How will technology impact the future of HR jobs?

There are many trends and developments that have significantly impacted the nature of HR jobs, from the introduction of new regulations to the rise of remote work. However, one trend in particular is redefining the way that HR professionals perform their day-to-day duties - the growing adoption of cutting-edge technology. From streamlining recruitment processes to enhancing employee engagement, technological advancements have already reshaped traditional HR functions. 

This begs a key question for HR professionals and businesses - how will technology impact the future of HR positions? 

In this guide, we will explore the transformative influence innovative technologies are having on HR departments. We’ll cover the top tech trends shaping the sector, as well as the advantages and potential downsides of technology in HR.

The top tech trends shaping HR

The emergence of innovative technologies like artificial intelligence (AI) and virtual reality have reshaped our economy. From the legal sector to the finance and accountancy space, almost all industries have been transformed by cutting-edge tech - and the field of HR is certainly no exception. Increasingly, HR professionals are utilising technology to help them carry out their duties more effectively. Technology can now be entrusted with performing traditional, routine HR tasks, such as screening CVs, answering applicant questions, and tracking candidate progress. 

The growing adoption of technology in HR has conjured many advantages and considerations, many of which we will explore here. Although the true impact of technology on HR jobs remains to be seen, it is indisputable that automated recruitment tools are revolutionising the industry. HR professionals and businesses must strive to understand and embrace these cutting-edge technologies if they are to keep up with the pace of change. 

Here are the most significant tech trends that are changing the nature of HR: 

AI and machine learning 

It is no secret that AI and machine learning are changing the way HR departments operate. Many firms leverage AI-driven onboarding platforms to customise the onboarding process for new hires, while others utilise automated predictive analytics to forecast future hiring needs. Automation is also transforming the world of HR recruitment and talent acquisition, with businesses leveraging AI tools and machine learning algorithms to identify top candidates and assess CVs. 

According to research conducted by Eightfold AI, 73% of HR departments utilise AI for recruitment and hiring, and a staggering 92% plan to increase their use of AI over the next 12 to 18 months. These illuminating statistics suggest that AI is firmly entrenched in day-to-day HR operations, and those who fail to adopt it risk losing their competitive edge. 

Common applications of AI in HR practices include: 

• AI chatbots: AI-powered chatbots can interact with candidates throughout the recruitment process, providing them with automated, personalised answers to their queries. The use of AI chatbots can enhance candidate engagement and reduce the time it takes to fill positions. 
• Onboarding: One of AI's main advantages is that it can automate time-consuming administrative tasks. This is particularly valuable when it comes to employee onboarding, a process that requires an abundance of paperwork and scheduling. 
• Performance management: HR professionals can use AI performance management tools to provide real-time feedback on employee progress, giving managers data-driven insights into how their staff are performing. 
• Succession planning: Identifying high-potential individuals who may have the skills to step into senior positions in the future can be a difficult, lengthy task. AI talent management platforms can help streamline succession planning by providing in-depth data that indicates the most suitable employees based on skills, performance, and career goals. 

Virtual reality and augmented reality 

Virtual reality and augmented reality are becoming increasingly common fixtures in HR departments. From enhancing employee experiences to training and development, VR and AR can improve a wide variety of HR practices. Given that 92% of HR professionals believe VR and AR are pivotal recruitment tools, it is unlikely that these immersive technologies will go out of fashion any time soon. 

Here are the ways VR and AR can be used in HR: 

• Training and development: Training and development programs are crucial for talent retention, and immersive technology can improve them. VR and AR platforms can create realistic simulations that allow employees to test their skills more effectively than classroom-based training. 
• HR recruitment:  HR departments can use VR to provide candidates with immersive job previews that give them a sense of the role's day-to-day nature. Having experienced this VR simulation, jobseekers can make more informed choices about whether to continue with their application.
• Employee experience: With cutting-edge AR technology, firms can create personalised, interactive workspaces for employees, thereby fostering positive workplace environments. By creating better experiences for employees, HR teams can expect an uptick in talent retention rates. 
• Workplace safety: VR and AR technologies have become handy and innovative tools for enhancing workplace safety. HR departments tasked with ensuring a safe environment can utilise VR simulations to help employees learn about how to manage hazardous scenarios.

Cloud-based software 

A growing number of organisations are implementing cloud-based HR software to streamline HR processes, improve teamwork, and enhance data accessibility. With a reputation for offering scalable and cost-effective solutions, cloud-based software has emerged as a popular, reliable option for HR teams. Research conducted by the Information Services Group indicates that there has been a sharp rise in the adoption of this software, with 46% of businesses stating that they use an HR SaaS platform or hybrid cloud solution, up from 20% two years before.   

So, what are the reasons behind the rise in cloud-based HR software adoption? There are many factors that may influence an HR department’s decision to invest in cloud-based software, including: 

• Automated processes: By leveraging cloud-based software solutions, HR professionals can reduce time spent on administrative duties like time tracking and payroll processing. Without the need to carry out these duties manually, HR departments can focus on more pressing matters such as employee development and workforce planning. 
• Cost-effectiveness: Cloud-based software platforms can help HR teams save financial resources by removing the need for maintenance costs associated with traditional HR systems. Instead of investing money into hardware and software licences, cloud-based HR software enables organisations to simply pay a subscription fee based on usage levels. 
• Accessibility: With a cloud-based software system, companies can enable their HR departments to carry out their duties and access data from anywhere with a WiFi connection. This is vital for businesses with remote working policies with HR staff based in multiple locations. 
• Data security: Safeguarding data security is a fundamental duty for any HR department. Cloud-based HR software providers ensure that their products include encryption and regular security updates, giving HR professionals peace of mind that the chances of a data breach are low. 

As we can see, technology is profoundly affecting how HR professionals conduct their duties. Whether you are an ambitious candidate considering a career in HR or an accomplished professional looking for a new challenge, investing time into learning all about the latest trends and developments in the field is paramount. We urge you to read our blog: What does HR do? Exploring the roles and responsibilities to discover more about how HR departments operate. 

What are the implications of technology in HR?  

In the previous section, we explored the various ways technology can help HR professionals to automate routine tasks and improve workplace practices. However, given the ease and convenience of innovative technologies like AI, VR, and big data analytics, it is unsurprising that many professionals are concerned with how these tech trends will affect HR recruitment. Will widespread automation translate into fewer HR jobs? Or will technology in HR prove to be a net benefit for employees and HR professionals alike? 

While debates around these key questions are sure to rage on, the overall consensus is that technology will reshape HR roles, not render them obsolete. Here, we will examine the advantages and challenges posed by technology in HR, providing you with a clearer picture of how the future of the industry is likely to unfold. 

The benefits of technology for HR jobs

Despite fears of job displacement and an over-reliance on digital tools, there are significant advantages associated with embracing technology. By leveraging AI, VR, and other state-of-the-art tech, HR professionals can improve their efficiency and productivity. Rather than making HR departments redundant, technology can instead help them boost their performance and emphasise their indispensable role. 

Here are the key benefits of technology for HR jobs: 

• Efficiency and time savings 

As we have alluded to repeatedly, cutting-edge technologies help HR departments improve productivity and minimise the time spent on laborious administrative duties. The rise of automation and technology has redefined the role of HR teams, transforming them from paper-pushing, admin-intensive departments to innovative and efficient units whose efforts are instrumental in securing successful business outcomes.

Owing to the adoption of high-tech solutions, HR professionals can use AI tools to screen CVs, arrange meetings via scheduling software, and facilitate greater collaboration between managers and employees through video conferencing platforms. Valuable time saved on these tasks can be reallocated toward more meaningful ambitions, like building a positive workplace culture and boosting employee engagement. 

• Better decision-making

Another important advantage of incorporating technology into HR operations is better decision-making. Digital tools like AI-powered talent management software enable HR professionals to access an abundance of data regarding employees, candidates, and the workforce as a whole. Equipped with this information, they can make data-driven decisions about many aspects of the business, including future recruitment needs, succession planning, and the effectiveness of training programs. 

• Improved employee engagement 

Achieving higher levels of employee engagement is crucial when it comes to enhancing talent retention rates, productivity, and company culture. A study by Gallup found that businesses with highly engaged teams are 21% more profitable than those without, and other research found that high engagement levels boost productivity by 14% and customer ratings by 10%. 

State-of-the-art technology enables HR departments to make it easier for employees to engage with each other. From instant messaging platforms like Slack or Microsoft Teams to employee recognition tools such as Bonusly or Kudos, HR professionals can choose from a range of cutting-edge digital tools to promote employee engagement. 

The potential downsides of technology in HR 

Although technology can help HR professionals conduct their duties more efficiently, the digital transformation of HR jobs carries several drawbacks. The roles and responsibilities that HR specialists have been performing for generations can now be automated thanks to AI and machine learning algorithms, while paper record-keeping has been made redundant owing to the emergence of cloud-based software. 

While it is true that these technological innovations offer numerous advantages, it is understandable that many HR professionals may be concerned about the impact on jobs. 

Here, we’ll examine the potential downsides of technology on HR jobs: 

• The risk of job displacement

AI technology is capable of automating tedious, repetitive tasks such as data entry, payroll processing, and benefits administration. On the face of it, this seems like a vital advantage of AI in HR, but how about the knock-on effect for jobs? AI-driven tools can match candidates to job descriptions, analyse large volumes of CVs, and even conduct screening interviews, but where does that leave HR professionals? 

Many candidates may feel that the convenience of technology is superseding the need to fill HR jobs. However, there is another, more optimistic way to look at it. Rather than fearing technology as a driving force behind job displacement, HR professionals should instead appreciate the opportunities that high-tech HR tools provide. To mitigate job displacement concerns, candidates should focus on upskilling in areas where humans excel over machines. 

For instance, as routine tasks become increasingly automated, HR professionals can pay more attention to strategic initiatives such as talent management and diversity and inclusion.  

• Lack of human connection 

Exceptional HR departments all thrive on one key element - human connection. By fostering meaningful relationships with employees, HR professionals contribute to creating a collaborative, communicative workplace culture where people will want to join. However, as firms become ever-more reliant on HR technology, organisations risk losing that vital human connection that HR teams pride themselves on. 

Of course, innovations like self-service portals, AI-powered chatbots, and virtual meetings offer various benefits for employees, organisations, and HR teams, but the resulting lack of interpersonal connection can damage company culture. Firms can implement several strategies to ensure a balance between technology and human connection, including providing communication training, regularly seeking feedback from staff, and encouraging managers to have regular check-ins with their teams.  

• Chance of bias

Perhaps the most significant drawback of technology in HR, particularly AI and machine learning, is the increased chance of bias. If not carefully refined and monitored, automated technologies can unintentionally perpetuate biases related to gender, age, race, or other key characteristics. A prime example of this is algorithmic bias, where biases are inadvertently introduced during the design and implementation of AI-powered HR tools. 

For instance, an AI tool used for screening CVs may prioritise certain keywords that exclude qualified applicants from underrepresented backgrounds. AI tools that create job descriptions may also feature biased language that discourages diverse candidates from applying. HR departments aiming to embrace technology while minimising the risk of bias can pursue a range of strategies, including bias testing, conducting algorithm audits, and ensuring training data is representative of people from all backgrounds. 

Key takeaways from how technology will impact HR jobs

The integration of cutting-edge technology is fundamentally reshaping the nature of HR jobs, offering both advantages and notable challenges. As AI, machine learning, virtual reality, and cloud-based software become integral to HR operations, professionals must embrace digital change and learn to adapt to these cutting-edge technologies. 

The benefits of technology for HR jobs are clear: increased efficiency, data-driven decision-making, and improved employee engagement. However, these advantages come with potential downsides, such as job displacement, a lack of human connection, and the risk of bias in automated processes.

The key lies in striking a balance between leveraging technology to enhance productivity and maintaining the essential human touch that defines outstanding HR departments. HR professionals must embrace upskilling in areas where human expertise shines, focus on strategic initiatives like talent management and diversity, and remain vigilant against biases in AI and machine learning algorithms.

By following the right strategies to mitigate the challenges posed by technology, HR departments can utilise state-of-the-art digital tools to elevate their roles, improve workplace practices, and drive positive outcomes for employees and businesses alike. 

Specialists in HR recruitment

Sellick Partnership has been providing market-leading HR recruitment services for candidates and businesses alike throughout the UK since 2002. With decades of combined experience, our consultants are passionate about supporting HR professionals in securing roles that align with their skills and career goals. Whether you are looking for an entry-level or senior management job, we are here to help you achieve your ambitions. 

Contact us today to discover more about our expertise in professional services recruitment.