The term HR tech, also known as human resource technology, describes software and hardware technology used to streamline HR functions. These software and hardware solutions help the HR department conduct more efficient workflows and better manage human capital.
HR tech helps to automate essential HR functions such as communication services, talent acquisition, performance management, and more. These tools are especially valuable with the rise of remote work and the globalization of businesses.
As digital transformation shifts the business landscape, HR tech solutions help companies navigate the changes, make daily functions more efficient, and overcome human resource challenges.
Why should HR leaders prioritize HR tech?
ΗR technology intersects different aspects of the business, ensuring that performance is maximized, employees are motivated, and payroll runs efficiently.
With HR tech, time-consuming tasks can be streamlined and automated without losing the element of the human touch. HR tech helps professionals manage day-to-day tasks that normally demand time and energy.
The entire employee life cycle is managed concisely and effectively, allowing HR teams to allocate more time to refine the recruitment process, support managers, and focus on employee retention.
Since the pandemic and the rise of remote and hybrid work, HR tech has placed more emphasis on the value of technology. Instead of spending time with spreadsheets and arranging calls across different time zones, cloud-based technology helps HR professionals by offering automation in the remote world and the chance to optimize workflow.
Different types of HR technology
There is no single type of HR software. While some are all-inclusive and offer an array of services, others are more focused on a specific business element. HR tech can help the human resource team in the following functions.
- Payroll management to regulate and confirm payment (while remaining compliant)
- Talent management to guide employees along a career path
- Applicant tracking systems for the recruitment process
- Learning and development for upskilling employees
- Performance management to assist with overall productivity
- Benefits administration to improve culture, performance, and wellbeing
- Onboarding new employees
Key HR tech trends
HR processes are multi-faceted, overlapping with different areas of business, and it’s up to human resources management to stay on top of various trends and developments. With this in mind, the following tech trends are worth considering (and incorporating).
People have grown accustomed to convenience and instant gratification, including in the workplace. Self-service technology meets this need by providing easy access to paperwork and documentation, such as pay stubs, tax forms, and more.
Technology has supported the shift toward remote work. As remote work continues, various types of HRIS are facilitating progress. From collaborative platforms and apps such as Slack to video-conferencing tools such as Zoom, working with a global and dispersed team has never been easier.
Work-life balance and well-being
Employee well-being has become a top priority for both team members and businesses alike, guiding the direction for the future of work. HR management software helps with employee engagement and workforce management, ensuring that employees strike a healthy work-life balance while remaining connected to team members in a meaningful way.
How can HR tech improve company culture?
By reducing the pressure placed on HR leaders, the team has more resources to focus on improving company culture.
On the one hand, HR software helps with payroll, compensation management, the hiring process, and more. In the process, employee experience is improved, boosting job satisfaction.
On the other hand, managers can allocate resources to nurturing a healthy company culture. For example, conducting performance reviews, refining the benefits package, and staying on top of employee data.
Why is HR tech critical in HR strategy?
In the modern world, technology plays a key role in everyday functions – from advertising and development to networking on social media and establishing a business strategy. Of course, it also plays an essential role in HR processes.
Incorporating HR tech into the HR strategy offers many benefits, helping HR managers promote the company’s mission, values, and business goals. By optimizing HR processes, tech brings value to the company and helps grow the business. Recruitment, payroll, talent management, and boosting company culture are all HR functions that can benefit from HR tech.
Tips for HR leaders to embrace HR technology
For software and hardware to be effective, HR leaders must embrace the process and commit to implementation. Consider the following tips to maximize the benefit of HR technology.
- Make an effort to understand the technology and stay updated on developments and features
- Amend HR policies to include tech-related updates, ensuring that the company culture remains fair and consistent
- Work together with the IT team to overcome challenges and improve the employee experience
- Empower employees to understand and use the HR technology, helping them adjust to agile work methods