Businesses are giving a thrust to human resource (HR) technologies with the ultimate goal of creating a working environment that is secure, welcoming, and accessible to people from all walks of life and locations. Several innovations and new solutions have been implemented in HR functions across industries, with multiple trends being observed. People Matters gathers trends that are going to change the dynamics of how the HR domain operates in 2023.
Several elements of HR management will benefit in 2023 from the application of AI-powered data analytics. These innovations will serve as the basis for future human resources and the workplace, says Vikas Kakkar, founder of HR tech startup Amara.ai.
“HR has already advanced to the boardroom in a number of organizations. In the future, HR will be able to make more informed decisions with the help of data analytics. AI-powered employee engagement chatbots can be used to track employee engagement at work, identify employees who may be contemplating leaving their position, and perform many other tasks. “This information will greatly assist HR leaders and business partners in making informed decisions and mitigating risk if it is readily available,” he says. Kakkar adds that there has been an increase in the use of AI to improve engagement and create a safe and diverse company culture this year, but the rate of adoption of HR technology and AI-powered data analytics platforms will skyrocket by 2023.
Wearable devices have gained much traction of late. Wearables, like smartwatches, can have multiple use cases in HR tech. Employees can punch their attendance with just a tap on their watch, and the geolocation tracking can verify its validity, avoiding touching traditional biometric devices that are prone to contamination.
The smartwatches also contain valuable health-related information such as the average heart rate, blood pressure, SPO2, sleep quality, and physical movement. If used correctly, such data points can quantify employee well-being. AI can further assist in using the same data points to understand employee engagement at the workplace. According to TeamLease HR tech, companies leveraging smartwatches to deliver best-in-class employee experiences while also improving health and wellness awareness among the workers can be a common scene.
Metaverse is perhaps one of the most discussed terms and buzzwords today. Managing the workforce efficiently can become challenging, especially with today’s remote working scenario. At such a juncture, Metaverse is the perfect solution for HR managers since it has the potential to expand what hybrid work is now known as. Employees can leverage augmented reality (AR) and virtual reality (VR) to collaborate efficiently and engage more authentically in remote settings. As per TeamLease HRTech’s projections, the metaverse could bridge the gap between physical and virtual offices.
In recent years, the ability to generate and capture data has grown exponentially. Businesses today make data-driven decisions that are far more accurate than the trial-and-error method. HR technology has enabled the same thing to be done with human capital management.
According to TeamLease HRTech’s research, SaaS platforms such as zero-touch applicant tracking and one-touch payroll, as well as advanced analytics, will be critical in analyzing HR productivity. People Analytics will play a prominent role in performance measurement, workforce planning and management, analysing employee engagement, promoting employee development, making promotion and salary decisions, and any other aspect that can be improved with data while maintaining productivity.
Regulatory compliance will be impacted as cutting-edge technologies and automation take center stage. More and more compliance activities will be automated with the help of technology, making processes more cost-, time-, and resource-efficient. Furthermore, TeamLease HR Tech anticipates that this will become an integral part of HR technology in the coming months and years, providing businesses with a seamless, unified experience.
“HR technology has leapfrogged in a short period of time to an extent that would have been almost unimaginable a decade ago,” says Sumit Sabharwal, CEO of TeamLease HR technology. At TeamLease HRTech, we take a tech-first approach and use cutting-edge technology to ensure that both employers and employees benefit from our services, creating a win-win situation. Based on previous in-depth analysis, we have made trend predictions.
Open HR Tech – A paradigm shift expected in 2023
HR tech startups in India have raised over $13 billion in the year 2022 with a huge portion of this going into recruitment technology.
Sudhakar Raja, founder, and CEO of HR tech startup TRST Score, says the advent of UPI and ONDC has led to an awareness of the scalability of open platforms. AI-based candidate-role matching, interviewing platforms, and many other such technologies are becoming prominent.
Open jobs network similar to ONDC
There are over 1500 government and private job portals that exist in India. No recruiter has the time to create a login, manage the post, and collect profiles. There are 40 plus sector skill councils managed by NSDC and many more under each state managed by the local governments. Each of these sector skill councils has an independent job portal besides the labor ministry and apprenticeship portals.
Besides this, there are over 1,000 private job portals. No HR has got the time to create a login post jobs and manage the candidates in so many job portals. Hence the need for an open platform that will simplify this process. This is similar to the ONDC platform that the government has created for e-commerce. This will change the way people hire in 2023.
There are over 1 million people getting trained by sector skill councils annually besides various private institutions which skill numerous people. On one side companies are looking to hire and on the other side, there are people who are still looking for jobs. The problem today is the matching of these two.
Open BGVs and UPI of BGVs
The entire Background Verification (BGV) Industry, as well as how people hire, will change. Today’s BGV process is costly and time-consuming. As a result, only 5% of Indian businesses engage in BGV. The gig economy is set to explode, and no HR department can afford to conduct a BGV on these temporary employees. A few businesses are reshaping the BGV landscape.
Open BGV enables companies to share BGVs, lowering costs and increasing transparency in this unorganised sector. The gig worker BGV process is a new uncharted territory in which companies must be willing to share such information. Open Offers, for example, is attempting to simplify the offer and acceptance process. Many more will follow in 2023.