HR Technology Framework and Disruptors

Part
01
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Part
01

HR Industry Technology Framework

The typical technology framework in the HR industry consists of employee communication tools, AI-powered sourcing and recruitment technology, learning management, engagement technology, HCMs, big data and analytics, social media, payroll, and benefits.

Employee Communication Tools

AI-powered Sourcing and Recruitment Technology

  • Agile sourcing technology aligns with the company's business and talent strategies, thereby making hiring processes more efficient
  • Sourcing technology helps recruiters cut through the noise so that they can quickly and effectively fulfill the talent needs of the organization.
  • Currently, this market is being driven by AI. Of all the segments of HR, sourcing, and recruiting makes up the largest share of the AI market.
  • AI has started to outperform humans when it comes to hard decisions such as evaluating skills, plus this technology frees recruiters up for more complex tasks.
  • In the past, the attitude towards AI has been negative, even by executives. However, now, 66% of executives believe that this technology can improve HR and 54% believe that AI will affect key facets of HR in the future.

Learning Management

  • The Learning Management System is used to help acquire, develop, design, deliver, and keep records of the training that employees go through at a company. More often than not, this is the largest process of an HR department.
  • Traditional Learning & Development systems are being replaced by learning experience platforms where they integrate learning, video authoring, AI-based recommendations, etc.
  • HR professionals often use learning management systems with gamification features to better help their employees. Gamification systems train the professionals in an organization to use and leverage product and service lines and help employees retain the motivation to learn.
  • Gamification systems are important because it is the employer that has the responsibility of teaching employees the skills they need to adapt to work processes and technology.
  • So far, it has been found that employers are not investing enough in training. It was found that employers with less than 100 employees only gave 12 minutes in training. Employees want more training, and 74% believe they are not reaching their full potential because of the lack of training.
  • Researchers are however finding that companies across the board are listening to their employees and are investing more into training and learning tools and technologies.

Engagement Technology

HCM, HRIS, and HRMS

  • Human Capital Management (HCM) is a technology that covers the bulk of human resources operations for an organization, doing tasks such as data tracking, data entry, and data management. Human Resource Information System (HRIS) is often used interchangeably with HCM although HRIS tools usually have all systems and processes under its belt (source 7).
  • Common functions of the HRIS include database management, time and labor management, payroll functions, benefits management, employee interface, and talent acquisition and retention
  • HR departments use these systems to achieve organizational competency, by achieving workforce optimization, along with workforce management and recruitment.
  • Then there is the Human Resource Management System (HRMS), which is an HRIS that stores and organizes employee data such as their profiles, schedules, and attendance records.
  • Many HCM vendors have moved their software to the cloud, such as Oracle, Workday, Infor, Gusto, HiBob, and Sage. Cloud-based software is important with modern HR, as it makes the collection and storage of data easy. When an assessment is made, cloud solutions have been shown to streamline workflow and operations across the enterprise.
  • A PwC study found that 75% of companies have at least one HR process in the cloud, while 40% of companies have an HCM or HRIS in the cloud. 26% said they planned to move a core system there within the next three years.

Big Data and Analytics

  • Big data helps HR professionals to implement great recruitment, retention, and performance through evidence-based metrics. It allows for decisions to be made using available data.
  • HR professionals use Big Data to get key points about their customers, prospective customers, and target audiences. This technology powers many other technologies today, which helps HR departments gain deep insight into what they're looking into.
  • Big data is manipulated through the use of analytics tools. These analytics tools can help HR professionals make tough decisions about their workforce by pulling raw data and providing actionable insights based on that data.
  • Data through analytics also helps the organization be more diverse and inclusive.
  • According to Deloitte, 75% of companies believe that big data and analytics are important, but only 8% believe they have good enough data analytics. This is a number that hasn't changed since 2014, which shows there is much more work to be done in this area.

Social Media

  • HR departments use social media for tasks such as recruitment and employee engagement. Common social media channels that are used are Facebook, Linkedin, Tumblr, Pinterest, etc.
  • Organizations are using social media to tell the story of their company with photos and blog posts on these social media channels.
  • Social media is also used to help job seekers know more about the company.
  • HR professionals also use social media to keep up to date with the technology and trends in the HR industry and to share that knowledge with others, which boosts relationships and opens lines of communication with other professionals and employees.
  • Approximately one-quarter of employers are using social media to recruit talent.

Payroll Service

  • Payroll services, especially those that are based in the cloud, make it easier for HR departments to track paychecks, deductions, and paid time off. They also help with paycheck calculation, filing taxes, and reporting new hires to the IRS.
  • Several bits of software make up the payroll system, including software that handles executive bonuses and sales compensation.
  • Having a good payroll system is of utmost importance to any enterprise as it directly affects the morale of a company's employees.
  • HR departments around the world are updating their payroll systems to good effect. Around 89% of companies have their payroll systems online and 83% offer employees the ability to see their pay stubs online.

Benefits Management

  • Benefits management platforms help HR departments handle employee benefits such as paid time off, health insurance, retirement plans, and workers' compensation.
  • Using benefits management platforms help businesses compete by giving them a baseline for standard HR processes, and letting them offer similar benefits in the way that other companies does them.
  • HR departments also trust Benefits Management platforms because data such as medical data is governed by compliance bodies such as the Health Insurance Portability and Accountability Act (HIPAA).
  • Employers have started to ignore the cost of implementing a good benefits platform and are now more concerned about making sure the experience is good (61.4%) and that employees can make informed decisions about the benefits they choose.

Research Strategy

We chose each framework based on the number of times we saw them mentioned in each source that we looked into. The sources we looked into included Entrepreneur, Finances Online, Career Builder, HR Technologist, and others. With some technologies, we combined certain elements if there were certain disagreements between sources but they were similar enough in nature. For example, we combined Big Data and Analytics because we realized that both talked about the analysis and manipulation of data.



Part
02
of two
Part
02

HR Industry Technology Disruptors

Emerging companies were defined as those that are startups but are growing fast and/or getting a lot of press. Startups that were described in terms such as 'hot', 'innovative', 'disruptive', or something similar on reputable websites were also used. They were grouped under the categories that were defined in the first request of this project: employee communication tools, AI-powered sourcing and recruitment technology, learning management, engagement technology, HCMs, big data and analytics, social media, benefits, and payroll services.

Employee Communication Tools

AI-powered Sourcing and Recruitment Technology

Learning Management

Engagement Technology

HCM, HRIS, and HRMS

Big Data and Analytics

  • Ambit Analytics is an AI-driven platform that helps employers know how their verbal communication is impacting employees. It provides insights and coaching to help change problematic behavior.
  • 2DAYSMOOD is an analytics tool that measures the engagement and happiness of employees in real-time. Through surveys, this software can tell employers how many of their employees are in a good mood and how much stress they are experiencing.
  • HiQ Labs makes analytics software that utilizes machine learning to analyze attrition risk across the organization and helps HR departments create a plan to reduce any turnover. It also gives HR departments the ability to identify the skills of each employee across the organization.
  • Humu helps organizations manage the needs, productivity, and retention of employees using machine learning algorithms to improve the work environment.
  • HumanPredictions analyzes social media data, work history, and company information to see whether a prospective employee is likely to switch jobs in the future.
  • Clustree uses AI and machine learning to analyze employee skills and knowledge and recommends them for internal job opportunities.
  • Cultivate helps HR departments in real-time analyze its workforce by looking through communications of managers. They do this to see if their communication, coaching, and employee well-being are up to standard.

Social Media

  • Fishbowl is a social network that connects professionals from the same company or industry.
  • Happeo is an enterprise social network that facilitates collaboration and communications between employees and employers. This social network also provides important tools such as calendars, conferencing, and CRM systems.

Payroll Service

  • Personio is a recruiting and payroll platform that helps thousands of small and medium-sized businesses around the world to see attendance data, absencies, and salaries.
  • JustWorks is a startup that offers HR solutions such as payroll and benefits.
  • Crew is an app that helps hourly workers track the time they worked. It also helps HR departments manage these workers and helps with shift planning.

Benefits Management


Sources
Sources

From Part 01
From Part 02