The world of work is in a profound phase of evolutionary change. Not only how we work but also how we use technology tools to connect, manage tasks, and deliver value.
Therefore it’s no surprise that human resource (HR) teams are turning to enterprise software to take care of internal stakeholders. Because of this sustained change, our employee care tools now need to be more sophisticated, effective, and dynamic. Market figures show that this software vertical is growing in line with enterprise demand. Specifically, in 2022 the HR management software market had an estimated worth of around USD $17.78 billion that’s expected to hit USD $43.41 by 2030.
In order to explain why Human resource management software is so important for the hybrid work sector, this blog unpacks:
- The enterprise software market and the place of HR management products
- Ongoing business challenges this software helps businesses resolve
- Technical features in user experience (UX) and user interface (UI) that engage hybrid workers
- Why AI technology improves UX and UI for all team members to advance productivity and collaboration
- Using software to support and motivate employees
- Planning for long-term systems that help businesses achieve their roadmap strategy
Now let’s get down to the key facts, insights, and critical analysis that helps businesses investing in HR management software. A quick note that for the purposes of this article we’ll mainly be discussing hybrid work. However there is a natural overlap between hybrid, remote, and onsite work. Thus we’ll touch on all three work areas with an overriding concentration on hybrid employees and teams.
The enterprise software market and the place of human resource management software products
Since 2020’s historic events hybrid and flexible work is here to stay. “The paradigm of traditional workspaces has undergone a seismic shift thanks to the Covid pandemic,” Kathy Haan writes for Forbes. Presently Statista reports that for the most recent full business year (2022) around 17% of U.S. workers are hybrid. Comparatively 22% of employees were exclusively working remotely from home.
In practical terms, the success of the hybrid work switch with shelter-in-place orders is tied largely to technology. With the remote work technologies like Zoom and Google Workspace increasing collaboration and meeting options it’s easy to connect productively. Even so the majority of leading enterprise technologies that support remote and hybrid work pre-date Covid-19. For example Skype and Microsoft Teams were launched in 2003 and 2017 respectively.
Therefore what we can determine from this is that the trend towards technology connecting teams in different locations was ongoing. Equally to this though, the 2020-2021 period rapidly escalated and normalized widespread digital transformation to business operations and lifestyles. In essence the takeaway from this is that work has changed irrevocably. So businesses need enterprise systems for high-level work along with systems for HR personnel to facilitate thriving teams.
Another way to evaluate this trend in enterprise software and industrial conditions is in how it’s shifted how businesses support their workers. What’s more, it’s worthwhile to evaluate this in terms of how this restructures and revolutionizes human resources (HR) systems. According to Statista analysis, “The advancements made toward improving virtual collaboration and increasing efforts to digitize office culture have contributed to making remote work a sustainable and long-term option for many.” All in all, the growing value of this market is how businesses can leverage HR systems to support every employee.
Ongoing business challenges human resource management software helps businesses resolve
Overall we are in a tough time for businesses with the pressure of economic downturn and post-pandemic market recovery. In fact U.S. businesses cite extensive issues with everything from labor shortages to political uncertainty and an ageing population. In this space businesses across almost every industry are looking for workers.
Nevertheless worker supply and the labor shortage landscape suggest businesses need to tactically respond to implement sustainable, technological solutions. Only then can they bolster, recruit, and retain their workers. Hence it’s fundamentally relevant to have a comprehensive understanding of the core industrial challenges that HR management software targets. Further to this, it’s relevant to clarify that some of these issues are specific to workers while others affect businesses.
How human resource management software can be used to resolve these challenges
Ineffective social and personal support
Since Covid-19 workers in the U.S. and internationally report myriad issues with childcare, health and wellbeing, and family. Having flexibility in their work life helps manage these challenges that would otherwise take them out of the workforce. When businesses use HR management software they can operate teams across locations without affecting productivity or valued lifestyle design options.
Alongside the issues outlined above, the global trend of #quittok resignations has evolved into a “Great Reshuffle”. Both resignations and disillusioned employees emaciate organizational efficacy. Disengagement can be tied to poor training as well as ineffective management businesses so using HR management software dynamically matters. Data around hybrid productivity and HR team members having more resources to fulfil meaningful employee check-ins has measurable gains.
Following on from disengagement, businesses struggle with both integrating new team members and maintaining skill and professional development. Altogether recruitment and retention continue to cost businesses large sums in lost productivity, team unity, and organizational stability. Due to the intelligent system design and database efficacy, with HR management systems businesses improve their hiring, interviewing, and onboarding. At the same time, training modules and organizational systems are consolidated in software to nurture cohesion, capability, and workplace adjustment.
Siloed and disconnected teams
Poor collaboration is another challenge for businesses the world over. Not only does this apply to remote teams but also to in-person departments. When this happens businesses need to gain a sense of the specific ways their teams are disconnected. Once they’ve done this they can target the different problems for a tactical solution. Offering employees additional training or HR evaluating team productivity can support better collaboration. Even if team members are hybrid they can be supported to achieved maximum productivity at all times. Notwithstanding how collaborative benefits, it’s significant that human capital management (HCM) software can help meaningfully encourage inclusivity and support diversity. When businesses have proactive consideration that supports all team members with consideration and empathy then everyone feels safe and included.
Lack of benefits literacy
Lastly data shows that employees receiving maximum benefits access are more productive and content in their roles and workplaces. When HR illuminates all options to their teams then they can feel more confident about accessing their entitlements. Whether for each employee’s annual leave or health enrollment season, this is a subtle way to improve business operations.
How human resource management software helps businesses strategically
This is where human resource management software has another important role to play. Whether it’s personalizing employee support or offering alternatives to in-person mandates, HR software equips businesses to operate more efficiently. Accordingly then they can confidently run teams with happier, more confident, empowered, and productive workers.
On the business side, Globe Newswire says, “Software solutions provide real-time access to employee data, enabling HR teams to make informed decisions based on insights.” In summary businesses are choosing systems that facilitate better workplaces. Concurrently they’re improving how they operate on both macro and micro levels to care for workers while upholding industrial compliance.
Technical human resource management software features in user experience (UX) and user interface (UI) that engage hybrid workers
Following on from the positive upsides of HR management software, let’s turn to how this shapes the hybrid worker’s workflow. Because this software is cutting-edge and robust it should incorporate the technical features that offer an advanced UX/UI. Specifically, this means that both HR team members and all other workers are supported to maximize their tasks and responsibilities.
Since Ben Wigert and Jessica Wright explain for Gallup that “crafting a hybrid strategy” is imperative, we’ll now evaluate software. It’s important that businesses highlight to their hybrid and remote teams how their tools make fulfilling their role possible. Particularly Wigert and Wright emphasize, “The greatest challenges of hybrid work include: having the right tools to be effective at work, feeling less connected to the organization’s culture, impaired collaboration and relationships, and disrupted work processes.” Rather than simply revert to replicating onsite approaches, let’s look at how the UX/UI facilitates hybrid workers excelling.
The top four human resource management software UX/UI features that are most beneficial to hybrid workers
1. Mobile and field access
Firstly, enabling workers to engage from wherever they are is a core pillar of 21st century business. After the pandemic, we’ve seen clear evidence that workers can meet professional obligations in challenging and unprecedented settings. With this built into the UX/UI of HCM software, then this encourages workers to work flexibly at all times. In like fashion, team members can even be more social and work together offsite without any productivity challenges.
2. Dynamic communications and productivity integrations
Secondly, the options for communications and productivity integrations in systems are consistent with U.S. and global work standards. Due to HCM software being integratable with productivity and collaboration integration options like Slack, Zoom, and Google Drive, workers thrive. For instance, this encourages more open and preference-based project management while making it easy to undertake and complete teamwork.
Thirdly, systems that respond and adapt to workers is another way to build their engagement. At the same time this fosters a sense of belonging and purposefulness as the system’s intelligence nurtures productivity. For example, tailor-made UI options is common to help with benefits enrollment as it will refer to previous choices. Additionally, for undertaking tasks or managing data, workers can have a seamless workflow that helps them perform efficiently. This is because systems will refer to past work thus boosting output and minimizing errors or professional risks.
4. KPI tracking
Fourthly, a UX that fosters a productive workflow upheld through a user-oriented UI ensures workers stay on-track. Then when monitoring their own KPIs — or liaising with managers and HR for KPIs — they are consistently goal-focused. A leading complaint (or challenge) for hybrid workers is that they can have trouble with workflow and feeling disrupted. Because HR management software is designed as a business and worker tool work interface unity — remote or onsite is sustained. Markedly this also dovetails in with cultivating more of a feedback culture that encourages HR and managers to stay connected. Both managers and HR as well as peers can participate using the feedback tools across the software. Above all this fortifies communication leading to better learning, resolutions, and overcoming team or individual silos.
Why AI technology in human resource management software improves UX and UI for all team members to advance productivity and collaboration
Especially over the last 12 months, AI technologies in enterprise — and all — software have become a part of robust products. When it comes to human resource management software, artificial intelligence and related smart tech like machine learning are increasingly advanced. Whether for smarter functionalities like virtual assistants or generative capacities like ChatGPT, this tech is driving HR innovation forward.
At this point, the technology is largely being applied to improving processes, managing data, and personalizing the UX/UI. Coupled with a people-centric approach, this tech then makes both operational and team personnel outcomes even better. PR Newswire attests, “The human resources management software (HRMS) offers digital solutions dedicated to managing human and material resources in mobility.”
By all means though, risks exist for businesses using both AI and machine learning functionalities in human resource management software:
As more businesses use AI for their systems from customer support to analyzing operations, security breaches may happen. Equally emerging technologies gather user data of all kinds that puts individuals and organizations at risk.
Case study resolutions
Since announcing their generative AI, Salesforce has embedded the Einstein GPT Trust Layer across all their products. This works to protect organizational and user data within the Salesforce ecosystem without compromising the AI tech advantages.
Algorithmic software training for use in recruitment — or a range of other contexts — can result in undetected systemic biases. Due to the fact humans still train these AI, there is the risk of their own biases not upholding fair hiring. Therefore fairness, inclusivity, and diversity as well as data privacy could be compromised.
Case study resolutions
In general it’s not possible to outsource all hiring to AI-powered systems and even if it was, it’s risky. Despite this, resolutions lie in using AI to manage resources. For example, businesses that free their HR staff up to focus on hiring and reroute labor using AI can benefit. Then their hiring can be more thorough and personalized while overcoming biases that put all stakeholders at risk.
Forthwith, as technology is more thoroughly tested and trained, it’s likely that functionality and accuracy will supersede existing projections. Presently Gartner projects that by 2026 AI transparency, trust, and security will be operationalized. Further to this, of those organizations that do, “50% [will see a] result improvement in terms of adoption, business goals and user acceptance”.
Using human resource management software to support and motivate employees
Now that we’ve established exactly why HR management software is crucial to businesses, let’s look at employee benefits. Currently Statista trend insights indicates that “When looking ahead, it appears that hybrid work may be the preferred model among remote employees.” Despite this businesses need to be evaluating their systems in terms of if their HR systems are hitting the mark. Simply put, the work landscape has changed and focusing on employee care is part of short- and long-term success.
To begin, let’s look at the positive upsides of human resource management software
Enhanced data insights
Analytics help businesses better understand employee needs and deliver specialized solutions, processes, and even further training.
Streamlined HR processes
Making it easier for employees to engage with HR personnel and receive support or motivation.
Both cloud-based and web products are accessible as long as employees have secure hardware to engage with HR systems.
Simplified workforce management tools
This frees HR resources to give workers more thorough, informed care. Simultaneously workers benefit from enhanced transparency around how the organization monitors and manages them.
Effective application and onboarding systems
Enhanced, user-centric systems mean that new employees experience a positive introduction to business systems. Because businesses are struggling with staff retention this facilitates workers having optimistic expectations around how their workplace operates.
Improved compliance standards
Since compliance is an ongoing obligation that informs employee experience and organizational culture this is crucial for HR and non-HR employees.
Accordingly let’s review the core challenges affecting businesses with hybrid workers then how HR management software addresses and resolves these
All organizations — and individuals — are at risk of data breaches in this era. Hence businesses need to work with their hybrid and remote teams to ensure that best practice cybersecurity is upheld. When businesses use HR management software one major benefit is that these systems increasingly have in-built security infrastructure. Despite this, employees need support and education to keep systems secure and maintain WIFI with complex security, too.
Internet of Things (IoT) security
IoT devices are a large part of the hybrid work and HR management software work equation. Therefore businesses also need to equip their hybrid and remote teams to maintain best practice digital hygiene and security. Although HCM systems will have strong security businesses need to educate their teams on how IoT devices can be compromised. Restricting access to secure data and using multi-factor authentication for devices is a non-negotiable.
Although this is not a technical threat, it’s a real and ongoing social and collaborative barrier to success. In addition to compromising productivity, this can affect team morale and even result in detrimental and catastrophic, brand-diminishing errors. When businesses use software effectively, they can target their HR resources into supporting all workers in individualized, high-level ways. For instance, scheduling frequent catch-ups with hybrid workers onsite and remotely is feasible with automation processes. Obviously meaningful connection is a core part of any healthy workplace so it’s also important to check on each employee. While it’s possible that some workers are isolated because of technology, there’s a chance that onsite workers are isolated, too. Therefore, HR management software can enable some workers to work remotely that might not previously have been able to. Afterwards they might feel less isolated in their personal life and their work focus is revitalized.
Declining team relationships
Generally speaking, many workplaces have ongoing issues — some that remote team dynamics can exacerbate and some that technology can resolve. Overall disjointed or dysfunctional problems can go unresolved as team members aren’t working in the same physical room. On the one hand, technological distance and a lack of in-person collaboration can affect teams over time. On the other hand, the extra time software gives workers back to be more thoughtful about productive work relationships matters. Though workers might not be onsite together all the time, they can plan more strategically and pursue better work outcomes. What’s more, there may be fewer of the ad hoc disruptions that happen in a traditional physical office. Further to this, using the HCM technology, there is more scope for HR team members to work on resolving issues. As resolutions processes are enacted and proven, this boosts morale and team relationships qualitatively and quantitatively.
Finally every worker and every workplace can have ebbs and flows with productivity. In reality this can be tied to the systems themselves as much as remote or hybrid team members. When productivity is affected because workers aren’t onsite then HR can actually use data insights to review and evaluate output. Since data is easily accessed and HR have more time then they can check-in with workers for 360 conversations. Although it’s possible that the worker might not be able to work as effectively in a hybrid set-up, there’s many other scenarios that HR can explore with them. For example, the worker might need more training or their colleagues aren’t working effectively either onsite or remote. Because there is more communication and strategic workflows with HCM software then identifying problems and successfully designing solutions is enhanced.
Planning for long-term human resource management software systems that help businesses achieve their roadmap strategy
By the time businesses are supporting their teams for a range of work set-ups — hybrid, remote, and onsite — they’re set to chase bigger goals. Though there might be some newer enterprises reading this who are earlier in their HR management software journey, it’s always worth thinking about the longer term time horizons.
Understanding that widespread industry change will endure in the U.S. and beyond is why IbisWorld says that the volatile labor market is reshaping the business landscape. They say, “AI and ML can automate many time-consuming HR and payroll tasks, freeing up time for HR professionals to focus on strategic initiatives.” Because compliance standards are not static and businesses need to remain across their responsibilities, HCM systems improve these core processes. Accordingly HR personnel can be focused on these higher-level tasks rather than distracted by monotonous, automatable administration. Then software can flag essential tasks while also completing other back-end processes.
Currently nearly all businesses will use some form of HCM software in their organizational processes. When they’re revising their strategic planning and designing a roadmap, moving towards a more robust, outsourced custom solution may benefit. Due to how industries are evolving and how vital maximizing resources is, businesses must be prepared with tactical technical solutions.
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In conclusion, we can evaluate that businesses can better care for their hybrid workers when using human resource management software. Following this evaluation of core business challenges, we can see that HR management software can be used for supportive motivation.
In many workplaces, HR might not be viewed as a department that can actually help employees do their job better. However with HR management software and for hybrid or remote workers, how they work and interact with employers is evolving. For this reason, it’s arguable that these tools — including check-ins, training, and encouraging benefits uptake — foster positive, pioneering workplaces.
Frequently Asked Questions (FAQs)
What are the leading human resource management software options available?
There are many globally-available human resource (HR) management software options available for businesses to suit their needs.
Right now, some of the leading HR management platforms include:
and many others businesses can select from.
When businesses are considering their needs, it’s worth evaluating their industry, enterprise size, and the scope of features for employees.
How should businesses plan their investment in human resource management software?
Businesses should plan their HR management software investment just as they plan any other enterprise tool purchase and introduction. To begin, as with any strategic investment, it’s worthwhile to meet with experienced experts who can conduct comprehensive preliminary consulting. Then businesses can apply this knowledge to their own research and pursue additional consultations to define their needs. Afterwards they can formalize development and deployment. An experienced HR management software development company like A3logics will meet with businesses to discuss their operations and assess needs.
Is web-based or cloud-based human resource management software best?
For businesses, there are extensive benefits to web-based and cloud-based HCM software solutions. In order to evaluate the best option for their operations, they should consult with a software development company for advice.
Generally speaking, both online and cloud-based HR software bring value to businesses. For example, cloud-based products are available for users wherever they offering ease of access. Comparatively, online products can function as a web portal. In some cases both types may offer similarly and overall neither require businesses to host software on their local systems.
Is human resource management software suitable for large and small-medium enterprises (SME)?
HR management software can be reliably used in businesses of all sizes. Subsequently this makes these platforms an inclusive option for both heritage companies and young organizations in start-up phase. When businesses are evaluating the ideal platform to invest in they should critically assess their needs and long-term strategy. Although they can undertake this analysis independently, engaging a software development company for consultation will provide further technical insights .
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