HR departments utilize technology in many different ways. Human resource management software is increasingly intuitive, benefiting from things like cloud computing, artificial intelligence, and machine learning. Many core functions in HR, from recruitment to payroll management, can be automated using this type of modern software. This has brought about many positive benefits to HR departments from cutting cost to improving talent retention. The technology to transform an organization’s HR is at the fingertips of all companies, big and small. Human resource management software is inexpensive and in many cases scalable to benefit startups and large corporations. But the big question is: are enough organizations adopting technology? And at what rate?
From slow to explosive
Technology adaption has actually been rather slow just a few years ago. Studies showed that people understood the importance of technology but many organizations were still slow to take these steps. But in the last year or two, the speed has picked up. Technology adaption is on the rise and organizations are taking advantage of technology much faster than past behavior would have predicted. According to a study by CB Insights, investment in the US has increased to an annual rate of $2 billion. This is an annual rate of 15%, which shows that technology is a key area for many organizations. This isn’t just a trend in the US. Globally HR technology investment has gone up as well. In a Future Workplace study, 97% of HR professionals admitted that they’d be increasing investment in recruiting technology by 2020, with almost a quarter saying this investment might go up by almost a half. Furthermore, companies are invested in continuing on the path of technology adaption in the near future. According to research examining organizations in the APAC region, over 35% of respondents expect to make further technology investments in the coming one to two years. More and more research is also pointing out the underlying cause of technology adaption: it’s positive impact on the organization. As stated earlier, technology can provide many benefits to the HR department. But this is also true company-wide. KPMG’s report showed that companies that are falling behind are doing so because they haven’t initiated the technology adaption. Those that are not transforming their businesses are also not paying attention to the importance of technology. The most forward-looking organizations evolve their HR strategies to capitalize on the benefits of technology.
Cloud technology at the core
The driving force behind the increasing technology adaption in HR seems to be cloud computing. According to a SelectHub study, the cloud is the single biggest target for future technology spending. This was closely followed by spending on technologies like payroll and benefits administration software. In another study by Information Services Group, almost half of HR professionals were planning to replace current HR software with cloud-based solutions – many citing productivity and cost as the main reason. Cloud-based human resource management software provides organizations with the option to streamline management and to make the management more transparent and team-centric. According to many experts, the cloud is turning the workplace into something more flexible and equal – the old hierarchies are crumbling down.
The rising force of the future
As technology adoption is bound to increase in the future, it’s important for companies to start focusing on the right technologies. As mentioned earlier, the KPMG report highlighted how there’s a specific benefit for single platform use and cloud-based solutions. So what are the technologies that HR should be looking for in the future? The big driver will be the new worker. Technology adaption must look to the new workforce and especially the millennials. They are already looking for a very different work experience to that of the older generation. Their understanding of technology is different, which means they will want to use it very specifically as well. What are millennials looking for? For many, the key is on flexibility and mobility. Employees want solutions that allow them to be more in the driver’s seat in terms of where and when they conduct work. Mobile and agile human resource management software play a key role in this because the responsible organization must also stay on top of company spending and productivity.
Excitement and innovation
Technology will continue to play an important role in the HR sector. The new software is constantly popping up and companies are realizing the benefits of adopting it. But the excitement must not boil over but companies will also need to understand how to harness the power of technology in HR in constructive and productive manner – technology without strategy is not going to lead to success.
