their aid to manage the whole workflow smoothly with effective communication skills. Not having a physical office means cutting down on the cost of operations which came as a boon for a lot of startups hit by the COVID-19.
Need of New Age Tech in System- HR Tech has been here for quite some time but it was just there for help here and there. Now tech is the dominant system in the hiring process. Companies are replacing outdated HR systems with new dedicated or cloud-based solutions that can meet the demands of both employees and HR departments. However, features and aesthetics aren’t everything. Old systems simply lack Candidate Experience, a relatively new concept that is also one of the primary drivers of organizational change. Any HR tech app’s users require a more appealing, consumer-like experience.
Potential Of HR Tech
According to projections, the global HR technology market is estimated to reach $34 billion by 2021, with Asia accounting for about $3.6 billion of that total. In India alone, it is expected to double in size over the next four years.
HR technology is one of the current favourites in the ecosystem as more and more firms emerge.
Employees and talent networks want smart, always-on, and linked interactions and innovative start-ups promise to help firms keep up.
To meet pressing personnel shortages, Most of the organizations plan to boost expenditure on HR technology in 2020. That’s on top of the $310 per employee each year they already spend on HR IT to manage nine main talent apps on average says PwC report on HR Tech.
Workforce leaders are prepared to give any vendor a chance to help them solve these problems, and newcomers make it simple to do so. The current generation of HR technology includes a solution for every stage of the employee journey, as well as the ability to track every aspect of work.
It has attracted the attention of investors due to its rapid growth. Huge sums of money are being invested in this area by private equity and venture capital groups. According to the Q1 2019 global HR tech VC report, there has been a noticeable increase in investment in HR-related apps. Two years ago, at the start of 2017, the global investment in HR apps was less than $0.2 billion, but in Q1 2019.
In India, angel and venture capitalists are writing more checks for HR tech startups as the job market matures and companies focus on cost-cutting solutions with existing staff.
Investors pumped $116 million into 19 companies in the last year, more than doubling their investment from $55 million in 2018.
Recently, Platform for employee engagement Y Combinator, Broom Ventures, and Kunal Shah was among the investors who contributed $1.7 million to Advantage Club.
Before that, Prime Venture Partners, Venture Highway, and Y Combinator funded $3 million for Hiration, an AI-powered career platform that helps professionals build high-impact resumes and obtain jobs.
In July, InfoEdge paid $3 million for HR tech business DoSelect, and professional networking site CoffeeMug.ai raised $625,000 from Paradigm Shift Capital and other investors.
Future Of HR Tech
I believe the emergence of the gig economy will hasten the trend. More money will be available as a result of the sector’s reorganization. Employee wellness and upskilling are also becoming increasingly popular in the HR digital world.
Even though the HR tech market appears to be saturated and swamped with all types of apps, there is still an opportunity for progress and business ideas to come to fruition.
HR technology should be a top priority for investors and business owners since it seamlessly bridges the gap between human resources and technology, making it one of the most powerful tools in modern businesses.