An introduction to HR technology

Many human resources tasks are operational and time consuming, adding little strategic value. Nevertheless, these actions are essential and an integral part of HR. Using HR technology, the HR function is able to automate operational tasks and thus free time to focus on strategic initiatives. This section defines what HR technology is and why it is important for your business.

What is HR tech?

Human resources technology, also referred to as HR tech, is the group of software and tech solutions that are used to automate human resources processes. It is the digitalisation of the HR function that aims at streamlining the work effort for HR teams and bringing efficiencies within the function. Typically, HR technology encompasses different programmes that address the various functions of HR, with for example:

Recruitment or talent acquisition programmes;
Payroll software;
Performance management tools;
Workforce management solutions.

HR technology has evolved significantly over the last few years and most businesses have transitioned to digital HR, thus significantly increasing their HR department productivity.

Why you should care about HR tech for your business

Human resources technology is essential for businesses and goes beyond reducing paperwork. When well deployed, HR technology touches the entire employee life cycle and as such reduces human error and streamlines HR processes. It is essential for the productivity of the HR department. By bringing automation, HR tech provides access to a wealth of data that can be used to develop strategic HR initiatives for the long term. Additionally, with automated workflows, HR tech increases the use of tools for recruitment, onboarding and much more. This results in a significant gain of time for HR resources that can focus on the analysis of the data made available to them and the use of that data to extract trends and develop a human resources strategy.

Seven benefits of HR technology

As we have seen, HR technology can bring many benefits to a business. Let’s elaborate on each of these benefits below and provide insights on why they are essential for the transformation of your HR department:

Moving towards automation and increasing efficiency

Automation, which leads to increased efficiency, is the main benefit of HR technology. Through the use of software and other digital solutions, processes move away from manual and towards automated. The workflow is streamlined and time-consuming tasks are no longer delivered by HR team members. The HR function gains in efficiency and productivity and can focus on their primary responsibility: people.

Strategic use of data and improved data management

HR data can be highly sensitive; it concerns employees directly. As such, it is essential that it is stored and managed with caution. With HR tech, human resources teams can manipulate this data with ease. Risks of data leaks are significantly reduced.

For more on data in HR, have a look at our content on Performance management: data-point assessment and data triangulation.

Boosted employee experience and increased satisfaction

HR teams are not the only ones benefiting from HR tech. Employees also see their experience enhanced. With self-service solutions, they have access to information in real time. They can also update their benefits and other perks in the system directly. Often, the use of HR tech increases overall employee satisfaction.

Simplified performance management

Managers are not left behind when it comes to benefitting from HR technology. As the HR function is digitalised, so is performance management. This is a huge advantage that provides leaders with consistency in their employee evaluations year on year. It also guides them through the performance evaluation of each employee, which brings consistency throughout the business.

Time saved throughout the entire HR function

In the non-digitalised HR function, human resources staff calculated payroll manually using spreadsheets. This is an example of a highly time-consuming task that brings little strategic added value. With the automation from HR technology, human resources see their time freed of these operational actions so that they can focus on strategic tasks that have an impact on employee wellbeing. These time efficiency gains significantly elevate the HR function.

Easier onboarding process for new employees

Onboarding of new employees is heavy in terms of paperwork, compliance training and much more. With the use of HR technology software, new employees are able to move to job training straight away. The benefits enrolment process, employees’ agreements or tax forms are automated in the HR system.

Move towards strategic recruitment

Recruitment can be highly time consuming for HR teams. Some organisations have staff dedicated to recruitment. With human resources technology, the recruitment process can be streamlined, thus increasing the chances of finding the ideal candidate. Management of applicants is simplified, screening and vetting are automated and sourcing tools can even target specific candidates.

Human resources technology brings huge benefits to organisations that use it well. If you have not made that step yet, it may be time to consider it and evaluate the solutions available to you.

The main HR technology trends that you should be aware of

Technology evolves at a fast pace and this is no different for HR tech. As such, there are some trends to be aware of. We have outlined the main trends for you in the section below.

Self-service solutions

Self-service solutions give easy and real-time access to paperwork. This means that employees can access the company’s policies, their payslips, tax forms or healthcare documents without having to wait. Self-service solutions significantly improve employee satisfaction when it comes to HR matters.

Options for remote working

Remote working has been boosted by COVID and is now more than just a trend. This shift would not have been possible without technology advancements. For example, the use of virtual meeting technology has enabled and had a significant impact on remote working.

Work-life balance and overall employee wellbeing

Employee wellbeing is the top priority for most businesses. As such, HR teams work to ensure that employees have a healthy work-life balance. Doing so requires creating relationships and addressing mental health challenges. These challenges can be the result of, for example, work-related stress or remote working conditions that can make individuals feel isolated.

Global hiring

Globalisation is boosted by remote working. Organisations are hiring more and more people abroad as this reduces costs and increases the talent pool. As such, global hiring is a trend to keep in mind and incorporate in your recruitment strategy to remain competitive.

Technology advancements should not be ignored by businesses. They should be used to boost productivity and increase their competitive edge. This is no different to HR technology. It should be considered by all organisations in order to ensure that HR departments are able to focus on employee-related matters that add value to the organisation. HR tech is an opportunity that should not be missed.

An introduction to HR technology

Your next read