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10 HR Digital Transformation Trends for 2022

HR Digital Transformation is Happening Now

HR Technology has evolved to be a catalyst in the global digital transformation of human resources. Experts predict that HR technology will continue to grow despite the global economic downturn. As HR departments seek better ways to increase recruitment using automation, everyone’s future is secure when HR technology does its job well. Let’s explore some of the top HR digital transformation trends to look out for in 2022.

Director of HR technology and HR Analytics at Kong Inc, using Olive on HR Digital Transformation in 2022

10 Digital Transformation Trends for 2022

Updated September 2022

1. People Analytics to Data Literacy

In recent years, people analytics improved. HR teams could leverage recruitment, hiring, retention, motivation, and development data. In 2022, the need for people analytics will continue to grow. Businesses need a framework to understand the data and implement its findings into the organization.

2. 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 brought in for consideration on short notice.
  • Employee referral software: allows HR to collect recommendations from current employees about potential and current candidates.

3. 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.

4. Diversity, Equity, and Inclusion

Diversity, equity, and inclusion (DEI) is an important driver for growth and employees and has been shown to improve employee engagement, drive productivity and attract talent. DEI is also expanding to HR leaders who need to add this to enhance their modern work culture.

“In 2022, we’ll see more people-focused platforms building tech that is inclusive by default, empowering employees to define themselves in the virtual workplace, instead of being defined by presumptions about gender, pronouns, and legal names,” Danielle Brown, chief people officer – Gusto.

AI tools that measure workforce diversity across various KPIs are also set to grow in popularity, and AI can eliminate descriptors from job candidates’ profiles, allowing companies to avoid unconscious bias in the hiring process.

5. HR Management Software for Digital Transformation

From 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.

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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 technology 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. 

3. 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.

HR Tech for Digital Transformation in 2022 and Beyond

These trends are driving the Digital Transformation of HR, but it’s important to remember that this transformation is more about people than technology. IT leaders and HR teams need to involve key stakeholders in the solution sourcing process to ensure high user adoption. Finding solutions that drive innovation requires a thoroughly collaborative process that involves 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 transformation trends head-on and give your company a digital headstart.

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