Why You Need to Invest in HR Tech and Analytics Now

ClearCompany believes in the importance of using insightful HR data and modern technologies to assist with decision-making and talent management. We’ve compiled statistics and trends that showcase the necessity of data and people analytics for continued organizational success in a post-pandemic workplace.

Please properly credit the source of the statistic (linked) when using it in your own work.

The Need for HR Data and Technology

The shift to remote work hastened the pace at which many organizations adopted new HR technologies. With a need to support a virtual workspace, businesses sought out tools that provided collaboration, communication platforms, and performance tracking capabilities. Now, many HR leaders are continuing their efforts to implement new tools and data analysis to create a resilient and adaptable workforce.

HR technology is a broad term that encompasses a wide range of tools and business functions. Functions such as payroll, time and attendance tracking, benefits, talent acquisition, performance management, and more can be automated or digitized to help create an efficient and effective HR team. With enhanced capabilities and advancements in artificial intelligence, HR technology can help to reduce the strain on HR teams, giving them more time to act strategically and analyze data to make informed decisions.

Talent Management Technology

As we begin to see signs of recovery from this past year and start looking toward the future, one thing is clear — companies will undoubtedly increase their reliance upon strong and effective HR technologies to facilitate business.

• The number of core HR software users is expected to increase by 9.4% from 2017 to 2025. (Source)
• The market for talent management tools is forecasted to grow 13% by 2027. (Source)
• A reported 79% of HR professionals in the US believe that their companies have the technology to navigate increasingly digital, remote work environments. (Source)
• Over 36 million Americans are expected to be working remotely by 2025, nearly doubling the pre-pandemic remote workforce. (Source)

Recruitment Technology

COVID-19 has changed the way that recruiters tackle hiring for open positions. With more organizations embracing a remote or hybrid work environment, new technologies and tools need to be implemented to support a virtual hiring process. Below are some statistics regarding the need for HR tech when it comes to recruiting top talent.

• 68% of recruiters say investing in recruitment technology is the best way to improve recruiting strategies. (Source)
• 12% of decision-makers in recruiting report having strong outsourcing technology. (Source)
• 16% of employers use technologies to monitor their employees frequently. (Source)

Employee Performance Technology

Consider using HR tech to help facilitate employee development at your organization. With software and programs that support engagement and performance tracking, HR leaders can (and should) capitalize on the opportunity to create a highly productive workforce. See how organizations are using HR tech to better develop and track the performance of their teams.

• 22% of American HR professionals will be investing in learning programs for reskilling and mobile platforms in 2021. (Source)
• 73% of organizations increased online learning usage in 2020. (Source)
• An HR professional with the right tools spends 95 hours per month on strategic work, compared to 111 hours without the right tools. (Source)
• HR professionals with data analytics skills have increased by 242% over the past five years. (Source)

Data Analytics Technology

Data and people analytics help HR professionals to better gauge the productivity and efficiency of their teams. And, with access to the right tools and information, analyzing HR data can help your leaders make more informed decisions. As we look to the future of business, leaders recognize the value of a more thorough and detailed analysis of their organizational data. Stay on top of trends to keep your strategies current in 2021 and beyond.

• The global big data analytics market is predicted to grow from $14.85 billion in 2019 to $68.09 billion by 2025. (Source)
• Businesses using data analytics saw profit increases of 8–10% and a 10% reduction in overall costs. (Source)
• 91% of companies say that data-driven decision-making is important to the growth of their business, but only 57% of companies are putting it into practice. (Source)
• R58% of organizations make decisions based on outdated data. (Source)
• 51% of data decision-makers believe their organization’s data infrastructure will need improvements in order to help them recover from economic challenges. (Source)
• 45% of respondents agreed that demand for data analytics will continue to rise. (Source)

The results are clear — organizations want and need technologies and tools that offer data-informed insights for better decision-making. By equipping yourself and your team with the tools you need to succeed, you can create a more skilled and prepared workforce that understands the value of HR technology and data analysis.

ClearCompany has over a decade of proven success in helping organizations to reach their recruitment, engagement, and retention goals. Our best-in-class HR software is built to support the specific needs of your company, and our advanced software solutions offer in-depth insights into the state of your workforce. For more information about how ClearCompany can help you to transform your business operations with our software solutions, reach out to our team of experts and start your free demo now.