Why HR technology is important

May 11, 2023 | 5 Mins David Daly

The HR tech sector has seen massive investments in the last 10 years-hundreds of millions of dollars have poured into HR digital platforms as vendors and suppliers look to meet the varied and complex needs of human resources departments at multinational companies around the world.

Hiring policies at these companies have changed in a post pandemic world-things have become more complex now that employee location is no longer a factor and hybrid working and remote working are firmly embedded in the new culture of work.

It is a new employee landscape, so powerful and innovative technology with new capabilities is needed to help HR directors, managers and hr professionals manage everything to do with human resources on a day-to-day basis.

We are seeing a growing adoption of artificial intelligence (AI) and machine learning (ML) technology as HR teams need to store employee data in a secure manner, manage several different day-to-day processes which are currently manual and provide a much more detailed and comprehensive level of reporting and analytics up the chain to the C-Suite and board of directors for strategic decision making.

The HR function are also looking to introduce a great deal more automation into the candidate selection, recruitment and onboarding process. A new level of technology and hr software is likely to be needed very soon if companies choose to implement on demand pay and enable early access to wages earned-something that could prove to be a useful differentiator in the war for talent. Overall, there is a lot going on in the HR technology space and investing in the right HR technology has become crucially important to the performance levels in this business-critical unit.

A hiring tool for global talent

The war for top global talent is relentless and ongoing, those companies that utilize and leverage next generation HR technology can have a significant competitive advantage when it comes to the recruitment process and securing the best candidates out there in the market, regardless of where they are located around the world. Searching resumes can be ‌time-consuming for hr leaders and hr management, so technology like an applicant tracking system can really help with new hires ‌initiatives

This is about investing in management software technology that can help with candidate selection, interview, shortlist, offer, on boarding and induction.  With the right technology, everything about ‌talent acquisition and the hiring process can become faster, smarter and more efficient- once it becomes firmly embedded and working correctly, it can be viewed as both a hiring tool for global talent as well as technology to help a business scale in line with its strategic ambitions.

It is also about enabling cross-border HR teams to function more efficiently from anywhere in the world. A common tech stack or HR platform that ensures the same processes used in multiple locations across the world can only help. Having all relevant HR data easily accessible by HR professionals around the world is useful as is the ability to communicate with other HR people inside a digital platform.

Many companies are also looking to invest in HR technology solutions in an effort to help them with some of the more complex aspects of the international recruitment process-things like local country employment and labor laws, tax regulations, benefits and compensation as well as legal issues.

A SaaS-based human resources platform can help you find, hire, onboard, pay, and manage a globally dispersed international workforce made-up of permanent employees, contractors, temporary employees and employment of record workers.

HR tech for effective management

HR directors, when examining the options in the HR technology software market, will be interested in having the following items covered.

    • Employee payroll, compensation and benefits administration
    • Talent acquisition and talent management
    • Applicant tracking system
    • Workforce analytics and reporting
    • Performance and workforce management

The ability to manage all of these inside a single software platform or information system could result in major benefits for the HR department and the overall organization. HR tech investment is about being able to effectively manage a global workforce as well as internal human resource processes that may have spiraled in recent years due to recruitment activity.

The right human resources technology can bring a broad range of benefits for both employers and employees.

    1. Streamlined recruitment: HR technology helps to automate the recruitment process, making it faster and more efficient. This saves time and reduces the cost of hiring new employees.
    2. Better employee engagement: HR technology provides a range of tools that help to improve employee engagement, such as performance management software, employee feedback systems, and recognition & reward programs.
    3. Improved communication: HR technology provides a range of communication tools, such as instant messaging and video conferencing, that help to improve communication within the organization.
    4. Enhanced productivity: HR technology helps to automate repetitive tasks, freeing up HR professionals to focus on more strategic activities. This can lead to increased productivity and efficiency.
    5. Data-driven decision-making: HR technology provides access to a wealth of data, which can be used to make informed decisions about HR policies and practices. This can lead to better outcomes for both employers and employees.
    6. Compliance with regulations: HR technology helps to ensure that employers are compliant with labor laws and regulations. This can help to avoid legal issues and penalties.

All of this can help to improve the effectiveness of HR practices, leading to better outcomes for both employers and employees. And while these are specific to human resources and the global employee base, the benefits can reach even further and have a positive impact on the wider organization.

HR technology automates many of the routine HR processes such as recruiting, onboarding, and performance management, which saves time and reduces errors. By automating these processes, HR professionals can focus on strategic initiatives that can help improve the organization’s overall productivity and efficiency.

A better employee experience with innovative technology can lead to increased engagement, job satisfaction, and retention. This is a broader business benefit that can save a lot of hassle in the long run and support any scaling ambitions.

In terms of data for use across the wider business, HR technology provides valuable data and insights that can help organizations make informed decisions about their workforce. With access to real-time data, organizations can identify trends, measure the impact of HR initiatives, and make data-driven decisions that can help drive business outcomes.

Overall, investing in HR technology can help organizations improve their HR processes, increase efficiency, and enhance the employee experience. It can also provide valuable insights into workforce data, enabling organizations to make informed decisions that drive business success.

 

For more information about our Global Payroll Control Platform contact us today.

 

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