The HR technology market is exploding with growth and innovation, according to Bersin by Deloitte. One of the biggest is the trend toward automating HR practices and integrating systems, making them so easy to use that people think of them as part of their daily lives. By weaving many HR processes into employees’ daily workflow, solution providers are making it easier for people to update their status, find their benefits, locate other skilled people, find and take courses, assess job candidates, complete onboarding for a new job, and set or monitor goals.
While this shift in the purpose of software from “systems of record” to “systems of engagement” may be the most profound issue impacting HR technology today, here are nine additional trends:
- Mobile is everything. Mobile applications, such as online learning and goal-setting, are positioning the phone to become the primary interface for all HR-related applications.
- Solutions are becoming analytics-driven, science-based. One new solution looks at real-time labor activity and, using analytics techniques, shows companies how to save millions of dollars in payroll expense without reducing any worker flexibility or productivity.
- Science of leadership, assessment, and psychology is evolving with big data. A new set of companies are emerging that bring together traditional assessment with big data and what may be called “social sensing” to help organizations better understand the relationship between skills, personality, and organizational culture.
- Sensing, crowdsourcing, and the “Internet of Things” take off. Companies are looking at ways to capture continuous data about hourly employees (time worked, schedules), high potentials (whether they are threatening to leave, how they are feeling about work or their managers), and leaders and staff (how they are performing, why some people are performing better).
- Recruiting is experiencing radical change. Thanks to new online job information and networking sites, we now source, attract, and recruit candidates through what we call “network recruiting.”
- Performance management and talent mobility are advancing. A new breed of performance management tools and approaches now includes features for regular check-ins, transparent sharing of goals, and agile team management.
- Market for learning management systems (LMS) is expanding. New LMS technologies now integrate learning with talent and performance management. They include integrated content and expertise management, and they often have integrated collaboration, recommendation engines, and tools.
- HR management systems (HRMS) and talent management are merging. All major HRMS vendors offer recruitment, performance management, talent management, and analytics, and most offer learning solutions along with their core HRMS and payroll applications.
- Technology-savvy vendors will outpace their peers. Winning vendors will likely have agile, highly expert teams, and they will likely release new features and interfaces every few months. They also are expected to adapt their products rapidly as technology, user experience, and client demands change.
Source: HR Technology for 2015: Ten Big Disruptions Ahead, released October 8, 2014; Bersin by Deloitte, 180 Grand Avenue, Suite 320, Oakland, CA 94612; telephone: 510-251-4400.