Technology is now pervasive in every sector and HR Tech is no exception. According to the report “Human Resources Technology: empowering talent and enterprises through technology” by Klecha & Co, digital innovation will not replace the workforce, but will have the opposite effect: it will allow to customize the talent selection process, making it more efficient. , with the result of a more “human” approach, a key factor in retaining, involving and motivating employees.
In a world where in 2030 it is estimated that there will be a shortage of around 85 million talents worldwide, equal to the current population of Germany, it is essential for companies to open up to innovation and adopt new technologies that enable resource professionals. human beings to focus on the most strategic areas, such as the selection and management of talents, dedicating much more time to the personal and human relationship thanks to the possibility of freeing themselves from the more repetitive tasks that can be performed by the software.
In recent years, not only the major global IT players have entered the HR Tech market, which have exploited the power of the cloud, artificial intelligence and machine learning to offer solutions that anticipate the needs of companies and employees, but also numerous European startups that in the first 9 months of the year alone raised investments of € 1.9 billion, up 144% compared to € 712 million in 2019. Capital that was used to develop new recruitment and training platforms that they allow companies to hire and integrate new talents through completely digital processes.
The global market ofHR Tech, despite the strong evolution pushed by the COVID-19 pandemic, due to the decrease in demand in 2020 recorded a turnover of $ 22.9 billion but has already hooked up a growth trend in the course of 2021, and is set to reach a value of $ 35.7 billion by 2028, with a CAGR of 5.8%. The growing demand for skilled talent and the ever-increasing demand for predictive analytics tools will drive this growth, which will also be supported by the role of Private Equity and Venture Capital funds which are estimated to invest $ 19 billion in this sector over the next 5 years.
The future of human resource management is closely intertwined with talent and technology. The disruptive power of these solutions and the interest of companies are evident in the data: in a context in which a third of HR managers foresee budget cuts this year, 90% still intend to confirm or increase investments in technology. The evolution of work and resource management is in fact posing new challenges for both companies and employees.
One of the most important and forthcoming will concern the shortage of talent to address the digital transition that the effect of the Next Generation EU is set to accelerate across the continent, due to the lack of qualified employees, and the creation of a hybrid work environment that is able to support both those who work remotely and those who are in the office. It is therefore crucial to make the most of technology to facilitate a faster and more fluid decision-making process and to be better prepared to face the changes. and the new needs that are on the horizon: retain and hire talents, reach suitable candidates, improve and speed up decision-making, offer new types of benefits, customize performance metrics, ensure continuous learning and updating of skills.
Stephane Klecha, co-founder and Managing Partner of Klecha & co. he has declared: “It is now well established that no company large or small, albeit with different levels of awareness, can do without technology. Also in the field of human resources it is crucial to invest in innovation and adopt new solutions that enable, on the one hand, better management and attraction of talents, and on the other, the creation of an effective hybrid work environment. Artificial intelligence, cloud and machine learning are our allies in this path that will lead the sector to attract more and more investments. Klecha & Co is a careful observer of these innovation-driven phenomena that anticipate trends and will have a significant impact on an ever-increasing number of important sectors. “