ANALYSIS

Three HR Tech Trends To Follow In The Near Future

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By Pavel Podkorytov, Forbes Councils Member

Currently, 58 per cent of companies use HR technology to find, attract and retain top talent. Human resources tech was already well on its way toward new developments pre-pandemic, but COVID-19 accelerated the entire sector dramatically.

The most recent projections say the HR software market is expected to exceed US$10 billion this year, a 10.4 per cent CAGR for the sector as a whole.

However, it’s worth noting that this growth will bring a major shift in trends. Companies will be looking for newer, better ways to implement this technology.

The State Of HR Today

Before we look at predictions for the future of HR tech, let’s discuss the state of the market as it currently is.

A recent survey found that 44 per cent of HR departments currently use cloud technology for increased productivity and efficiency, and 35 per cent rely on it as a cost-reduction measure. This same PwC report noted that the top challenges for HR departments are retention, recruitment and employee upskilling.

Tech giants like Facebook, Google and Microsoft are all throwing their resources into solving these problems. Still, some lesser-known companies are coming up with innovative solutions as well.

For example, Facebook (now Meta) introduced a jobs and mentorship platform that allows users to search for mentors within specific Facebook networks. Microsoft has purchased LinkedIn and launched office software like Teams and Graphs to give HR departments more flexibility in system management.

Other notable HR players like Workday have emphasized the importance of the worker experience, especially with the shift into a fully digital workspace.

Oracle launched its Journeys program to augment its existing HR platform to help employees access HR information in an easy, low-stress manner.

So, the current HR landscape is focused on market growth and employee experience (or EX), but 80 per cent of employees and 92 per cent of managers in a 2020 Gartner survey admitted that they don’t believe they or their companies are prepared for the future.

What The Next Decade Of HR Tech Trends Will Look Like

In his recent HR Tech Virtual keynote, industry analyst Josh Bersin stated that HR leaders must “adapt quickly and decisively” if they hope to thrive in the near future. Other analysts agree that successful organizations will continue to invest in technologies to smooth EX, help with work-life balance and give employees more opportunities for creativity and learning.

Here are three trends we can expect to see in the near future.

1. A Growing Demand For Reverse Recruitment

In the wake of the pandemic, there is a growing shortage of qualified workers to fill essential job positions. This has put HR departments in a unique bind. Now, instead of having their pick of candidates hoping for an opportunity, they are the ones who must “put their best face forward” and hope to attract top talent.

We can expect to see a growing demand for reverse recruitment capabilities in the future. HR departments will need better, more sophisticated technology to strategically connect with potential candidates and screen for their skills ahead of time.

A different skill set is required for reverse recruiting, and I believe AI is an essential component of a successful reverse recruitment strategy.

2. Integration Of Learning Into Everyday Workflows

One of the biggest challenges HR currently faces is employee upskilling. Soft skills are more critical than ever before, and this trend will likely continue to grow in importance over time.

We’re already seeing a shift in this direction, but the trend needs more time to gain traction. Currently, only 22 per cent of American HR professionals plan to invest in reskilling and continued learning platforms for employees. However, at least 60 per cent of CEOs believe it’s time to prioritize integrating education into employee workflows.

The Minerva Project is leading the way here. The company’s proprietary Forum platform offers advanced virtual learning capabilities and a wide range of learning modalities that can be adapted to all learning styles.

3. A Shift In The Long-Term Hiring Paradigm

Previously, a person’s career was often an important piece of their identity. Careers were seen as long-term commitments that provided a fulfilling, rewarding sense of self-realization.

This generation of workers doesn’t share that viewpoint, and HR departments are already seeing how this impacts day-to-day operations. For most people, self-actualization no longer happens at work, which is reflected in how they approach their jobs.

Soon, there will be a significant shift away from the traditional, in-office 9-to-5 workweek. Instead, HR departments will seek to draw up remote consulting arrangements rather than regularly recruiting long-term employees.

Peeking Into The Crystal Ball: Quick Tips For Retention

Retention is a perpetual struggle for most HR departments, so I’ll leave you with some parting advice:

• Recruit Realistically: Don’t hire based on what you hope this candidate will achieve or what you think their role should be. Look at the person in front of you and honestly evaluate them. Will they fit your corporate goals right now? If not, they’re not the right person for your team.

• Stay Flexible: Inflexibility is one of the fastest ways to lose top talent. No matter how great the salary is, people need to feel like they’re more than cogs in the corporate machine. This is especially true in the current work environment. Let employees have some freedom to manage their workloads and decide how to prioritize their workdays.

• Work On Your Corporate Image: It’s time for companies to start putting together their own CVs. Overhauling your corporate image to accurately reflect your culture, values and ethos will attract talent that meshes well with your company. When talent and culture are a good fit, your churn rate drops dramatically.

As the future of work continues shifting, a thriving HR department will become more important than ever. It’s time to embrace the new tech trends and step into the future successfully.

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