We are living in a world that is becoming increasingly more digital. A digital transformation is taking place. Previously analogue tasks have moved into an electronic (and digital) space. The HR industry is no exception to this evolution and has experienced a spike of interest in digital systems and processes.
That is where HR Technology comes into the picture. HR Tech is the overarching term for software and processes automating the HR function in an organization. Although HR Tech has a wide scope, it primarily includes five core components:
- Acquisition and Talent Management
- Automation and Robotics
- HR Analytics
- Performance Optimization
- Organization Development
HR Tech has been at the top of the agenda at large organizations for years, transforming all process into the digital sphere. But recently, HR Tech has taken a giant leap increasing in popularity among small and medium-sized businesses. New technology requires an updated vocabulary with several new expressions and slang words.
We have gathered some of the most important terms that you need to know about if you are working in HR.
Popular HR Tech Terms
ATS – Applicant Tracking System
Applicant Tracking System (ATS) is a software that helps recruiters and HR professionals to recruit employees more efficiently. Functionality can differ depending on the system. The common denominator is the ability to automate the recruitment process through a pre-defined workflow.
HRIS
Human Resource Information Systems (HRIS) is the heart of any organization’s HR operations. It facilitates the tasks to acquire, analyze, store, and manage employee information. Not only does it digitalize traditional processes, but it helps HR departments to automate tasks that previously were performed manually.
People Analytics
Using statistics on people data to help solve critical business problems. Attain insight through descriptive analytics or work using predictive analytics. The more data you gather, the more advanced insights. Data can help you understand why employees leave and identify potential company leaders.
Workflow Automation
Workflows make up an integral part of effective HR work. In this context, workflow automation refers to a created series of automated actions and steps, carried out by specific people and with a clear deadline. You can use automation workflows to define approval processes, delegate tasks and make sure no one misses important meetings.
Employee Self-Service
Keeping employee information up to date is a time-consuming activity. Employee self-service makes it possible for employees to take care of tasks that otherwise would fall on the HR department’s desk. Getting employees to manage their own data through self-service is a great way for HR to save time.
RPA
Robotic Process Automation (RPA) has emerged as the technology for companies looking to manage repetitive tasks at a large scale. RPA let you automate rule-based, highly transactional processes in the HR department. It requires little or no human intervention, bringing down the overall HR related costs.
Digital Transformation
Digital transformation is the change process that describes the move from traditional HR towards utilizing digital tools and processes. HRIS is an example of this. These systems help companies take a data-driven approach and become proactive in their quest to attract, develop, and retain top talent.
Digital Onboarding
Digital onboarding refers to the use of digital tools and channels to welcome new hires and introduce them to the company, their team, and individual targets – even before they start their job! In today’s ever-changing landscape, onboarding is a crucial element to any employment process. Luckily, a big portion of the onboarding process can be automated, making sure that task do not fall through the cracks.