Digitalization does not stop at the HR sector. The HR industry is changing strongly and ever faster. Artificial intelligence (AI), automation and a wide range of analytics options are changing our working environment and the way we work. Therefore, the following are the key HR transformation trends for 2019.
The global HR technology sector is booming and according to the latest research, it is expected to reach $30 billion by 2025. The rapid expansion of the HR technology market has been driven partly by massive investments in HR technology solutions and partly by the explosion of data in HR.
The shift from legacy systems to a cloud-based software-as-a-service (SaaS) model has helped organizations not only capture and store HR data, but also consolidate and centralize it.
So what are the key trends, challenges and opportunities for HR in 2019?
1. Create continuous employee motivation and engagement.
Call it dangers of a stable economy – the job market is tight, the stock market is in good shape and commodity prices have stabilized after sharp declines. In such an economic environment, keeping your employees focused and motivated is a tough task. Rising costs for healthcare, education and real estate make employees feel like they are constantly playing catch-up. Especially among the younger generation, the so-called Generation Z, “financial security” seems to play an overriding role when choosing a job.
The need for continuous employee engagement has never been greater. While organizations today have a variety of technologies and tools to monitor and improve the employee experience at every stage of the employee lifecycle, continuous engagement is as much a technological issue as it is a cultural one.
One big mistake companies should avoid is not living by their own core values. As a result, teams and new employees don’t take them seriously either. This means that every employee, regardless of role, must live and internalize these values. For example, a CEO should still be involved in the day-to-day tasks with customers and involve the rest of the employees in the strategy and big picture. The biggest mistake for companies is not involving all team members or establishing a “closed door” policy. Why should an employee feel comfortable working for the company if they have to work in a silo? To strengthen a team and ensure that all employees feel special, there needs to be an approach that puts employees at the center and actively involves them.
Another problem is that companies are not transparent with their employees. There needs to be more transparency and more leaders who can be self-critical. This can create a safe environment for your team to allow mistakes and discuss what they have learned instead of hiding their mistakes. After all, we grow and fail as a team. To improve the employee experience, companies need to communicate openly and honestly.
2. data integrity and quality
Data is the foundation for technologies such as artificial intelligence and predictive analytics. HR teams that leverage the great potential of their data can easily make measurable, transparent, and comprehensive recommendations and decisions. However, the quality and reliability of data are essential to making the right decisions. In 2019, HR leaders and providers need to take a close look at the data being fed into intelligent systems and algorithms to identify and weed out discrepancies and biases.
In most cases, HR can work with data that does not need to be continuously cleansed or monitored for inconsistency. While SaaS solutions have certainly improved the quality of data, there are still a lot of records that are manually entered at some point in the process. Administrative errors, such as duplicate invoicing or payroll errors, can cost companies a lot of money.
In addition to faulty decisions, faulty HR data can also result in significant financial costs.
As we increase our reliance on artificial intelligence, machine learning and deep learning in the future, the reliability and quality of HR data will continue to play an essential role. Wouldn’t it therefore be a great advantage to be able to completely map and automate HR processes? Technologies such as automation software, talent awareness and acquisition engines, and talent management tools offer the opportunity to easily map all necessary processes, reduce manual operations, and ensure good data quality that helps companies make valid decisions.
3. artificial intelligence in everyday work
Artificial intelligence (AI) in HR is perhaps the biggest driver of HR transformation in 2019. AI has the potential to completely rethink HR processes and talent management. But the real value of AI in the workplace is its ability to help improve employee productivity.
Chatbots, predictive analytics, and automation have helped early adopters of the technology increase productivity and improve the quality of work. Of course, AI is not yet perfected, and concerns about the ethics of AI use in business are currently present. However, vendors are increasingly taking note of this fact, with some even establishing their own AI advisory boards.
On the HR side, artificial intelligence helps recruiters and HR professionals save valuable time by fully automating labor-intensive, repetitive tasks such as CV scanning, talent screening, candidate engagement and assessment.
For employees, AI works in the background, answering their questions, helping them choose career paths, serving personalized recommendations, or monitoring their health.
There is no doubt that AI combined with HR analytics represents the most significant opportunity in HR transformation.
Productivity, artificial intelligence and data integrity are becoming key factors for HR leaders who want to win in the age of disruption. These points described above are indicative of the profound transformation taking place in HR. The year 2019 and also the coming years will be very exciting for the world of HR innovation, as companies and HR leaders aim to achieve better and better results and raise the bar through new technologies, but at the same time, employees’ demands are rising and their values are changing, which significantly influence their choice of workplace and their motivation in their daily work.
In order to meet today’s challenges in the HR industry, such as generating more talent potentials, creating awareness and especially optimizing the processing of promising talents and application processes, current technologies, such as automation software, talent awareness and acquisition engine as well as talent management tools can provide optimal support. From awareness measures for employer branding, to the application process with talent engagement content and talent potential check, to interviews, offer phase and contract conclusion with high potentials, the entire HR process can be easily mapped and automated.