hr tech

What’s HR Tech? (with Trends & Companies You Should Know)

HR technology helps companies manage their people and HR tasks in a new way.  As work changes and new tech […]

Mark Jackson

President at SwagDrop

HR technology helps companies manage their people and HR tasks in a new way. 

As work changes and new tech companies appear, businesses need to keep up. 

This article explains what HR tech is and how businesses can use it. 

We’ll look at the latest trends, the top tech companies, and how technology can help with HR tasks like managing employees and measuring success. 

Whether you’re a leader in HR or just starting in the field, this guide will give you an overview of the HR tech world!

Table of Contents

What is HR Tech?

How Can Businesses Make Use of HR Technology?

HR Tech Trends in 2023

Top HR Technology Companies

What is HR Tech?

HR tech is digital solutions aimed at optimizing human resources processes and improving the overall HR function in a company. 

HR tech aims to streamline and automate various HR tasks, such as talent acquisition, onboarding, employee benefit management, performance management, and more. 

With the rise of cloud-based technologies and data analytics, HR tech has become an increasingly crucial component of modern HR practices.

How Can Businesses Make Use of HR Technology?

HR technology can provide significant benefits to organizations of all sizes. 

First, HR teams can use technology to streamline their recruitment process.

By using an applicant tracking system (ATS), HR teams can manage job postings, receive and track resumes, and streamline communication with candidates, all in one place. 

This can help organizations make better hiring decisions and find the best candidates for open positions.

Second, HR leaders can use technology to promote employee well-being and support. 

From mental health to physical health, HR technology can help employees access resources, track their progress, and receive support when they need it, building a more engaged and productive workforce.

Third, HR technology can be used to manage employee benefits and compensation. 

With compensation management and benefits administration tools, HR teams can easily manage their budget and employee benefits, making businesses ensure that their team members receive the right benefits and compensation for their roles.

Finally, HR technology can help organizations build and manage a more agile and flexible workforce. 

From remote work to hybrid work arrangements, HR technology can provide employees with the tools and resources to work effectively.

HR technology is constantly evolving, and the trends of 2023 are shaping the future of work. 

HR tech is helping companies streamline talent acquisition and management processes, from AI in recruitment to diversity and inclusivity initiatives.

AI recruiting and hiring

The use of AI in recruiting and hiring has become a trend in recent years as companies look for ways to streamline their talent acquisition efforts and make more informed hiring decisions. 

A 2019 study mentioned that HR professionals need to increase their understanding of how AI can improve recruitment because only 40% considered themselves knowledgeable about AI.

In addition, recruitment professionals desire AI to enhance the quality and productivity of their hiring processes by finding better candidates and reducing time spent reviewing resumes. 

This trend has been driven by the increased availability of AI-powered tools, such as resume screening software and predictive analytics, that can help companies quickly identify top candidates and reduce the time and resources required for manual candidate evaluation.

In addition to improving efficiency, AI in recruiting has been shown to positively impact talent mobility.

An IBM survey found 92% of HR respondents anticipate AI solutions to improve the alignment of skills with job requirements, and 87% believe AI will increase employees’ visibility to job opportunities.

Diversity and inclusivity 

Diversity, equity, and inclusivity (DEI) have recently become a top priority for many HR teams and businesses. 

The drive for a more diverse and inclusive workplace stems from recognizing that diverse teams lead to better decision-making, improved company culture, and higher levels of innovation. 

A recent study by McKinsey & Company found that companies in the top quartile for ethnic and racial diversity are 35% more likely to have financial returns above their respective national industry medians.

Many businesses are turning to HR technology to improve DEI in the workplace. 

This includes HR platforms, software, and systems focusing on talent management, learning, and development; that’s why the D&I technology market is expanding immensely. 

Of the 105 vendors identified for a RedThreadResearch study, the majority are small, growing quickly, and less than four years old, leaving an estimate of the overall market size to already be approximately $100 million.

There are also four main categories that technology solutions tackle: 

Of the four, the largest segment D&I technology providers focus on is talent acquisition technologies (43%), whereas the smallest percentage is working on engagement/retention (12%)

Furthermore, D&I technology vendors surveyed in all four talent management areas are growing, with nearly 40% within each category experiencing more than 100% year-on-year revenue growth.  

Optimization of hybrid and remote work

HR technology can play a crucial role in optimizing hybrid and remote work models

HR technology can monitor remote employees’ working hours and attendance by providing time and attendance tracking. 

Automated performance management tools can also assess and evaluate remote employees, providing regular feedback and allowing for continuous improvement. 

In addition, HR technology can provide a centralized platform for communication and collaboration between remote employees and teams that help foster a sense of community and teamwork. 

A few mishaps can happen when not implementing a reliable tech element.

For instance, the State of Remote Work 2022 study mentioned that participants in remote meetings listed their main difficulties as being hesitant to interrupt a speaker (34%) and, unable to see everyone’s faces, missing visual cues (32%)

In contrast, the challenges faced by in-person participants are starting the meeting on time (30%) due to needing clarification on technology and the need to physically adjust the technology for remote participants to see what’s happening in the room (27%)

This creates a gap in participation as remote workers need help to fully engage in conversations, while in-person workers deal with challenging technology. 

This hinders meeting effectiveness and productivity, reinforcing the proximity bias and creating an “us vs. them” dynamic.

Transparency and team accountability

Transparency and team accountability are becoming increasingly important aspects of modern workplace culture. 

Companies recognize the benefits of open communication and a sense of shared responsibility among team members, as this leads to better collaboration, increased trust, and higher levels of job satisfaction.

According to a study by Harvard Business Review, 70% of employees report feeling the most engaged in their job when senior management communicates openly with them.

Therefore, to promote transparency and accountability within teams, many companies are turning to management platforms focusing on regular check-ins, performance monitoring, continuous feedback, and shared decision-making.

A 2018 study showed that 65% of those surveyed from firms that introduced performance technologies in 2017 reported positive impacts on employee and company performance.

Agile team building

Agile practices are commonly used in software development and involve flexible planning, adaptive change and delivery, and teamwork. 

According to HBR, HR departments can benefit from agile practices by being more responsive to the needs of the business, improving employee satisfaction, and delivering results faster

In addition, companies that have adopted agile HR practices have reported increased employee engagement and faster time-to-hire for job openings.

Companies that have implemented agile HR practices have seen a reduction in turnover rates and increased employee productivity.

However, building an effective agile team requires more than just adopting the methodology. 

It also involves fostering a culture of trust, accountability, and continuous improvement, as well as investing in the training and development of team members. 

Teams must also have the right tools and technology to support agile practices, including project management software, collaboration tools, and virtual collaboration platforms.

Employee Experience Platform (EXP)

Employee experience platforms cover a wide range of software designed to enhance employee engagement and workforce development and align individual goals with business objectives. 

This type of software has gained prominence in recent years, not just as a comprehensive source of information but also because companies have realized that traditional human capital management (HCM) software and HR information systems (HRIS) fail to provide the necessary information promptly and aren’t adapted to the evolving needs of the workforce.

Josh Bersin emphasizes the importance of employee experience platforms to create a unified employee experience that integrates all essential applications

This approach prioritizes the user experience over a single, complex software system. 

Moreover, employee experience platforms allow for the flexibility to switch vendors for specific functions, such as employee onboarding, employee benefits, payroll, learning and development (L&D), performance management, employee engagement, and others, under one user-friendly portal. 

The result is a system that can easily adapt to changing needs without disrupting the employee experience.

Employee well-being

As companies continue to recognize the importance of employee well-being, HR tech will always need to play an increasingly important role in promoting and tracking employee health and happiness.

From apps that help employees manage stress and increase productivity to virtual wellness programs and wearable technology, there’re various tools available for HR departments to invest in. 

For example, wearable health technologies, like fitness trackers, help workers take care of their health. 

According to Willis Towers Watson, 35% of employees use technology to track their physical activity, 26% track their diet, 22% use social media for health information, 17% track a health condition, and 16% use online tools for medical consultations. 

Top HR Technology Companies

The HR technology market is rapidly growing, and numerous companies are offering innovative solutions to improve HR processes. 

Let’s check out some top HR technology companies and what makes them stand out.

1. BambooHR

BambooHR is a cloud-based HR platform that provides HR professionals with a centralized place to manage and track employee information. 

The software includes features like employee self-service, performance management, time tracking, and more. 

Image Source: BambooHR

In addition, BambooHR’s platform is designed to be user-friendly, making it easier for HR professionals to manage their employees and streamline HR processes. 

With real-time reporting and data analysis, BambooHR can help HR professionals make data-driven decisions and better understand their workforce.

2. CareerPlug

CareerPlug is a cloud-based recruitment and workforce management platform that helps organizations find and hire the right talent. 

The platform includes features like applicant tracking, onboarding, and performance management. 

Image Source: CareerPlug

With the ability to integrate with popular job boards like LinkedIn, CareerPlug makes it easier for organizations to find and hire the right talent. 

The platform also includes a self-service portal for employees, making it easier for HR professionals to manage their workforce.

3. Bob

Bob is a cloud-based HR platform that provides organizations with a centralized place to manage their people and benefits. 

The platform includes features like benefits administration, time tracking, and performance management. 

Image Source: Bob

Plus, the software is designed to be simple, making it easier for HR professionals to manage their employees and benefits. 

With real-time data and analytics, Bob helps HR professionals better understand their workforce.

4. Workday

Workday is a cloud-based financial and HR platform that provides organizations with a centralized place to manage their finances and HR processes. 

Image Source: Workday

The platform has HR analytics, performance management, and talent management. 

Workday’s software is designed to be scalable, making it a great option for organizations of all sizes.

Furthermore, Workday helps HR professionals collect data with real-time reporting.

5. Qualtrics

Qualtrics is a cloud-based experience management platform that helps organizations collect and analyze feedback from employees, customers, and other stakeholders. 

Image Source: Qualtrics

The platform offers employee feedback surveys, pulse surveys, and 360-degree feedback. 

Therefore, Qualtrics helps HR professionals make data-driven decisions and better understand their workforce. 

In addition, the platform is designed to be scalable, making it an excellent option for organizations of all sizes.

Final Thoughts

In conclusion, HR tech is transforming how organizations handle their human resources. 

With various companies and trends to consider, such as HR management systems utilizing artificial intelligence, on-demand HR tools, and learning management systems, it’s vital to stay up-to-date with the latest HR technology and strategies.To further expand your knowledge and understanding of HR and HR tech, we invite you to visit our HR Glossary.

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