According to a recent study, the HR management market is supposed to reach $56.15 billion by 2030, with a CAGR of 12.8% from 2022 to 2030. And a lot of that growth is being driven by digitization.

With such significant growth projected, it’s worth looking at the top tech trends for this year and the near future that could affect your organization. 

What is HR technology?

Human resources technology can be broken into three main categories:

  • HR management systems (HRMS) and HR information systems (HRIS) help manage various functions of HR, including payroll, personnel information, benefits administration, and more. 
  • Workforce management (WFM) is a set of processes that maximize productivity, such as employee scheduling, timekeeping, and attendance. 
  • Talent management includes recruiting staff, onboarding, developing skills through continued learning and development, and overall employee retention. 

Top HR tech trends

Artificial Intelligence (AI) in HR

Artificial intelligence is changing the way things are done, and HR technology is no exception. From chatbots to onboarding, AI is increasingly a part of the applications used by human resources for various functions. 

One of the major areas impacted by AI is recruitment – it can lead to a faster and better quality of hire. 

In terms of quality, AI can be used to search larger pools of talent, particularly by including those that are not actively seeking a job but fit the criteria. In fact, passive job seekers make up a whopping 73% of candidates. According to Forbes, 

Having the ability to efficiently search the entire universe of possible candidates allows for a more inclusive and effective search. Using AI to narrow a candidate pool or provide valuable data about a certain candidate group can add significant value and efficiency to recruiting.

With 52% of talent acquisition leaders saying the most challenging aspect of their work is screening individuals from a vast application pool, AI can make a significant difference in this area. While the human touch cannot be replaced, AI can automate the application process or manage interview scheduling, saving precious employee hours. This time can be better spent on engaging with applicants and ensuring they fit the company culture.

AI can also help employers gain a deeper all-around understanding of applicants by compiling data from various sources, such as social media presence. 

Focus on employee wellness

The pandemic brought to light the extreme need for a focus on mental and physical wellbeing. 

According to Pew Research Center, one-in-five American adults experienced high levels of psychological distress one year into the pandemic. Another survey from November 2021 found that 89% of individuals who left their job or were planning to do cited burnout and a lack of support as the reason. 

Wellness programs will (and should) be more holistic, with a more rounded approach to health than previously taken. In fact, HR leaders will attempt to personalize their programs to their employees’ needs, according to CoreHealth. 

Another way technology can help is by ensuring your employees feel connected to their peers and leadership and valued as a part of the company, as isolation contributes to the effects felt over the last few years. 

Mental health support is no longer an option, especially in a jobseeker’s market where organizations are struggling to attract and retain top talent.

Diversity, Equity, and Inclusion (DEI)

With DEI initiatives and programs (or rather, a lack thereof) under scrutiny, HR technology can lead to better insights that enable your organization to truly implement DEI. 

Real-time insights can drive better-informed management and development decisions by leadership. Technology should allow you to see if certain demographic groups have different experiences from others. Analytics can help you keep track of DEI KPI’s and ensure you are creating opportunities for employee groups that may be overlooked otherwise. 

The right HR tools and technology should collect data and use it to uncover hidden bias in both recruitment and among your existing workforce. Recognizing this bias allows you to scrutinize internal processes that may need to be reworked. 

Technology can also help expand the types of diversity they measure; a 2021 Bloomberg Law study found that 72% of respondents tracked diversity and wellbeing, yet a measly 17% tracked neurodiversity. Hopefully, the adoption of HR technology – along with the increased focus on mental health – will see this increase significantly.