7 HR Technology Trends That Are Changing Everything in 2023
Two words have already come to define HR technology in 2023: Artificial Intelligence. The rise of tools like ChatGPT is a concern for many, with 40% of Americans concerned about losing their jobs to AI.
AI is also a big deal for HR professionals themselves as they prepare for yet another wave of digital transformation. We're already seeing some breakthroughs in HR technology that will greatly impact people and processes. Here are a few that you need to know about.
7 HRIS trends to watch in the coming months
It’s always hard to predict the future. It’s harder still in a time of such extraordinary disruption, both in technology and in the world in general.
That said, there are certain trends already emerging that will have a huge impact on the way we utilize HRIS and other HR technology.
1. AI is appearing everywhere
AI features are slowly creeping into everyday software. For example, both Google and Bing have recently added AI assistants that can answer complex questions and help you find accurate search results.
HR technology companies are also adding AI features to their software, with companies like Workday and UKG offering new artificial intelligence tools. You might start to see AI features appearing in all of your HR technology, including your:
- Human Resources Information Systems (HRIS)
- Human Capital Management Systems (HCMS)
- Human Resource Management Systems (HRMS)
- Applicant Tracking Systems (ATS)
- Benefits Administration (BA)
- Learning Management Systems (LMS)
- Employee Self-Service (ESS)
Keep an eye on announcements from software vendors, and make sure that your team have training on any new features.
2. AI recruitment is fast and accurate (but there's still a risk of bias)
Applicant Tracking Systems (ATS) already use AI to interpret candidate resumes and match them to the right vacancy.
Thanks to new AI tools like ChatGPT, this process will become faster and more flexible. AI will get better at screening candidates, plus it can manage communications through email and chatbots. Potentially, an AI-powered ATS could handle every part of the candidate experience, from application to onboarding.
However, AI can't solve discrimination—in fact, artificial intelligence can actually make bias worse. While AI will take on some of the heavy lifting, human oversight will remain essential.
3. HR to play a vital role in cybersecurity
More automation unfortunately also means a rise in cybersecurity threats—global cyberattacks were up 38% last year, and that figure is likely to rise again.
The HR department's first duty is to secure employee data by updating their HRIS and following cybersecurity best practices. The team can also work with IT to develop people-based security solutions. For example, HR teams work directly with IT and local managers to develop role-based access controls, ensuring that employees can only access data relevant to their duties.
The other big challenge is to create and deliver company-wide security training. HR teams will also have to update their learning materials to cover the potential cyberthreats posed by AI.
4. Internal talent marketplaces will become a must-have
Internal Talent Marketplace (ITM) platforms have taken off in recent years as a solution to an old problem: how to optimize internal recruitment.
ITMs offer a ton of flexibility, including the ability to recruit for projects or even just one-off tasks. This makes it easier for hiring managers to find in-house talent before they start exploring the recruitment market. It's also an excellent way to support career pathing plans, which can boost employee engagement and retention.
And of course, many ITM platforms use AI to help match candidates to jobs. In time, these systems will probably become an essential must-have within most large organizations, and a key part of human capital management.
5. C-Suite to ask for more HR data
Sage’s study shows that many organizations are not using HR data to its full extent. As of 2020:
- 60% of the C-suite don’t use HR data to determine financial objectives
- 63% are not looking at HR data before making recommendations
- 56% don’t consider HR data in relation to cultural issues
As we move towards a more data-driven world, there will be growing pressure on HR leaders to provide strategic data. This will mean that HR teams will need the capacity to perform business intelligence, data analytics, and visualizations, including real-time dashboards.
Many teams already use their HRIS to provide useful, accessible reports to the C-Suite. Those HR leaders find that they’re now playing a crucial role in organizational strategy.
6. Technology makes work more accessible for everyone
Traditional working patterns have always been a challenge for some people. While most employers work to provide accessible offices, there are still barriers for the one-in-four Americans with a disability. Until recently, employers have dragged their feet on the most obvious solution: remote work for those who need it. But now that remote work has become commonplace, the doors are open to everyone.
HR teams will need to think about ways to accommodate people with different needs and abilities so that they can succeed no matter what. It’s also important to rethink candidate screening processes when dealing with applicants who may have had issues with their previous work environment.
Remote working also creates opportunities for people who are limited by other issues, such as family commitments. Women—especially women of color—were often forced to leave employment during the pandemic to care for others. As a result, women’s participation in the workforce is at a 30-year low. Helping these people back to work has never been more important.
7. The human touch: more important than ever
AI-powered HR software might help us work smarter and faster, but an algorithm will never be a substitute for empathetic HR professional.
Right now, around 36% of employees report a decline in their mental health in the past year. That’s something where HR needs to step in with pulse surveys, Employee Assistance Programs, and interventions in the overall employee experience. Sadly, we've also seen the need for human HR professionals to assist with layoffs, as 2023 has already seen over 3 million redundancies.
No matter what technology throws at us, human resource management will always be about humans. HR's role will always be to support, encourage and develop the people that make our teams so successful.