As 2023 comes to an end, it’s time that we take a look at some of the top HR technology trends that came our way this year. Over the last 12 months, recruiting teams and HR executives at different companies have employed numerous tech solutions as a way to enhance hiring, data collection, and productivity.
Needless to say, the year has seen various innovative ideas that allowed HR managers to keep up with the changing demands of the workforce. From the use of artificial intelligence in HR and automation in recruitment to the implementation of hiring solutions like Hirebee, we’ve seen a plethora of advancements this year. Considering how the upcoming year will build on these HR technology advancements, it’s worth taking a look at what 2023 offers in the domain of human resources.
AI and Machine Learning in HR Processes
Let’s start off with the most obvious: artificial intelligence and machine learning. Well, it’s no secret that 2023 was the year of widespread AI adoption. From entrepreneurs to software developers, it seems like every industry has some way to make use of AI, and human resources is no exception! Now, HR professionals are no longer looking at automation solutions; rather, they want faster access to insights and recommendations.
When we discuss the use of AI in HR, we’re referring to the implementation of concepts like natural language processing, machine learning, and other tech that can improve decision-making. It helps departments take a data-based approach to employee retention and talent acquisition, all while improving employees’ and candidates’ experiences. Here are a few use cases:
Professional Development: AI can improve employees’ skill sets and encourage professional development by recommending personalized training modules, allowing greater career mobility. Using AI, HR managers can analyze each employee’s current skills and prepare a training course based on their personal goals.
Procuring Short-Term Workers: Another way that AI can assist in HR processes is by helping companies fill short-term and temp positions quickly. AI tools use NLP capabilities to automate manual procurement tasks, saving you valuable time that can be used for planning strategic initiatives. A good example involves managers using AI tools to compile requirements and work with a vendor management system to send a request and find potential candidates.
Provide Quick Support: Responding to employees’ requests is essential for better productivity and engagement. However, many employees have a hard time finding answers to their questions, which can lead to wasted time and frustration. Here, companies can rely on AI-powered chatbots to receive faster answers.
A few examples of AI-based HR software include Hirebee, Juicebox, and ClickUp, which can assist with recruitment, KPI monitoring, and workflow management, respectively.
Blockchain Technology for Secure Data Management
With blockchain technology, transactions are verified and recorded to an immutable ledger, making it impossible for other people to tamper with information. The primary advantages of using this technology include greater trust, security, data integrity, and privacy.
But why adopt it for HR processes? There’s a greater need for better transaction speeds, automated business processes, and increased transparency. A few of the top use cases are:
Streamlining The Payroll Process: One of the best use cases for blockchain is to streamline the payroll process by automating payments to employees, contractors, and vendors. Cross-border payments are an early application of this technology and helped transfer money to contractors and freelancers.
Digital Contract Management: Blockchains can also hold smart contracts, allowing HR managers to convert paper contracts into unchangeable digital contracts. Companies can use them to enforce terms and penalties mentioned in agreements with contractors and employees.
Storing Employee Data: Organizations can encrypt and store personal employee information on the blockchain. Besides immutability, it ensures a secure governance system for confidential information. Because the validity of information stored on the chain depends on the methods used by whoever creates the first record, it’s more effective for blockchains to hold future employee data rather than acting as a repository of previous information.
Analytics Tools for Workforce Planning and Decision-Making
This is when you use data analysis and statistical models for insights into your company’s current workforce and future needs. These tools are types of application software that get data from multiple systems and combine them into a repository to be analyzed.
It gives you an objective way to evaluate employees’ skills and competencies, as well as predict future success rates. When you plan based on these insights, you’re no longer making decisions based on impulse. Important decisions regarding training, recruitment, and skill development will be data-based instead.
Assessing Employee Turnover: When you’re dedicating a lot of time and money to hiring the right people and training them to join your company, it makes sense to find out why they leave. By using data analytics in HR to study employee turnover, organizations can predict future instances of turnover and make better decisions to enhance retention. A few important sources of data include the HR management system, exit interviews, and employee satisfaction index scores.
Enhance The Hiring Process: Have you ever made a good hire that has delivered impressive value, and you wonder why? Was it just a coincidence, or did it involve certain metrics that you didn’t even know about? In the HR department, it’s important to have a thorough understanding of the different metrics that allow a successful hire. Then, you can use that knowledge to improve your recruitment strategy. So, using HR analytics, you’ll be able to secure quality hires and ensure that they have the skills you’re looking for.
Skill Development Analytics: Your company’s bottom line is only as good as how skilled your workforce is. Considering how job requirements and workplace technology are consistently changing, determining and communicating necessary capabilities is crucial. Employees need to be able to maintain and learn new skills to keep up with the latest developments.
Of course, you can’t just have a one-size-fits-all approach for employees – they need to develop new skills based on what they already know. You can address this challenge using an analytics tool that prepares individual plans according to each employee’s competency and organizational goals. Examples of analytics software for HR teams include Python, Tableau, and R, which allow you to explore large data sets and visualize the analysis.
Collaboration Tools For Remote Teams
Commonly known as team collaboration software, these tools and online services help team members and contractors work together on shared projects. While these tools have been around for a while, 2023 saw a steady rise in their adoption as more professionals demanded flexible schedules that allowed them to work from home and on-site. Due to changing needs, modern software includes options like one-on-one and group calls, voice and video-based Communication, shared calendaring, and file-sharing.
Though some professionals were eager to go back to work in a post-pandemic world, others preferred a hybrid model. As a result of this, the modern workplace is no longer just a physical location, thereby necessitating the use of collaboration tools. Even on-site teams can benefit from having their interactions recorded and saved. Common examples include Slack, Monday.com, and Flock.
Here are a few reasons companies need to use collaborative software for remote, hybrid, and on-site teams.
- Keeps Track of Projects: Even though a majority of employees work off-site to connect with partners, clients, and peers, upper management is unsure about working remotely. With collaboration tools, supervisors can use features like task planning, scheduling, and time tracking. It allows them to keep track of projects, evaluations, and invoicing – despite the boundaries.
- Increases Productivity: Employees at organizations spend much of their time doing redundant tasks that require time and attention but drain productivity. By implementing collaboration tools, employees can work on strategic jobs that help them achieve organizational goals and objectives. The right software can help them manage email communication, review email lists to ensure that all the addresses are valid, and remove duplicate tasks.
- Keeps Communication Secure: A major reason to adopt modern collaboration software is that you benefit from high security. Today’s tools feature end-to-end encryption, firewalls, and two-factor authentication. Such factors can ensure that your data remains safe from hackers.
Monitoring Employee Activities and Productivity
Companies are adopting employee monitoring tools to track and enhance productivity. These work by observing and measuring how they spend their work hours, how well they’re performing, and the quality of output being produced. There are different ways to do this, like computer monitoring and time tracking software like Clockify, Hubstaff, and DeskTime.
Ultimately, they help increase efficiency and determine which areas need improvement. At the same time, organizations can find out whether employees meet current performance expectations. Some of the reasons to adopt employee monitoring include:
Better Management: When you’re tracking how employees spend their time, it allows you to see where they struggle and need further training. It also allows you to delegate tasks depending on their current skill level and career trajectory. After all, matching employees’ strengths to the right task is vital and allows them to produce quality work.
Keep The Team Fully Engaged: Various studies have indicated that a big chunk of employees aren’t fully engaged with their work. When employee engagement is a major concern, it’s crucial that companies find out who isn’t engaged, why they’re disengaged, and how it affects their bottom line. Using a productivity tool can help them learn the answers to these questions.
To sum it up, 2023 has seen a number of interesting advances in technology and software updates in HR that helped teams improve operations. Some of the top HR tech trends include the adoption of AI to offer quick support and procure short-term workers, blockchain technology for greater security, and employee monitoring software. Now that these HR software innovations have come to the forefront, teams can combine them with existing solutions like Hirebee to enhance professional development, talent acquisition, and revenue growth. The applications of these emerging HR technologies aren’t limited to large organizations, as smaller businesses can benefit from options like analytics software, collaboration tools, and employee monitoring.
Why should companies implement blockchain technology in HR processes?
By implementing blockchain technology, companies can enhance security through a decentralized ledger that’s resistant to unauthorized access. This keeps HR data like payroll information and employee records secure. It can also help companies comply with data protection regulations.
What’s the purpose of having digital learning platforms?
Giving employees access to digital learning platforms allows them to learn at their own pace and take responsibility for their skill development. Moreover, a digital platform suits companies with hybrid models or remote operations. Companies can continue building their team’s skills without worrying about having them on-site.
How can HR managers provide real-time feedback?
HR managers can provide real-time feedback through tools like collaboration applications, project management software, learning management systems, or HR information systems. Giving feedback at the time of the observed event ensures and maintains a culture of acknowledging contributions in real time.
How does AI assist in HR processes?
Artificial intelligence can enhance numerous HR tasks, like talent management, onboarding, and even recruitment. When compared to a team of humans, AI streamlines resume screening, spots the best candidates, and can predict employee success rates. Another way to implement them is through chatbots, which can answer employees’ questions and allow real-time Communication.
How does employee monitoring increase productivity?
Productivity tracking software works by keeping track of employee behavior. Knowing how the workforce spends their time allows organizations to determine who’s engaged and how engaged they are. Then, they can take corrective measures, such as preparing training modules for employees in need of skill development.