8 HR Tech Trends that Will Define 2024
HR Technology has evolved to be a catalyst in the global digital transformation of human resources. Experts predict that HR Digital Transformation will continue to grow despite the market. As HR departments seek better ways to increase recruitment using automation, everyone’s future is secure when HR technology does its job well. In today’s disrupted world, the future is uncertain, and HR leaders face unprecedented challenges. Here we explore HR’s Top Technology trends in 2024.
Director of HR technology and HR Analytics at Kong Inc, using Olive to source HR Technology
Olive’s Top HR Technology Trends for 2024
1. Organizational Design and Change Management
2. People Analytics to Data Literacy
3. Talent Acquisition and Retention for HR Digital Transformation
Talent acquisition has surpassed talent management in popularity, particularly in competitive markets such as Technology. Some popular talent management and acquisition technologies include:
- Applicant tracking system (ATS) used to post job openings, screen resumes, and generate interview requests for potential candidates. Other features may include automated resume ranking, pre-screening questions and response tracking, and multilingual capabilities.
- Candidate relationship management: allows recruiters to maintain a pool of passive candidates that can be considered on short notice.
- Employee referral software: allows HR to collect recommendations from current employees about potential and current candidates.
4. Digitized HR Processes
AI (artificial intelligence): According to Gartner, approximately 30 percent of organizations intend to use an AI tool as part of their HR technology complement, up from 17 percent last year. Hyper Automation: as AI becomes more advanced, the breadth of tasks that can be automated will increase. For example, AI chatbots can greatly enhance employee experience by providing workers with the information and data they need.
5. HR Management Software
From the hiring, employee onboarding, and scheduling to compliance and benefits, HR systems can run like clockwork with the right technology. Automation is making the HR workflows easier: reducing the possible bottlenecks in the workflows, increasing efficiency, and improving employee experience simultaneously. Popular HR management software programs include Monday.com, Quickbooks, Paycor, and Gusto.
6. HR Technologies (HR Tech)
HR tech is an umbrella term for all the technology leveraged by human resources teams to better the functions of an organization. In 2022 and beyond, we can see HR tech coming in useful in the following areas:
a. Payroll solutions: are becoming more diverse as cloud-based HR technology outsourcing vendors increasingly offer payroll services in their digital HR offerings, particularly for SMBs. Other digital transformation factors such as attendance software are also growing in prominence.
b. Travel and expense management: HR departments use expense and travel services to record related expenses, track vacation time, pay providers and reimburse the employee through a link to the payroll service. Some organizations also utilize expense report software to provide managers with an overview of the organization’s spending through automated analytics and reporting.
c. Employee engagement: employee engagement HR technology is being used increasingly via platforms and apps that use various approaches to keep workers enthusiastic about their jobs. These include mobile apps with social media-like posting and commenting capabilities, communications platforms that allow employers to disseminate information and workers to respond, and gamification techniques.
d. Performance management solutions: Traditional annual reviews are becoming somewhat archaic, as new automated functions can now monitor job performance. Performance management modules within HCM systems are growing in popularity and offer interactive features that enable employee feedback in continuous performance management.
e. Benefits admin: Thanks to digitization, benefits admin is becoming more sophisticated, meaning more than just health and disability insurance, vacation, and sick days. Corporate wellness is diversifying its offerings, combining online tech with human elements such as wellness coaches and physical activity programs. As a result, Many HR technology vendors sell specialized software systems that incentivize workers to engage in health programs.
f. Learning technology: Corporate training and education programs are migrating to interactive online platforms created by HR technology vendors. Learning Management (LMS) software can customize training programs and track employee learning and performance. An LMS may also allow students to use interactive features such as threaded discussions, video conferencing, and discussion forums.
7. Facilitating a Remote and Hybrid Workforce
Since remote and hybrid work shows no signs of becoming extinct, the need for compliance is more complicated -with distributed employees located in multiple areas or even countries. Recognizing this, HR tech tools such as Oyster are helping companies to adapt to remote/hybrid environments – creating locally compliant contracts, communicating employment terms, and keeping documentation centralized, safe and accessible.
8. Self-service HR Tools
HR leaders adopt employee self-service (ESS) and manager self-service (MSS) tools to improve service, reduce labor costs and shift the responsibility for handling routine transactions from HR to employees, managers, and job candidates. Self-service technologies that continue to trend upward include services like digital assistants and chatbots driven by AI.
9. HRIS Software
Human Resource Information System (HRIS) software is a fundamental component of modern HR technology ecosystems. HRIS platforms serve as centralized databases for storing, managing, and accessing employee information, streamlining various HR processes and improving organizational efficiency. These systems typically include modules for managing employee data, payroll, benefits administration, time and attendance tracking, performance management, and more.
The importance of HRIS software has grown significantly in recent years, especially with the increasing complexity of HR tasks and the need for data-driven decision-making. Here are some key features and benefits of HRIS software:
a. Employee Data Management: HRIS software provides a centralized repository for storing and managing employee information, including personal details, employment history, skills, and qualifications. This streamlines administrative tasks such as updating employee records and ensures data accuracy and compliance.
b. Payroll Processing: HRIS platforms often include payroll processing functionality, allowing HR professionals to calculate wages, taxes, and deductions accurately. Integration with time and attendance systems ensures seamless payroll administration.
c. Benefits Administration: HRIS software helps HR departments manage employee benefits programs, including health insurance, retirement plans, and other perks. It simplifies benefits enrollment, tracking eligibility, and managing vendor relationships.
d. Time and Attendance Tracking: HRIS systems offer features for tracking employee attendance, time-off requests, and work hours. This helps organizations monitor workforce productivity, manage scheduling, and enforce attendance policies.
e. Performance Management: Many HRIS platforms include modules for performance management, enabling organizations to set goals, conduct performance reviews, and provide feedback to employees. This fosters employee development and improves overall performance.
f. Reporting and Analytics: HRIS software generates reports and analytics on various HR metrics, such as turnover rates, employee demographics, and training effectiveness. These insights inform strategic decision-making and help HR leaders identify trends and areas for improvement.
g. Compliance Management: HRIS systems assist in ensuring compliance with labor laws, regulations, and internal policies. They automate compliance-related tasks, such as tracking certifications and licenses, managing employee documentation, and generating compliance reports.
h. Integration Capabilities: HRIS software often integrates with other HR and business systems, such as accounting software, applicant tracking systems (ATS), and learning management systems (LMS). This interoperability enhances data exchange and process efficiency across the organization.
Overall, HRIS software is indispensable for HR departments seeking to modernize their operations, improve workforce management, and drive organizational success in today’s dynamic business environment. Its comprehensive features and benefits make it a cornerstone of HR technology strategy. When evaluating HRIS solutions, utilizing a comprehensive HRIS Request for Proposal (RFP) template can streamline the selection process and ensure alignment with organizational needs.
HR Technology Trends for Digital Transformation Success in 2024 and Beyond
These HR technology trends are driving the Digital Transformation of HR in 2024, but it’s important to remember that this transformation is more about people than technology. IT leaders and HR teams need to source the right HR Software, and involve key stakeholders in the solution-sourcing process to ensure high user adoption. Finding solutions that drive innovation requires a collaborative process involving key stakeholders.
The bottom line is, the digital transformation of HR is here to stay. HR leaders are looking on with wonder as the world around them becomes more digital, and it’s about time. By collaborating with vendors and listening to employees to find solutions that work for all parties involved, your HR department will be ready to meet today’s digital trends head-on and give your company a head start.
