9 ways HR technology will be disrupted in 2016
Published January 19, 2016 10:11 AM
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Updated January 19, 2016 12:18 PM
1 Min Read
HR technology providers are increasingly designing applications with an employee-first mindset, to enable workers to learn and develop, collaborate, share feedback, steer their careers and even manage other people more effectively. Josh Bersin, founder and principal of Bersin by Deloitte, shares 10 trends that reflect a major shift from a decade ago, when vendors designed HR systems primarily to streamline HR administration and help redesign HR processes. Today, digital technologies are transforming nearly every aspect of HR, from sourcing and recruiting to talent and performance management.
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Mobile emerges as a new HR technology platform
With smartphone use surging and employees across a range of functions seeking access to corporate applications via their mobile devices, companies are scrambling to adapt their HR systems accordingly. In some cases, they may create their own apps pared-down versions of enterprise software that offer users streamlined access to basic HR functionality, such as submitting time sheets or expense reports. In cases where companies are ready to replace existing HR systems, they may look for vendors that offer mobile apps as part of their core services. Regardless of whether companies build or buy, delivering HR functionality via mobile platforms requires companies to consider the different features, mechanics and user dynamics associated with mobile devices.
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Image: Fotolia
ERP vendors catch up as credible talent management providers
A decade ago, the talent management market was dominated by best-of-breed providers selling licensed software. Recruiting, learning and performance management tools were sold as separate products, forcing companies to stitch those systems together and integrate them with their ERP systems. Then, ERP vendors began acquiring these smaller companies and weaving specialized talent management products into their broader suites. As a result, many ERP vendors now provide end-to-end talent management solutions that meet the requirements of large, complex organizations.
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Image: Fotolia
Built for the cloud technology providers redefine HR functions
Even as ERP providers expand their HR product lines, a third wave of vendors is emerging with cloud-based talent solutions that are user-friendly, inexpensive to buy and built for mobile devices from the start. These new vendors target a range of core HR activities, including payroll, recruiting, learning and employee engagement.
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Image: Fotolia
New software categories include feedback, engagement and culture management
Companies have grown increasingly concerned about low levels of employee engagement. In response, a plethora of software vendors have popped up that provide new tools for soliciting real-time employee feedback, assessing culture, monitoring engagement and managing employee performance and goals. These tools allow organizations to more promptly uncover and respond to employees issues, needs
and suggestions.
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and suggestions.
Image: Fotolia
Performance and goal management are reinvented with feedback and check-ins
Dozens of large companies that have replaced traditional, year-end performance management practices with more agile, real-time and feedback-driven approaches have found their existing performance management software doesnt support their new processes. Startups see an opportunity to fill this gap, but to date they have yet to build into their products many of the features that large companies typically want, such as reviews and ratings. As a result, companies may have trouble finding the appropriate tools to support a performance management redesign.
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Image: Fotolia
Startups move to integrate learning content from disparate sources
The growing need for training has created tremendous demand for easy-to-use, web-based professional development content. Companies are increasingly offering online training from a range of sources and platforms, but the challenge many now face is bringing this content together to create an integrated learning experience for employees. As with the areas of performance, engagement and culture management, small vendors are stepping in to address this need.
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Image: Fotolia
The field of predictive analytics continues to grow
Predictive analytics is likely to become one of the most important features in HR technology platforms over the next several years. Even though many HR organizations have been slow to adopt people analytics, a wide variety of vendors offer impressive capabilities in that area, including the ability to identify toxic employees, recommend training, predict attrition and unplanned absences and highlight the promotions and transfers most likely to produce high-performing employees.
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Image: Fotolia
Cloud computing hasnt dampened demand for technology services
While cloud-based software is generally easier than on-premise systems to implement and maintain, it still requires significant effort to roll out. Bersins research shows organizations that purchase new cloud-based HR systems experience many unexpected challenges during the transition: New systems have to be harmonized with existing processes, integrated with existing systems and introduced to users with vast amounts of training and communication. To ease the switch from on-premise to cloud, select HR vendors that offer high levels of service, products with open-programming interfaces and industry-specific experience.
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Image: Fotolia
HR technology innovation brings employee engagement to the fore
The HR technology landscape is changing more rapidly than ever. As chief information officers and HR leaders look to upgrade and replace existing HR systems, they should consider vendors and tools that offer consumer-like experiences, mobile capabilities and predictive analytics and allow employees to test them for ease of use, not just for features and workflow. The number of employees using HR tools and the duration and frequency of their usage will become important measures of engagement and effectiveness.
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Image: Fotolia
