Workforce transformation is constant. As the workforce becomes more mobile, global, and diverse than ever before, HR technology is accelerating and evolving in response. Continue reading to learn how new tools can help your team prepare and adapt accordingly. We’ll review the following:
HR technology is an umbrella term that refers to software that helps organizations automate their human resources functions. It can encompass a wide range of functions including, but not limited to:
Given the shifts taking place in today’s global workforce, HR technology has made major strides in recent years, especially when it comes to SaaS (software as a service) solutions. While teams previously relied on manual or in-office systems, companies of all sizes have begun moving to cloud-based software solutions that better meet their needs and require less implementation time.
There are plenty of different types of HR tech software available, and plenty of definitions to keep in mind. Let’s take a look at the terminology and varying options out there.
An HR tech platform, or HR tech solution, is synonymous with HR tech software. Essentially, it refers to any HR-related technology or software, and can refer to both one-off HR tech solutions or to the integrated system types listed below.
HCM stands for “Human Capital Management Software,” and is sometimes also referred to as an HRIS (Human Resources Information System) or HRMS (Human Resources Management System). Essentially, it’s a software application used by HR and People teams to manage the entire lifecycle of their organization's employees more efficiently and effectively.
Features can range from recruitment and hiring systems, learning and development systems, change management systems and more. At its core, HCM refers to software applications that aim to help companies better manage their employees.
HCM software and HRM software (Human Resource Management) programs are both used to keep track of resources within an organization, and they’re often confused for one another for this reason. It’s important to note that there are several key differences between the two.
HRM (Human Resource Management) Software often plays a role in facilitating everyday HR tasks, while HCM (Human Capital Management) Software goes beyond this to support a larger HR strategy that is tied to your team’s overall workforce management. This can include things like leadership training, employee experience and engagement, company-wide development plans, etc.
Over the years, as HR teams started to gain additional responsibilities like recruitment and talent management, HRIS (human resources information system) was the primary solution to help process, manage, and maintain HR procedures and employee information.
While there are various differentiators between HCM, HRM, and HRIS labels, HRIS generally refers to technology that provides HR teams with the ability to store employee data and automate their primary HR functions. Note: HRIS is considered to be a slightly more outdated term, and HCM has begun to replace it in the last few years. For this reason, you may come across HCM and HRIS being used interchangeably.
Improving the employee experience has been top of mind for HR and People teams this year – and for good reasons. A 2022 Gallup poll found that only 32% of full- and part-time employees working for organizations are engaged in the workplace. On top of that, 17% are actively disengaged at work.
While many employers hoped The Great Resignation was a pandemic fad, in reality, it’s still far from over. According to a report released by McKinsey in July of 2022, 40% of US workers said they are considering quitting their jobs.
This is where HR software enters the picture. From highlighting employee benefits, recognizing achievements, facilitating company-wide satisfaction surveys, etc. there are plenty of ways HR tech tools can fill the gap to help your team improve the employee experience and boost your retention rates as a result.
Actionable data collected by HR software can help your department eliminate the guesswork when it comes to employee efficiency and management. By having access to key data points across your organization, you can then analyze and optimize your processes for better results moving forward.Boost Training and Development for Higher RetentionYour employees invest their valuable time and energy working for your company, and they want their employer to invest in them in return. According to a recent survey, a whopping 94% of workers said they’d stay at a company longer if their employers invested in their careers. Does your HR team have a plan in place to support learning and career development initiatives?
HR tech software can help you establish a solid training plan while tracking individual and company-wide training initiatives along the way to ensure employees are receiving the career development they desire.
When evaluating HR tech tools, the first step you’ll want to take is honing in on your team’s specific use case for adding a new tool to your tech stack. Because HR tech tools can encompass a wide range of solutions and benefits, you should identify your specific objective(s) as you begin your search.
HR software categories can include, but are not limited to:
Once you’ve narrowed down which specific tools will best suit your use case, it’s crucial to consider the estimated return on investment you can receive to evaluate the impact and urgency of adding the new tool to your tech stack.
At this point in your search, it can be helpful to ask for case study examples, statistics, and additional resources from HR tech providers to see their proven track record of how their product has helped clients succeed.
Your team can have great workflows and employee engagement, but if you use software that doesn’t comply with the most up-to-date security and compliance regulations, you could be in for trouble.
As you evaluate and compare potential tools for your organization, it’s important to take the time to inquire about which steps are being taken to ensure compliance to enterprise-grade security standards.
Below are some potential questions to consider:
A product can sound great on paper, but if it can’t integrate with your existing HR systems, it won’t be of much help to you and your team. Ensuring that potential HR tech tools integrate with the existing applications you have in place will be essential to your team’s success with a new software product.
Good HR software products can help your team improve your workflows and meet your goals – but great HR software products can help you analyze your progress to scale and take your goals to the next level. When considering a new HR tech tool, it can help to think about how it can not only improve your company today, but how it can improve your processes for years to come as your team expands.
Last but certainly not least, ensuring the HR software you’re considering has a friendly and intuitive user interface and user experience is key. After all, if your team is about to invest in a new product, it should be easy to use, convenient, and adaptable without friction to make your investment truly worthwhile.
Now that we’ve taken a closer look at how to evaluate tools in today’s current market, learn which HR tech trends are gaining traction in the next few years according to industry research from Gartner.
Worker engagement platforms have been created to increase employee engagement by facilitating positive experiences at work across the entire company. WEP might include communication/collaboration, rewards recognition, training/learning, wellness, flexible work environment, and feedback features.
The core benefits of this emerging technology are twofold: One, to improve employee performance, and two, to reduce attrition thanks to higher employee engagement. This can support larger change management initiatives at your company, and it’s especially relevant given the need to keep engagement high as employees work remotely and may not see each other in person often, if at all.
While this type of software can work wonders, keep in mind that it isn’t the end all be all of employee engagement. It will still be important to develop a holistic approach to employee engagement to ensure employee needs are being met on all fronts.
Virtual assistants have rapidly grown in popularity, and HR software is no exception. VAs are expected to be the next-generation interface for HR administrators, managers, and employees. Whether they’re in text or voice form, this software would need to be tightly integrated with your team’s existing HR tech stack.
Implementing virtual assistant software could improve the way your team navigates and uses the entirety of its current HR technology, and it has the added benefit of being relatively simple to use for new users.
It’s important to note that this software may not apply for all use cases within your organization, and addressing potential security and compliance issues is a must.
More than ever, today’s employees want to be seen and heard. Currently, most HR technologies use data sources, feedback tools, and surveys to gain insights into employee wellbeing and sentiment. VoE technology can come into play by collecting and analyzing employee feelings, perceptions, and opinions.
VoE can improve employee engagement and retention, as well as provide HR teams with specific feedback on how teams are performing and how they’re perceived, which can help teams proactively address problems that may arise.
When deciding whether or not to move forward with this kind of software, it’s recommended for teams to build a VoE strategy that includes an overview of data and security and standards for measuring success with VoE.
Internal Talent Marketplace technology uses market principles to match alumni, contingent workers, and internal employees to short-term project and work opportunities without the need for recruiter involvement. This can be achieved through marketing features, matching algorithms, and feedback tools.
Although it’s not expected to reach mainstream adoption until ten or more years, an Internal Talent Marketplace could be a potential game changer in the world of hiring and recruiting, with potential benefits including:
Implementing a tool like this could be a huge change for your HR team's current processes. For that reason, it’s recommended to assess for scalability with the expectation of some potential functional gaps along the way.
With so much change taking place in today’s workforce and with so many types of HR tech tools to choose from, it can understandably feel overwhelming to get started. Ultimately, it all comes down to how well the tool can integrate with your current tech stack, help your HR team meet and exceed your goals, and of course, how much it’s going to cost.
It can be a big decision, but if you’re seeking an HR solution that enables you to easily and effectively communicate compensation to candidates and employees, then you’re in luck.
Learn more about how Digital Offers can empower your team to make equitable and competitive offers, clearly explain total compensation, and improve acceptance rates. Check out Total Rewards to discover how it can help reduce attrition by helping employees visualize their total compensation, understand their career paths, equity, and your comp philosophy,
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