The past two years have seen a surge in HR technology investments, with venture capitalists pouring over $17 billion into the sector. This trend reflects a growing recognition of HR’s critical role in driving business success. As we move into the second quarter of 2024, several key trends are shaping the future of HR and transforming the way we work.
Source – Gartner
The Rise of Immersive Technologies
- Training and Development
A study from PwC reveals that employees can learn new skills through virtual reality (VR) simulations, retaining 80% of the information compared to just 20% with traditional methods. This is the power of immersive technologies like VR and augmented reality (AR) in training and development. These technologies offer a more engaging and interactive learning experience, leading to improved knowledge retention and skill development.
- Workforce Redesign
Forrester predicts that 60% of organizations will adopt hybrid work models, with only 10% remaining fully remote. However, successfully transitioning to a hybrid environment requires careful planning and redesigning work roles and workplaces to foster a more engaging environment.
Digital Learning and Development Takes Center Stage
The rapid shift to remote work in recent years has exposed the need for robust digital learning and development (L&D) solutions. Organizations are increasingly investing in online learning platforms, microlearning modules, and personalized learning pathways to equip employees with the skills they need to thrive in the digital age.
Hyper-Personalization
With nearly 45%of US employees workforce now working remotely (partially or fully) and a talent shortage gripping the market, the power dynamic has shifted. Hyper-personalization in the HR experience caters to this shift. This means tailoring benefits packages, career development opportunities, and learning paths to individual needs and preferences. A Deloitte study revealed that only 10% of HR executives effectively classify and organize skills, highlighting the need for a more personalized approach to talent management.
Data-Driven Approach to Diversity, Equity, Inclusion and Belonging (DEIB)
Data is becoming increasingly crucial in promoting DEIB initiatives. 44% of business leaders acknowledge the need for “better workforce data” to enable a skills-first approach to talent acquisition. Organizations are leveraging HR analytics to identify potential biases in hiring, promotion, and compensation practices. This data-driven approach allows them to develop targeted strategies to create a more inclusive and equitable workplace.
The Metaverse: A Glimpse into the Future of Work
Researchers predict a rapid rise in the adoption of the Metaverse within HR. By 2026, an estimated 25% of employees could spend at least an hour per day working within this immersive virtualenvironment. The Metaverse has the potential to revolutionize employee onboarding, collaboration, and training.
Beyond the Headlines: Key Considerations for HR Leaders
While these trends paint a compelling picture of the future of HR, it’s important to consider practical implications
- Improving the Entire Employee Experience: HR technology should go beyond automation and focus on creating a positive and engaging employee experience throughout the entire employee lifecycle (75% of employees report feeling connected to their company since the shift to remote work).
- Cloud-Based HR Systems: Cloud-based HR solutions offer scalability, security, and accessibility, making them a critical component of any modern HR strategy.
- Total Workforce Intelligence (TWI): Leveraging external labor market data alongside internal data allows for more informed decision-making regarding workforce planning, talent acquisition, and training. TWI analyzes job postings, resumes, talent profiles, and census data to gain insights into skills and talent availability.
- Focus on Deskless Workers: With a staggering 80% of the global workforce now considered deskless, HR solutions and communication strategies need to cater to this growing segment of the employee population.
Building a Future-Proof HR Strategy
By understanding these emerging trends and implementing the right strategies, HR professionals can position themselves as thought leaders and navigate the exciting future of work in 2024 and beyond. Here are some key takeaways to consider when building your HR technology roadmap
- Invest Strategically: Focus on AI-enabled features that align with your specific needs and business goals, prioritizing solutions that offer a clear return on investment. Gartnerresearch reveals that 89% of HR leaders planned to increase or maintain HR technology budgets, making it the #1 area of investment for the third year in a row.
- Simplify Your Tech Landscape: Consolidate outdated systems and leverage vendor ecosystems to streamline processes and improve user experience. A study by HR Software Buyers found that 8 out of 10 experience regret due to a poorly structured buying process.
Source : Gartner
- Develop Your HRIT Team: Ensure your HR team possesses the skills and capabilities necessary to manage and utilize your evolving HR technology landscape. Allocate a dedicated budget for innovation, ideally 5-10% of your overall HR technology budget, to explore and test new technologies like Generative AI.
The future of HR is bright. By embracing technology and prioritizing the employee experience, HR professionals can play a pivotal role in building a more efficient, effective, and human-centered workplace for everyone.
Let us know your insights on the recent HR advancements in the comments on Linkedin or X.
Source
80% is the VR training retention rate when using AR and VR wearables, compared to 20% just one week after traditional training.
– Fortune Magazine
In the last two years, investments in the HR domainhave skyrocketed, with venture capitalists spending over $17 billion on HR tech.
– Workplace Digitization
Elevating Hybrid Workplace
Forrester’s prediction report states that 60% of organizations will shift to hybrid work models and only 10% will stay committed to a completely remote working model. Further, it adds that 1 in 3 companies shifting to a hybrid model will fail in doing so. The primary reason is redesigning the workplace, and job roles, and creating an engaging work environment. Hyper-Personalization
With 45% of US employees working remotely (completely or partially) and a shortage of skilled labor in the market, the power of decision-making has shifted from employers to employees.
Improving the Entire Employee Experience
Adopting Cloud-Based HR Systems
Predictions on HR technology innovations and trends would be remiss not to start with the implications of a technology that could generate 10% of all data by 2025. Brian Burke, Arun Chadnrasekaran, and Svetlana Sicular, “Innovation insight for Generative AI,” Gartner, December 15, 2022.
Total workforce intelligence (TWI) is a consolidated approach that helps organizations manage their workforces by utilizing external labor market data across talent models. TWI analyzes job postings, résumés, talent profiles, and census data to gain insights into skills and talent availability. Leveraging this data enables informed decisions on workforce planning, hiring, and training, enhancing productivity and agility.7 Ongoing TWI development provides a clearer talent landscape view, improving workforce planning and nontraditional labor sourcing opportunities.
Employees are referred to as deskless workers when they lack a set office or workspace. A staggering 2.7 billion people, or 80% of the global workforce, are deskless workers today.
As HR professionals, we’re constantly striving to improve the employee experience, optimize talent management, and drive business success. As we move into the second quarter of 2024, a clear picture of emerging HR technology trends is coming into focus. Understanding these trends is crucial for building a future-proof HR strategy.
Only 10% of HR executives say they effectively classify and organize skills into a skills taxonomy or framework—although nearly all (85%) have some efforts underway.” (Deloitte study)
44% of business leaders told us that “better workforce data” was needed in order to enable a skills-first approach to talent – and 42% noted “more automation of HR processes” was required.
Generative AI technologies can generate new derived versions of content, strategies, designs and methods to drive greater efficiency and effectiveness for HR, managers and employees.
Generative AI in HR AI-enabled skills management applies AI techniques to build a dynamic representation of skills data. It impacts capacity utilization, quality of hire, strategic execution through workforce planning and reskilling/upskilling initiatives.
4 AI-Enabled Skills Management These technologies streamline, unify, and orchestrate the primarily HR-related digital aspects of employee experience, generally across a fragmented applications landscape.
2 HR and other organizational leaders benefit from ITM data to support workforce planning and other talent processes. Team and project leaders benefit from more flexible staffing and improved talent visibility. EXTech Orchestrators and Overlays
5 Internal Talent Marketplaces Responsible artificial intelligence (AI) is an umbrella term for aspects of making appropriate business and ethical choices when adopting AI. It helps achieve fairness, gain trust, and ensure regulatory compliance.
89% of HR leaders planned to increase or maintain HR technology budgets making it the #1 area of investment for the third year in a row.
Prioritize AI-enabled product features (automation, augmentation or personalization), not technology potential. • Get grounded on the use cases and benefits of GenAI in HR. • Examine AI ethics and guidelines to create and utilize AI.
8 out of 10 HR Software Buyers experience regret due to a poorly structured buying process.
Pursue continuous simplification of the total number of systems — both global and local. • Leverage vendor ecosystems (local product management, partners, communities) to productize integration and to meet local needs.
What Are the Top HR Emerging Technologies and Trends?
Ensure your 2024 roadmap and three-year strategy optimizes business value by balancing business outcomes/benefits and cost optimization goals. Address innovation needs through a dedicated budget — at least 5%, ideally 10% of the overall HR tech budget. Set active targets for system consolidation and decommissioning, to free up budget space and simplify the portfolio. Adjust HRIT team structures and capabilities to fit the needs of the evolving HR technology portfolio.
