COVID-led evolution: Will the pandemic lead to quicker tech adoption in the HR space?

The COVID-19 pandemic has changed the way businesses operate and interact with their employees. In particular, the Human Resources (HR) space is at the forefront of this shift to digital transformation. The use of disruptive technologies in HR processes such as recruitment, onboarding, training, and development is becoming increasingly common across multiple industries in India.

The world we live in today is significantly different compared to the one we knew just over a couple of years ago. The pandemic, one of the most devastating, unprecedented events in recent history, resulted in widespread disruption in our daily lives. The scenario wasn’t much different from the business standpoint either. Businesses across industries grappled with the crisis and had to adapt quickly to stay afloat in the market, and the HR segment is no different.

Fortunately, one of the consequences of the pandemic was accelerated digitalization and technology integration. In fact, new technologies have engulfed the entire business world far beyond what anyone might have imagined just 4 years ago. The HR landscape has been subject to many discussions about technology adoption, too, especially since technology is advancing at a breakneck pace.

Putting it in perspective

As hybrid and remote working models become the norm in organisations worldwide, leveraging the best possible HR technology is imperative to craft pleasant experiences for employees even before onboarding. In fact, the pre-onboarding experience is one of the touchstones for a candidate deciding to join the company.

For instance, when organisations are hiring candidates remotely, there are bound to be hundreds of applications. For an HR professional to sit and sort through each and every one of them is time-consuming and tedious, not to mention inefficient when it comes to costs incurred by the company.

At such a juncture, it’s best to deploy automation and technologies like AI to sift through the applications to avoid inaccurate judgements, biases and errors. In fact, HR tech has become an essential aspect since it enables organisations to stay competitive and optimises cost and time by up to 30% and minimises errors and duplication by up to 60%.

The progress

We live in a country of 1.3 billion people with a vast workforce as our key strength. According to the labour ministry’s quarterly employment survey, a total of 31.8 million individuals were employed across 9 sectors in Q1 of 2022, compared to 31.4 million in Q3 of 2021. So, it’s safe to say that the HR space in the formal employment sector is also massive. It’s also constantly evolving and adapting to the changing global scenarios.

On the technology side, too, the Indian HR landscape has seen a phenomenal increase in the integration of new-age technology. So much so that India’s HR tech market was valued at USD 23.32 billion in 2021. Particularly since the pandemic’s onset and subsiding, the differentiated challenges and  evolution of the HR function have been remarkable, with companies prioritising employees and their well-being and implementing employee-centric policies through modern technology.

Further, with businesses realising the importance of making data-driven decisions efficiently, Data Science has gained much traction. With HR tech, companies can leverage data garnered systematically and use people analytics to elevate employee experience and engagement.

As mentioned earlier, organisations are increasingly prioritising employees’ mental health, well-being, and overall satisfaction to drive productivity. To help with this, tech-powered initiatives like Employee Assistance Programs (EAPs), mental health apps, wearables that analyse employees’ health and can even be used to clock into work instead of the traditional biometric devices, and wellness tracking platforms can be utilised.

Additionally, with the help of HR tech, companies can also expect compliance functions to be automated, thereby boosting efficiency. Simply put, as technology becomes an intrinsic part of HR, it provides a unified, seamless experience throughout the organisation.

Summing up

Tech inclusivity helps companies enhance employee experience, engagement, retention and productivity spheres. So, to remain relevant today, it’s essential for companies to integrate HR tech into their operations to successfully navigate the digital world. Leveraging new-age HR tech products will undeniably be a win-win situation for companies and employees.

Authored By: Sumit Sabharwal, CEO, TeamLease HRTech