Human resource (HR) technology can be said to be a set of tools utilized by human capital specialists. It helps to automate everyday operations, stabilize information storage, and analytical management of records for advanced decision-making. It is utilized by numerous businesses since it allows to enhance the recruiting performance and streamline a couple of procedures. In addition, it reduces the executive burden and the compliance and administrative costs. HR technology additionally optimizes the hiring system and associated responsibilities and improves the general performance of the HR department.
The human resource technology market of India is generally propelled by speedy industrialization and urbanization. It has resulted in the growth of many corporate businesses. Also, there has been an increase in the number of demands for advanced HR tools. That is to help in enhancing the learning, productivity, and engagement of employees. Moreover, the several digitization projects undertaken by the Government of India have furnished an impetus to the boom of the market. Furthermore, the amalgamation of HR technology with cloud computing, SaaS, artificial intelligence, business intelligence (BI), and dashboards has supplied extra flexibility and competitiveness over other solutions, impacting the industry’s growth. Contemplating all these factors, the market is anticipated to retain its robust growth throughout the forecast period (2021-2026).
The value of the global human resource management market size was at USD 16.01 billion in 2019 and is anticipated to showcase a CAGR of 11.7% from 2020 to 2027. Improvements in IT together with the advent of predictive analytics in HR procedures are predicted to enhance the growth. The evolution of numerous human resource management solutions has enabled experts to carry out conventional HR activities in a decreased period and with eventually increased focus on alluring the proper candidates. It is assisting to preserve human capital, streamlining organizational techniques with discrete goa
ls, and dealing with human assets in a way that affects organizational growth.
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Recent HR Industry Trends, India vs Global
Previously, many talent leaders and industry professionals expected the developments that had been set to restructure the HR industry in 2020. However, the coronavirus has introduced a lot of changes in the traditional way of work in the year. From commuting limitations to staying in isolation, the Covid pandemic is generating a profound impact on the way businesses operate, and it is set to remain for long.
- Transition to Remote Working – According to a survey by Gartner, 88% of global commercial enterprises have mandated or advocated their personnel to work from home, and 97% of enterprises right away canceled all work-associated tours. Evidence indicates that remote work has been a boon to many because of its benefits like flexible working hours, saving time and commuting costs, etc. A survey of near about 1,000 firms by the Institute of Directors (IoD) indicates that 74% plan on preserving the growth in remote working.
- Online Coaching and Upskilling – A report from McKinsey mentioned that nearly 90% of executives pronounced that they had been presently experiencing a skills gap, or might be soon. Employers are adopting initiatives to connect with personnel and offer digital coaching, focusing on developing a culture of constant learning and growth. Considering the existing Indian market scenario, businesses are inclined and open to investing in collaboration with robust Learning and Development to assist personnel to improve their abilities and be organized for the imminent challenges.
- Optimizing Human Analytics for Decision-making – Around 80% of HR executives consider their agency is unable to use talent data to make decisions. In 2021 and beyond, global HR groups will be seeking to combine humans analytics with decision-making tactics as a way to power enhancements in areas like expertise acquisition and worker management. The McKinsey Global Institute predicts that demand for analytics translators in the U.S. can reach 4 million by 2026. A high rate of 92% of talent experts in India finds PeopleAnalytics to direct the future of HR and recruiting, according to a LinkedIn report.
- Integration to Artificial Intelligence – Oracle and Future Workplace carried out a study that discovered that 50% of personnel already use a few forms of AI at work, which is a massive growth from the 2018 stats of 32%. In the case of India Inc., a report states that nearly 70% of the corporations have automated half of their HR features by amalgamating AI into their technological capabilities. Several HR practices have benefited from the combination of Artificial Intelligence in HR technology, from the recruitment process to engagement and development.
- Contactless Hiring – While the beginning of the pandemic witnessed plenty of job losses, with the economy commencing up, hiring processes have additionally ramped up. 38% of organizations have a virtual onboarding platform and large corporations are much more likely to make use of technology solutions. According to a LinkedIn survey in India, 74% of the enterprises in the APAC vicinity will continue digital hiring in the post-Covid times. Companies can now bypass the long-drawn method of conventionally hiring recruits, organizing personality tests, and going through numerous CVs.
Conclusion
HR will keep adopting best practices to improve the work experience and fulfill the present business requirements. With innovation in virtual infrastructure, businesses are set to adapt to the post-pandemic world. Hence, the upcoming years are probably going to be more about reshaping the present work models whilst staying competitive for business sustainability.
