How is Technology Changing Human Resource Management?

In the last few decades, the world has witnessed a rise in technology across all prominent industries. In fact, tech has been the foundation behind the success of many giant industries like finance and marketing. One such industry that has recently been leveraging technology in its functions is Human resources. In recent years, emerging technologies like AI-based human resources management systems (HRMS) have transformed how the HR department performs its tasks.

What Is HR Tech Software? 

In layman’s languages, HR software is the tool that helps in the efficient functioning of fundamental HR processes like recruitment, management, generating payroll, tracking performance, employee engagement, and retention. Emerging HR technologies like HRMS solutions, payroll software, time and attendance software, and HR analytics are widely used to automate HR activities. Today, there are multiple ways by which organizations are leveraging HR tech software to achieve efficiency.

Here are some Areas Where AI Technology contributes 

Smart Recruitment process 

One of the major ways by which technology is transforming the HR industry is by aiding in quality hiring. Nowadays, HR leaders are using AI technologies to track and recruit top talents for their organizations. The applications of AI in the hiring process are countless. For example, recruiters can use AI software to evaluate the skill set of the candidates. In addition, there is software that utilizes AI-gamified assessment to screen candidates. Recruiters can use this software to streamline the hiring process- whether it be interview scheduling or answering common questions.

Automating the Repetitive Tasks 

In the past, calculating employees’ salary based on their working hours was a complex process. This is because there are high chances of errors in manually tracking each employee’s time and attendance. Fortunately, with the AI software, HRs can automate their day-to-day tasks like running the payroll for salary, tracking attendance and leave, and analysing the employee’s performance. This allows HRs to save their time and focus efforts on more important complex tasks, such as strategizing and decision-making.

Employee Engagement 

One of the major reasons why most employees lack productivity at the workplace is because there is little to no employee engagement in the organization. Most organizations understand that employee retention and satisfaction depend heavily on employee engagement. Therefore, they employ AI software to engage their employee and improve efficiency in the workplace. But how exactly does technology aid in increasing employee engagement?

AI technology, like HRMS software, collects and stores employee data. With the help of data insights, managers can provide clear feedback to the employees. The software’s ability to store the data and present it in easy form allows the teams to make informed decisions based on employee feedback.

Employee Training and Development 

Training and development have always been an essential part of an employee’s career advancement. However, earlier small organizations do not have the facilities and budget to provide training and development opportunities to their employees. Today, businesses all over the world are utilizing AI-based training solutions that thoroughly understand an employee’s objectives, skills, and limitations before offering specialized learning modules. This guarantees that businesses can provide each employee with the resources they need to grow. It also prevents the waste of money on training that the staff will never apply.

Benefits of HR technology 

These are the ways by which technology is changing the future of the HR industry.

Better employee tracking and scheduling

Manually tracking and scheduling employee’s leaves and attendance can be a challenging task. Not to mention there are high chances of error in calculating leaves. Additionally, there are chances of overlapping leave requests in the same team, which can have a significant impact on the department’s goals and targets. The human resource management software (HRMS) ensures that HR professionals can track employee availability and manage calendars appropriately. This enables the organization to function at its highest productivity level.

Easy Access to Important Information

One of the major tasks of HR is to ensure that employees have access to important information. This helps avoid conflict between employees and management and builds a sense of trust and transparency in the organization. By adopting HRMS software, organizations can ensure that information can be distributed in a timely and meaningful way across all departments.

Effective talent management

Another major benefit of HRM software is that it helps in increasing employee productivity and retention rates. Starting with the Performance Management System (PMS). By using PMS, managers can get insights into critical data like employee’s strengths, weaknesses, and areas for improvement to give fair appraisals to employees. Furthermore, AI-powered tools can also use this data to recommend custom learning programs. This helps employees to upskill themselves and advance their career paths. As a result, the employees feel more satisfied and stick with the organization for a long time.


HR has always been a process-driven department that performs multiple activities. From scheduling interviews to printing offer letters, the department has always needed a number of executives to handle these tasks. Fortunately, with the help of HR tech, the majority of these processes can be automated with just a few clicks. As a result, numerous staff man-hours can now be saved and used for more strategic activities. This includes developing organizational culture, focusing on attrition-reduction initiatives, and developing employee engagement. Thus, HRM software helps in cost cutting.

What the Future Holds? 

In the last few decades, we have witnessed a major shift in how the organization functions. Recruiting skilled candidates has become a priority for companies because they also understand the importance of talented employees in long-term business success. As technology progresses, more organizations rely on AI-based software to automate day-to-day HR activities. Looking at the present scenario, it can safely be concluded that AI-based HRMS solutions are going to play a crucial role in hiring and retaining talent. Companies that are going to leverage this technology are the ones who will ultimately get the success.

Final Thoughts 

In the rapidly changing competitive market, HR technology has become a necessity. The HRM software can positively impact various HR functions like recruitment, attendance and time tracking, performance measurement, and calculating payroll slips of employees. Companies that are going to adopt these technologies will ultimately have a competitive edge in the long run.

Interesting Related Article: “How Automation has Impacted Human Resource Management