Top 10 Disruptive HR Technology Trends for 2016

October 21, 20158:35 am1078 views

Human resources software applications are becoming tools designed for employees first, enabling them to learn and collaborate, share feedback, set goals, steer their own careers and even manage other people more effectively.

According to a recent report unveiled by Josh Bersin, principal, Bersin by Deloitte, Deloitte Consulting LLP titled, “HR Technology for 2016: 10 Big Disruptions on the Horizon,” details on the top ten disruptive HR technology trends in 2016.

Through this report, Bersin underscores other key new trends, including the emergence of enterprise resource planning (ERP) providers as end-to-end HR technology providers. The report also highlights points to the development of the new HR software categories of feedback, engagement and culture management.

“Imagine an employee application suite that runs on your phone, knows your location, and recommends people with whom to network. It also evaluates time-management aptitude to help improve productivity, automatically assesses work behaviours and offers feedback on improving work-life balance. It even shares exercise and healthy eating tips at the point of need. This is where HR technology is going, and we’re getting there a lot faster than you might think,” Bersin said.

Here are some new technologies transforming every part of HR – from sourcing to recruiting to talent and performance management to learning. The focus of these technology tools is primarily on employee engagement. The top ten disruptive technology trends for 2016 are as:

1. Consumerised HR Technology: Think Employee Tools, Not HR Tools. Many HR applications are becoming tools for employees first, enabling them to better manage people, learn and develop, and steer their own careers. Several years ago we talked about the shift in HR technology from “systems of record” to “systems of engagement.” Today’s talent acquisition systems are often called “recruitment success platforms,” designed to enable applicants, managers, and recruiters to do a better job.

These more integrated systems allow applicants to apply for jobs through mobile devices and interview through online video, as well as help managers make sure they are selecting the best candidate. This shift—away from HR and toward the employee as the user—has had a huge impact on the market. Vendors that focus only on back office functionality and which don’t have any compelling mobile apps are likely to lose ground.

2. Mobile apps are a new HR platform. Breakthrough areas of mobile applications in the coming year will likely include engagement and feedback systems. One example of a custom-built HR smartphone app is the Sidekick system developed by Commonwealth Bank of Australia, which effectively manages all aspects of the employment experience (from onboarding to employee directory to pay and time-tracking).

Sidekick has been downloaded by more than 10,000 company employees and in less than a year has reduced requests for pay slips by 46 percent and time-approval requests from hourly employees by 35 percent. It has also given the HR team powerful new information on how to help make employees’ work lives better.

3. ERP providers emerge in the expanding talent management segment. ERP vendors are now catching up as credible, effective providers of comprehensive talent management technologies to support recruiting, learning, and a range of people management tools including those for work-life balance, engagement and culture assessment.

See: What is the Future of Predictive Analytics in HR?

4. Built-for-the-cloud providers redefine HR functions. A new and disruptive “third wave” of talent solution providers is emerging with products that are consumer-like in ease of use, very inexpensive to buy, and built for mobile and the cloud. These providers are having a profound effect on several areas including payroll, learning technology, and employee engagement.

5. Feedback and culture management emerge as new software categories. Several providers are bringing together the world of performance management with feedback, employee check-ins and development planning. One vendor is expected to release a feedback app that could make meetings and conference calls more useful and productive.

6. Reinventing performance and goal management with feedback and check-ins. As many organizations do away with ratings and simplify their approaches to performance management, many startups are emerging to fill the gap left by performance management software that generally is behind user needs.

7. Learning experience middleware strives to integrate content from everywhere. Fed by the growing need for skills development, the training marketplace continues to grow, with the evolution of expert-led and new content providers and platforms. Look for new middleware companies to bring all this content together into an integrated learning experience.

8. Emergence of new predictive analytics vendors and solutions. A range of new vendors are emerging that offer everything from identifying employee flight risks to startups that can attach sensors on employees to help determine whether a new office layout is working or not.

9. Demand for technology services continues, despite the growth of cloud computing. Despite the common fallacy that cloud computing will make customization, consulting and management services obsolete, our experience shows that organizations that buy new cloud-based HR systems experience challenges during the transition. These organizations should select vendors that deliver high levels of service, have open-programming interfaces, experience in the buyer’s particular industry, and fit the business culture.

10. As pace of innovation accelerates, employee engagement is critical. As the market moves from licensed software to cloud-based systems to mobile technologies, this new wave is all about engaging employees in a simple, compelling way. Companies should evaluate the success of their HR technologies by their employees’ engagement with these systems.

Companies should evaluate the success of their HR technologies by their employees’ engagement with these systems. Buying software that is hard to use, that requires lots of training, or is not fully integrated with the existing environment is a mistake.

Utilization and engagement with technology is an important new measure of success, which ultimately means selecting a savvy vendor that can keep pace with the rapidly changing marketplace.

Also read: Top 10 Talent Trends Shaping the World of Work and HR in 2015