Top 4 HR Tech Trends in 2023 That Businesses Should Follow

What is HR tech?

HR tech is an umbrella term for software and hardware that are used to simplify various day-to-day HR functions. They can be cloud-based, automated, or provide analytics, to name a few, and they cover a wide range of functions such as recruitment, payroll and benefits (insurance, paid time off, reimbursements, etc.).

Incorporating HR tech in your business operations comes with many perks. To start with, you save time – allowing you to focus better on strategizing for and running the business. Secondly, you will also be able to save on costs. HR tech minimises the chance of human error – some of which can cost you a great deal.

We’ll go more in depth on why HR tech is vital for any business later in the article, but for now, you have a brief idea of what it’s all about.

What are the emerging technologies in HR?

  1. Data integration

Data integration happens when data from various sources are combined to give users a single view of them. Apart from centralising all your data, it allows for information to be transferred more seamlessly between systems, resulting in better data quality and increased efficiency. With manual systems, there is an increased risk of errors, fraudulent activities and overall poor quality of work. Now with data integration, this risk is mitigated due to there being a central network with better security and automation.

In HR, an example of data integration would be using a single system that connects leave and attendance, payroll, IT support and so on. All-in-one platforms like this are becoming increasingly popular due to how convenient and secure they are. Integrated HR platforms are cost and time saving, provide great user experience at all levels and show HR insights and analytics – something that’s crucial in making future business decisions. They can also provide local compliance assistance by keeping you up to date and ensuring you adhere to tax laws, company laws, labour laws and so on.

  • Digitising employee wellness

It goes without saying that having healthy, happy employees is key to running a successful organisation. However, since the pandemic started, employee wellness has been affected as people try to adjust to new norms. A survey by the Society for Human Resource Management showed that 40% out of 1,099 participants felt ‘hopeless, burned out and exhausted’ due to work-related concerns. 55% of those same participants reported having little interest or pleasure in going about their daily lives.

On that note, companies across the globe have taken several measures to look after their employee’s mental wellbeing. Some have adapted hybrid work arrangements or shorter working days to give way for a better work-life balance. Some businesses have also incorporated ways for employees to relax and refresh during work hours.

Tech comes into play here through various forms – online therapy/counselling for employees, adding mental health off days on the leave portal, or having a reward system that can be exchanged for staff benefits, to name a few. Google, for example, has a point system which employees can redeem for massages or spa sessions.

  • Cloud-based HR services

With hybrid/remote workspaces becoming a norm, companies have adapted methods to support their workforce remotely. One way of doing this is through cloud-based HR services, where core HR functions such as leave, payroll and benefits such as bonuses and rewards can all be accessed on a shared server. An extension of this are employee self- service (ESS) platforms, allowing them to easily access their leave, pay slips, IT/admin support and so on.

Cloud-based HR services are a must-have as all your data will be consolidated in one place. Speaking of data, all of this will be stored safely, so you will not need to worry about security. Using cloud software also means you get to cut down on costs and time that would normally be spent on manual tasks.

Payroll, for example, can be challenging to handle manually as it is multi-faceted, even more so if the business is based in different locations. A cloud-based self-service platform would be helpful as it can process payrolls from each client’s respective human capital management (HCM) system through integration with these HCMs – making it automatically easier for those companies with employees in different locations or employees working remotely.

  • Learning & development

It’s important to give your employees the right avenues for learning & development. When they upskill themselves, not only do they sharpen their talents and acquire new ones, but they also get to increase productivity at work.  According to the Association for Talent Development, companies that offer comprehensive training programs have 218% higher income per employee than companies without formalised training. They further reported that these companies enjoy a 24% higher profit margin than those that spent less on training.

To give your employees a more personalised learning experience, you can use a learning management system that can be accessed at any time. Employees can choose which courses or trainings to attend, or get recommendations based on their preferences. A good learning management system will have quality content (e-books, videos, assignments, etc.) that employees can use from wherever they are.

Why should HR leaders care about HR tech?

  • Adapt to changes easily

Any fast-growing business would be constantly evolving. HR tech allows for flexibility and scalability – which means as your business expands, the technology you use will be able to accommodate that growth. Once again, this saves you the time and costs of having to make room for these changes on your own.

  • Enhances employee experience

    Much of HR tech not only benefits the business, but also the employees. By incorporating tech into day-to-day functions at the workplace, you will be valued as an employer who wants to give your staff the best. This will improve employee engagement, which in turn will have a positive impact on employee retention.
  • Get data-driven insights into your business

    The right analytics software will be able to show what you’re doing correctly – and what you aren’t. This will help you decipher what you need to improve on, and how to utilise your human capital better. Through these analytics, you’ll also be able to find out if you’re doing a good job when it comes to diversity and equality.

What is the future of HR technology?

With new trends constantly emerging, we can expect to see more HR tech being introduced, as well as those mentioned above being refined from time to time. In the next 10 years, HR experts also expect to see a development in areas such as machine learning, blockchain and reverse recruitment.

For new and growing businesses, adapting to new trends and changes might seem daunting, but these are crucial for development. At Links International, we can offer business solutions that are catered to your specific needs and based on current trends. We also have our own all-in-one HR and payroll system – Links One – that can streamline your day-to-day to operations and manage multi-country payroll systems. Contact us today to find out more, and we’ll be in touch with you!