Trends and development vectors in HR Tech

Developing the HR sector based on the analysis of technology trends allows companies to work with human capital effectively, which is particularly important with the current situation on the labor market.

Objectives of HR departments

We have outlined the most significant aspects of HR.

Staffing. Most industries are experiencing a workforce shortage right now. According to the SuperJob job search website, 86% of companies are operating with a staff deficit, regardless of their staff size and industry.

Workforce quality. Monitoring qualification, knowledge and skills both during the hiring process and for hired employees. With a shortage of staff, it is important not only to hire new people but also to support and develop the competence of existing employees.

Motivation management. Highly motivated employees work more effectively, achieve better results and stay in the company longer. Companies offering remote and hybrid work arrangements often face staff motivation and engagement challenges.

Evaluating process efficiency and conducting HR analytics. These are essential tasks that encompass assessing the performance of both the company’s personnel and its HR services. By centralizing data collection and analysis, managers can make informed decisions and refine their personnel management strategies.

Trends in HR Tech

The IT landscape has shifted following the exit of major foreign vendors, impacting the entire software development industry. Russian software manufacturers are actively expanding their product lines, and new domestic brands are emerging in the market, including in the HR Tech segment.
The market for HR electronic document management systems (EDMS) is experiencing a revival, with new products emerging and existing ones seeing increased adoption. This heightened interest in EDMS is driven by the development of a regulatory framework governing the area. This sector is arguably the fastest-growing within HR Tech in Russia. Some experts predict that by 2025, 80% of companies will have fully transitioned to EDMS.
Various solutions involving artificial intelligence (AI) and related technologies, such as neural networks, machine learning (ML), language models (LLM), and generative AI, are becoming increasingly integral to HR processes. These intelligent technologies assist with candidate selection, interactive onboarding, creating training materials, personalizing training, and predictive analytics of HR metrics. Two-thirds of HR leaders believe that their companies will fall behind if they do not implement AI tools within the next 1-2 years.
Comprehensive digitalization and hyperautomation of HR processes are seen as key trends by over half of HR managers. Companies are striving to eliminate paperwork and minimize routine tasks for employees, especially within HR departments.
The trend towards the robotization of HR tasks is closely linked to comprehensive digitalization and is also gaining momentum. Nearly half of executives plan to invest in business process automation technologies using software robots (Robotic Process Automation, RPA) within the next 1-2 years. RPA helps reduce repetitive HR tasks, cut costs, and improve the management of personnel and HR processes. Notable examples include automating the search, processing, and ranking of candidate resumes, as well as registering employees and handling related administrative tasks with minimal HR specialist involvement.
The Zero HR concept marks a new advancement in the automation and digitalization of HR processes, aiming to minimize the involvement of HR specialists in routine and administrative tasks. By leveraging AI and robots for functions such as recruiting, hiring, onboarding, and employee self-service, administration time can be significantly reduced, thereby enhancing the efficiency of HR processes.
HR analytics and its evolution encompass a broad range of activities, from creating, implementing, and utilizing dynamic reports with structured data visualized as dashboards, to developing predictive analytical models.

HR Tech ecosystems

These trends have led to the development of ecosystems where products seamlessly integrate with each other and with the corporate systems of customer companies. Typically designed to comprehensively address HR issues, these ecosystems cover the entire personnel management cycle. They offer:

Search, verification, and analysis of candidates
Initial communications with applicants
Automated entry of employee data into information systems
Electronic document management for personnel
Self-service tools for employees and HR departments
Employee assessment, motivation, and development
Management of KPIs and bonuses
Visualization and analytics of HR data

Simultaneously, the ecosystem approach has evolved from a purely technological concept to a significant market trend. Major vendors recognize this market demand and strive to offer customers comprehensive solutions, either through their own products or by integrating with partner solutions.

The trendiest HR solutions

EDMS, HR electronic document management system, is among the rapidly expanding sectors within domestic HR Tech. Implementing EDMS can reduce the time required for employees and employers to obtain necessary documents by fivefold, enhancing communication efficiency. Employee registration procedures are shortened by 70%, and document processing costs are halved by minimizing logistics, archive maintenance, and specialist labor expenses. Moreover, EDMS implementation boosts labor productivity by 25% through automated document routing.

Digital employee assistants enable effective interaction with the company on HR matters in a user-friendly format. Employees can easily access necessary information, certificates, updates on personnel documents, and manage tasks like arranging vacations or business trips. Implementing a digital assistant significantly enhances employee loyalty, thereby reinforcing the employer brand. It also decreases the workload on HR specialists and enhances overall staff productivity. Using a digital assistant accelerates response times tenfold, reduces task completion times by fourfold, and lowers the cost of processing employee requests by 60%.

Intelligent voice bots streamline mass recruitment processes by automating candidate interactions. These bots autonomously handle tasks such as updating contact information, presenting job vacancies, and responding to common queries about the company or job role. Additionally, they can conduct rapid interviews and input results into the database, schedule interview appointments, send reminders, and reschedule meetings for candidates who miss appointments. This tool reduces labor costs by fivefold during mass recruitment and quadruples the number of resumes processed.

Long–term strategy

After analyzing labor market trends, we can identify several key directions for developing the company’s HR strategy.

Centralized access to HR services: In many organizations, employees currently need to navigate numerous services to access necessary information or services, which can diminish overall productivity. Establishing a centralized access point for HR services addresses this issue, saving time and enhancing employee loyalty to the company.
AI and ML tools for decision-making: AI analytics and recommendations derived from employee data enable more efficient planning and management decisions.
Intelligent assistants for HR and employees: The advancement of intelligent tools and assistants for both HR services and employees reduces costs associated with routine tasks while enhancing the quality and speed of request handling.

The discussed trends illustrate how technology is continuously reshaping the HR industry, enhancing efficiency, adaptability, and employee-centricity, thereby boosting overall business performance. Monitoring these trends and implementing innovative solutions is crucial to staying competitive and maintaining high standards of HR management.