The face of HR has changed in the last couple of decades. The pivot for HR function from administration and support to strategic involvement in business has been fascinating to say the least. At the core of this paradigm shift has been adoption of technology in management of human resource and this journey continues.

Some might wonder if the fanfare around HR technology is a passing fad. I can assure you it is not. While forward looking organizations had started to provision spend in a focused manner towards automation and HR technologies over the last decade, the pandemic has revolutionized the need for personalized and data driven tools for the workforce. Based on a study by the Imarc Group, the global market for HR technology touched $31.5 billion during 2022 — and it is expected to grow to $53.3 billion by 2028.

“Human resource programs no longer need to be based on soft reasoning but should be as analytical and as data driven as any other management discipline.” - Chris Argyris, Management theorist and Professor Emeritus, Harvard Business School. 

The evolution of varying and effective technologies has changed the traditional workflow of business. Organizations are prioritizing technology more than ever before to stay competitive and attractive. This in turn has led to a shift in the prevailing human work nature. Varying industries and organizations are at different stages of experiencing key benefits of purposeful adoption of technology in HR.

1. Automation of the repetitive – Research shows that HR personnel spend more than 90% time of repetitive tasks. Using data analysis tools and Robotic Process Automation (RPA) a significant amount of time is being redirected towards engagement with business, strategic programs and decision making.
2. Improved employee experience – The focus on employee experience has escalated the demand for technology and analytics in HR space. In the age of virtual recruitment and onboarding, full time and gig workers, remote workplace and workforce composition of millennials and Gen Z, hyper customization is the need of the hour in people programs. An organization that knows what their employee want can make more successful people decisions.
3. Predictive analysis in performance management – Various performance management tools are helping organizations make sense of complex data across different employee levels and across teams. Predictive analytics in this area has helped assess the factors that influence traits of performance across teams and units. It can also offer insights into which factors enable better productivity.
4. Data driven decision making – Organizations often grapple with symptoms misunderstood as problems. Heifetz and Linsky call these Technical challenges in their explanation of adaptive leadership. HR analytics and predictive analysis tools have helped leaders look past the tip of the iceberg and get close to the heart of issues to be tackled. This allows organizations to achieve effective data-based decision making and allows to adapt for resilience.

It is evident from the benefits being reaped that HR analytics and adoption of technology in people practices is a trend that will continue to grow in the foreseeable future. The three key areas where technology and analytics has more potential to be leveraged successfully are 

1. Data privacy and security- Besides collecting and analyzing data, the process of how that is done is becoming critical in current times. Protecting data and minimizing exposure while using it for analysis and insights will become increasingly non-negotiable. Adequate and robust automated scrutiny to protect data privacy and security is the next big leap to be made to meet complex regional requirements and establish a culture of trust.

2. Promoting DEI – DEI is a crucial area of HR practice where analytics must be leveraged to create strategic intervention. It can be expected that with enhanced adoption and literacy around using analytics, more organizations will consciously review their workforce demographics and culture markers across employee levels, teams, regions to create more effective DEI outcomes.

3. Sophisticated compliance adherence – HR teams often struggle with a plethora of labor regulations that need to be adhered with actions within or outside the organizations. Ensuring round the year adherence to regulatory requirements as well as being able to demonstrate it is a key area to be strengthened for many organizations. Use of technology for monitoring, nudging and internal reporting can be an extremely effective use of technology in HR to establish robust governance and trust both within and outside the organization.

It is an exciting and challenging time for HR professionals as we continue to evolve at a rapid pace to scale the business environment and talent marketplace. We must champion adoption of technology and analytics and enhance technology literacy in our organization to enable them to thrive instead of surviving.