HR Tech – Top Trends Driving Investments in 2022


The HR tech landscape has changed a great deal over the past five years, and most recently, the COVID-19 pandemic has highlighted the importance of technology for resilience and preparedness. Not only that, but it has impacted all business functions and brought HR itself to the forefront, demanding significant changes in how every company treats and manages its people. 

Emerging HR tech has already changed the way businesses recruit, hire, and manage employees. As a result, HR departments were already navigating a complex and ever-changing landscape even before the pandemic added to that complexity. While one-third of HR executives intend to reduce budgets this year, Gartner’s dataOpens a new window shows that 90% will keep or grow IT investments. So it’s crucial to be sure that new HR technologies such as talent optimization platforms have a place in their portfolios.

The following are a few trends that will drive HR investments this year.

HR goes Remote

Remote and hybrid workers will be among the most significant and likely permanent changes to the modern workplace; in the US, remote workers are forecasted to make up 53% of the total workforce in 2022, according to GartnerOpens a new window . HR professionals must adapt to this new reality.

HR departments will have to adjust not only to physically absent employees but also to the remote screening, interviewing, and onboarding of new workers. Software- and cloud-based onboarding software and tools are likely to be adopted to resolve many of the complications of remote and hybrid hiring practices.

HR employees, who may themselves also be working remotely or hybrid, will need to navigate the integration of these new technologies into managing the department, HR responsibilities, and daily tasks. This will require considerable new training and engagement with IT that may not have felt as urgent two years ago.

Recruiting Gets an AI Boost

Artificial intelligence is revolutionizing HR, and nowhere more than in recruitment. AI-based processes are changing the way employers find talent by offering powerful insights into applicants’ capabilities using a variety of sources, including their social media activity.

IBM, for example, uses AI to analyze the social media shares of a potential hire. It also analyzes the sentences and facial expressions of the applicant to see if they’ll be a good fit. While this may seem a little frightening, this can be used to reduce hiring discrimination and create a diverse workforce. Like any powerful tool, it’s up to the professionals to put it to good use.

See More: The Future Is Here: The Evolution and Implications of AI in the Workplace

Expanding Hyper-automation

Hyper-automation is the concept of blending AI and robotic process automation (RPA) to increase efficiency in any situation that automation is applicable. Automation has already been widely adopted in payroll, recruiting, and service management, but HR executives should begin to apply hyper-automation to all HR activities. This will improve efficiency and reliability and prevent mistakes in activities prone to human error.

In particular, administrative tasks that have slowed down HR should be automated so that HR can focus on people and add value to the business. According to the McKinsey Global InstituteOpens a new window , 56% of all activities performed by HR departments can be automated with current technology, and new techniques and applications are being developed constantly.

With automation in HCM, there will be more opportunities to mentor and train employees and focus on career planning and development, which directly impacts engagement and retention. However, technology cannot replace problem-solving, collaboration, communication and listening. HR specialists offer a unique human perspective and a deep understanding of people essential to building relationships and gaining trust.

HR and Cybersecurity Form a New Bond

With the rise of work from home, the risk of cybersecurity attacks on businesses also increases. In addition to the increased “attack surface,” cybercriminal efforts to damage businesses, steal personal data and cause chaos are intensifying. As a result, HR professionals must now participate in cybersecurity initiatives to protect businesses.

HR departments are required to collect and store personal and sometimes sensitive information about every employee, which is a potential risk in the case of a data breach. It’s much more critical when HR workers work remotely, as cybercriminals are likely to target remote companies.

HR professionals must collaborate with IT experts and outside contractors to keep business data safe. The results of underestimating this threat have been observed over and over again: lawsuits, lost profits, a heavily damaged reputation, or all three and more.

All-in-One Employee Management Applications 

The benefits of HRMS apps go beyond employee engagement and productivity. From onboarding employees and monitoring productivity to closing communication gaps, time-tracking, and more, all-in-one management applications will be the most efficient method for HR staff to keep track of remote and hybrid employees. 

With all-in-one applications, HR staff will not be required to learn several new software platforms an instead focus on becoming familiar with one main application for employee management. Additionally, having one location for employee communication will prevent communication barriers and the loss of crucial information.

Finally, cloud-native applications will keep records of company processes and protect them from data loss. Countless other industries have made this transition and have never looked back.

The following are a few drivers that will drive investments.

Digital Transformation Accelerated by COVID-19

A rapidly changing market environment forces companies to adapt to changing workforce requirements. This includes talent management, workforce management, and payroll management.

Demand for Integration of AI

Live work simulations, on-demand labor forces, and effective analysis of employee performance will increase demand for integration of artificial intelligence (AI).

Demand for Predictive and Workforce Analytics-enabled Tools To Increase the Market Growth

Companies are shifting from back-office HR data warehouses to more advanced reporting and analytics dashboards to study sales productivity, employee and retention problems, and other issues that directly affect their productivity. Vendors in this market are integrating analytics as a core part of the software, including assessment, operational, or learning tools.

Machine learning-enabled predictive and workforce analytics take employee engagement and retention to another level. It also helps in identifying the current and future skill gaps. 

Outlook 2022: Planning Is Key

HR leadership must adopt new technologies for HR procedures and applications to stay relevant and attract and retain top employees, both within the department and in the business at large. Even though the top technology trends are emphasized, HR executives must understand their own technical requirements and skills and when IT or other experts should be consulted. Choices should be made based on what will best improve the company as a whole and the overall employee experience.

What do you think are some of the top drivers and trends driving HR tech investments this year? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .