Top 3 Leading Technologies Shaping The Future Of Work
June 2, 2022
Blockchain, Artificial intelligence (AI), and Virtual reality (VR) are playing major roles in assisting employers to establish a more effective human capital strategy for businesses.
“The application of technological advances in the HR sector is no longer a distant prospect in the future. It is prevailing at an accelerating speed which propels companies towards automation and more effective strategy, such as applying automation in payroll, virtual assistants in recruitment, or developing game platforms to improve employees’ mental health” said Ms. Tiêu Yến Trinh, CEO of Talentnet.
It is important that businesses have an in-depth understanding of how to apply emerging technologies to HR management to keep up with the market trends and optimize the operation process, thus creating momentum for their sustainable growth.
Talentnet suggests the top three HR technology trends that companies should take into consideration to be a pioneer in the HR market.
1. Blockchain-based database
Not as unfamiliar as we might think, blockchain is regarded as a top priority technology when it comes to financial or supply chain management (logistics). Particularly, this technology is well-known for the ability to store huge amounts of data, quickly extract information, and achieve absolute security. Owing to these features, blockchain has increasingly proved its efficiency in the HR sector in assisting managers to streamline the operational process in recent years.
Nowadays, the utilization of blockchain technology allows businesses to access a verified massive pool of employee databases. The collected information can range from employment background and academic credentials to past performance to employee engagement. Wavebase, a technology solution currently being developed by a startup company – Peoplewave, has leveraged blockchain to simplify the candidate screening and selection process. Employers are enabled to not only quickly and accurately verify candidates’ backgrounds but also search for potential employees based on their past performance, job title, skills, etc with the help of Wavebase.
Besides, HR departments in many companies are handling a huge amount of sensitive data and blockchain currently plays a vital role as a data security solution when cyber crimes are increasing. Access to the blockchain is limited and controlled, making it impossible for any individual to overwrite data without permission. Therefore, businesses are better protected from internal fraud as well as external attacks. Moreover, blockchain offers automation capability with smart contracts, from which the management team can optimize the payroll process. This will set the HR department free from the administrative work to focus on other strategic tasks.
2. Artificial intelligence (AI)
Artificial intelligence has brought tremendous benefits to companies operating in many different fields around the world, from agriculture, and industrial sectors to transportation, banking, education, and advertising. Therefore, it is unsurprising that HR recently has also started to witness many positive changes thanks to the use of AI, triggering the emergence of AI trends in the HR field. According to a survey by Personnel Today, 38% of businesses have already used AI in the workplace, and the remaining 62% will do so in the near future.
Artificial intelligence helps businesses to save a large amount of time and resources in recruiting and evaluating personnel by eliminating emotional biases to focus on the ability as well as compatibility of candidates instead. In addition, the information collected from employees will create a solid database that allows companies to research and understand their employees’ needs and desires. Henceforth, many activities and welfare systems can be properly designed to manage employee relationships and reduce the turnover rate.
L’Oréal has implemented an AI chatbot platform to chat with candidates throughout the recruitment process. Niilesh Bhoite, General Manager – HR, Consumer Products Division & Digital at L’Oréal, shared, “The results of the first 10,000 recruitment conversations show that chatbots engage with 92% of our candidates effectively and the satisfaction rate is close to 100%. We receive great feedback from applicants who say that their experience is more personalized and easier.”
Using AI to automate the HR management process also contributes to facilitating managers to focus on building HR strategies that align with the business’s goals, as well as anticipate and prepare for possible risks.
3. Virtual Reality
People often associate virtual reality with technology products such as online games or launching events of big brands. However, 2 years of the pandemic when everything was gradually held on online platforms, companies began to realize the benefits of virtual reality technology in implementing various activities in the HR field.
Regarding recruitment activities, virtual reality interviews and company tours will impress and give candidates a more positive and objective view of the company’s workplace, which eventually helps them to make proper decisions. Virtual reality meetings can also arouse employees’ interest and attention to improve their performance. In particular, learning and development activities that aim to equip employees with more knowledge will also become more intriguing when virtual reality technology is applied.
Though the application of new technology in HR management is an unquestionable direction, many Vietnamese businesses still hold great concerns. According to a recent survey, the percentage of interviewed companies that are willing to apply technology in human resource management only reaches 42%. This is not only due to the limited budget for HR activities, but also the lack of a high-quality workforce that has sufficient knowledge and skills to fully utilize advanced technology. Contact Talentnet – a leading HR consulting company with multiple years of experience working with businesses in many different fields – to be advised on investment strategies in internal training to build a strong workforce who can select, use and operate technology. By doing this, companies can achieve competitive advantages and sustainable development in the new normal era.