With five generations of employees in the workforce today, companies must provide solutions that meet everyone’s needs. HR software and technology is evolving to encompass so much more than just managing the employees’ lifecycle. These solutions can be leveraged to provide employees a personalized experience at work that closely resembles the technological experiences they enjoy in their personal lives.
RELATED: Learn about the impact of AI on diversity recruiting,here →
At G2, we are most excited for HR technology trends that provide personalized experiences to candidates and employees alike. These include technologies that enhance the employee experience, diversify the workforce, improve career website accessibility, and expand employee benefits.
This article will provide a high-level summary and prediction for each trend. Throughout the next few weeks, we'll publish articles that dive deeper into each trend.
Emphasizing the employee experience
Businesses will increase their employee experience spending by 30% in 2020.
2020 is all about personalizing solutions to enhance the employee experience. From career sites to employee benefits—HR is customizing solutions based on candidates’ and employees’ needs. HR departments are fine-tuning their processes and their technology to meet employees where they work, every single day. Businesses are tailoring programs and solutions to enhance the employee experience, and to treat employees and candidates as the individuals they are, or rather, as the customers they want.
2020 is all about personalizing solutions to enhance the employee experience.From career sites to employee benefits, HR is customizing solutions based on their candidates' and employees' needs.
The consumerization of the workforce was front and center at HR Tech this year. Companies are creating social, mobile, and consumer-style work experiences to promote employee engagement and improve the candidate process. The focus on engaging and personalizing employee-centric tools allows companies to treat their employees just as well as they treat their customers.
Expanding HR analytics tools and capabilities help companies understand and predict individual preferences to create these tailored experiences. Employee engagement tools maintain the pulse on employee engagement and provide companies with actionable insight. HR departments can leverage technologies to address concerns including career mobility and workplace culture. Unlike employee engagement software that focuses on pulse surveys, employee experience solutions cover a wide array of technologies including candidate relationship management, career management, and wellness initiatives. We expect to see more of these solutions tailoring their features to enrich the employee experience.
Making career sites more accessible for candidates
Companies will increase their use of technology to improve career site accessibility by 30% in 2020.
75% of the companies on the FTSE 100 Index on the London Stock Exchange do not meet basic levels of website accessibility, resulting in a loss of $147 million in potential revenue. These companies missing out on revenue from potential customers while also overlooking diverse talent pools.
At HR Tech this year, Phenom People discussed the results of a study they conducted on the accessibility of Fortune 100 career sites and the solution they’ve created to help companies address these issues. They analyzed sites for six common Web Content Accessibility Guidelines (WCAG) including alternative text, color contrasting, focus indicators, keyboard navigation, resize text, and use of tablets.
WCAG was created by the World Wide Web Consortium (W3C) to help companies maintain compliance. Phenom People found 89 companies failed at least one WCAG 2.0 standard, 46 companies failed three or more, and only 11 companies met all six standards. The biggest issue for most companies was failure to meet color contrast standards.
Phenom People is one vendor that provides solutions to help companies maintain compliance with WCAG 2.0 standards across their sites. These solutions enable HR personnel and compliance teams to remove barriers that might prevent candidates with visual, auditory, speech, mobility, cognitive and neurological differences from using their websites.
We expect to see an increase in solutions aimed at helping companies address their career site accessibility.
Diversity recruiting software is a burgeoning market
The diversity recruiting software market will grow by 45% in 2020.
The diversity recruiting software market is experiencing rapid growth and innovation. Unlike some of the more established HR software spaces such as corporate LMS and applicant tracking system software with many notable multinational players, this space is just beginning to develop. It’s still a level playing field, and ingenuity in the space has been propelled by companies of all sizes, experiences, and gumption.
As we highlighted in our 2019 HR trends post, companies are moving to improve their interviewing and recruiting processes for diversity hiring. Software isn’t the panacea for improving diversity, but it can certainly help HR personnel and hiring managers improve their hiring process and find great talent.
The diversity recruiting software category on G2 started with 10 products, 6 of which were previously listed in other recruiting software categories. As of November 2019, there are almost 30 products in this specific category. In the past six months, visits to the diversity recruiting software page have increased 19%; the number of active buyers is up 419%. Of the 112 user reviews in this category on G2, 20% work in computer software, 14% in internet, 10% in IT, 10% in staffing and recruiting, and so on.
These products represent a large range of solutions to help companies implement and improve their diversity hiring initiatives. They include AI-based recruiting, candidate sourcing from niche job boards, resume screening and redacting tools, removing bias from job descriptions and interviews, and diversity programs analysis.
Diversity recruiting software is an expanding market that will continue to grow. You know when Josh Bersin highlights a new significant burgeoning market, it’s sure to explode. According to Bersin, “You can now use AI to identify biased interviewing, sourcing and recruiting practices.” This technology helps users identify recruiting issues and provides solutions to solve them; when solutions address a broken talent process, the demand is endless.
Expansion of employee benefits to address health and wellness needs
Businesses continue to expand benefits provided to their employees by 15% in 2020.
The rising cost of health care, a competitive job market, and an expanding multigenerational workforce impacts the variety of benefits companies offer their employees. Yet, according to a recent report by the Society for Human Resource Management (SHRM), 70% of organizations maintained their health care benefits and 20% increased their offerings. Health and wellness benefits experienced the highest growth in 2019, followed by flexible leave, career development, investment, and retirement.
As the workforce continues to diversify, organizations will further expand the variety of benefits they provide their employees to meet growing needs.
2020 HR trends and beyond
HR solutions that provide a holistic approach to the employee experience are on the rise in 2020. This expanding market includes solutions that enhance and improve the employee experience, diversify the workforce, make career websites accessible to all, and provide considerable employee benefits. As the gatekeepers to the heart of the business, HR employees must embrace digital transformation in all its forms, from analytics to wellbeing, and everything in between.
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Courtney is G2's senior research analyst for HR technologies, whose coverage areas include recruiting, employee engagement, and talent management. She maintains the integrity of the HR technology space by consulting directly with HR vendors and analyzing authenticated review data. Her comprehensive research on employee engagement and HR trends have been quoted in TechRepublic, among other publications.