As leaders strive to drive growth, attract, retain, and develop top talent, and maintain a competitive edge, they have a massive opportunity to tap into the power of HR technology to transform HR functions, accelerate efficiency, and further organizational success. Streamlining workflow, optimizing team performance, and building positive employee experiences is the future of HR, and leaders who understand that know that embracing innovative technologies and solutions is the way to enable this future.

The Evolution of HR Tech

In 2021, the global human resource technology market size was valued at $32.6 billion¹. This number is projected to reach $76.5 billion by 2031², growing at a CAGR of 9.2% from 2022 to 2031³. The year 2021 also saw more than $11.5 billion⁴ in venture capital being flooded into the HR technology market.

Among many factors, this rapid growth of HR tech underscores the strong shift observed in the world of work, especially since 2020. The complexities of attracting and managing diverse and remote talent, a growing focus on employee well-being, the demand for data-driven decision-making, the widening skills gap and the need for increased innovation, as well as challenges surrounding employee retention, are all important factors fueling this evolution of HR tech. At the same time, it is also driven by the recognition that technology can truly transform the role of HR within the organization, elevating its position from a support function to that of a strategic influencer.

HR tech delivers on its promise of increased efficiency and growth in multiple ways. Of course, one of the most well-known tangible benefits of HR tech is the automation and optimization of HR processes. Let’s take AI-based recruitment tools as an example. They are designed to help HR teams reduce time-to-hire, and create simpler, more efficient hiring practices and processes. In the field of executive search, I’ve witnessed HR tech play a powerful role in streamlining candidate sourcing, leveraging algorithms to identify potential matches and assessing candidates’ experience and cultural fit more accurately, thereby ensuring the search process results in quality hires. Outside of hiring, automation is also useful in managing/storing employee data, payroll management, rewards & recognition, and performance reviews. Many companies reeling under the effects of ‘The Great Resignation’ turned to data⁵ to discover factors driving employees away and retention strategies that could help. Globally, the appetite for HR tech is growing, and the pace of adoption needs to keep up.

Harnessing the power of technology right

Given this backdrop, HR leaders across industries are seeking to unlock the vast potential of technology in their organizations. In doing so, I believe what matters the most is to have a clearly defined roadmap for adopting and implementing these innovative solutions. Having this outline ensures a seamless transition, allows leaders to derive maximum value, and enables HR teams to leverage technology for gaining strategic advantage.

Here are 3 key strategies that leaders must consider to effectively integrate HR technology into their operations:

1. Aligning with organizational objectives

   A foundational approach to ensure the successful integration of HR technology involves aligning it seamlessly with the organization's overarching goals and objectives. Understanding the unique requirements of a business empowers HR leaders to discern and implement technological solutions that actively contribute to meeting these needs. This entails a comprehensive evaluation of HR processes, identifying common pain points, and building a strategic map of how adopting HR tech solutions can help address these challenges. 

   
   

   Leaders must seek to strike a balance between tech initiatives and broader business strategies to positively impact the organization. By examining crucial aspects such as workforce planning, talent acquisition, performance management, and employee engagement, leaders can thoughtfully choose solutions that are in sync with the organization’s long-term goals.

   
   
2. Prioritizing change management

   Identifying and investing in relevant tech solutions is only one part of integrating HR tech into the organization. Change resistance⁶ and a lack of knowledge are some of the most common hurdles facing HR leaders in this process. HR tech adoption can face tough odds and success is far from guaranteed till the time everyone understands the ‘why’, ‘what’ and ‘how’ of the process. Training plays an essential role in facilitating this. From HR managers to business leaders as well as employees, every stakeholder who is impacted by the adoption of any HR tech solution must be aware of the benefits that come with it and learn how to use it. It is important that leaders do not rush the implementation process and develop a thoughtful plan of rolling out the changes, instead. Another useful change management strategy is to identify champions and advocates, people who are pro-change and partner with them to make the implementation process successful.

   
   
3. Putting people first

   There are many assumptions surrounding technology and its adoption in the workplace, and most of these are unfounded, stemming from a lack of understanding of technology. Leveraging HR tech to drive impact heavily relies on human collaboration. Technology on its own is not enough. Leaders are responsible for transparently communicating the importance of the ‘human element’ in tech adoption. A people-first approach to HR tech adoption can lead to increased employee engagement and greater organizational efficiency by ensuring that people have access to the tools, resources, and learning opportunities they need to successfully contribute to the big picture.

   
   

Parting thoughts

Around the world, several companies have employed AI and other technologies resulting in enhanced operations, employee & customer engagement, and risk management. Long before the sudden surge of tech adoption in 2020, global giants like IBM and Google were leveraging AI and people analytics to boost learning and development within the organization and improve decision-making on the whole. While the benefits of HR tech are clear, a key takeaway from industry examples is that without strong support & buy-in from the entire C-suite, HR tech implementation can be challenging and sometimes, even ineffective. Considering the wide impact of HR tech, CEOs, CHROs and other executive leaders should collaborate and be equally invested in the process of implementation.