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The modern workplace is in the throes of massive transformation as Artificial Intelligence (AI), conversational bots, and digital twins overtake the human resources management space. Globally, the market for HR software and tools is expected to be worth USD 9.89 billion by 2022. In India, the HR technology market that currently stands at USD 0.5 billion is poised to grow at the rate of about 25% in the next five years, according to the Everest Group.
Here’s a lowdown on the top five technologies that will transform HR both in the near and long term:
#1 Artificial Intelligence and Machine Learning: Artificial Intelligence (AI), which ranks number one on the Gartner’s top 10 strategic technology trends for 2018, is revolutionizing the way companies hire, manage and engage with their workforce. According to the India Report of Deloitte’s 5th Annual Global Human Capital Trends, 22% of companies are already leveraging AI to deliver HR solutions, while 53% are preparing to do so. 40% of interviews today are conducted digitally and AI-enabled video analytics offers huge potential to improve their accuracy. AI can detect eye movements, facial expressions, other behavioural cues, and match them with sentiment analysis and speech recognition technologies to spot the right-fit candidates.
Advanced Machine Learning (ML) algorithms go a step further by matching candidate fit with the job role and company culture, and even predicting their interest level in accepting and staying on the job. To boost employee engagement, a combination of natural language processing (NLP) and sentiment analysis can help managers analyse employee feedback and recommend actions.
#2 Conversational Bots: Bots are the new custodians of employee engagement and retention, and HR leaders aren’t complaining! Conversational bots help HR leaders ensure real time feedback and streamline performance reviews and appraisal processes – traditionally, a big headache for HR departments. They also help collect employee data, dispatch regular updates, company policies, and exchange important documents during recruitment and onboarding, significantly accelerating the hiring cycle. Yes Bank, InMobi, Bank Bazaar and other Indian companies have already started using chatbots to accelerate regular HR tasks and ramp up employee engagement.
#3 Virtual and Augmented Reality (VR and AR): Hailed as the future of the learning and performance support market, the global augmented reality market is set to grow at a CAGR of 96.5% by 2019. VR can help businesses fine-tune recruitment by immersing candidates in real-world scenarios through simulations and tracking their performance. It also improves candidate experience by giving them a feel of the real-life work culture at a firm. AR, on the other hand, boosts training adoption and effectiveness by relaying step-by-step instructions for complicated tasks in an engaging manner toincrease workers’ speed and accuracy. Going forward, Gartner predicts social VR to become a game changer for virtual workplace collaboration as remote work continues to be popular.
#4 Blockchain: Ranked as one of the top disruptors in Gartner’s Hype Cycle for Emerging Technologies, Blockchain has the potential to radically transform the future of work. Blockchain can automate routine, data-heavy processes like payroll, validate resumes for accuracy, and strengthen cybersecurity and fraud prevention, by quickly and accurately verifying candidate profiles and documents. MIT leverages Blockcerts to verify blockchain-based certificates for academic and professional credentials, workforce development and civic records.
#5Internet of Things (IoT): IoT data from connected devices such as ID badges and wrist bands enable organisations to conduct people analytics for predictive hiring, and improve people management. Companies can predict ideal team size, attrition rate, impact of employee satisfaction on business outcomes, as well as analyse performance and physical/emotional factors that affect productivity.
To embrace the future of work, organisations need a skilled HR workforce that can combine technological and analytical expertise to drive superior outcomes. Is your HR team equipped to thrive in the highly digitized workplace?