‘Human Resource Technology’ is a revolutionary powerhouse that has emerged in the digital age as a result of the synergistic link between technology and human resources. HR Tech emerges as a crucial catalyst for streamlining, improving, and revolutionizing traditional HR tasks in a world marked by rapid technological breakthroughs and changing workplace dynamics.
This blog explores how technology has transformed the HR landscape and helped firms enter a new era of productivity and success. Let's get going!
What is Human Resource Technology?
In general, HR tech refers to any software (and occasionally hardware) that helps automate and simplify the work of HR. It can relate to a wide variety of tools and programs. For many of the key duties of HR, such as:
- payroll processing
- talent acquisition and management
- benefits administration
- reports, analytics, and research
- development and performance reviews
Kings Research estimates that the human resource technology market will garner USD 237.42 billion in revenue by 2030. The ideal HR technology should also be accessible through a single software with a single login and password. As a result, HR can concentrate on culture, operations, and other areas without having to deal with various, unrelated systems.
Why is Human Resource Technology Important?
Similar to how technology streamlines our daily activities, from online shopping to brushing one’s teeth, HR technology facilitates work by automating time-consuming, data-driven operations. Companies that employ it profit from:
Together, these benefits raise a company's ROI since HR doesn't have to spend as much time looking for difficult-to-find data or handling payroll.
Mentioned below are some major benefits HR tech offers:
- Unlocking heightened productivity through automation
- Mitigating overhead expenses via reduced manual labor
- Minimized liability risks stemming from errors
- Establishment of a centralized employee data repository
The right human resource technology profoundly shapes employees' experiences. Consider this: Ever waited on hold for HR to update a simple detail you could easily handle yourself? Or submitting a time-off request months ahead, only to find it stalled in an unseen, unapproved supervisor's inbox?
These scenarios swiftly agitate employees. A Paycom-commissioned OnePoll survey revealed that 77% of employees are frustrated with outdated workplace technology. Remarkably, 67% would accept a pay cut for technology twice as effective as their current tools.
This is because effective HR tech provides instant access to all necessities, precisely when needed.
Human Resource Technology Toolbox to Revolutionize Workplace
HR technology is used for more than just access and solutions. That hardly scratches the surface of HR technology's true potential.
Let's look at seven uses for HR technology and how they help firms succeed.
1. Payroll management systems
Precise employee compensation is vital. Elements like salary, bonuses, reimbursements, and taxes pose error risks. Payroll management systems automate:
- Calculations of earnings and payments
- Generation of pay stubs
- Tracking of time and attendance
- Management of leaves
Advanced tech empowers employees with error-free self-payroll management.
2. Benefits management software
Benefits management software offers streamlined administration and user-friendly tools for employees to manage their benefits, enhancing HR efficiency and employee satisfaction. The software simplifies HR and employee handling of:
- Paid time off (PTO)
- Vacation days
- Parental leave
- Health insurance
With this software, benefits become easily accessible and any changes required can be synced automatically with payroll in a single HR program, saving time, cutting down on errors, and simplifying enrolment.
3. Talent management software
The organization of employee and candidate data by talent management software simplifies workforce planning, recruitment, onboarding, development, and succession. Employees are empowered by self-service human resource technology to manage data accurately. Effective communication and screening of candidates are made significantly easier by applicant tracking software.
4. Expense management software
Businesses must track reimbursable expenses in addition to paying staff. Using expense management software streamlines this process and helps HR with:
- Record maintenance
- Timely employee reimbursements
- Centralized management of company credit cards
Even more detailed options are available, calculating details like exact petrol mileage.
5. Performance management software
So far, we've discussed how human resource technology aids payroll and applicant tracking. But what about long-term workforce well-being?
The use of performance management software is essential for monitoring and assessing productivity, which helps HR with:
- Identifying training needs and goals
- Recognizing promotion and leadership potential
- Pinpointing employee strengths and weaknesses
Most importantly, it helps managers prepare for and carry out reviews. Managers can now obtain critical information and proof directly from their HR software—no more messy notes.
6. Learning management software
One aspect of encouraging a productive staff is performance evaluation. Effective development is equally important. Instructor-led learning was more popular in the past but learning management software (LMS) stands out as the logical option for quick upskilling and reskilling in today's tech-driven, fast-paced industries.
HR is equipped by LMS to efficiently develop, oversee, and distribute training materials on any scale. The most efficient LMS:
- Cuts training costs
- Enhances compliance
- Elevates employee retention
- Streamlines upskilling and reskilling
LMS has become the beacon for employee career growth and cultivation.
7. Employee engagement software
Despite the wide range of tools available to empower workers in their professional lives, communication is still of the utmost importance. Human resource technology boosts effectiveness and agency but has not been able to improve personal connection substantially. Software for employee engagement bridges this gap.
With the use of this technology, HR can communicate, get feedback, and boost morale. It promotes communication through surveys and user-friendly question interfaces. The greatest potential of employee engagement software resides in assisting employers:
- Fortify brand and culture
- Encourage opinions and concerns
- Bolster retention via feedback
- Identify attrition sources
- Make informed decisions about workforce needs
This software is the exclamation mark in HR tech, drawing an organization closer by fostering connection.
Human Resource Technology Titans
Out of the top 25 HR software companies listed by The Software Report 2021, the 3 leading companies are:
1. First Advantage
Technological solutions offered by First Advantage, which provides services to over 35,000 organizations, successfully reduce risks for their international clientele by using their knowledge in verifications, safety, screening, acquisition, and management.
Cornerstone's people development solutions, which have 75 million users, include extensive recruiting tools, a personalized learning platform, contemporary training materials, performance management that is development-driven, and comprehensive employee data management and insights.
Leveraging cloud-based technology, iCIMS enables enterprises to discover, attract, onboard, and nurture the ideal talent. As a frontrunner in talent acquisition services, iCIMS empowers 2.4 million users worldwide, including 40% of the Fortune 100, through its software solutions.
Human Resource Technology: A Must-Have Ingredient in Modern Strategies
Technology is used in every aspect of today's workplace, from document preparation to data processing. Similar to other industries, HR depends on technology to improve productivity and advance organizational performance. Although incorporating technology requires learning and integration, it allows HR professionals to create strategies that align with the company's vision, values, and business goals.