Chances are, most of us have encountered some form of HR tech throughout our careers – whether it be a recruiting/hiring tool or a tool designed to promote well-being. In 2021, organizations of all shapes and sizes are seizing the opportunity to prepare themselves for the future of work – retaining and attracting top talent, all the while providing the best possible employee experience. Whether you’re looking to invest in a solution or simply curious about industry trends, we’ve compiled five things you need to know about HR tech.
I – Expenditure is rising
The market for HR tech cloud solutions is now a $148 billion market and growing. Companies are investing time and resources into these solutions to prepare for the future of work. The top solutions address each touch point of the employee journey – from recruitment, to onboarding, to the overall employee experience. According to a recent PwC survey, 39% of respondents plan to increase the number of tech vendors they use over the next one to three years – up from just 20% two years ago. In terms of total spend, 74% of respondents plan to accelerate their expenditure to address new and changing needs throughout their workforce.
II – The importance of change agility
In the past year, the workplace has undergone tremendous, unexpected change as a result of the Covid-19 pandemic. One of the main drivers of growth in the HR tech space is companies’ desire to prepare their workforce for what’s to come, and boost their change agility. Organizations are eager to develop a workforce that possesses relationships, behaviors and skills that breed innovation and will be able to scale despite a continuously shifting business environment. It’s not about changing your culture, but instead using your culture to strengthen your change management plan (PwC).
III – New problems, new solutions
To successfully adopt a new HR tech solution, you must determine whether it is solving a real business problem, and whether your people will embrace or reject it. In 2021, one of the most prominent business problems companies are looking to solve is the onset of employee fatigue, burnout and isolation as a result of the sudden shift to remote/hybrid work (Inc.). Many HR tech solutions are based on productivity and automation. While productive tasks are directly beneficial to the bottom line, seemingly less productive endeavors like “building community” can become your killer asset in the long run. Don’t be short sighted when thinking productivity: sometimes new problems require new solutions.
IV – An employee experience mindset
Many HR tech solutions were originally built with the needs of HR and IT in mind, instead of the employees’ (HR Executive). Now, the importance lies in providing a superior employee experience: creating a sense of belonging and improving well-being. Top talent expects more than ever before. According to Accenture, organizations with a “great workplace experience” outperform the S&P 500 by 122%. Companies must be strategic when assessing their HR tech portfolio in order to find a balance between making processes easier and faster, and prioritizing their people’s best interests.
V – Don’t lose sight of humanity
While HR tech can bring on a host of advantages in terms of automating tasks and unlocking data to help inform decisions, it can be easy to become overwhelmed. Technology does not need to get in the way of building relationships at work, and forming lasting connections with colleagues. In fact, there are solutions that go beyond productivity: facilitating community-building and helping you prioritize the human aspects of work. When searching for HR tech solutions, take the time to demo each product and ensure it is aligned with your values.
Technology alone will not translate to a meaningful work experience, but it can address many of the business needs that keep your people engaged and satisfied. If you’re interested in exploring how MixR can transform your people and culture strategy by scaling trust and belonging in the workplace, we’d be happy to get in touch.