HR Technology Is Becoming A Priority for Businesses – Don’t Let Your Company Get Left Behind

A growing number of companies around the world are using HR technology to automate and streamline their HR functions and processes. Recent surveys have shown that companies that use HR tech are able to provide more meaningful, collaborative and engaging work experiences. They are also able to better develop the performance of their employees and attract and retain top talent.

However, before jumping in feet first it’s important to do your research. You need to understand what HR tech is, and how an HR cloud can benefit your organisation. You also need to make sure the technology you choose is a good fit for your organisation. Ultimately, the right software solution can be the difference between an engaged or an unproductive workforce.

• What Is HR Tech?
• Why Is HR Tech Important?
• Biggest Human Capital Challenges for Organisations
• HR Technology Focus for the Future
• Attract and Retain Top Talent
• Develop Employees to Reach Their Potential
• Improve the Employee Work Experience
• Benefits of HR in the Cloud
• How Can HR Leaders Effectively Use HR Technology
• HR Technology Action Plan: Insights You Can Use
• Select the Right HR Technology
• Successfully Optimise HR Technology
• Collaborate with IT on a Digital Workplace Strategy
• Factorial HR’s Centralised HR Software Platform

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What Is HR Tech?

HR technology is the future of the workplace. It is an umbrella term for the tools and systems used to automate a company’s HR functions and processes. This can include talent acquisition, payroll, performance management, leave and absence management, data and document management, and workforce analytics, amongst others. In smaller companies this might be done through localised software and platforms, and in larger companies it might include the use of SaaS platforms and cloud-based technology.

HR tech helps you streamline your processes so that automated tasks work more efficiently. By digitalising and automating certain processes and managing them through a reliable HR tech solution you can save your business time and money in the long term. This leaves you with more time to focus on important matters like employee development and strategic growth.

Why Is HR Tech Important?

Thanks to digitalisation and the technological revolution, the world in which we live is now very different to the one we lived in ten years ago. And the one we will live in in ten years time will be different again. The world around us is changing and technology is disrupting our lives. If 2020 and the COVID-19 pandemic has shown us anything, it is that we are increasingly reliant on the tech that surrounds us. It has kept us connected with our loved ones, and it has helped many of us to continue to work remotely. We value it because it makes our lives easier.

The same applies to HR tech. A report on HR technology by PWC last year found that companies are placing increasing importance on human resources technology. The report explored the effectiveness of technology investments from the views of 600 HR and HR information technology (IT) leaders around the world. According to their results, increasing numbers of organisations are using HR tech as a tool for success in the future of work.

Benefits of HR technology include:

• More efficient systems and processes
• Data centralisation
• Simplified time tracking and scheduling
• More control over analytics and KPIs
• Real-time visibility and easy access to data
• Employee development
• Improved work environment
• Increased talent acquisition and retention

Biggest Human Capital Challenges for Organisations

According to PwC’s HR Technology Survey 2020, the big six issues driving HR technology decisions are:

• Finding, attracting and retaining talent
• Developing people to reach their full potential
• Improving the employee experience
• Creating collaborative work environments
• Workforce planning
• Ensuring well-being, diversity and inclusivity

The annual report was based on the results of surveys taken by HR and IT leaders. 61% of the sample has C-suite and VP titles; 48% with $1 billion+ in annual revenue. Respondents represented a range of industries including technology, manufacturing, retail, and health services. The report also found that 74% of surveyed companies planned to increase their investment in HR tech to address the changing technological environment.

HR Technology Focus for the Future

As we continue to push forward into the future of work, there are a number of areas that we, as HR professionals, should be focusing on. What tactics will you use to attract the best talent? What employment model will your organisation use in the future? Is performance management a priority for you? How do you expect your workforce to evolve? Are you anticipating growth? A shift in demographics? It’s important to consider all these factors before you selected the right integrated software solution for your organisation.

You also need to think about how you are going to approach the human capital challenges cited in PwC’s report. This includes attracting and retaining talent, employee development, and improving the employee work experience. Make sure you prioritise these issues when you develop your business strategies for the future.

Attract and Retain Top Talent

As we step into the future, even more value is going to be placed on the employee experience. And it will start with talent acquisition. This will be especially relevant for those recruiting in competitive markets where candidates can afford to be more demanding. Companies will need to maintain smart, always-on and connected interactions with potential employees and talent networks

The recruitment and onboarding phase is a potential employee’s first experience with your company. If your processes are slow and inefficient it will be obvious from the start. In contrast, if a candidate sees that your company runs on a seamlessly integrated system they will be more likely to accept your job offer. In fact, companies that use ATS software and focus on improving the recruitment experience are more likely to succeed in capturing top talent. Making the right first impression could be the difference between finding the best person for the job and failing to fill a position.

Develop Employees to Reach Their Potential

HR technology is also a valuable tool for developing your employees so that they reach their full potential. As companies grow and expand in the market, they will demand more skilled and experienced workers to fill up the more challenging and complicated tasks. The right tech solution can help you design and manage a training and development programme that encourages and supports your employees so that they can advance their skills and knowledge.

As technology continues to evolve, it will be easier for employees to take part in mobile learning. An extension of online learning, with mobile learning users can access training materials directly from their smartphones. By promoting initiatives such as this you can empower your employees to take control of their own professional development. And with HR tech you can monitor and track their progress and make adjustments to your workforce accordingly. This will help you develop a highly-skilled workforce, boosting the overall productivity of your company.

Improve the Employee Work Experience

The third most important challenge to consider is the employee experience. This should be a top priority for your company as you step into the future. Countless studies have shown that employees who are happy and comfortable in their jobs are more engaged and productive. They are also more dedicated to their own professional development.

Strategies that can improve the employee experience at your company include employee engagement platforms, collaborative work environments and employee recognition programs. The right HR technology can help you keep your employees motivated and enthusiastic about their jobs. And if they feel valued and appreciated, they will be more likely to stay at your company.

Benefits of HR in the Cloud

HR cloud software, also known as Human Resources Information Systems (HRIS), can help you centralise and manage all your employee processes. All your important employee data is available at the click of a button so that you can make the best decisions for the good of your business. This includes data relating to attendance, time management and team performance.

According to PwC’s report, HR leaders reported that:

• HR cloud applications form the basis of their technology portfolio and provide them with measurable benefits. 72% of respondents claim to have moved or began to move all their key HR processes to the cloud.
• Cloud-based solutions have enabled them to achieve increased productivity, improved employee experiences and better workforce insights.
• Administrative systems have delivered as expected in terms of benefits.
• HR cloud solutions focused on talent management and intelligence solutions have shown a high ROI. The same benefits were cited for workforce analytics, workforce planning solutions, and recruiting solutions.

How Can HR Leaders Effectively Use HR Technology?

Although HR technology provides many companies with a clear range of benefits, such as increased engagement and productivity, many of those surveyed by PwC claimed to still be struggling with adoption changes. The reasons for this include a lack of planning and performance management, unclear benefits and poor user experiences.

Before you implement HR technology in your company, you need to design an effective strategy to help your employees adapt to and embrace your new way of working. Although some companies rely on incentives and gamification to encourage adoption, strategies focused on training, leadership and communication tend to give better results.

It’s all about creating the right environment. You need to create a corporate culture based on encouragement and support. Make sure your employees understand why HR tech is being implemented, and how it can benefit them. Involve them in the process and ask them for their input. Put them at the heart of the process and try to make it fun. Provide training and update your company policies. Most importantly: nurture a work environment based on trust, collaboration and respect.

HR Technology Action Plan: Insights You Can Use

Now that you understand the benefits of cloud-based tech solutions, the next step is to create your HR technology action plan. This plan should take into consideration where you are now, and where you would like to be in the future. This is important because it needs to account for the effect of digitalisation and evolving employee expectations and how this might impact your business. Does your HR technology meet current and future requirements? How much are you able to invest? How much focus will you have on analytics? Once you have taken these aspects into consideration, collaborate with your IT department to define an HR technology strategy and roadmap for the future.

Focus on:

• Selecting the right technology
• Optimising your HR technologies
• Collaborating on digital workplace strategies

Select the Right HR Technology

Before you can choose the right HR technology for your company, you need to understand how it works. How will the solution you select improve how you recruit, develop and manage talent in your company? What technological support will you and your employees need? What application features do you need to support the unique needs of your workforce and business?

Once you understand exactly what your needs are, you will know what features to look out for when you develop your HR tech strategy and select the right tools and tech solutions.

Successfully Optimise HR Technology

Aside from selecting and implementing your selected HR software, you also need to consider how it can be developed in line with your business growth. In other words, can it be adapted to changing objectives and business operating models? How will you manage change and stakeholder expectations? Can you adapt your solution to changing workforce preferences?

The right HR solution should adjust to your specific needs both now and in the future. It should support continuous growth and re-shape itself as you develop. For this reason, you need to focus both on where you are now as a business, and where you see yourself a few years down the line.

Collaborate with IT on a Digital Workplace Strategy

The final vital aspect when designing your digital workplace strategy is collaborating with your IT department. We can’t stress enough how important this step is. Both departments need to provide equal input. HR knows which functions need to be addressed, and IT understands how it can be done. IT is also more likely to have its finger on the pulse of HR technology trends.

Factorial HR’s Centralised HR Software Platform

Factorial’s ‘all-in-one’ centralised HR software platform includes a vast array of features that can help you implement an effective HR technology system that pushes your company to the next level. Our applications include time tracking, time off management, applicant tracking systems, shift management, performance management, reporting and analytics, and document management.

You can use the integrated, adaptive, all-inclusive platform to streamline and automate all your HR processes. What’s more, all these features work together to offer you a seamlessly efficient system that optimises the performance of all areas of your HR department. And as our cost-effective solution is intuitive and user-friendly means that it will be much easier for your employees to adopt and embrace.

Benefits of implementing our software solution include:

• Increased efficiency and productivity
• Improved visibility
• Improved customer experience
• User-driven innovation and optimised performance
• Accuracy and regulatory compliance
• Improved reporting in real-time
• Centralised and secure data storage
• It saves you time and money

Optimise your HR processes with Factorial🚀 Try it now for free.