The Top 5 HR Technology Trends To Rule 2021 And Beyond

July 15, 2021

When we entered a new decade, we entered the digital era, which has transformed every aspect of doing business. However, the HRM department remains the most influenced business operation and is going through a rapid makeover due to the digital transformation. Businesses of all scales are continuously experiencing the enhanced benefits of integrating HR technologies and the substantial positive impact on people management towards organizational success. It’s predicted that by the end of 2021, at least 70% of small and medium-sized enterprises will utilize HR technologies. Here are the top 5 hr technology trends to rule 2021 and beyond. 

Cloud-based HR

Remote working is fast becoming the new normal. While this trend has been around for some time, the covid-19 situation has accelerated it. A cloud-based HR system unifies HR data in a centralized HR platform that supports better, quicker, and easier HR management. Cloud-based HR is offered for specific HR functionalities, such as payroll, recruitment, etc., which is mostly opted by startups and small businesses requiring special management for complex HR functions. However, a cloud-based HR system that handles all the aspects of HR is increasingly becoming the recent HR technology trend that’s taking over the business world for effective HR management.

Health-oriented HR tech 

The importance of employee wellness is now increasing more than ever, again with the pandemic outbreak. Further, the improved awareness of employee well-being and how it impacts workplace productivity, health care cost, retention, and absenteeism rates are all bringing together HR tech trends. That focus on mental health, physical fitness, diet plans, etc., to create a real behavior change in the workplace and is expected to merge health and HR tech in more advanced ways in the years to come. 

People analytics 

HR trends that will make their way into the future cannot go without explicitly discussing people analytics. People analytics continues to be the hottest topic in the HR world and is also the fastest-growing sub-domain of HR technologies. Organizations that integrate people analytics HR software into their HR processes are experiencing higher productivity and profitability than competitors. In addition, as the analytical evaluation is free from human bias or error, it has enhanced greater accuracy in HR decision-making and implementation, making it a reliable HR tech trend that will rule beyond 2021. 

Employee self-service (ESS) 

ESS is becoming a key HR tech trend in 2021 and has the potential to stay on-trend beyond 2021 because it empowers the employee to take control of their own time and task management. The employee’s self-servicing ability takes tedious and unnecessary tasks off the shoulder of an HR manager or the need for a specific professional to handle such tasks. Although enhanced accuracy, efficiency, and effectiveness are the core benefits of this HR technology trend, it has also improved employee engagement and involvement positively on a routine basis. 

Employee engagement platform 

Relatively new to the HR tech world, employee engagement platforms are the latest HR tech trends of 2021. While the importance of employee motivation and engagement has been around since the evolution of HRM, the channels used towards it didn’t offer anonymity. Even if they did, the communication, connection, and free-flow guidance to keep an employee engaged were lagging back. The use of employee engagement platforms has set up an instant, seamless and confidential way to influence and persuade employee engagement daily, which has substantially positive impacts on boosting organizational productivity and keeping employee performances aligned towards the ultimate organizational goals. 

If you’re looking to integrate any of these HR trends that are forecasted to make substantial positive impacts on HRM beyond 2021, contact us at EmiratesHR. As one of the leading HR and payroll solution providers in UAE, we are dedicated to creating tailor-made digital platforms that can meet our customers’ precise HR and payroll needs, to ensure enhanced organizational productivity with a special focus on energy and time-saving features.