The HR technology market has grown immensely over that past decade, and analysts expect the industry to continue its rise. According to research, the HR software market is worth over $10 billion, and many of those segments’ growth rates are in the double digits. Technology is changing the way that HR departments operate, and innovations are going to continue to happen over the next few years. Here are a few technology trends we’re seeing on the rise:
Predictive analytics brings new insight
Most sales and marketing decisions are being driven by analytics today, and human resources leaders are beginning to follow suit. The use of workforce analytics has been slowly rising over the past few years, supplementing HR practices in sourcing and recruiting. At last year’s HR Tech conference, predictive analytics seemed to be the most-talked-about trend – particularly in alignment with hiring and identifying talent that’s on the verge of leaving the company. Offering unprecedented insight into talent acquisition and management, analytics capabilities like this are becoming increasingly sought-after.
Cloud spend reaches a new high
Spending on cloud-based technology is rising faster than ever. Bringing easier collaboration and lower costs to businesses, the cloud is changing the landscape for business processes--including HR. Today, most major HR software providers offer cloud-based solutions, offering users easier and cheaper version upgrades and increased personalization. Automatic updates also eliminate frequent headaches for system managers. The nature of this kind of technology also allows for greater flexibility and access to information, making it easier to reach and engage talent in our increasingly social, mobile, and internet-dependent workplaces.
Mobile applications for job seekers
Nearly two-thirds of Americans are smartphone users, and mobile is quickly becoming essential for accessing online information--for job seekers in particular. According to LinkedIn, nearly 45 percent of active candidates have applied for a job on their mobile device, which is causing HR leaders to rethink their mobile strategy. Many companies are moving toward mobile apps--not just a mobile version of their desktop site--in order to simplify the user experience and make it easer for candidates to research and apply for open positions. Simpler application processes will result in more applications, which will expand the candidate pool and helping recruiters find the best talent. Moreover, mobile applications allow for talent to better collaborate on the go and as part of virtual teams, so everything from onboarding to collaboration to performance management can be managed on the go or virtually.
Looking at trends like analytics, cloud, and mobile, it appears that technology is making it easier to support HR priorities such as increasing employee engagement, measuring performance, and finding new talent. And as HR becomes a more important part of the C-Suite, we can expect spending on HR technology to continue to increase. The HR technology market has seen rapid changes in just the past five years, and we’re likely to see even more in the next five.
Is your business benefiting from the latest trends in HR technology? Watch our webinar “Measurement, Meaning, and Action: Aligning Your HR Technology with Your Business With Jason Averbook” to learn how to stay relevant to your organization and increase the influence and effectiveness of HR.