How Does Software Technology Impact HR Practices?

18th August 2022

Technology is constantly changing the world. From the development of new industries to the explosion of modern tools and software, technology has made a massive impact on our lives. In business and the human resource industry, technology is providing a more secure, efficient, and accurate landscape for work. 

With a market size of around $400 billion, HR technology is becoming a critical tool in the workplace. Are you wondering how software technology is affecting HR? How does modern software create better HR practices at work? In this article, we’re going to explore the exciting new ways software technology is changing the HR industry. Let’s get started.

Ease of Communication

Technology has completely transformed the way we interact at work. Before, if you wish to talk with your employees, you either had to summon them to your office or reserve the meeting room. Today, communication can be done online by simply talking to them on messaging apps like Slack, Skype, or Zoom.

The rise of collaboration software has made workplace communication easier than ever. Decades ago, employees who left the office had no means to get connected in the workplace. Today, it’s so easy for everyone to stay connected and oversee the workflow and progress of each project. Managers save so much meeting time with the help of collaboration tools that allow them to send project updates to their team easily. With advanced messaging and collaboration tech, communicating with out-of-office employees is now possible. 

Implement Smart Recruitment

Traditional ways of hiring relied heavily on printed resumes and in-person interviews. This form of recruitment was slow, tedious, and took a considerable amount of time. Today, hiring people has become fast and easy with the right tools.

Automated screening tools and candidate tracking software allow companies to manage countless numbers of applicants effortlessly. Measuring applicants’ skills using advanced tech tools make it easy to hire the right people.

Most HR technology also includes Applicant Tracking System (ATS) features that help HR post job openings on job boards and generate interview requests to potential candidates by email. This makes it easy to find top talents who can become outstanding and exceptional employees.

Through tech, the reach of hiring managers has widened. Decades ago, companies couldn’t and wouldn’t hire someone who lived halfway around the world. Today, tech has made international recruiting possible and more convenient.

HR Management Automation

The rise of automation has also affected the HR industry. But instead of automation taking HR jobs, automation simply made HR tasks easier so they can focus on more important and creative tasks for employee engagement.

Automation software tools process time-consuming and repetitive document-driven tasks from the hands of HR teams. Inefficiency caused by errors is reduced, increasing productivity and efficiency in the business.

With HR management automation, simple tasks such as running payroll, employee scheduling, and time tracking can be done on autopilot. Managers don’t have to worry about forgetting to pay invoices or wrongly inputting salary since everything is handled by intelligent software. 

There are also many different kinds of HR software to handle all kinds of HR tasks at work, not just payroll. Today, there is software to aid HR from talent recruitment to onboarding and training. Each year, more advanced tools and applications keep emerging to solve problems.

If you’re having issues with workflow, there are project management software solutions that can manage admin tasks. If you want a better way to track inventory and monitor your employees, you can check out and pick from the best ERP systems in 2022.

Improved Data Collection and Analytics

Measuring employee performance is not an easy job. Managers and supervisors used to take a lot of time to assess employees. Thanks to software technology, data-driven HR is making employee assessment much easier. HR software is able to collect and analyze data in real-time.

The wealth of data HR uses today to analyze employee performance is also improving and boosting organizational growth. Data gives HR a fact-based view of their current organization. The proper use of this data can have a huge positive impact on recruitment and risk management decisions. With data inclusion in the overall HR process, teams handle people more intelligently, enhancing the employee experience. Data becomes information for insight—not just numbers and facts.

Aside from improving decision-making for managers, data can also help predict employee retention. Software technology that focuses on data analytics can even predict which employees are likely to leave the company—and help managers find the best way to engage and retain employees.

Digital Training

Digital transformation can be seen in almost all aspects of business, including training. Today, businesses invest in employee training software to upskill their workforce. These tools provide custom course creation, organization, and management features for HR to improve the employee training experience.

Another form of digital training can be through the implementation of knowledge management systems. Acting as internal wikis, these types of software help reduce employee questions on HR. Aside from texts and documents, these software solutions can include video training for better knowledge acquisition.

Another way software is helping modern workplaces is by changing the culture and behavior of the people within the company. Software that solves transparency issues and fosters a positive environment at work is making it easier for people to work harmoniously together. With more companies implementing remote work policies, digital training will also increase.

The Future of Software Technology and HR: What to Expect?

The rapidly evolving nature of HR technology is opening so many possibilities in modern business work culture. We’re seeing a radical shift and increase in demand for better employee treatment and flexible work arrangements.

The transition to a fully digital HR is coming sooner than expected with cloud technology, virtual and augmented reality, AI, and machine learning on the way. The following are some future trends we’re currently seeing in HR tech:

Artificial Intelligence: The use of virtual assistants equipped with advanced language models to answer employee questions is becoming more common in tech companies. According to a global study by IEEE, AI, machine learning, and cloud computing will be the most important technologies in 2022. 

eLearning: Businesses are investing in e-learning technologies to improve their employee’s skills.

Blockchain: Blockchain is another important technology that will change HR in the coming years. In recent years, blockchain is being used to provide strong security and encryption of information.

Employee Service Tools: Employee self-service systems (ESS) will improve and perform several HR tasks without assistance from HR personnel. These systems can provide information to employees faster and in a more efficient manner.

HR Capabilities Expansion: In the near future, HR won’t just be responsible for recruitment and employee management. HR will be expected to do more creative and strategic tasks in the workplace.  

Fuel Success With HR Software Technology

Software technology will be one of the most important catalysts of change in HR in the coming years. While technological evolution in businesses is inevitable, the changes in HR will significantly affect the global workplace culture. Adoption of these technologies can be the most powerful solution to many modern workplace problems we’re facing today.