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Should you invest in 'HR Tech' start-ups?

• By Ruma Batheja
Should you invest in 'HR Tech' start-ups?

The news headline says:

'HR Technology has taken over several rule-based HR jobs. Several online HR assistants are seen addressing day-to-day employee queries.'

This isn’t a far-fetched future anymore. The countdown has begun and soon you will see all these happening around. As a step towards such future of work, the start ups have already started grabbing big investors’ attention as never before.

HR tech start-ups are bringing a radical change in transforming the HR practices in the B2B space. As per PeopleStrong’s estimation, India Inc. can save at least $600 million annually by 2021 using HR Technology. Of course, the human interaction and the human touch must never be made redundant, and that’s the catch of survival. But the fact is that Big Data and Machine Learning has almost arrived.  In order to be in the business and stay ahead in the competition, there is no alternative but to start investing and adopting technology as soon as you can.

A good movement in technology is clearly evident due to the rise in HR Tech start-ups. It is estimated that the HR software market globally will cross US$9.2 billion by 2022. Though the big enterprises are moving a bit slower, the start ups by virtue of their clean slate are moving faster. With no legacy, they are looking for the latest and the most reasonable HR technology for their businesses. Some of the recent examples include:

According to a study by ADP, nearly 63% of employees in Indian offices believe automation and artificial intelligence will eventually replace people doing process-based and repetitive work. And all these technological manifestations unfold a lot of changes ahead in the ecosystem in areas of deep machine learning, artificial intelligence, and virtual reality. A completely transformed HR technology centric digitally empowered employee of future can be foreseen. However, it is the right and balanced integration of human and technology which actually will answer all our deep rooted fears and inhibitions in years to come.