Technology has made a traditional workplace outdated. Employees can work in different ways, while employers have new tools at their disposal; all thanks to advances in technology and its use. These changes are especially visible in the Human Resources sector –every aspect from sourcing to performance management has been affected by the technological revolution. HRM software is not like it used to be and this has made HR a completely new ball game.

Let’s look at the changes in HRM software and peak into what to expect from the future.

What is HRM software?

HRM software comes in different forms. Its main purpose is to help employees and management to perform their jobs as well as possible, making it possible to boost productivity and employee satisfaction.

The software often focuses on one of the following areas of HR:

  • Recruitment
  • Onboarding
  • Workforce management
  • Time scheduling and management
  • Payroll
  • Strategic human capital management

Sometimes you can find different names for HRM software, as it’s often called human resource management systems (HRMS) and human capital management (HCM). While the names differ, the software systems are always essentially the same – managing employees.

From the start, this has been the objective of the software and the purpose of its use. The earliest forms of software often focused on the most basic premises, such as ensuring employees get paid at the right time or that candidates with the right talent get the job. But in the modern world, the software is in charge of complex and overlapping processes, such as improving retention rates.

What are the biggest driving forces behind the changes?

When it comes to the development of HRM software, you can identify three big driving forces behind it. These have been:

Big data. Technology has made it possible to collect vast amounts of data and HRM software has used this to its advantage. Previously, most software solutions gathered only very basic information about applicants and employees. But as the capacity to collect more data and to store in the cloud become possible, the depth of collected data increased.

But the data wasn’t just stored. The big data technology also began to analyse the data in a more innovative way. The information was used to make decisions around employment, from hiring to developing talent.

Mobile and cloud software. As mentioned above, much of HRM software is now on the cloud. When past organisations had to implement the use within their own infrastructure, making the use of software expensive, the modern employer can buy software that doesn’t need to stay internal hardware – it can save money and time in many instances.

Furthermore, the software is not just on large computers any longer. Technology has made access to vast amounts of data possible with simple smartphones. In terms of HRM software, this means anyone can access, use and manage information on-the-go and in different environments.

Social media. It’s also important to notice the role of social media in changing HRM software. HRM software is not just focused on analysing the input of data provided to it, it can also scour the data available online. This means integrating with things like social media. In fact, close to 100% of HR recruiters have started using social media as part of the recruitment process.

The software solutions have moved from the basic to complex and from being part of the internal hardware to being flexible and unbound to a location. Accessibility and the use of this technology have widened what employers and, increasingly, employees can do with the software.

What does the future HRM software look like?

In terms of the future, development of new type of software is fast going. The innovation is not slowing down but heating up. It’s unlikely for the HRM software to remain the same. So what might the future look like?

Technology is going to continue becoming a bigger part of how we work. This means that data collection will deepen and become part of everything that happens in the workplace. In terms of HRM software, this means integration with things like wearable technology. These will make employees connected at all times and have an impact on things like employee engagement, productivity and workplace security.

Another trend that’ll continue to play a role is artificial intelligence. As the above shows, it has already influenced the software solutions a great deal. How it will influence it in the future remains to be seen. But it’s important to understand that HR of the future will be different from the HR of today.

The use of HRM software is an integral part of running a smooth HR department. The software is something every business has to think, whether small or big. When selecting the right software, it’s important to understand the company need but also to recognise the way technology has changed the process, not just the product.