What is one HR technology that you expected to disrupt the industry in 2022, but didn’t materialize to make a big impact?
To help you decide on the best HR tools to work with, we asked CEOs, founders and HR leaders for their views on tech that came out this year in the space. From microlearning software to implementation optimization tools, there are several technologies that didn’t live up to expectations for the HR sphere in 2022.
Here are thirteen HR tech-related items that failed to deliver for these thought leaders:
- Microlearning Software & Mobile Apps
- Automated State Payroll Registration
- Therapy AI in Virtual Wellness Programs
- Big Data in Applicant Tracking Systems
- AI-Powered Chatbots for Automating Tasks
- Blockchain/Web3 Technology
- Expensive, Unintuitive Virtual Reality
- Predictive Analytics and Algorithms
- Continuous Performance Management Technology
- Machine Learning for Hiring Practices and Promotion
- On-Demand Pay Services
- Using Video Resumes
- Better Implementation Optimization Tools
Microlearning Software & Mobile Apps
Microlearning apps are gaining steam, but they haven’t quite taken over in 2022 as expected. With HR working to improve L&D in a shifting workspace, a mobile-first format is crucial to helping deliver learning content to employees in the office and working remotely. AR/VR components will continue to develop for richer, more immersive learning experiences.
They still poise microlearning technology for massive growth, though it may take a few years for the price of expensive AR and VR technology to come down before HR departments adopt it en masse.
Jeffrey Zhou, Co-Founder and CEO, Fig Loans
Automated State Payroll Registration
I expected automated state payroll registration to make a bigger splash in 2022. With everyone moving to a more remote employment model with teams scattered around the country, it is a colossal nightmare to register in every state and maintain tax compliance.
This has long been a problem, but the pandemic and shift to remote work expedited this from being a "nice to have" software to a necessity. It has yet to materialize, though.
Amy Spurling, CEO and Founder, Compt
Therapy AI in Virtual Wellness Programs
With growing concerns over employee wellness, virtual wellness programs are taking off. While some are thriving, one huge advancement is still in its early stages of infancy: AI therapy.
Developers have created chatbots that resemble instant messaging services that employers can integrate into their virtual wellness programs for 24/7 mental health support. The chatbot asks users about their moods or thoughts, shows support by “listening,” and offers cognitive behavior therapy tools that can help.
While this trend shows great promise to advance mental health support at work, nothing can replace human-to-human contact, but AI therapy could provide better access to mental wellness tools as the trend grows.
Marina Vaamonde, Real Estate Investor and Founder, HouseCashin
Big Data with Applicant Tracking Systems
When I started working in HR, the buzzword was “big data.” There were all these startups that claimed they could use data to help companies make better hires, improve employee retention, and generally optimize their workforce. And while there’s no doubt that data has transformed HR in many ways, it hasn’t had the earth-shattering impact that some people predicted.
In fact, I would argue that the biggest impact of data on HR has been the proliferation of Applicant Tracking Systems (ATS). These systems have made it easier for companies to track and manage job applicants, but they’ve also made it harder for individual job seekers to stand out from the crowd. So while data may have changed HR in some ways, it hasn’t been the game-changer that many people expected it to be.
Travis Lindemoen, Managing Director, nexus IT group
AI-Powered Chatbots for Automating Tasks
At the beginning of 2020, many HR professionals predicted that AI-powered chatbots would have a major impact on the industry in the coming year. Chatbots are a way to automate repetitive and time-consuming tasks, such as scheduling interviews or answering common questions about benefits.
However, while chatbots have made inroads in other industries, they have yet to make a significant impact on HR. One reason for this may be that chatbots are not well suited to handling the more personal and sensitive issues that are often at the heart of HR concerns. As a result, it’s likely that chatbots will continue to play a limited role in HR in the years to come.
Jim Campbell, Founder, Wizve Digital Marketing
Learn More About Chatbots in our
"What Are HR Chatbots and How to Use Them Effectively" Article
Blockchain/Web3 Technology
I have to say that as a cybersecurity and HR expert with extensive experience; I thought that blockchain technology would be an industry disruptor in 2022. It has the potential to be a more secure and affordable way of storing personal data, a crucial component of HR.
In retrospect, it's obvious why this didn't catch on: anything in the realm of Web3 is still nebulous and misunderstood. When you have teams that are still struggling with making Excel documents or using a password manager, of course, Blockchain will be a far reach.
I hope that in 2023, tech literacy will become a higher priority for HR departments. It will be crucial to hire outside consultants who can set up new systems and educate HR so that knowledge can be passed along to the organization as a whole.
This foundation will be necessary before adopting any blockchain/Web3 technology, despite the obvious advantages.
Volodymyr Shchegel, VP of Engineering, Clario
Learn more about Blockchain in our
"Blockchain in HR: Real World Use Cases and Examples" article
Expensive, Unintuitive Virtual Reality
New HR technologies are constantly being developed, and it's hard to keep up with the latest trends. However, not all of these technologies live up to the hype. Every year, we expect a few to disrupt the industry but don't quite make the impact they're supposed to.
In 2022, one such technology was virtual reality (VR). We have used VR in various industries for training and simulation purposes, and many experts thought it would significantly impact HR.
However, VR headsets are still expensive and not very user-friendly, so HR departments haven't widely adopted them. As a result, VR hasn't had the predicted disruptive impact.
Wendy Makinson, HR Manager, Joloda Hydraroll
Predictive Analytics and Algorithms
In 2022, predictive analytics was one HR technology expected to disrupt the industry but didn't materialize to make a significant impact.
Predictive analytics is a process that uses data and machine learning algorithms to predict future outcomes. While we have used this technology in other industries for years, its potential in HR is still relatively untapped.
While some companies have used predictive analytics to identify top talent and predict attrition rates, the technology has not yet had a major impact on the industry. This may be because of the lack of standardization in HR data or the difficulty of getting buy-in from senior leaders.
However, as data becomes more accessible and predictive analytics algorithms become more sophisticated, it's likely that this technology will eventually have a major impact on the field of HR.
Tracey Beveridge, HR Director, Personnel Checks
Continuous Performance Management Technology
Continuous performance management systems are being deployed on a wider scale, but the technology didn’t explode this year as much as expected.
As businesses continue to develop new evaluation and reward models that include check-ins and Agile goal management, too many aren’t yet taking advantage of a platform that allows for 360-degree performance management using data that’s gathered in real-time.
The shorter you can cut the time between employee performance and management feedback, the better your team will perform—AI can help.
Jack Underwood, CEO and Co-Founder, Circuit
Machine Learning for Hiring Practices and Promotion
One HR technology that did not live up to expectations in 2022 is machine learning and artificial intelligence (AI). While many experts predicted these technologies would revolutionize the HR industry, they have had only a limited impact so far.
One major reason for this is that most firms still rely heavily on human decision-making, particularly when it comes to high-value human resources decisions, like hiring and promotion. While machine learning algorithms have been successful in predicting certain types of employee behavior, such as tenure or performance, they are still not accurate enough to be relied upon for many other HR decisions.
Moreover, there is also a lot of concern about the ethical implications of using AI and machine learning in HR. Many experts believe these technologies could lead to discriminatory hiring practices and make it even more difficult for underrepresented groups to secure employment.
Ian Wright, Managing Director, Business Financing
On-Demand Pay Services
Providing employees early access to earned wages was all the buzz in early 2022. Many employees and employers alike were still grappling with the impact of the pandemic and the financial burden that affected many.
I fully expected that many employers would adopt this practice because of overwhelming employee interest and requests. However, I was quite surprised when the topic wasn't in the spotlight in my HR groups and networking circles. Employees also were not inquiring about the benefit in our one-on-one meetings, company town halls, or anonymous suggestion boxes.
What appeared to be an HR technology that would disrupt the industry this year did not seem to make an enormous impact at all. However, with the uncertain financial and economic times ahead, it will be interesting to see if this changes by 2023.
Brittney Simpson, HR Operations Manager, Walker Miller Energy Services
Using Video Resumes
When we first started seeing video resumes, we thought they’d be a huge hit as video was becoming the future trend in pretty much everything.
However, with software, automation, and tools being geared towards screening written data and finding keywords to help make the process faster and more accurate, video resumes required human power and took up way too much time for it to be a success and instead were just disregarded.
Denise Hemke, Chief Product Officer, Checkr
Better Implementation Optimization Tools
One of the biggest themes we've seen in 2022 has been an increase in failed or unsatisfactory implementations. Many of the largest HR tech vendors have struggled with service team turnover because of the Great Resignation, while also receiving an unprecedented demand for their technology.
This mismatch of implementation resources has led to many frustrations and a tremendous boom in companies that offer implementation-managed services. However, implementation-managed services companies are hiring most of their talent from vendors, so the total talent pool of great implementation experts hasn't increased with the demand for implementations.
This imbalance could be better offset by better utilization of implementation technology by the HR tech vendors: project management tools, asynchronous video tools, chatbots, data validation software, etc.
I hope we see more HR tech vendors try to solve the implementation problem with technology in 2023
Brett Ungashick, CEO and CHRO, OutSail
