Navigating HR Tech Trends in 2021: A Comprehensive Guide
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Chapter 1: The Shift in HR Technology
The past five years have marked a significant transformation in our world. Historians may view this period as a pivotal moment when we collectively embraced a new era. We’ve faced extraordinary challenges, from the COVID-19 pandemic to severe weather events and socio-economic instabilities. These changes have not only affected our daily lives but have also fundamentally reshaped the workplace.
Organizations that adapt by investing in digital solutions encompassing people, processes, technology, and data will emerge as leaders in this new environment. Traditional HR systems, often rigid and outdated, can no longer meet the dynamic needs of the modern workforce.
In this article, we will explore the foremost trends in HR technology and provide guidance on maximizing your investments.
Section 1.1: Reinventing Core HR
Conventional HR systems, characterized by cumbersome data structures, fall short in today’s fast-paced work environment. They struggle to manage the essential skills that are crucial in the job market. Key inquiries include: What skills does the organization possess? Which of these are critical for maintaining operations during crises? How can skill gaps be effectively identified and addressed?
To tackle these issues, modernized core HR systems must transcend traditional job definitions to reveal the foundational skills necessary for various roles. A skills-focused HR system should deliver several advantages:
- A comprehensive overview of skills, drawing from both internal (employees) and external (contractors, partners) sources, as well as technological resources (like AI).
- The ability to align skill availability with project needs, transcending conventional job, geography, and departmental boundaries.
- A transformative approach to talent management that incorporates skills management, facilitating workforce planning, recruiting, onboarding, and continuous learning.
- Enhanced organizational agility to swiftly adapt workforce configurations in response to crises like the COVID-19 pandemic.
Leading vendors are beginning to introduce such innovative HR systems, with more expected as their benefits become clearer.
This video offers a thorough overview of HR technology trends in 2021, detailing market dynamics and solutions that organizations can adopt.
Section 1.2: The Concept of Open Human Capital Management (OHCM)
The term Open Human Capital Management (OHCM) encapsulates trends aimed at reducing limitations on technology access and user experience. Companies are increasingly recognizing that no single system can address all their human capital management (HCM) needs. They prefer vendors that can consolidate HCM data while allowing for customization to meet specific demands, especially in areas like crisis management, safety, team collaboration, and global payroll.
In response, some vendors are creating ecosystems with pre-built integrations and user-friendly platforms, enabling customers to develop their own applications with minimal coding skills. As organizations seek to simplify the user experience, HR Service Delivery (HRSD) solutions are stepping in with integrated helpdesk and knowledge management features.
Furthermore, OHCM aligns with the World Economic Forum’s Presidio Principles by promoting employee data ownership and consent, facilitated by blockchain technology. This shift challenges traditional business models that rely on monetizing employee data and encourages the establishment of secure, regulated workforce databases.
Chapter 2: The Rise of Analytics and AI in HR
People analytics has gained significant traction, especially following the recent pandemic and social movements, highlighting its critical role in employee engagement, retention, and diversity initiatives. The democratization of analytics is on the rise, empowering managers and HR leaders to utilize data effectively.
The integration of analytics with artificial intelligence (AI) is becoming increasingly common, blurring the lines between predictive and prescriptive analytics. This convergence raises the question: Can analytics not only forecast events but also suggest actionable insights? Companies are beginning to leverage Learning Experience Platforms (LXPs) that provide timely nudges to help employees close skills gaps precisely when needed.
While AI applications are still maturing, they are being integrated into HRSD and recruiting processes. We are witnessing advancements in text-based digital assistants and the development of voice interfaces for scheduling and resume evaluation. However, ethical concerns surrounding AI, such as privacy and discrimination, are prompting organizations to proceed cautiously.
Emerging technologies like augmented reality (AR) and virtual reality (VR) hold promise for the future, offering immersive training experiences and enhanced candidate selection processes. As organizations implement these technologies, it is vital to consider the implications of change management, addressing fears and uncertainties that may arise among employees.
For insights into developing your future workforce, visit PwC — Workforce of the Future.
This video delves into strategic HR technology approaches, offering a deep analysis of best practices for leveraging HR tech effectively.
About the Author
Harsh Kundulli is a storyteller dedicated to guiding clients through enterprise technology transformations. He also enjoys sharing narratives with family and friends. Discover more about him on LinkedIn.
Other stories by Harsh on Medium:
- Powerful Lessons from My Life After MBA
- Life Lessons from a Chance Meeting with Buddha