Let's face it, 2023 ushered in some of the most significant technological advancements, impacting not just our personal lives but also the professional sphere. Whenever there's progress that directly influences people's lives, the HR sector becomes pivotal as it's responsible for professional well-being, upskilling, and numerous other aspects. With 2024 looming ahead, we're rapidly moving toward what the future holds.
This juncture offers us an opportune moment not only to look forward but also to reflect on where we began, what we've learned, and most importantly, the major disruptions that defined our year. To gain insights into these aspects, we reached out to experts in the HR industry to comprehend and gather the key elements that shaped our year and where we stand today.
1. Acceleration of HR tech adoption
Businesses have witnessed a rapid surge in the adoption of HR technology, surpassing the pace of the entire previous decade. According to Mr Murali Santhanam, CHRO at AscentHR, essential processes such as onboarding, employee connection, performance evaluation, and learning have evolved from a traditional "Human Touch" approach to being driven by "HR Tech." This transition signifies a fundamental shift in how businesses manage and streamline these critical aspects of HR management.
2. Holistic candidate experiences through AI
AI-powered tools have transformed the hiring landscape, enhancing the efficiency of talent acquisition processes while maintaining high standards of quality. Mr Vikram Ahuja, MD of ANSR and CEO, Co-Founder of Talent500, said, “the implementation of personalized touchpoints at various stages of the candidate journey has significantly reduced dropouts and elevated overall candidate experiences in 2023.”
3. Challenges in maintaining human connection
Integrating AI tools like Chatbots has presented challenges in preserving the essential "human touch" in employee interactions and performance assessments. Mr Murali Santhanam, CHRO at AscentHR, noted, “Despite the presence of emotional intelligence analysis tools, “there remains a need for human intervention in situations that demand emotional sensitivity.”
4. AI and ML transforming HR landscape
Mr OmPrakash Muppirala, Head of Fountain India, emphasised the swift evolution facilitated by Artificial Intelligence (AI) and Machine Learning (ML). These advancements have heralded an era of task automation, providing data-centric insights, and fostering personalised experiences for employees. He also highlighted how AI and ML technologies have significantly reshaped various operational facets within organisations. “Task automation not only expedites mundane processes but also refines decision-making through the extraction of invaluable insights from vast datasets. Moreover, the integration of AI and ML has revolutionised the employee experience by tailoring solutions that cater to individual needs and preferences,” said Muppirala.
5. Seamless HRMS integration for employee lifecycle
Human Resource Management Systems (HRMS) revolutionised the management process, guaranteeing a smooth and integrated experience for employees from the initial hiring stages to retirement. Delving deeper into this transformation, Mr Ahuja elaborated on how HRMS tools have streamlined various HR functions. “The comprehensive integration of these systems not only simplified administrative tasks but also facilitates effective talent management strategies. By automating workflows, these tools create a seamless flow of information, ensuring accurate and timely processes throughout an employee's journey within the organisation,” he said.
6. Demand for digital skills
The Head of Fountain India shed light on the escalating demand for digital skills in the workforce, emphasising how this surge has led to a shortage of skilled talent across various industries. This pressing need for specific digital competencies catalysed a widespread call for reskilling and upskilling initiatives within organisations.
Explaining further, he elaborated on the implications of this talent shortage. “The critical importance of digital skills in today's rapidly evolving business landscape, where technological advancements continually reshape industries. The widening gap between the skills demanded by employers and those possessed by the existing workforce has become a prominent challenge faced by many organisations,” he emphasised.
7. Disruptions in workforce planning
The positive influence of HR Technology on workforce planning has been instrumental in forecasting attrition rates within organisations. By amalgamating various factors such as skill sets, personnel availability, and performance metrics, HR Tech has facilitated the prediction of potential attrition scenarios.
The CHRO of AscentHR highlighted the significant role played by the integration of AI tools in this process. “These AI-powered tools have contributed invaluable insights that enable organisations to make informed decisions regarding their workforce composition,” he said.
Stay tuned to People Matters for stories that offer valuable insights and lessons, paving the way for reflections, introspection, and the anticipation of what 2024 might hold!
Merry Christmas and a joyful New Year!