Learn All About HR Technology

Human Resources – did the name make you skip a heartbeat? Relax; they don't know it was you who swapped the family portrait on Cheryl's desk for that of the Addams family and taped over the sensor on Jim's mouse. Poor Jim has restarted his PC four times already!
 
Well, the name says it all - Human Resources (HR) is all about the humans who work at a firm. From the CEO to the janitorial staff, every employee comes under their dominion. Naturally, HR professionals handle every aspect concerning humans in a firm - recruiting talent, onboarding new personnel, processing payroll on time, maintaining accurate employee records and even dishing out disciplinary action. They arguably have the widest gamut of responsibilities of any business role out there!
 
Human Resources? More like Superhuman Resources!
 
HR professionals' responsibilities can quickly become overwhelming and time-consuming. They may be super; doesn't mean they don't need help! HR Technologies swoop in to meet the dynamic demands of Human Resources professionals by automating and streamlining a significant portion of their daily duties. Join us as we explore what HR Technologies are, how they work, their evolution and future trends.
 
Dive in before the HR catches you reading this instead of working on that presentation!
 

What Exactly Is Human Resources Technology?

 
Before we jump into explaining HR technologies, let's start with a question; are HR professionals even human? (No, seriously, are they?) They handle diverse responsibilities every day - from actively maintaining a pleasant working environment to forecasting business requirements and hiring accordingly. They're busy as heck!
 
Naturally, smart HR personnel rely on various tools to make their life easier. HR Technologies refers to software platforms and tools that streamline HR duties, help manage business expenses and track company assets. Even the strongest superhero needs a reliable sidekick. Similarly, HR people (read office superheroes) need HR Technologies to digitize, optimize and automate time-consuming and repetitive duties.
 
Having said that, we can presume that wasn't always the case - HR Technology has come a long way. Let's take a look!
 

Evolution Of HR Technology

The term HR Technology is relatively modern. The baby steps towards HR tech started in the late '70s when businesses began automating payroll and time reporting using punched card machines. Back then, it was considered part of the ERP (Enterprise Resource Planning) suite of technologies. The distinction became sharper when PeopleSoft launched the first Human Capital Management system in 1987. However, the term HR Technology didn't catch on until the late 1990s, when vendors started offering web-based services to make HR tech accessible to remote and mobile workers. Yes, remote work existed long before the Y2K (Year 2000) era!
HR Technologies are evolving at a much faster pace today. It is increasingly moving away from traditional models and implementing emerging technologies such as Artificial Intelligence, Machine Learning, Big Data and Data Analytics. Large businesses worldwide employ specialized enterprise HR tools while smaller organizations are entering the second generation of HR tech, migrating their legacy on-premises systems to modern cloud and SaaS (Software-as-a-Service) platforms. No wonder the HR Technology industry has skyrocketed - we're talking roughly $2 billion in funding for HR Technology start-ups in 2016 alone!
 
HR Technology is constantly evolving, so let's look at the types of HR tech tools before they create a new category!  

Types Of HR Technology Tools

For the past few decades, HR Technology vendors have marketed services and tools under two brackets - HRIS (Human Resources Information System) and HRMS (Human Resource Management System). However, in recent times the term HCM (Human Capital Management) has started replacing both. Human Capital Management is a business ideology that equates personnel to managed assets, similar to other assets, including capital, real estate and equipment.
 
However, currently, all three terms are used by HR vendors to define the scope of their software – and yes, that has caused a bit of chaos and controversy. (Time to call the HR?)

Here's a quick and simple breakdown:
 

• When it comes to HR tools, HRIS (Human Resources Information System) is considered the most rudimentary choice. It keeps track of employees (absence and salary management), procedures (defined workflow) and policies (recruiting, training, etc.)

• The term HCM (Human Capital Management) refers to the universal management of your workforce as an asset. This type of software manages everything from onboarding and upskilling to performance management and HR analytics. Therefore, HCM is more extensive than HRIS.

• HRMS (Human Resource Management System) typically encompasses all the functionality found in HRIS and HCM systems. In addition, these tools simplify and automate tasks such as payroll processing and include time management tools essential for large-scale projects.

Now, how about we peek behind the curtain to see what runs this machine. Let's go, people!
 

What Supports HR Technologies?

HR Technologies are used to simplify processes through digitization and automation. Hence, HR Technology tools offer intelligent automation capabilities, data analytics features, secure yet easily accessible data storage and sharing. All of this helps the HR gain insight into employees' performance - heck, it can even tell them who deserves that big fat bonus this year!
 
So, how are HR technology tools able to do all of this?
 

• Artificial Intelligence (AI)

  has influenced most business verticals and HR is no exception! AI-based chatbots have augmented traditional communication channels to change the way HR communicates with employees. Artificial Intelligence tools also help predict employees' needs to better understand the workforce behavior and build a more suitable working environment for them. Artificial Intelligence integration is gradually becoming the core of all HR tools.

• Big Data and Data Analytics

  help HR managers identify emerging trends and predict employee behavior – call it the HR’s crystal ball! As most large businesses have a wealth of employee data (read Big Data), combining it with analytics tools is a great way to enhance HR process compliance. Data Analytics is widely applied to recruiting & talent acquisition as candidate data collated from various sources (CVs, social media, etc.) can be analyzed using algorithms to reduce human bias. Data Analytics can help improve existing employee workflows too.

• Cloud Platforms

  enable HR to leverage the tons of employee data that is collected each day - remember, Big Data? Organizations are moving HR workflows to the cloud to make HR operations seamless. Cloud-based HR technology enables easy access via mobile devices and is especially helpful for managing remote teams - or when the HR needs to work from home. Replacing on-premises infrastructure for the cloud improves agility and enables better sharing of information across HR staff. Cloud-based architecture also allows HR professionals to access data on the move.

• Robotic Process Automation

  helps HR personnel automate daily, repetitive tasks that consume time and human effort. RPA platforms use bots (or software robots, to be precise) designed to mimic human actions, reducing the human interaction needed for certain processes. Integration with AI enables these virtual helpers to understand what the user expects and improve their performance over time. Someone give these bots a raise!

• Social Media Platforms

  significantly impact how employees communicate with their peers, superiors and other collaborators. Most enterprises use internal social media platforms (such as Slack) for HR engagement and interaction. As the purpose of every interaction might differ - from corporate communication to dissemination of confidential information - HR personnel can create chat rooms by topic, designation or vertical and ensure the information reaches the right workers in time. Such platforms also enable HR to converse with employees informally compared to official meetings or emails. Ting! You’ve been added to the “Jim’s Birthday Celebration” group.

HR Technology relies on a combination of these technologies (and others) to help HR in its duties. Let's see how exactly it benefits HR!
 

Benefits Of Using HR Technologies

Sure, HR Technology in its current form hasn't been around for long. Yet, it has dramatically changed the HR landscape from messy pen-and-paper departments of the past to today's modern, streamlined digital workspaces.
 
HR professionals can now seek to recruit the top candidates, engage and retain them and increase workplace productivity and employee well-being with ease - thanks to various facets of HR technologies. It also helps with scheduling and time management, two critical components of successful productivity management. Furthermore, the analytics functions play an essential part in business decision-making as they aid in financial forecasting and budgeting, as well as data-driven employee performance evaluation. The data never lies!

Features such as in-house social media platforms have enabled employees to maintain a sense of community and interact with peers onsite and in remote teams. RPA bots have also minimized HR's administrative burden, allowing them to focus their efforts on employee satisfaction, increasing engagement and cultivating a positive workplace environment. Employee performance and wellness will be easier to evaluate as analytics tools improve.
 
If that was impressive, we’re sure you will love what’s next!
 

What Are The Future Trends In HR Technology?

So, what does the future of HR technologies hold? Well, to nobody's surprise, HR will continue to employ tools and platforms with embedded Artificial Intelligence and Machine Learning features. Experts believe that by 2030, roughly 50 percent of organizations will have an AI-based HR technology infrastructure that provides daily recommendations and workforce insights.
 
Another rising issue that needs to be addressed soon is that of data security. Isn't it always? The expectation of employees today is that they are treated as internal stakeholders in a firm and get a say in how their personal data is handled. This debate will force HR tech vendors to balance data transparency with the suitable standard of data protection. HR tools will also need to get better at identifying and protecting sensitive information. Essentially, payslips and contracts will need to be encrypted to a higher standard than the coffee consumption survey!
 

Can’t Spell “Hero" Without HR!

 
Human Resource is a business function that impacts every other function - unless your accounting department is run entirely by cyborgs! The decisions of HR affect every employee. Hence, providing HR with tools to help make the most out of business insights and workforce analytics is a must.
 
Your business processes and employee productivity will improve as your HR Technology becomes more comprehensive and robust. With the right technology, modern HR professionals can provide personalized experiences to their employees. Don't they say if your employees are happy, your consumers will be happy?