In an increasingly digital world, technology is instrumental to any successful business. Even in areas/departments that are people-centric, such as human resources, technology can improve functionality. “When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar,” said George Westerman, Research Scientist with the MIT Sloan Initiative on the Digital Economy.
For a business working towards staying relevant in current times, transforming into a digital butterfly and embracing HR management software, is essential. However, something to keep in mind with digital transformation is that it is an evolutionary process.
This article outlines the top 5 trends that will redefine the role of HR in the future:
HR Agility Through AI
Artificial intelligence is a buzzword that has penetrated many chambers, and with good reason. AI in human resource management software can quicken processes, cut out unnecessary effort, and improve the overall agility of the HR department.
A report from Harris Interactive and Eightfold found that early adopters of AI were 19% more effective in reducing time spent on administrative tasks as compared to non-adopters.
For instance, chatbots that automate responses to routine questions free up more time for employees to focus their effort on high-value tasks.
AI for Unbiased Recruiting
Finding the right talent for a job vacancy is an important HR function. AI-based HR management software helps manage applications better and gives deeper insights into candidate profiles. Inherent biases a human recruiter may have are also neutralized through customized analytics. A 2019 Oracle survey found that about 10% of recruiters surveyed make high use of AI for talent acquisition at present; 36% expect it to become an integral part of the recruitment process.
25% of respondents said AI would be used to “reveal and assess bias” in the forthcoming two years.
Using advanced technology, future HRs will be able to identify the right candidate for a job while fostering an environment of inclusion and diversity.
Analytics for Better Decision-Making
The amount of employee data that organizations collect is massive. However, some companies don’t have the necessary resources for data collection and analytical teams. For such organizations, investing in analytical software for detailed reports on performance, efficiency, and learning requirements can be more cost- and time-effective.
Credit Suisse used predictive analytics to reduce employee churn and saved $70,000,000 a year in recruiting and onboarding costs.
Predictive analytical software can not only forecast employee performance, point out issues and solutions, but they can also help with compliance risks and lowering costs. Efficient analytics can also be used for better hiring, more accurate compensation, and better training.
Focus on Employee Experience
Millennials and Gen-Zs are accustomed to quick and conversational interfaces. As more of them take over the workforce, new-age HRMS software features that accommodate their demand for personalized experiences through chatbots, user interfaces that permit quick payroll or vacation checks, and easy expense reimbursements are likely to dominate at organizational levels.
A digitized HR system can fulfill the new generation’s wants for better internal communication channels, nurturing relationships, and personalized experiences.
Managing Remote and Freelance Workers
Even before the global pandemic, many employees were working remotely. As health concerns linger, a larger percentage of the workforce will retain their work-from-home arrangement.
A survey found that 77% of the workforce want to work from home at least weekly even after the pandemic.
HR teams will also need to account for managing a growing culture of gig workers. Online schedulers, time and attendance management, error-free payroll, and virtual engagement strategies are key to managing a remote workforce. An efficient tech-enabled HR management system can help manage payroll and engagement demands of remote workers, freelancers, and other flexible-arrangements.
Adapting to the New Trends
Keeping abreast of the latest trends in HR and recruitment can be difficult in an ever-changing world. Onboarding a trusted HR partner who is well-versed with the dynamic work culture can be an added advantage.
Allsec provides end-to-end comprehensive HR management solutions which include HRMS software features, flexible and scalable payroll solutions, and deep analytics to empower the agile workforce you need to grow in evolving times. Reach out to us for more information.