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Top HR Tech Trends in 2023 to take your Recruitment to Next Level

Written By Daniyal Wali

With the rapid evolution of technology, the traditional practices of HR are becoming outdated and companies are taking the edge over each other by employing the latest tools. This blog will share a few of the key trends taking place in the HR technology space. And these HR tech trends can help you make better decisions in terms of staying on top of your industry in 2023.

Why incorporate HR Technology in 2023?

We have seen exponential transformations in the last few decades in every aspect of human life, whether personal interaction or how businesses function. Not adapting to the changing conditions can result in extinction and no company would want to be perished. This is the reason that a significant number of investment is expected in HR technology. If any company wishes to stay in the competition then investing in technology is vital.

Three meters statistics with green, yellow and red color showing HR Technology investments

There are examples of several companies that have disappeared because they could not comply with the changing circumstances. One of the examples is Nokia which did not welcome the tech trends like smartphones and was left far behind in the race against the market competitors. Similarly, there are different departments within a company that need to welcome innovations and HR is no exception. The latest technology trends are taking the HR world by storm.

Here are a few of the top-most HR tech-trends of 2023:

• Use of ChatGPT and Chatbots

ChatGPT has become a trending discussion and recruiters are taking several advantages of this too. It is a ChatBot made by Open AI that produces any kind of content according to the user’s demand. Its popularity is evident from the fact that it has reached the landmark of 100 million users within the second month of its launch.

The recruiters are using Chat GPT for previous repetitive and exhausting tasks. For instance, HR teams have to spend most of their time responding to the same questions. Chatbots like ChatGPT which are conversational AI will help organizations automate dull HR tasks for instance:

  • Creating job descriptions
  • Scheduling interviews
  • Responding to the candidates’ questions
  • Answering employee FAQs
  • Making presentations
  • Managing leave requests by processing them in absence management

The chart below explains various other ways in which Chatbots like ChatGPT can be helpful for your organizational needs, especially for recruitment purposes. These chatbots will reduce the load on HR teams and they can focus on essential tasks that require human interaction and judgment.

A robot and statistics for AI Chatbot in HR

• Blockchain for Talent Acquisition

Blockchain integration has become a hot topic in the recruitment world due to the ease it offers in recruitment and talent acquisition. It is expected to change the complete operation of Human Resources from mitigating risks traditionally linked with limited trust, instant screening, and providing credential verification to the execution of direct cross-border payments.

Blockchain has been used most commonly in Supply Chain and Finance but according to a study conducted by IBM, the blockchain value is expected to have a major impact on HR (Human Resources). Blockchain with AI and other automation could provide companies the ability to perform an audit, manage data, and several administrative tasks.

Text showing Impact of blockchain on workforce along with three meters for statistics

• Shifting to Skill-based from Job-based Approach

According to research conducted by Deloitte, organizations have expressed a great desire to adopt the skill-based approach. The big companies have already embraced this approach. The study found against the expectation that most organizations preferred a skill-based model over a job-based one. Furthermore, the study also indicates that the early adopters of the skill-based approach are achieving better results.

The are various factors for organizations moving towards skill-based hiring. One of the major ones is that the candidates seek autonomy in the modern age. Paul Kijzer, CEO of The Talent Games, addressed this issue in The Future Summit. He was of the opinion that the recruiters need to do away with the rule books. They need to treat the employees as partners rather than subordinates. The employees these days have enough options and therefore strictness can only lead to losing talent.

• Work Flexibility

Organizations are embracing a shift from office-centric practices to a human-centric model in order to control the employee turnover ratio. The employee-driven approach from companies empowers employees to choose how, where, and when they work. According to research by Gartner, 52% of employees claim that flexible working policies play a crucial role in deciding to stay with the organization. In order to be successful in the execution of this shift to flexibility, employers must ensure that flexible working is the default and not the exception and it is surrounded by principles, not policies.

• Welcoming Boomerang Employees

The employees considered it wise to switch to new workplaces or switch careers because the global economy was booming. However, the global economy began shrinking and during this uncertain economy, many retirees are returning to their previous employers, as also those professionals who thought the grass was greener on the other end.

This situation is actually a bonus for many companies as they appreciate the return of their former employees (boomerang employees) because they have proven skill sets and institutional knowledge.

The organizations in 2023 will begin to maintain their professional relationship with leaving employees and ensure that their doors are open for them. Moreover, the companies can invest in their digital workforce performance technology to let talent acquisition teams keep track of their ex-employees to identify which one of them has the required experience and skills to acquire high-demand positions.

• Smart Workforce Planning

In a complex economy, there is no guarantee that your workforce strategy will be as effective in the coming year as it was in the previous one. Talent managers will need to be more strategic in their future planning for a better understanding of their needs. To do this, they must disintegrate gaps and work with business leaders across all activities.

In the coming years, AI is going to be one of the most helpful HR tech trends used for predicting and determining the appropriate roles, skills, and geographies for the changing business. Employers’ hiring procedures are slowing down hiring as per recruiting trends. Additionally, if the industry does undergo a recession in 2023, businesses will need to re-invent their workforce planning and do new hiring much more cautiously.

To be able to deal with every kind of risk in the economic environment, talent acquisition professionals must carry out scenario-based workforce strategy plans and do a proper risk assessment. Within every case, they should be able to consider both the company’s crisis and quick recovery.

• Embracing Cloud-Based Systems

The cloud-based systems are necessary to keep the employees connected and they don’t keep connected only the employees in the office but also the ones who are working remotely. Organizations are implementing these systems to keep up with technological advancements. Human Capital Management solutions or HCMs – powered by cloud technology are going to be essential tools for HR who can access real-time data of the employees to from any place at any time and make effective decisions.

Graphy representing the effect of cloud based systems in HR

• Using technology for Inclusive and Diverse work culture

The organizations are once again emphasizing on creating an inclusive and diverse workplace culture in 2023. There are companies that have already embraced the diversity and inclusion concept whereas, there are others that are still struggling to adopt it. For instance, there is still gender disparity in tech companies. According to the disparity rate mentioned in The Empowering Guide for Women in Tech 2023, the number of women in the tech industry is less than 1 in 5 despite the fact that women make up more than 50% of the U.S. workforce.

According to the Director of Inclusion & Diversity at Deloitte, companies with inclusive culture are “twice as likely to meet or exceed financial targets and far exceed their business outcomes” as compared to companies without inclusive culture. There is a growing number of modern workplaces that have adopted  D&I (Diverse and Inclusive) HR tech-trend for talent acquisition along with sourcing and selection.

• Bringing Employee Experience to Spotlight

Organizations are spending money more than ever before for improving employee experience from onboarding to employing cloud solutions for effective communication. With the exponential development in technology, managers in HR now have the relevant tools to offer a seamless experience to candidates by employing solutions such as gamification, psychometrics, and other engaging solutions. Companies have realized that giving prior attention to the employee experience is the key to success.

Number showing the employee engagement in percentage

• Gamification in Recruitment

Gamification refers to the use of a virtual game in a context that is non-game, and it is going to be a vital recruitment trend in the upcoming years. It will not only help in recruiting talent by reducing bias in the hiring process but also help boost the employer brand. Gamification in recruitment is not completely a new HR tech trend. It is an innovation of the process primarily used for candidate experience as well as employee engagement It provides leaderboards, rewards, and badges (whether virtual or physical) used to enhance the training of the employees and encourage the completion of tasks.

4 logos showing various percentages to identify the impact of gamification

Conclusion

HR Tech trends are necessary to stay up to date with the innovations happening in Human Resources because the future is driven by innovations and automation. Implementing the best techniques in HR and staying informed about the trends is a way to build a future-oriented workplace. We hope you liked the HR tech trends of 2023 that we have compiled.

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