In a fast-paced world where new technology is transforming every industry, human resources is no exception. As Josh Bersin puts it, “The HR function is now in a state of continuous transformation. In other words, we now live in a world of continuous change”.
But are HR managers moving fast enough? It turns out that 47% are using outdated HR software dating 7 or more years old. Old software is causing companies to miss out big time, while those that update their HR systems are seeing savings of 22% per employee.
In this overview, we’ll take a look at the upcoming trends for HR technology in 2020. We’ll explore how new tech is shifting the focus to an employee-based workplace and why you don’t want to be left behind.
Why care about HR Technology?
Technology is disrupting the HR practice, but this isn’t bad news. New tech is helping managers provide a more positive experience for employees in this candidate-driven market. What’s more, HR tech is lightening the load for HR managers, allowing them to focus on other more creative tasks.
By staying on top of digital trends, your company will have an edge over those who are falling behind. Let’s look at 5 ways technology will transform HR in 2020.
1. Cloud Technology/HRIS can track and analyze data
One of the biggest changes in human resource technology comes with the use of Human Resource Information Systems (HRIS). These software platforms use cloud technology to store, track and analyze employee data all in one place. By freeing up the time and energy of HR managers, these systems boost efficiency and cut costs.
One study found that most businesses were using more than 5 workplace systems or apps a day. Even more, HR managers waste as many as 366 hours a year keeping up with all these applications. With cloud technology, HR duties related to insurance, pension and payroll can now be organized all in one place.
An HRIS gives employees access information that’s important to them, like vacation time and payroll. For HR managers, the biggest benefit comes with using cloud software to analyze data and reveal trends. Above all, this allows HR leaders to gain insights into the workplace in a way they never could before.
2. Remote working is easier than ever
New technology is making it easier for employees to access work from home. With advanced security software, managers feel more secure allowing employees to access company data outside the workplace. For these reasons, remote work is becoming more mainstream.
Companies need to pay attention as new generations look for solutions to work from home. A Deloitte survey on Millenials suggests that a good work/life balance and the possibility for remote work are among their top priorities when job searching. The trend has hit the workplace and 63% of companies in the US have employees who work remotely at least some of the time.
3. Onboarding is becoming more powerful
Another way that technology will transform HR is with an increased focus on onboarding. In 2020, the task of HR leaders will be more than simply recruiting. There will be a renewed focus on providing a positive experience for employees before they even start working.
New technology helps provide a fluid experience for new employees. This is especially important during those critical first few months of employment when employees are evaluating the job. By automating and reducing paperwork, HR tech makes the hiring process seamless for both parties.
In addition, HR web portals keep new hires active and involved in the company culture right from the get go. Portals offer opportunities to network within the company early on. With new technology, onboarding is becoming easier to streamline and employees are seeing the benefits.
4. Branding is more important than ever
With social media only getting more popular, everything that happens inside the company can be shared to the outside world. As a result, employees are becoming brand ambassadors for companies. This means that HR leaders will need to focus on company branding now more than ever.
59% of job seekers are using social media to research company culture before applying for positions. And this trend isn’t going away soon. By 2025, Millenials will account for 75% of the workforce. HR leaders need to be prepared for this social media savvy group and for the incoming Gen Z population.
With the current low unemployment rate, there’s even more cause for companies to focus on branding in 2020. Josh Bersin explains, “Not only is unemployment historically low, the birth rate has declined, creating a world where companies need to focus on trust and brand, building a more meaningful, developmental relationship with employees.”
5. Health and well-being programs are on the rise
With the new emphasis on branding comes the booming of the health and well-being market. More than ever, employees are looking for workplaces with great company culture and incentives for employees.
HR leaders are hoping to deliver by investing in wellness programs that include additional health benefits on top of regular insurance. Corporate wellness programs target areas like physical fitness, emotional health, stress reduction and nutrition. As a result, healthcare providers are pushing tons of money towards AI technologies that promote these wellness needs.
HR leaders need to be on top of new technology in 2020. With Millenials and Gen Z taking over the workforce, there is a demand for new technology in the workplace and for better employee experience.
With the unemployment rate at a historical low, the shift is changing to an employee-centered workplace. In 2020, HR technology will address this with an increase in remote working, a renewed focus on branding and a more powerful onboarding experience.
Additionally, cloud technology will help HR leaders analyze data and make positive changes in the workplace. Finally, the HR practice will see a booming in the health and well-being market.
Looking for tips to boost workplace experience? Check out these 4 great ways to improve employee experience today.