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The prime development of conventional human resource tools and platforms drives the international market. More companies and organizations are currently adopting human resource software systems in employee management, which have changed the face of HR to a portal. Moreover, enterprises are now providing accessibility to HR services through global hr and payroll platforms and web-based applications. This has helped in simplifying workforce management and talent management.

In this article, we are going to talk about HR technology, phases and reasons for HR transformation, and the prospecting trends in HR technology:

What is HR tech?

The HR trends and technology have led to what we can currently term as e-HR that has redefined the HR service delivery. Now, HR professionals need to master HR skills and techniques and their application using relevant technology. The evolution of HR into a technology-based profession is necessary because enterprises need to:

  • Streamline HR processes and management
  • Reduce administration and compliance costs.
  • Position the brand to compete for global talent
  • Provide access to real-time metrics

Phases of HR Tech and Digital Transformation

HR digital transformation is the process that involves the use of global hr and payroll platforms in making HR processes more automated and data-driven. HR technology and digital transformation have redefined how the workforce is managed by the organization.

Any adaptation of transformation in the HR department should be driven by clear goals and objectives rather than industrial peer pressure from competitors. This is to avoid implementing technologies that meet the gaps within the enterprise. Just because another company in the same industry is doing it doesn’t mean it will work for you.

Organizations don’t just embrace technology overnight because the process takes time and investment.

Below are six stages of HR technology transformation as distinguished by Solis:

Business as usual

In this stage, businesses operate within the familiar structure and culture from employees’ perspectives, metrics, management, and business model. This phase believes that it is the solution to staying relevant in a world taken over by digital aspects.

Present and active

The organization engages in various experiments throughout its management and administration to sensitize digital literacy and creativity. These experiments aim to improve and amplify specific touchpoints and processes within the organization.


Formalization welcomes the alignment of the hr technology trends with the business, ensuring that the prospecting changes are intentional and relevant. The hr tech trends become bolder and start to find ground within the company. This is where the company executives become involved and support the onset of transformations.


Individual groups become aware of the strength and power of collaboration. This arises from joined research, work, and insights in pursuit of new strategic roadmaps to the transformation.


As the company embraces the growth in the hr tech market, a dedicated digital transformation team is formed to customize strategies and operations as per the organization and customer-centric goals. With the guidance of the expertise, new roles, processes, and systems are established as the company fully embraces the transformation.

Innovative and adaptive

The adaptation of the new hr technology trends becomes the latest as the organization, led by executives and strategists, recognizes that digital transformations are vital. A new ecosystem acknowledges the digital changes while giving it room to scale.

Why is HR Tech growing?

There has been hr software market growth as more companies embrace hr technology trends in the newly established remote work. While the number of remote employees is expected to rise, there is the need to invest in relevant global hr and payroll platforms to ease management and administration processes. Company leaders are finding hr Tech market beneficial, and here is why they are embracing it:

Dynamic Technology development

Hr technology trends in 2021 are characterized by cloud-based solutions that can keep up with the employees’ and employers’ expectations. This is because the old systems are outdated and rigid, lacking the features to be competitive in the current digital world. For instance, hr teams can now use the new technology developments to incorporate candidate experience to create compelling consumer-based experiences.

Too many systems

Having an app for everything and a system for every process within the organization’s structure can be burdening. Difficulties in maintenance and management characterize too many systems in one company. Hr tech trends create a platform for using a limited number of systems to execute the same tasks and processes customized to the company’s needs.

Prospects for HR Technology trends in 2021

As the years go by, companies will continue to experience hr tech market growth that continues to implicate the management of administrative processes and systems. More organizations turn to global hr and payroll platforms for the efficiency of processes giving their companies a chance and platform of increased productivity. Below are hr tech trends expected in 2021:

Self-Service Technologies

Companies and organizations are increasingly adopting technology and systems, including employee self-service (ESS) and manager self-service (MSS) tools. However the organization manages the workforce, these tools are expected to fall. This is a bid to minimize managers’ hr-related tasks, especially in areas of learning and development. Therefore, organizations are opting to open a shared-services center where HR administrators provide services to line managers.

The Adaptation of the AI

The AI will continue to be regularly used in recruiting, HR service delivery, and learning and development, given their convenience in the real-world tests. This technology is expected to grow to the point that it can provide daily recommendations and workforce insights. The technology will also see a broader adoption timeline that will lead to its expansion in new areas, as seen from the innovation of HR cloud technologies. Experts believe that data science and AI algorithms can recruit better as the continued shortage of reliable talents forces recruiters to be more innovative in their recruitment and outsourcing.

Specialized Tech Skills and Reskilling

While employers are ready for the shift in hr tech, there has been a worry that employees lack the necessary tech skills like data analysis and AI. As processes and systems become more automated, hr and learning groups will need to create agile reskilling strategies.

Agile flat structure

Most companies have adopted a flat organization structure to execute tasks given their potential to unlock dynamic teams. On the other hand, human capital management is not built to support such a structure, which has created the need for change. To keep up with the agile trends, the hr sector will need to incorporate user-friendly processes that increase productivity and scalability potential.

Data Privacy

As more processes are digitalized, more data privacy laws are being implemented.HR leaders and technology are expected to play a role in establishing the right balance between the trust and privacy of employees. Many consumers wish to control their data. HR must ensure the established policies and technologies are characterized by transparency and reliable data privacy.


The world is digitalizing faster, which makes HR tech transformation a necessity rather than an option. HR and employers need to acknowledge hr tech trends and their pivotal role in talent acquisition and retention, which is not easy. This is why many international enterprises partner with unified employment platforms like Skuad to build and hire remote teams in the current digitalized times. Global HR Platforms like Skuad enable organizations to hire employees and contractors, pay talent, and ensure compliance with the employment laws in the countries of operations.



Curated content on utilizing Employer of Record partners to build and manage remote teams, remote work, manage payroll, and expanding your organization into new territories

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