If you’ve been in the industry for long enough, you’ve no doubt noticed a lot of evolution in the world of human capital management technology. We now have more sophisticated solutions than ever before for completing all sorts of HCM tasks.
There’s new technology for performing core functions like handling payroll and benefits, of course. There are also tools for recruitment, talent management, employee self-service, gauging engagement and productivity and even enhancing corporate health and wellness, and if you’re lucky enough, you may have a tool that does it all.
$40 billion per year spent on HCM technology
We’ve come a long way, definitely. But according to Josh Bersin, founder and principal at Bersin by Deloitte, we’ve still got a long way to go.
A recent SHRM report pointed to the results of “HCM Market Trends,” a market study performed by Deloitte in 2015. Bersin found that companies are spending more than $40 billion per year on HCM technology, and that figure is only increasing every year.
Bersin noted:
As most of us know, it’s nearly impossible to be an HR leader without getting deeply involved in technology. Not only does HR technology automate, store and improve almost everything we do, our companies are now flooded with technology – so we have to buy, integrate and simplify technology just to get our jobs done.”
The world of HR tech is fast-paced and pressure-packed, but it’s also exciting. It enables companies to reach entirely new heights in employee engagement, productivity, wellness and more. And internally, for those of us who work in HR every day, it’s making our lives easier as well.
5 HR tech trends to watch
Bersin looks at five (5) trends happening in HR technology that are creating a brighter future for HR pros:
- Going beyond the “system of record” — For a long time, HR solutions were seen as “systems of record.” They were places to record data and not much else. We’re now moving toward a new paradigm – HR technology is increasingly viewed as a way to make work life better. It’s now about adding functionality, improving communication and making daily processes quicker and easier.
- Adapting to a mobile-first mentality — As Bersin noted, people today spend about 40 percent of their online time using a mobile phone rather than a computer. It’s high time the HR industry adjusted to this new reality! The community is starting to think mobile-first, designing new apps for expediting HR processes.
- Diving headfirst into analytics — Companies are becoming increasingly analytics-driven, using data to improve their decision-making as often as possible. For precisely this reason, HR offices are adopting new solutions that compile data and analyze it to assist corporate leaders.
- Staying current in the corporate world — The HR tech business is loaded with hot startups that are eager to push new high-tech solutions to the market. This in turn pushes every HR office to work hard and keep up with new innovation. Every company wants to stay current.
- Redesigning the employee experience — No HR software engineer is merely a programmer. Today, they view themselves more as “experience designers.” The goal is no longer simply to write code – it’s to remodel the entire process of doing work. Today’s HR tech is holistic and all-encompassing.