The technology boom across all industries is reshaping the way the world does business. Human resources has traditionally been viewed as a paper-intensive, non-innovative function where people get hired and fired, salary decisions are made, and team building and other human capital programs are designed. But behind the scenes today, HR is incorporating tech at a rapid pace.
According to the 2019 HCM Trends Report from The HR Federation, a network of leading market analysts, global HR technology venture capital has topped $3.1 billion this year. This is more than triple the amount invested in 2017. Tech advances are changing the way HR departments source talent, communicate with people, store files, and analyze employee performance.
The Society for Human Resource Management (SHRM) has identified the following leading challenges currently facing the industry, which have sparked related technical innovation:
- Employee engagement
- Talent retention
- Competitive compensation
- Leadership development
Tech Innovations Address HR Challenges
New HR technical tools make it immensely easier to access, gather and analyze data to meet various human capital needs. Among today’s most promising innovations are:
- Virtual and augmented reality: Tools like Microsoft’s Hololens continue to mature and find their way into the workplace environment. Virtual reality has significant potential in enterprise learning. Employees can use it for anything from off-site assignments to corporate training. And to enhance on-the-job tasks, it will eventually become the new normal, as digital information is superimposed on physical reality.
- Advanced machine learning: Machine learning is automated data analysis through algorithms that automatically create analytical models. These programs iteratively learn from large sources of data-building patterns and identify insights without being explicitly instructed or programmed to look for answers. This technology allows for machines to not only collect information from corporate environments, but also to learn from it. To date, in HR. machine learning is mainly focused on predictive analysis and talent relations, especially during recruitment processes. Employee engagement is also being targeted.
- Artificial intelligence (AI): More than half of managers surveyed in the HR Federation study reported that they felt AI would become a regular part of HR within the next five years. While the industry is just at the cusp of what this technology can do, it is already making recruitment smarter and more efficient. AI is starting to outperform humans in making hiring decisions in certain areas; namely, the evaluation of hard skills. This frees up recruiters to focus on conducting soft-skill and culture-fit evaluations in a more structured fashion.
Looking for Tech Solutions That Truly Make You Effecient?
As a full-service HR consulting and management company and a professional employer organization (PEO), Lyons HR can partner with you to incorporate the smartest, best and most cost-efficient tech solutions into your talent management strategy. Read our related posts or contact us today to learn more.