Human Resources technology, or HR tech for short, is a term that is used to describe bounded software and hardware that automate various aspects of human resources within a company. This includes tasks such as finding and onboarding new employees, employee payroll, talent recognition and management, performance management, workforce analytics and so on. It benefits administration in many ways cutting the time needed for managing all the work that the HR sector has to accomplish.
In recent years, HR technology has experienced significant growth. Many large employers worldwide are adopting core HR technology systems provided by enterprise software companies, as well as specialized HR vendors. These employers are now transitioning from their on-premises systems to cloud platforms. This includes Software as a Service (SaaS), representing the emergence of a second generation of HR technology. Small and mid-sized employers are also embracing digital transformation by leveraging SaaS platforms or outsourcing their HR technology needs to cloud-based vendors.
Technology plays a crucial role in optimizing recruitment, training, and onboarding procedures, as well as supervision, task allocation and performance evaluation. Getting to know more about HR technology can assist in identifying the most suitable solutions for your company. There are many HR technologies with various functions and characteristics, and every company chooses what suits them best.
Talent management
Talent management process combines various activities such as workforce planning, recruitment, onboarding, training and development, and succession planning. Its task is to attract and retain highly skilled employees. Every company needs a leading performance management system software that will help run a company in many aspects. With the right HR technology, these processes can be automated and made most efficient. Several talent management software solutions are commonly used for:
- Applicant tracking system (ATS) utilizes artificial intelligence to announce job openings on a company’s official website and social media, to scan resumes, to schedule interviews for chosen applicants and send interview invitation emails to potential candidates. It saves both time and effort for the HR department.
- Candidate relationship management enables recruiters to effectively manage a pool of passive candidates who can be considered for opportunities on short notice.
- Employee referral software – to gather recommendations from existing employees regarding both potential and current candidates. This software helps in the process of making decisions by evaluating a candidate’s suitability for a vacant position. These assessments may combine various aspects such as cultural fit, personality traits, skills or essential knowledge.
- Succession planning software – these systems assist businesses in smoothly transitioning roles to other employees or departments without disrupting ongoing business operations. They typically outline the responsibilities and required skills for each position, track employees’ career aspirations, and enable businesses to prioritize internal promotions before considering hires from outside of a company. This succession planning software helps in strategically identifying and preparing suitable replacements for existing executives.
Performance management
Performance management is a practice that has evolved alongside the automation of various HR tasks. Instead of relying solely on the traditional annual job review, employers now recognize the value of monitoring employees’ work performance continuously. In addition to this shift, performance management modules integrated within HCM systems and standalone performance management platforms often provide interactive features. These features include employee feedback and thus they create a process of continuous performance management. Workforce analytics leverages individual performance management and skills data to enhance the allocation and development of human capital. It also helps identify the necessity for new departments and positions within an organization. These systems serve various purposes:
- They identify training needs through regular performance reviews, identifying strong and weak performances of employees.
- Boost staff morale by recognizing and appreciating high-performing employees and acknowledging their achievements.
- Enforce competency-based promotions by identifying employees who deserve promotions and salary increments based on their achievements and accomplishments.
- Assign tasks based on strengths – evaluating employees’ performance across different tasks allows organizations to identify their individual strengths, and change roles and responsibilities accordingly, in order to maximize each employee’s potential
These systems provide insights and tools for companies to optimize their workforce and enhance productivity, thus creating a healthy work environment.
Employee engagement software
This software has the potential to enhance communication within a business, leading to increased satisfaction and retention among employees. It utilizes different features for gathering feedback and sharing staff-generated content, ensuring to keep everyone informed, in order to encourage productivity and engagement. Various employee engagement systems offer news centers, online communities, chat features and employee recognition centers. Engaging HR technologies, an organization can:
- Improve communication at work
- Provide a platform for employees to express their opinions
- Foster a sense of appreciation
- Increase employee retention rates
- Enable employees to contribute more to company’s procedures and policies
- Enhance productivity by ensuring clarity regarding roles and responsibilities
- Track employee’s personal growth
Payroll management software
Organizations use payroll management systems to handle and monitor various aspects of employees’ compensation, including salaries, wages, taxes, bonuses and other. The great advantage of these systems is saving time and effort of HR management by automating payroll-related tasks. Software is used to calculate and send earnings, generate pay slips, as well as track employee attendances and leaves. As there is no need for physical pay slips and pay records, software cuts the costs. Payroll management systems also automate statutory compliance making sure that companies are up to date with changes in laws and regulations regarding salaries. Being web-based, these systems are accessible all the time everywhere, which enables employees to access their salaries remotely, as well as executives to monitor and process payments no matter where they are.
HR tech and company culture
The existence of HR technology is crucial for the sustenance of the present work culture. By offering a structure for virtual professionals to establish a sense of community, HR tech empowers managers and HR personnel to effectively manage both on-site and remote employees and teams. It has successfully cut the administrative responsibilities of HR leaders, allowing them to focus on enhancing the employee experience, fostering higher engagement levels and cultivating a thriving company culture.
