Opportunities In HR Tech To Build A Million Dollar Company

You use them on a daily basis. They surround you and are quite necessary at work, whether you work in a large corporation or an innovative start-up. They (together with the accountant) ensure that everyone is paid on time, that you can interact freely with your coworkers, and that everyone’s well-being is taken care of. The scope of their applicability and the good influence they have on the workplace are obvious. Have you figured out what I’m talking about yet? I’m referring to HR tech apps. Because they make the lives of employees and employers a bit easier by establishing an environment where Human Resources and Technology may communicate and generate a healthy and mutually beneficial interaction.

If you’re thinking that linking these seemingly disparate sectors is unneeded or impossible, I’m here to inform you that it’s already underway. HR technology is both a complement to HR departments’ work and a requirement for most businesses. The worldwide market is unquestionably growing, with a current worth of about $400 billion.

What Is HR Tech?

I think it’s important to define what we’re going to be talking about before we go into the details of HR technology. Human Resource Technology- But what does it really mean? With so many sophisticated terms and attractive jargon, even the most accomplished HR Manager might be deceived or lose sight of what constitutes HR Technology and what does not. I wouldn’t be shocked if you’ve already had difficulties deciphering a term or questioned the app’s stated demonstrable advantages.

The following simple definition seems to cover everything:

By definition, an HR tech app is software that automates the human resources role in businesses.

How Has HR Tech Changed Over The Years?

Although HR tools seem to have been present for a long time, the era of “modern” HR technology began in the 1990s. Most organisations used talent management applications and online job boards at that time. With reflection, we can argue that their primary purpose was to make it easier for HR professionals to accomplish their jobs. Applicant tracking systems, payroll and benefits applications, as well as the transition from paper to digital, were among their responsibilities.

However, these platforms lacked a user-friendly interface and were difficult to implement and operate. They also lacked the personal touch and one-of-a-kind features that make people want to engage in them. As a result, when Cloud migration began in the 2000s, the road to HR applications got less rough, laying the framework for the contemporary applications we use today.

Today’s HR technology industry encompasses far more than simply administrative concerns. There’s an app for that. Whether you’re dealing with resumes, tracking work hours, or keeping a check on your subordinates’ well-being, there’s an app for that. The number of HR tech apps available on the market in 2020 is nearly unfathomable. You can easily discover 630 distinct applications, and who knows how many more have been developed for internal company use.

However, the most significant change in the HR technology ecosystem may be seen in how HR tech apps are utilised. It’s no longer a tool that’s exclusive for HR professionals. Many applications are utilised by all parties involved in the HR process, including workers, employers, and job seekers. A contemporary HR Tech app should meet people’s demands in important areas like – Record-keeping systems, Systems for Managing Talent, Engagement Systems and Productivity Systems.

Furthermore, given the abundance of apps accessible, any new app must be not just business-oriented but also enjoyable to use, UX/UI friendly, and created with the goal of increasing our workplace productivity.

HR Technology Rising High

Today’s business relies heavily on HR technologies. This environment is worth $400 billion globally and $250 billion in the United States alone. More than 12 million businesses spend more than $5 trillion on wages, benefits, and other employee programmes.

HR tech has also attracted the market’s major businesses, such as Facebook, Google, and Salesforce.

Have you seen Facebook’s Workplace, which launched in 2018? This social networking platform made the decision to spend time, money, and effort into the HR technology sector. According to Facebook, Workplace is already being used by organisations all around the world, with over 100,000 active groups. No one should assume that HR technology is only a fad after seeing these companies join the market.

It has attracted the attention of investors due to its rapid expansion. Huge sums of money are being invested in this area by private equity and venture capital groups.

HR technology has captivated not just major investors, but also businesses all around the world. Spending on HR technology and solutions continues to rise. Large firms spend over 10% of their HR budget on cloud-based HR technology, which is fueling a massive increase in cloud-based HR technology.

Additionally, further expansion is expected- Because of its widespread use in managing people throughout the world, core Human Resource software is expected to grow at a CAGR of 9.4% between 2017 and 2025.

Organizational leaders are preoccupied with the concept of ‘people.’ HR technology is considered vital or valuable by 91 percent of SMB leaders. Let’s explore the factors driving HR tech adoption and why it’s becoming increasingly common in firms.

Why Is HR Technology Gaining Popularity?

• Shift In The Workforce

Did you realise that remote employees, contractors, and freelancers make up 20-30% of the workforce? By 2022, this number is assumed to grow in both the United States and the European Union. In this circumstance, appropriate software to handle taxes, communication, and administrative difficulties is required.

• Technological Progress Is Accelerating

Companies are replacing antiquated HR systems with new dedicated or cloud-based solutions that can meet the demands of both employees and HR departments. However, features and appearances aren’t everything. Old systems simply lack Candidate Experience, a relatively new concept that is also one of the primary drivers of organisational transformation. Any HR tech app’s users require a more appealing, consumer-like experience.

• Concerns Over HR

The most essential reason why businesses invest in HR software is that they are continually promoting, sourcing, hiring, interviewing, assessing, and onboarding new employees. And they’ll need help to do so. They are looking for solutions to alter their workforce and tackle their difficulties on a regular basis. The challenge with recruiting is one of the most pressing concerns that businesses face today.

• Handling A Number Of Systems At One Place

Companies that pioneered the HR digital revolution are now finding it challenging to keep track of so many systems in one place. It’s a blessing in disguise to have an app for everything. The average organisation employs four to five HR systems, making information flow and control far more difficult and time-consuming. There is a strong desire for “one-stop-shop” systems that are tailored to the specific demands of businesses.

HR Technology Has Become A Priority During Covid-19

Covid-19 has turned the workplace and employee engagement upside down, making HR technology adoption a need rather than a choice.
The use of digital tools by HR professionals is the only way to assure that employees have a positive experience in a workplace that no longer relies on human connection.

In the middle of the pandemic, adoption of HR technology has become a priority for businesses across sectors to address the concerns of business continuity, productivity, and compliance. The need for constant interaction with employees is something that is frequently overlooked. The use of a strong communication model will ensure that productivity does not suffer. This is where HR software solutions come into play, which may assist businesses in dealing with the issues of remote working.

All HR procedures, including onboarding, training, and employee inquiry resolution, are now totally reliant on HR technology. Globally, the epidemic has hastened the digital transformation of HR procedures.

As businesses ceased to have physical offices and all interviews and onboarding became virtual, technology use exploded. This is because, under the “new normal,” organisations were forced to implement technology, and recruiting underwent a complete transformation in just a few weeks.

HR Technology’s Future Prospects

Despite the fact that the HR tech industry appears to be overcrowded and swamped with all sorts of apps, there is still opportunity for progress and business ideas to come to fruition.

All estimates for this market’s future development point to it consolidating and expanding, owing to rising use in the SMB and middle-markets, where customers are becoming increasingly demanding and searching for ultimate solutions. HR apps and platforms will specialise in niches defined by region, market segment, industry emphasis, job and skill type, or any combination of the above.

HR technology should be a top priority for investors and business owners since it seamlessly bridges the gap between human resources and technology, making it one of the most powerful tools in modern businesses.