From a shift to employee experience to the growth of hyper-personalization, here are 10 answers to the question, "What is the biggest HR technology trend you see coming in 2023?"
Shift to Employee Experience Tech
In 2023, you'll see HR teams merge their technologies by choosing to use "Employee Experience" platforms rather than multiple individual tools.
Teams will want to save time, money, and energy by leveraging a platform and driving their team members to a single location. Many tools are available that will satisfy this HR trend for businesses in 2023.
Growing Usage of AI and Machine Learning
The biggest HR technology trend that I see coming in 2023 is the continued use of AI and machine learning. This technology has already had a profound impact on the HR industry, and I believe it will continue to grow in popularity.
HR professionals are constantly seeking ways to improve efficiency and productivity, and AI-powered tools can help them achieve these goals. In addition, machine learning can identify patterns of behavior that may show a potential issue, such as discrimination or harassment.
By using these tools, HR leaders can proactively address problems before they become serious issues. I believe that the use of AI and machine learning will become increasingly commonplace in the HR industry over the next few years, and it will have a transformative effect on how employers manage their workforce.
See our article on How AI is Used in Human Resources
Get Your Talent with Social Hiring Platform Technology
From the tight job market to employees' fast-shifting priorities, challenges will continue in 2023, and retaining and acquiring talent will still determine factors for the company's success.
Going outside job boards to reach different candidates is an effective strategy for HR leaders looking to lower cost-per-apply. Social Hiring Platforms make one HR tech trend I see coming in 2023.
With that technology, companies can promote their jobs with Social Media, which enables them to advertise campaigns on multiple channels, focusing on qualified passive candidates.
Also, the platforms provide more effective budget control and faster job campaign creation management. Social media helps businesses reach more qualified passive candidates through multiple channels, allowing companies to get new, more qualified, and engaged candidates completing their job applications in the ATS.
ESS Will Benefit HR & Employees
More companies will adopt self-service platforms in 2023. Also called Employee Self-Service (ESS) or HR Self-Service, this HR technology empowers employees to access and update their data through a portal directly.
Some tasks employees can perform on ESS are updating benefits enrollment, requesting leave, checking timesheets and compensation, and other HR-related tasks. Thus, they handle these aspects of their personnel file, informing them of their status at any given time.
ESS helps HR function more effectively by freeing up time to focus on more impactful HR matters like onboarding, L&D, and employee engagement.
See our recent article on What is Employee Self-Service? 5 Advantages of ESS Portals
People Managers Will Use Data to Inform Decisions
As a long-time researcher on HR technology adoption, organizations enabling line managers with direct access to usable data and insights to inform their decisions outperform.
I've seen this since ~2000. The value from people analytics in moments that matter across employee life cycle actions (attract, develop, retain) plus organizational effectiveness moments (planning, productivity improvement, organization design) are amplified when data, insights, and nudges, to take action, address manager effectiveness activities.
These include applying data and insights to help the manager plan, budget, and staff optimally, ensuring performance objectives are met, and providing career planning and even coaching to the specific needs of each employee.
Consider a manager being able to easily assess the risk of exit for top performers and to configure retention rewards consisting of fair pay plus other rewards meaningful for those top performers. When every manager is informed, the value of people analytics escalates.
Gamification of L&D is the Way to Go
Gamification of L&D will be more common in 2023. With the increasing need to reskill and upskill employees, HR needs to make the process relevant and engaging.
L&D gamification engages employees, making the learning experience exciting. Gamification helps them understand and retain knowledge better because of the interactive nature of gaming, and employees become enthusiastic about applying their new knowledge and skills.
Gamification also encourages healthy competition, which contributes to higher completion rates.
Although gamification is an effective L&D strategy, it may not apply to all learning situations. Still, it should play a prominent role in implementing L&D programs as HR sees fit.
More HRIS Integrations
One HR technology trend that I hope to see in 2023 is the ability for more niche HR systems to connect to the major HR Information Systems.
There are so many great system solutions for a broad range of HR functions, from performance management, employee recognition, equipment tracking etc., that unfortunately do not connect to the major HR Information and payroll systems.
My hesitancy as an HR leader is adopting technology that doesn't sync. On one hand, I don't want to solve one problem by securing the software, while on the other hand creating a manual process for my team to maintain that new system.
I hope that technology will be developed that makes integrations easily accessible, and I can definitely see that for 2023.
Rise of Hiring Intelligence Platforms
Over the last year, we have seen conflicting data with businesses having many openings, but difficulty filling them, while others have experienced a flood of applications.
Bigger and bigger datasets allow for vastly greater levels of predictive intelligence. Modern hiring platforms allow talent intelligence to be deployed flexibly to support shifting employment market needs.
Moving into the new year, more organizations will recognize the value of adopting these agile, automated intelligent hiring platforms with pre-employment assessments and interview technologies to help them address both candidate scarcity and abundance and be able to shift between the two quickly.
Growing Need for Project-Based Hiring
As the Senior Director, I also lead HR, and I think the biggest HR technology trend we'll see in 2023 is a shift to project-based hiring.
More and more companies are starting to move away from the traditional model of full-time employees working 9-5. Instead, they're hiring workers for specific projects or tasks and then letting them go when the project is complete.
This trend is being driven by several factors, including the rise of the gig economy, the increasing use of freelance workers, and the need for companies to be more agile in today's competitive marketplace. I think this trend will continue to grow in the coming years, as more companies realize the benefits of project-based hiring.
Focusing More on Hyper-Personalization
With the role of human resources ever expanding and developing, there is less time for personalized responses to team members. Especially with hybrid and remote work gaining popularity, it's more of a challenge to meet employees' needs.
In 2023 and beyond, I can see artificial intelligence (AI) being powered by data collected by a Myers-Briggs-type personality test. Each hire would complete a personality test and an AI virtual assistant would use that information to answer questions or even prompt employees throughout the day through specific motivations and interactions.