Five Most Promising Areas of HR Tech Investment in 2022

Shefali Vasave | March 25, 2022 | 509 views

Introduction: Why Investment in HR Technology is Surging?

HR technology is much more than a buzzword. It’s a necessity. HR technology has transformed processes over the past decade, providing organizations with the tools, insights, and capabilities to be more agile, efficient, and connected.

However, today’s HR technologies are required to keep up with the unprecedented pace of the market.The  future of HR tech will include comprehensive solutions that help with recruitment and selection, on-boarding, performance reviews, learning management, and more!

As businesses look for ways to become more efficient in an increasingly competitive environment, let’s explore some of the areas where technology investment is currently focused.

“AI is our friend, if we use it in such a way. But never forget that it’s people who hire people, so we’ll always need a human element in the end.”

- Arran Stewart, Co-Founder and CVO


Virtual and Augmented Reality in Recruiting

Virtual reality (VR) and augmented reality (AR) have been around for some time and their use in recruitment and employee experience is growing rapidly. VR technology is a high-potential area for HR tech investment, and the rise of remote hiring and hybrid work cultures has only made it more significant.

For instance, Jet.com, an ecommerce company, is making the most of VR to showcase its corporate culture and office space. Jet.com has been able to connect with its new hires by showing events like its ‘happy hour’ celebrations to provide a glimpse into its every day operations.
KFC has been using VR since 2017 to train its staff to cook its signature fried chicken. The German railway company, Deutsche Bahn used VR to attract and engage the young talent pool. The company reported a significant increase in applications from young, skilled professionals after this move.


Blockchain in Employee Benefits

Blockchain finds mention in almost every discussion about game-changing technology trends worldwide. And blockchain-driven HR technology isn’t far behind. For HR professionals who manage large volumes of employee transactions, blockchain HR technology could be a catalyst in ensuring robust cybersecurity. In 2020, APG and PGGM, asset managers of the two largest pension funds in the Netherlands, reported that they were testing a system based on blockchain to simplify administering pensions.

Blockchain enables HR managers to provide on-demand pay, allowing employees to withdraw their accrued earnings any time they want. In addition to providing 360-degree control, blockchain has a feature called ‘smart contract’ that allows companies to automate their payments to independent contractors and vendors. These clear advantages have made blockchain a subject of future-proof technology investment.


Intelligent Chatbots for HR Support and Service Delivery

With the scope of global HR management expanding during the pandemic, recruiters need all hands on deck to attract, hire, and retain talent. Tech giant IBM developed chatbots to address this issue. IBM’s Watson Candidate Assistant (WCA) has transformed candidate engagement for IBM. The organization receives 7,000 resumes every day. WCA’s ability to match applicants with the right opportunity helped convert 36% of applicants compared to a website without the chatbot.

The business case for AI-driven chatbots is clear. As chatbots become the norm on technology platforms and career pages, investment and research in the area will only grow. Personnel Today reports that over 62% of organizations plan to start using AI in 2022.


Automation Improves Applicant Tracking

Applicant tracking systems, or ATS, are a staple in every recruitment process. Just as global HR management software eliminates the need for paperwork and repetitive tasks, resume screening can be enhanced. With the advancement of HR technology, it has become imperative to use automation for screening applicants.

For instance, leading cloud data management provider, Informatica integrated automated reminders into their ATS. This was done to reduce manual follow-ups between recruiters and hiring managers. 80% of hiring managers responded quickly and enabled recruiters to experdite their candidate search. This is just another case of HR technology yielding real-world results.


Predictive Analytics in Recruitment Processes

HR tech investment continues to boom in the field of data analytics. Predictive analytics is a relatively new tool that can predict an applicant's potential to succeed in a job and recommend them for a specific position.

HR departments use predictive analytic tools to identify high-potential candidates, who are likely to succeed at the company. The predictive model uses data like skills and experience and factors in personality traits like openness and conscientiousness. This also enables employers to develop a fit index to match an applicant’s resume with an ideal-match candidate profile. In fact, LinkedIn uses predictive analysis to match candidate resumes to existing job openings. With an increase in technology investment, predictive analytics will be able to do much more for recruiting managers in the near future.


In a Nutshell

HR processes are completely different than they used to be a few years back. Transformative technology and HR solutions have changed the way HR processes are managed. The future of HR tech investment is not about lowering costs but about optimising it for benefits.

While the main objective is to increase business efficiency, many areas of HR technology need to be disrupted to achieve new heights of employee engagement and experience.

HR tech investment is a way to make sure that the company can stay competitive in the digital era. With a lot of opportunities available and rising competition, companies need to invest in HR tech to stay ahead of the curve.


Frequently Asked Questions


What is the top obstacle preventing organizations from making HR tech investments now?

The top obstacle preventing organizations from making HR tech investments currently is a lack of understanding. Many companies are still unclear about what HR technology platforms can work for them and how to use them in their organization.


What are the industry trends in HR Tech?

HR tech companies are focusing on how to make it easier for managers to hire and retain talent. They aim to provide a more personalized experience for employees. Additionally, they want to make it easier for HR professionals and managers to find talent in their own backyard.


What does the future of global HR management look like?

The future of global HR management looks bright. With new technology, it’s easier for HR managers to keep track of their workforce and streamline the entire hiring process.

Spotlight

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Ikon Solutions Asia, Inc.

Ikon Solutions is a full service overseas recruitment agency that specializes in recruiting personnel from the Philippines, particularly for the hospitality, medical, construction, oil & gas and other service industries. Ikon’s highly specialized division, Ikon Executive Solutions (IES) focuses on successfully complex senior position searches in the Philippines to fit the precise requirements of the clients. In addition, IES also conducts international recruitment across Asia, Middle East, Africa, North America and Europe for various Culinary and Non-culinary requirements for the hospitality industry.

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