Although the board understands the importance of HR technology, it is HR's job to evaluate and create a compellingcase for a technology investment
The use of analytics will be more widespread and will no longer be restricted to the top management
When we talk about HR technology in the Indian market, three primary trends are driving the buying decisions for most organisations. The topmost trend for HR organisations in the coming times is the reliance on technology for talent acquisition and retention. Progressive recruiters have started using consumer and social technologies such as LinkedIn to acquire and retain talent.
Secondly, the use of data to make informed hiring decisions is gaining more prominence. Organisations would go well beyond tools such as assessments and talent management processes are set to become more scientific. Thirdly, the trend of mapping skills against jobs based on data is changing the way organisations manage their workforce.
In addition to technological advancements in India, the HR function has matured to deliver strategic value to the business.
The heightened need to deliver business value is leading to the development of not just new technology products in the market, but also how organisations are evaluating their technology needs and requirements.
From the demand side, the key question that Chief People Officers ask is how to accelerate the value of HR’s contribution to the business. Therefore, their need to look at technology to provide measurable and actionable results has become more important.
On the other hand, from the supply side, a number of cloud-based HR technologies are getting introduced in the market. This is especially true for organisations in the western economies, which are pioneering the adoption of cloud-based HR technologies. Emerging economies like India are also fast catching up with the trend and a majority of HR technologies in the coming times will be hosted in the cloud.
While CEOs / CIOs make technology buying decisions in most organisations, the catalyst is the Chief People Officer. Although the board understands the importance of HR technology, it is HR’s job to evaluate and create a compelling case for a technology investment that they can own and operate.
Analytics has touched an inflexion point and is driving business transformation in firms. There is a great need for highly functional and highly operational ‘everyday analytics’ that goes beyond just strategy. ‘Everyday analytics’ helps HR to become agile by helping them make incremental value contributions to the business that quickly add up to big gains. In a dynamic business environment, ‘everyday analytics’ practice helps HR and the business make quick management decisions by mining either small or large amounts of data based on specific requirements.
In the future, the use of analytics will no longer be restricted to the CEO and the senior management of an organisation. Three years from now analytics will become more widespread in the operational levels and much more closely linked to everyday business delivery.
Arun Prabhu is Managing Director & Chief Executive Officer, inTouch Analytics