The HR tech market classes to observe this 12 months


The outdated saying goes that the one two issues we are able to depend on are loss of life and taxes. I’d like so as to add a 3rd: the continued evolution of HR expertise.

As I stay up for 2023, I see the strengthening of a number of present market classes and the emergence of different new ones. I’ll be speaking about these classes—and far more—in my upcoming keynote at HR Tech Convention Digital, which runs Feb. 28-March 2.

In the meantime, here’s a preview of the classes to observe:

  • Worker expertise platforms. Largely created by ServiceNow after which popularized by Microsoft Viva, this can be a huge, high-priority product class. Distributors on this class supply deep functionalities that ERP and HCM distributors merely can’t supply. EXPs are sorely wanted to handle the workflows associated to hybrid work, worker listening, onboarding, and customized profession and improvement work occurring right this moment.
  • Expertise intelligence platforms. These are AI-powered knowledge platforms that assist corporations with sourcing, inner expertise matching, clever succession administration and data-driven options for evaluation, job design and expertise evaluation. These methods (together with Eightfold, Gloat, Beamery, Phenom, SeekOut and iCIMS) all supply new, high-value choices. Their ERP counterparts merely are usually not there with regards to matching capabilities.

See additionally: Right here’s the tech HR leaders need for 2023—however can they actually get it?

Expertise market and profession pathway options—provided by corporations akin to Gloat, Fuel50, Guild Schooling and EdAssist—are in a subset of this class.  These corporations are responding to pressing wants for clever profession administration, inner job mobility, job matching, mentoring and different expertise challenges. In some ways, these are the expertise administration platforms of the longer term as a result of they join staff to studying, mentors, developmental assignments and jobs. In contrast to the outdated “rent to retire” methods that attempted to do that with competency fashions, these are extremely dynamic methods that may infer expertise and pursuits and determine alternatives recognized by way of use of AI.

  • Lifecycle worker listening methods. Options on this class have gotten increasingly strong. If you happen to take a look at survey platforms like Qualtrics, Perceptyx, Medallia, Glint and Workday Peakon, you rapidly notice they’re actually knowledge analytics platforms first and survey platforms second. They accumulate knowledge from many sources (together with passive knowledge from e mail visitors, calendar schedules, voice suggestions and even video), offering a complete view of worker sentiment, satisfaction, engagement and, finally, productiveness. Lately, BetterUp acquired Motive, Visier acquired, and Perceptyx acquired Domesticate; all of them have the frequent purpose to construct out superior passive listening methods. Microsoft Viva Insights can be transferring on this route. I’ve excessive hopes for this class as a result of worker listening is core to understanding productiveness and worker retention.
  • Functionality academies/mastery studying platforms. These options supply staff a centralized vacation spot for shopping content material, discovering consultants and mentors, taking programs, and deepening expertise or studying new ones. Additionally on this area are options for creating studying content material, for cohort-based or collaborative studying, and for offering AI-powered teaching networks.
  • Expertise acquisition suites. Though recruiting will gradual this 12 months, we’ll proceed to see fast innovation on this area. Options providing interview intelligence, video interviewing, and technical and delicate expertise assessments are among the many “must-have” features for contemporary recruiting. Leaders on this class embody Trendy Rent, Paradox, HireVue and Outmatch.
  • Contract employee administration platforms. In too many circumstances, contractors are nonetheless managed by buying departments utilizing vendor administration functions, and contractor knowledge will not be built-in into enterprise HR options. I consider in 2023 we’ll lastly begin to see these methods come along with core HRMSs as contract and gig work continues to develop. As an illustration, contractors could make up 40%-60% of workforces in pharmaceutical, tech and distribution corporations. These people want scheduling methods, payroll help, varied types of onboarding, advantages and data safety. Scorching distributors on this class embody Magnit (previously ProUnlimited), the biggest; Legion, providing probably the most thrilling platforms; VNDLY, now a part of Workday; SAP Fieldglass, now built-in into SuccessFactors; and Beeline, a market pioneer.

Learn extra insights from Josh Bersin right here.

  • Conversational AI. We’ll undoubtedly see thrilling innovation on this class. With options like Olivia (from Paradox), you’ll be able to market, display screen and even rent individuals with virtually no human involvement. Take that sort of expertise, add an AI engine like that developed by GPT-3, and we have now an enormous new set of instruments for HR service supply, case administration, recruiting and finally teaching and studying. Distributors like ServiceNow, Microsoft, Workday, Oracle and SAP beef up this tech in 2023.
  • Workspace administration. That is one other class we might see rising in 2023. Now that hybrid work is right here, corporations want a strategy to schedule rooms and workplaces, procure AV and different gear for varied forms of actions, arrange and schedule groups. Facility managers want instruments to observe room and placement utilization and higher plan for hybrid work wants. HR groups wish to assist staff work wherever it’s best for them and for the corporate. Distributors like ServiceNow, Cisco and Microsoft are seeing the potential for AI-enabled options that may assist handle utilization, scheduling, worker location, gear and extra.

Whereas general HR tech spending will in all probability gradual, a few of these classes will see progress. Consumers might want to make smart decisions of the place to speculate—and that can require in-depth analysis into varied product choices, vendor satisfaction traits and product plans. As at all times, I strongly advise creating expertise experience inside HR groups and powerful relationships with enterprise IT.

I’ll get into far more element in my upcoming convention keynote, HR Expertise 2023: The Disruption Continues, slated for 11 a.m. ET. Feb. 28. I hope you’ll be part of me.

Must Read

Related Articles


Please enter your comment!
Please enter your name here