Here we are again with another of our Top 10 HR trends in 2022. At number 8 we are talking about HR tech, and the need to re-design and re-think to maintain that competitive advantage in the future of work.
HR Tech – what is it?
According to Techtarget; HR technology is the overarching, or umbrella term for all the hardware and software that is associated with automating the HR function in an organisation.
This includes things like payroll, talent management, workforce analytics, performance management and benefits administration.
Some of the largest HR tech systems that are widely used include Oracle and SAP.
Some organisations use cloud-based platforms for storing and sharing of data to enable greater collaboration particularly where there is a dispersed workforce. This can also ensure that remote workers can access what they need anytime that they need it.
Examples of how HR tech is used include:
Payroll
- The ability to pay & track wages
- Manage reductions (Tax, NI, or pension contributions)
Travel & Expenses
- A system to enable employees to purchase or claim back expenditure on travel undertaken for business needs
Employee Engagement
- Through the use of platforms and apps you can use a wide range of approaches to engage and personalise peoples experience at work
- Communication platforms (like Yammer) allow people to get information and use gamification techniques to motivate individuals.
Learning
- Learning Management software (LMS) can be used to customise peoples learning and development profile which helps them access the right learning and development at the right time to enable growth
Other functions where HR tech is used include performance management, recruitment, and onboarding.
How to choose a HR software system?
In 2022 people management is a priority as we find our way in a post pandemic world. With hybrid working at the forefront of many HR leaders’ minds alongside recruitment and retention problems, having the right HR tools in place is more critical than ever before.
HR software trends include:
- Use of AI, to spot patterns and make predictions is useful when recruiting and developing talent. Automation can make these processes more accurate and efficient.
- Augmented and Virtual reality – useful in recruitment to show people what the work in the organisation is like as well as a tool for providing first-hand experience with the processes and procedures that people need to learn how to do their jobs.
- D & I – specialised learning content and AI tools that are intended to remove bias for example, in our recruitment or development processes.
- Mental health – People struggling with isolation, burnout and stress following the pandemic. Use of mental health apps or portals in benefits packages.
- Remote & Hybrid work – Use of videoconferencing software, team collaboration tools. Some software can also help with remote performance management, recruitment and onboarding, employee engagement and wellbeing.
- Use of bots – These can perform first stage responses to questions in employee & manager self service platforms, benefits selection, expenses, and travel to mimic human actions that frees up people to deal with more complex matters.
Most platforms are known by different names:
Human Resource Management System (HRM)
Human Resource Information System (HRIS)
Both these tend to come under the umbrella term of Human Capitol Management (HCM)
These suites of software typically include sets of software modules which can be purchased together or separately:
- Core HR (Benefits, employee records, payroll)
- Talent Management (Compensation, learning, performance, recruitment, and succession)
- Workforce management (Scheduling, time & attendance)
- Service Delivery (employee & manager self service)
One of the biggest benefits of using HR tech is to automate functions or processes which frees up time for people to spend on high value tasks, (gone are the days when you use an abacus to calculate wages or an excel spreadsheet to work out annual leave entitlement).
According to Brian Sommer, President of Techventive consulting. The main issue when buying software is that we look for products that automate our existing processes. Instead, Sommers advises, we should be available to look at what is the art of the possible with the tech on the market, reimagine the process we wish to automate and then pick a provider that can close the gap between the ideal and the reality.
The system (or systems, as you may need different aspects from different providers) should be there to serve the needs of the people in the organisation at every step of the employee lifecycle and not just serve the HR team.
Techtarget in their article, share seven top tips for HR software selection:
1. Create a strategy to evaluate HR tools. Define the organisations biggest workforce challenges, needs & goals
2. Assemble a team. This should include people from IT, Finance, HR, IT security, managers and staff who will use the software
3. Identify your requirements. Go through and list what is important to the organisation in a HR software system i.e., tech requirements, business issues, compliance, and governance
4. Identify potential providers. Reach out to people in the same sector as you to understand what they use, do other desk-based research to pull together a list, and then note the pros and cons for each. Then narrow down that list to a few suppliers to approach for more information
5. When you approach a provider, send a proposal setting out information about your organisation, what the project is, what is the timeline, scope?
6. Arrange and hold demos. This is the best way to see if what the system can do will meet your needs. Ensure the project team are there to capture everyone’s views. If possible, ask the provider to prepare a demo based on actual use cases to see if the product will deliver what you need it to
7. Write a business case setting out
- Who participated in the process?
- How you gathered the data
- What the benefits measurement is (i.e., how the new system will improve the HR process)
- ROI calculation (how the costs and benefits metrics show when the system will pay for itself and how)
Leading providers
As well as Oracle and SAP. Other large providers include Microsoft and Workday. These tend to have entire HCM platforms
Other niche providers that can provide part of the service that is in hot demand at the moment include:
Qualtrics – customer and employee experience analysis
Service now – IT helpdesk for employee self service
Visier – People Analytics
Whatever problem you are considering looking at, it is important to look at your organisation and peoples needs to choose the right system(s) that are the correct fit for you. Continually reviewing to ensure they maintain being fit for purpose will ensure that your organisation will be prepared for the future of work.
@ Karen
