Top HR Technology Trends, Challenges, and Stats – 2023

Urmi Shah

Senior Writer

Top HR Technology Trends: How It Is Evolving

The past few years have seen the human resource management industry transform from a flexible work model to a holistic approach to employee well-being. 

With time, the HR software, recruitment tools, and technology trends in human resource management will continue to add value to this transformation.

Looking for HR Software? Check out SoftwareSuggest’s list of the Best HR software solutions for your business.

The most important thing we need to know about HR trends is that they are here to stay. They will continue shaping our lives as we become more connected—and with technology—all over the globe.

HR Technology Trends, Challenges and HR Statistics: Every HR Managers Need to Know

Human resource management (HRM) has become a critical function within organizations. HR professionals’ role has evolved from primarily focused on employee engagement, employee experience, and relations to encompassing talent acquisition, compensation, benefits, training, performance management, succession planning, and workforce development. As such, HR technology and HR software play a vital role in supporting these functions.

A whopping seventy-four percent of businesses plan on increasing the amount they spend on HR technology in the coming year. – ORACLE

But, before you move on to pick an HR software or set an HR process, it is essential to understand the basics first. So, here are a few questions that will give you a clear idea of where you need to invest your resources.

(i) What are some human resources (HR) technology trends? 

(ii) What are the statistics regarding HR technology adoption?

(iii) What are my business’s short-term and long-term goals?

 Technology is making it possible to automate and streamline many processes in human resources. In addition, the growing demand for HR services and the complexity of HR systems ensure that there will be more growth in HR technology trends.

The Technological Trend in Human Resource Department

The Technological Trend in Human Resource Department

HR technology is an umbrella term that includes the use of various tools by HR leaders to deliver a better candidate experience.

These recruitment tools securely store data and streamline various processes – starting from hiring to retirement. It even provides an analytical tool to help with strategic decision-making.

Automating various HR processes saves a lot of time of HR leaders and business money. It helps attract the right candidate and prevent costly mistakes.

13 HR Technology Trends to Look Out For in 2022

1. Remote Teams

Remote working is no longer exceptional, but it’s becoming a norm across industries and countries.

HR technology trends of working remotely were accelerated to keep their employees safe amidst the whole pandemic situation.

Due to human resources technology that has made working a smooth process remotely, many companies are declaring permanent work-from-home policies. The right HR management software and HR processes have made it all possible.

Companies like Twitter, Facebook, and Shopify have already announced that employees can work from anywhere. They have permanent remote HR policies in place.

Well, the ability to work remotely has become one of the most sought-after employee perks. Apart from HR management software, it is the remote work tools that have greatly empowered remote work.

2. Recruitment Marketing

Recruitment marketing involves implementing marketing tactics by the HR department to attract and recruit new talent. Like traditional marketing, recruitment marketing consists of prospecting for leads and attracting and nurturing talented individuals until hired.

46 percent of recruiters see their job more as marketing! In this case, the company is the brand. So the process is about promoting the Brand on the company’s career site, social media channel, job boards, and talent working events job descriptions, among others.

Did you know that 75 percent of professionals are passive job seekers? If that’s true, most job seekers in your industry are probably not looking for a career change. 

They need to be persuaded or enticed to learn more about your company and what you can offer them in terms of incentives, empowerment, work-life balance, perks, or competitive advantages for their career tract compared to their current employer. So, again, a robust recruitment marketing strategy can do the heavy lifting.

Recruitment or holistic software comes in handy in this HR process to get on with the latest HR technology trend in this field.

The main objective for adopting this strategy, among other HR technology trends, is to help you deliver the right message about the company and employer to the suitable candidates at the right time.

3. Employer Branding

Building on the previous trend. Branding and marketing are intertwined. Employer brand is nothing but your organization’s reputation. It defines the image of your company in the market.

How famous is your company with your would-be employees?

What is your Employee Value Proposition (EVP)?

Employee’s value proposition differs significantly from the value proposition for customers and your company’s corporate brand reputation.

Why is it important?

According to research conducted by LinkedIn, 75% of job seekers consider the brand and reputation of a company before applying for a job there.

That means companies with lousy reputations will struggle to attract potential employees and retain them once hired.

One way to improve your employer’s brand is by adopting the right HR technology trends.

Employee Value Proposition

Source: talentlyft

Today’s candidates, where millennials form the large talent pool, are willing to work for technologically adaptable companies.

No one wants to follow the old method of doing work manually. For instance, having recruitment software ensures that candidates stay up-to-date about every step of their hiring process. 

This makes them happy as they don’t have to wait in anticipation of their hiring result. Thus, implementing advantage recruitment processes, the latest HR software solutions, and, most importantly, experimenting with the fresh HR technology trends comes with its perks. 

4. Cloud-based HR

With remote and Hybrid workplaces in place today, cloud-based HR is your best bet to stay relevant.

Benefits of cloud-based HR software


Cloud-based HR systems are an excellent way for businesses to manage their human resources. Many benefits come with using cloud-based HR systems, including:

Lower costs – Cloud-based HR systems cost less than traditional software. They don’t require an upfront investment and no hardware or maintenance costs. In addition, the company handles all software updates, saving hundreds of thousands of dollars over time.

Easier access – Cloud-based HR systems can be accessed from anywhere, on any device with an internet connection. This means employees can use the system while traveling or away from the office, making it easier to stay up-to-date on important information like payroll and benefits.

Less downtime – Cloud-based HR systems have built-in redundancy features that allow them to continue working even if there’s an outage in your local network or internet connection. This means there’s less chance of losing data due to technical issues caused by network outages or other problems.

5. Candidate Experience

“Candidate experience,” in other words, refers to potential candidates’ perception of your organization’s process of recruitment.

This is where modern HR software like HRmantra, GreytHR make a difference. It involves behaviors, feelings, and attitudes the candidates experience throughout the whole recruiting process — right from attracting, screening, interviewing, hiring, and onboarding.

Benefits of a Positive Candidate Experience

Why is it important to focus on candidate experience in 2022?

Currently, our businesses are floating on a candidate-driven market. That means if you do not offer a positive experience in your company, disgruntled candidates are more likely to reject your offer.

That means you will lose precious talent to your competitors. Besides, they are not going to refer other candidates to your company or even reapply to any job opening in your company in the future.

And, a negative experience will cost you more. You are not only going to lose top talent to the completion but also your hard-earned money.

Virgin Media, for instance, lost a whopping $5.4 million annually due to a bad candidate experience. Implementing the latest HR software solution is a great way to steer clear of such situations.

6. End to the 9 to 5 Grind

Most job roles are becoming increasingly transient. And HR departments are finally waking up to that truth.

A poll by National Public Radio (NPR) and Marist revealed that a worker holds 1 in 5 American jobs under contract.

Not surprisingly, contract hires and freelance positions are predicted to make up half the workforce within a decade. 

While some view this economic shift as chaos in the workplace, it is another opportunity for your company to employ skilled talent on an as-needed project basis.

As a result, your company will end up saving more money. Besides, you will avoid being led to a particular number of employees who may not have the passion and skillset to finish the job.

7. Talent Pools

The talent pool, in other words, refers to a database where HR managers and recruiters “store” all their top talent candidates.

The database features not only the candidates that applied for a particular job opening but also the candidates that have been sources referred by other employees and those that have willingly decided to join your pool.

It makes for one of the top HR technology trends for the convenience it has to offer while recruiting. 

Ask yourself what would happen if you had a pool of talent where you could always pick the best candidate for your current position.

Wouldn’t that be too convenient for you?

That is why most recruiters have already started to build up a pool of talents that will prepare them for current and future recruitment needs.

An all-in-one HR solution is a centralized platform where all the resumes sourced from various job boards and career sites are stored and automatically updated.

8. Social Recruiting

Social recruiting is not about posting job ads for vacant positions on social media networks. 

Social media channels present an excellent opportunity for companies to scout and hire top talent in 2022

Social Recruiting

Source: smartjobboard

One HR technology trend’s active social media presence gives potential candidates a sneak peek into your company culture. Without you knowing, they are keeping a close watch on your activities. This encourages them to apply for an open position.

You can, for instance, use social media channels like LinkedIn, Facebook, and Twitter, among others, for tracking, engaging, and hiring new talent.

You can also use websites that offer job posting like Glassdoor to find, attract, select and hire new talent. Besides, you can use these platforms – specifically LinkedIn – to proactively search for potential candidates.

1 in 10 hires comes from social media – Socially Recruited

As a result, you build better relationships, encouraging them to apply for your job posting.

Thanks to these human resource technologies that integrate your social media and other job board sites with your software. You can have a consolidated view of all your applicants, automatically post a job description on these career sites, and do much more. 

9. Increased Data Security

Although the Internet and remote solutions have made many processes more convenient, they have also opened gates for security concerns regarding employee data breaches and risks to user data.

Earlier, paper payslips were handed out. But with the adoption go cloud human resources technology and storing all employee/candidate data on a cloud server, there’s a need for a strict data security system. 

With data privacy laws like GDPR, companies must take data security seriously. 

There are many other laws on data security, including California Consumer Privacy Act and New York’s Stop Hacks and Improve Electronic Security Act. If a company fails to stay compliant, it faces a heavy penalty. Besides, it will negatively affect the company’s image, leading to its downfall. 

That means HR technological trends need extra security protection for data privacy. It should be able to identify and protect sensitive information.

10. Learning Management

Honing skills have become even more crucial as the world has become more competitive and faster. As a result, organizations need to improve HR teams’ skills and help them match the ever-rising demands of the market.

With remote working becoming the norm, employee training is moving digitally.

That means another HR technology trend in human resources is learning and development through different programs like gamification, AI, and AR/VR. 

Modern HR technology solutions come equipped with developmental courses and training programs that are personalized, self-paced courses. In addition, they are designed to fit employees’ learning styles.

It also enables HR professionals to track the performance and requirements of their teams, creating a well-developed workspace.

11. Employee Mental Well-Being

Although it’s such an important issue, it’s sad that it has been overlooked at workplaces for so long.

Thankfully, the changing dynamics of workplaces have eliminated the stigma attached to mental health and opened up a dialogue about best practices and helping co-workers and employees cope with mental health issues.

A survey revealed that approximately one in five adults experiences some form of mental disorder in the US alone. 

That’s why companies today are adopting various mental wellness programs into their company employee policies.

Source: GIPHY

After all, it directly impacts job performance, quality output, and the work environment.

Well, surprisingly, human resource management can make a difference here too. With the advanced HR technology, organizations are seen using gamification and wearables, making a notable shift of focus towards employee mental health. In addition, many digital platforms are tying up with health startups to help companies provide personalized health and wellness program — another human resource trend to watch out for. 

12. Analytics With AI

Analytics with AI

Business data has always been a challenging ordeal. Everyone knew how important insights could be derived from data, but extracting information from heaps of data is not easy.

Indeed, going through thousands of resumes to find just the suitable candidates, that too on a ticking time bomb, is a challenge. And that is where HR software empowered by AI comes in. 

Such HR technology trends make finding a needle in a haystack easier. Nearly 40% of companies use some form of AI in HR alone. 

Additionally, HR professionals can derive essential employee insights and help build better workplaces. HR technology solutions offer features that allow you to conduct simple surveys, gather employee feedback, and perform many other activities that help collect data. 

All these employee data are analyzed to provide insights into the employee engagement rate. These numbers are helpful in performance management and understanding how it can improve further.

13. Hiring Diverse Candidates

Last but not least – A diverse workforce can yield significant benefits for an organization.

Individuals from various backgrounds can bring a wide assortment of wisdom and talent, enabling companies to cater to a diverse client base. HR Technology can help organizations find a divergent workforce with proper skills and qualities.

83% of executives agree that a diverse workforce improves their organizations’ ability to capture and retain employees. 

Too many trends, aren’t there. Well the good thing is that there is an HR software solution out there for each trend. But which is the best for your company? Unfortunately, there are countless choices, and many of them will be overkill. 

Well, we have made it easy for you to pick the right software.

Choosing the Right HR Tech Tools.

The right HR tech tools can make your job easier by automating tedious tasks and streamlining employee processes. In a competitive job market, companies need to be able to attract and retain the best talent. And to do that, they must be able to offer state-of-the-art benefits packages and perks that appeal to millennials.

Choosing the Right HR Tech Tools

But not all HR software is made equal. So you’ll want to make sure you’re choosing the right tool for your needs — one that will help you save time and money while providing an exceptional experience for your employees.

Here are a few factors to look for in the latest HR tools. 

1. Technical flexibility 

The first step to selecting the right HR technology is determining what you need and don’t. The second step is to evaluate your company’s technical capabilities.

The more advanced your company’s technical infrastructure, the more HR tools you can integrate with it. This will allow you to understand better how well your company’s systems fit together, which can have significant implications for both efficiency and security in the long run.

For instance, it’s not about the clicks as the taps today. So while buying an HR system solution, ensure it comes with a mobile application. Times have changed, and organizations need versatile applications.

2. Employee Self-service

HR technology streamlines and automates various HR-related processes and empowers employees to become more self-reliant.

Employee self-service is a must-have tool in any HR management system. It helps employees to manage their personal information, including changes in address and contact details, educational qualifications, certifications, etc.

In addition, the employee can also avail of other features such as leave management or benefits management through this self-service feature.

Benefits of employee Self-service software


Employee self-service capabilities allow them to access details related to their employment, make any changes to their information in the system, and track the status of their requests without the intervention of HR professionals.

This makes the system more swift, efficient, and transparent while improving employee satisfaction.

3. Payment Flexibility

Vendors are offering flexible payment plans to entice their customers in a quest to stand out from their competitors.

Most cloud-based software has affordable subscription fees or pay-as-you-go payment plans. It allows you to pay for only as many employees and users as you add to the system.

4. Future Roadmap

The future is exciting for the latest HR technology trends. Many vendors have begun to use artificial intelligence, machine learning, and even the internet of things (IoT) technology to power their HR solutions. 

These are the future and are worth exploring if you are currently in the market for an HR solution.

Top HR Management Challenges

Every year brings new issues and challenges for HR managers. We will discuss some problems that HR management professionals across various industries and organizations face and how they can overcome them.

Let’s discuss some of the challenges that HR professionals face in the present day:

1. Compliance

2022 has brought many changes in labor laws, rules, and regulations. Staying updated with such changes can be a challenge. Keeping up with the changing legislation while managing various other HR activities, such as recruitment and performance management, becomes cumbersome.

HR compliance

Human resource management software solutions like sumHR update the system with compliance changes as soon as the government implements them.

2. Training

Nowadays, employees do not just look forward to a paycheck. Instead, they expect mentorship and training from their employers to achieve their career aspirations. As a result, companies worldwide have been increasing their training budgets to retain employees and enhance their productivity.

It becomes especially challenging for growing companies that add new employees daily to organize and manage their training programs effectively.

HR solutions can ensure that training is conducted in a timely, effective, and cost-efficient manner. In addition, the best HR solutions can help you schedule and deliver training sessions and track and evaluate employee progress on a single platform.

3. Talent Acquisition, Engagement, and Retention

The job market is competitive. As a result, employees are far more open to exploring new jobs. As a result, organizations are bending over backward to hire skilled candidates to improve their bottom line.

Employee turnover is a much bigger issue today than it ever was before. As a result, more and more companies are now relying on comprehensive software solutions to streamline their recruitment efforts, enhance employee engagement, and control employee retention.

4. Flexibility

Remote working has become a mainstream reality. Employees work from their personal spaces and struggle to maintain a work-life balance. As a result, flexible work arrangements have become an absolute necessity.

However, managing work allocations and tracking employee productivity with flexible arrangements becomes challenging. Software solutions such as sumHR can solve this problem. They allow you to track time, attendance and leaves in real-time.

The best tool allows you to get an accurate picture of how employees spend their time, spot inefficiencies, and take measures to improve productivity.

5. Health and Safety

The COVID-19 pandemic has brought in the need to introduce health and safety regulations that the government has also mandated. As a result, it has become more critical than ever for companies to look after their employees’ health and safety needs.

In this case, human resource information systems, also known as HRIS, can help. They can help you collect and manage data related to the health of your employees. For example, you can keep track of pre-existing ailments, if any, and also their company health insurance information.

15 Key HR Statistics You Need to Know

With the rise of HR technology trends, big data, social sensitivity, and disruptors such as automation and artificial intelligence, Human resources management has been continually evolving.

Here are some exciting HR statistics that chart the transformation of human resources.

1. Employee Turnover is getting costlier.

With companies spending as much as 33% of an employee’s annual salary to replace him/her.

2. Why do they always leave?

Top five reasons employees said they left their jobs: career development (22%), work-life balance (12%), management behavior (11%), compensation and benefits (9%), and well-being (9%). (Source:

3. Diversity is in, and this time it’s more than just an arbitrary checkbox.

78% companies are prioritizing on diversity in order to improve work culture and financial performance.

4. Performance management is in its redesign phase.

79% of executives rate redesign of performance management system and practices to incorporate elements like continuous feedback, goal-setting, and employee-driven communication as a high priority.

hr statistics 1 - Performance management is in its redesign phase

5. Hire now, train later.

33% of employers are willing to hire and train employees who may not have all the skills for the job, but who show the potential to do well.

6. Will AI make you redundant?

HR professionals accept the AI is the most useful in tasks like sourcing (58%), screening (56%) and nurturing (55%) candidates.

7. No, it won’t.

Only 14% of HR leaders and talent acquisition professionals believe AI will take away their jobs. Tasks such as building candidate relationships or gauging their interpersonal skills cannot be replicated by HR technology like artificial intelligence.

8. Feeling disengaged at work?

You’re not alone. A whopping 85% of employees worldwide share the sentiment. But unfortunately, only 15% feel engaged and derive fulfillment from their work.

9. Paid family leave for the win.

More than 70% of employers who offer improved leave policies reported increased productivity.

10. Gig-economy is on the rise.

With the rise of digitization, more and more people are taking up freelance work, gigs, and other independent, productive activities worldwide. In 2019, 38% of the US workforce comprised gig workers. The number is expected to grow to 46% by 2023.

11. Remote workforces are growing.

The volume of employees who telecommute stands at nearly 37% of workers in the US.

Remote workforces are growing

12. Social media recruiting is gaining ground.

Up to 70% of employers use social media for screening candidates before hiring them.

13. Productivity is the new automation.

Despite all the buzz around automation, 45% of companies are still in the early stages of basic automation. Industry leaders, however, have already shifted their focus to enhancing existing HR systems to improve team-centric organizations’ productivity.

14. Gender inequality is not dead.

62% of female executives have been passed up for a promotion in favor of someone of the opposite gender.

15. Candidate experience reigns supreme.

82% of HR managers view the candidate experience as very important. And rightly so. 78% of applicants say their overall experience indicates how the company views its people.

These are the HR statistics for now. It is apparent that HR, as a whole, is undergoing a makeover. It will be interesting to witness the developments this makeover will bring to the workplace.

Wrap Up 

Technology is changing the way traditional HR functions when it comes to talent acquisition.

The change is inevitable because of the ever-growing millennial employee population in the workplace. To attract and retain this highly sophisticated group, your HR system needs to keep abreast with the current times.

Embracing the above HR technology trends and many more will not only help cushion your organization’s mass employee exodus but will also help you attract and hire the right people for the job.

Google News
subscribe image

Let’s Stay in Touch

Subscribe to our newsletter & never miss our latest news and promotions.

people subscribed+21K people have already subscribed 

Related Articles

Share This