Every single function in the organization has been called upon to make dramatic changes in the way they work, thanks to the global pandemic. But among the most drastically impacted has been the HR function, which has been called upon to literally reimagine and reinvent the workplace and workforce almost overnight. Every facet – from talent acquisition, retention and engagement, onboarding and offboarding, to admin and logistics has quite transformed in the span of a year, and it doesn’t look like it will ever go back to the old normal.
The virtual workplace and distributed workforce is here to stay, and HR leaders have no option but to ensure that they have the technological finesse to execute people management in this new world.
This acknowledgement is what has propelled HR Tech to become a $148 billion industryOpens a new window in 2020 as per one industry report, which also finds that funding for private HR tech startups has risen 75% since 2017.
PWC’s reportOpens a new window on HR tech investments in 2020 finds that 74% of respondents plan to increase spending on HR tech in 2020 to address pressing talent needs. The report says ‘that’s on top of the $310 per employee per year they already spend on HR tech’. Another study pegs the average amount that employers spend on HR technology per employee per yearOpens a new window to be $483Opens a new window . Hundreds of new startups offer every conceivable SaaS solution to support this latest, inevitable phase of HR digital transformation.
Just as marketers acknowledged that the digital shift in customer behavior was accelerated due to the pandemic and put systems in place to cope with it, HR too has to acknowledge that talent is now truly location agnostic, and employees and employers alike are more comfortable with the idea of a virtual workplace than ever before. But this new ‘working-from-anywhere’ normal, even in key positions, is a double edged sword for HR.
On one hand, a global talent pool has opened up with location no longer a constraint, as long as the candidate is ready to travel a couple of times a year to meet leadership or colleagues (even that is not so necessary with improvements in virtual collaboration tools and video conferencing technologies). On the other hand, they are now faced with the challenge of keeping large, distributed teams engaged and committed to the vision of the organization, not to mention measuring productivity in new ways. The role of technology – HR technology specifically – in executing modern human resource management in the post-COVID era is central, but it needs to be technology that enables human-ness and empathy. A PWC study finds the 6 big issues driving HR tech investmentsOpens a new window are:
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- Finding, attracting, and retaining talent (58%)
- Developing people to reach their full potential (43%)
- Improving the employee experience (42%)
- Creating collaborative work environments (40%)
- Workforce planning (38%)
- Ensuring well-being, diversity, and inclusion (34%)
A clearer understanding of the areas needing urgent focus helps prioritize investments. Some areas to consider include;
1. Talent acquisition is now remote, with virtual interviews being the norm. However, it is also about interviewing people in far-flung locations, and that has its complexities, from coordinating calendar time zones to understanding cultural nuances. Aside from the video conferencing technology, which needs to be robust in itself, there is also a need for new systems around collaborating for the hiring process, recording unbiased feedback, and closing the process quickly. HR is increasingly turning to intelligent ML and AI enabled systems to help with everything from background checks to analyzing body language and unstructured data to determine how good a fit the candidate may be for the role.
2. Talent engagement from employee engagement platforms to actually getting regular virtual meetings on calendars for people managers, leadership, and teams across the length and breadth of the organization, HR is tasked with a broader scope than ever before. Participating in employee resource groups, reward and recognition events, and even coaching and mentoring – all need to be managed virtually, calling for new ways of leveraging technology to record and track every interaction. HR is tasked with finding the right platform that can do the job on all fronts, including people retention as the job market opens up in new directions.
3. Well-being and benefits HR Is now more involved than ever before in the real-life experience of employees outside of the workplace. From engaging with families struggling with mental health challenges to providing access to basic necessities such as a home office and physical therapy and fitness, wellness has become part of the HR mandate in the modern workplace. How HR can build enabling systems to deliver empathy, virtual care, and empowerment virtually is another key challenge.
4. Talent performance analytics is an area due for reinvention as hybrid workforces do not work to fixed time schedules, and the concept of time-off has entirely transformed. There is also a growing debate about employee monitoring and privacy that needs serious consideration from HR and leadership, even as governing authorities are starting to build new regulations to draw the lines on how much access employers can have to employee activities at their home. HR is tasked with finding ways to balance the employees’ need for privacy and the organization’s need for performance data for more effective people analytics and management.
5. Learning and development will also need a sea change in its approach as HR is tasked with building customized learning journeys across the lifecycle of the employee. Striking a balance between virtual and physical learning spaces, as well as individual and group learning initiatives will all need powerful technology enablement, and that needs to be fed back into the overall performance analytics data.
6. Admin and payroll Tracking hours logged, planned time off and even overtime and performance bonus will need new ways to execute. HR needs to leverage technology to best understand how to manage the new flexibility around time and payroll management and off-cycle payroll solutions. Many companies have done away with or are doing away with planned time off altogether, giving employees a more result-driven performance structure. What impact will that have on the way payroll is calculated and bonus is decided? This is especially important for companies with knowledge workers as the variables and time-span to decide effectiveness are far greater. The work-from-anywhere culture also opens up new work structures and formats, for example, gig workers, freelancers, and time-share staff, even for more strategic roles, as the comfort level of working with virtual colleagues – even for the most important tasks – is much higher. HR is tasked with exploring how these new formats can drive business value and productivity, while accessing the best available talent for the business.
Aside from specific platforms and solutions for areas such as the ones described in this article, a focus on connecting the tools to build an effective technology stack that supports seamless employee experience through the lifecycle is critical. To execute an optimal HRTech stack, aside from the functional skill set and mindset development, HR also needs to learn to work much more closely with IT. This is crucial to take the best decisions not just around vendor selection and usage but also to align on issues of security, privacy, and governance of sensitive employee data; ensure smooth integration of tools and platforms for streamlined data flow and activation, and meeting the larger business needs and goals.
Tell us how, as an HR leader are you prioritizing tech investments on key areas of people management. Do let us know on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window .