Key HR Technology Trends 2021 To Shape The World Of Work

2020 has ended, but the experiences will be forever etched on the minds of business leaders. Although organizations always used and applied many forms of HR technologies, no time did their survival entirely depend on how much HR technology they used to like it did in 2020.

HR technology is a concept encompassing a range of software and associated hardware used to increase the efficiency of HR professionals. In the past, using technology to improve HR’s efficiency meant automating HR processes to enable better people management. Today, HR tech has completely transformed and redefined the purpose of HR technology: overall improvement of productivity.

The previous year showed leaders how much technology can increase and improve productivity. Going forward, this new-found insight is expected to trigger the emergence of novel trends in the space of HR technology. 

Here are some of the key HR technology trends you need to be aware of in 2021 to stay prepared for any unforeseen circumstances.

You might also be interested to read: HR’s Role In Building A Workforce For Digital Future

Artificial intelligence in HR

Engineers and innovators have put in a lot of work to improve the abilities of technology and make them more efficient. As far as this goes, currently, artificial intelligence in HR is one of the key HR technology trends to watch out for in 2021. Many organizations are using AI to augment their processes so much that a forecast by McKinsey predicts that AI-driven economic activity will generate $13 trillion all over the world in 2030. AI will impact HR technology in the following ways:

Augmented analytics: With AI, HR teams can automate repetitive tasks. What this means is that they can have more time to focus on strategy development and other high-impact tasks. Additionally, AI-powered HR technology will ease the process of data collection, analysis, and visualization. Strategy building will become easier.

Employee engagement improvement: Technology has made individuals drift apart from one another. In this case, engagement has reduced among employees. This is not a situation favorable for organizations as a lack of employee engagement impacts negatively on productivity. To solve this issue, it’s expected that companies will use AI-driven solutions to improve employee engagement and modernize the process.

AI-driven recruitment: Recruitment and talent management is one of the major functions of HR. AI-based algorithms in HR technology can enhance this process to make it more effective.

Performance and wellness

Organizations often carry out an annual appraisal to evaluate employee performance. The proliferation of HR technology ensures that companies are doing away with this method of evaluating employee performance. Through the development of a cycle of expectation setting and feedback, HR leaders can more efficiently monitor and identify areas of improvement for employee performance.

Employee wellness also impacts employee productivity and performance. Organizations understand the need to ensure employees are in a top physical and mental state. As such, many of them are looking at HR technology trends that will help achieve this objective.

Virtual reality

Working remotely is one of the big transformations that hit the world of corporate business. Now, HR carries out the process of recruiting new candidates remotely. Virtual reality has played a huge role in ensuring this happens. While the situation created by the pandemic motivated the widespread adoption of HR technology, the influence of virtual reality on HR would only continue to increase.


  • Top 6 HR technology trends for 2021 | PossibleWorks
  • AI in HR | Mason Stevenson | November 9, 2019

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