We look at three megatrends in the Human Capital Management (HCM) space that will help organizations unleash the power of their people.
Consumerization of workplace, rapid advances in technology and the changing workplace demographics are pushing HR Technology well beyond automation of traditionally manual tasks and redesigning performance management process, to reimagining the way we manage talent.
We spoke to Amber Lloyd, Global Leader of HCM Strategy and Customer Engagement at Infor on the sidelines of the UNLEASH conference held in Las Vegas earlier last month where we discussed the latest trends in human capital management in 2018.
- AI will be the price of entry into the HR tech space: At a time when the hype and expectations for AI are sky high, Amber sees AI not as a solution for competitive advantage, but as a powerful tool embedded in HR technologies. She said, “I think artificial intelligence has become this marketing buzzword, where people are talking about how they incorporated it into HR. But if we look at the big bang companies – Facebook, Amazon, Netflix or Apple, they have artificial intelligence that’s already built in, but we don’t talk about it anymore. It’s kind of price of entry into that space and I believe HR organizations are going to be using and leveraging artificial intelligence for things like serving up recommendations, career paths, predictive information and helping employees know what sort of training and development they should go after. I think we’re going to start seeing it actually embedded more and more in the software versus sort of this marketing buzzword that’s out there.”
AI must enable employers to create employee experiences that boost engagement, performance, and lead to better business results. Conversational interfaces and voice technologies have great potential to transform the way employees engage with their employers. Amber spoke about applications of AI-powered voice technology at the workplace, right from reminding employees about their paid time off to identifying high-performers and helping retain them, voice is perhaps the next frontier of employee-centric workplace tech.
- HR technology will pave the way for diversity and inclusion: A lot has been said about the business case for diversity and inclusion. A McKinsey study found that gender-diverse organizations are 15% more likely to outperform competition; while ethnically diverse organizations are 35% more likely to do so. Despite these compelling realities, organizations are still struggling with issues like gender pay gap and diversity.
HR technology can be a powerful equalizer, weeding out conscious and sub-conscious bias during recruitment, performance reviews and succession planning. However, Amber believes, more than the technical aptitude of vendors to deliver on diversity and inclusion, it is organizations that must embrace a cultural mindset to take action based on recommendations they’re getting from their HR tools . It is here that technology vendors have a real opportunity to transition from mere enablers to strategic partners.
- Balancing data privacy with personalization will be key to building great employee experiences: Data privacy in the age of personalization is a balancing act. While research says that employers using data-driven decision making are more likely to succeed than employers that don’t, regulations like GDPR and concerns around employee privacy continue to plague organizations. How can employers deliver personalized experiences, and respect employee data privacy at the same time? The answer is by delivering value. Amber says, “It’s a fine balance between empowering employees with rich insights into their careers and, ensuring data privacy.”
A strong HR analytics function can help you create valuable employee experiences. For instance, employers can serve personalized benefits recommendations based on the information collected during the onboarding process. In the era of information overload, personalized recommendations like these are a great way to build unique experiences. Employers can also harness employee sentiment and feedback to drive increased loyalty and ultimately business growth.
Instead of downplaying the risks associated with data privacy, employers must address specific employee concerns about how their information will be used. There’s a high likelihood that data privacy concerns are rooted not in the use of data, but accountability. Employers need to be transparent about privacy by adopting an employee first strategy.
A common theme underpinning all three megatrends in HCM technology is employee centricity; AI, data analytics, and HR technologies are opening up new avenues for employers to create and nurture lasting relationships with their employees . It would be interesting to see how organizations capitalize on these opportunities to get on top of the talent game!
Source : https://www.hrtechnologist.com/articles/performance-management/3-human-capital-management-hcm-trends-to-watch-out-for-in-2018/