Human resource has evolved from a predominantly hiring function to an essential part of business management for companies large and small. HR professionals have more on their plates than ever – from staying on top of talent management skills to ever-changing legal and technological developments.
Technological developments have immensely helped the human resource department today. Among them, human resource software is the best thing to happen to HR professionals in the last two decades.
How HRM Technology Enabled This Evolution
To understand how human resource has evolved from a largely talent or people management function to a business execution role, we have to look at how HR technology or human resource management systems (HRMS) has developed in the past two decades.
Before the 90s
Before the nineties, the entire focus of HR was personnel management and administration. As human resource software and automation was yet to be adopted at this stage, the sheer amount of time and effort required to handle administrative processes was humongous. Therefore, the entire focus of the HR department in that generation was devoted to efficiently processing employee paperwork.
Nineties to 2000
A shift occurred in the 1990s due to the implementation of new technologies that remarkably reduced the time required to perform human resource administrative activities. HR organizations now could focus more on business execution topics rather than just people administration and hiring. Several talent management techniques developed in this era, including goal-setting, competency modelling, action learning, structured interviewing, etc.
2001 to 2010
From 2001 to 2010 the popularity of internet systems allowed HR organizations to share, import and analyze data across the organization to support employee development and management. Rather than just focusing on hiring, training and payroll, the HR organization was able to integrate talent management processes to secure a regular supply of the right talents for the right roles.
2011 to Now
With the massive adoption of cloud-based HRMS software, systems and applications, businesses now can focus more on increasing workforce productivity. A shift to the cloud has also enabled the development of highly scalable, customized and user-friendly cloud-based human resource software and applications.Applications such as HR-One have enabled HR to use these tools to effectively utilize talent in supporting and meeting the short-and long-term objectives of the company.
Cloud-based human resource management systems (HRMS) is the same to HR organizations today as what was GPS technology to street maps and taxi cabs earlier: game changing. HR software has literally changed the human resource department into a business execution department enabling companies to access and analyze readily available information to make critical business decisions.
The Future of Human Resource Software
Lately, HR technology is undergoing a disruptive period and industry analysts perceive a seismic shift in the advancement and adoption of new technologies in the next few years. According to CB Insights, a venture capital data expert, big investors pumped in investments worth more than $2 billion into HR technology systems and platforms in 2016. The most investment growth has been seen in integrated human resource management system (HRMS) platforms for midsize companies.
We can expect a disruption in every HR tech market in 2018 and beyond. The intersection of cloud, mobile computing and artificial intelligence will herald a new dawn in HR management with a considerable focus on culture, productivity, wellness and employee engagement. A new breed of HR software and technology is set to reinvent the role of the HR organization and turn traditional human resources tenets on its head.