HR Tech Trends to Look out for in 2021

As millennials and Gen Z are increasingly entering the workforce, employers are looking at tech-powered ways to recruit, manage, and engage their employees. In the article below, we will discuss how organizations plan to use HR tech to transform HR processes in the coming year.

Here are some highlights of the ongoing HR tech trends.

1. Employers are using artificial intelligence to transform a range of HR practices. From recruitment to engagement to people management–technology in various forms is paving a way for more HR leaders to make informed decisions.

2. Cloud-based HR tech is empowering employers to make remote work and the gig economy convenient.

3. Employers are focusing on equipping employees with transferable skills by building customized employee development programs and prepare for the changing nature of work.

Over the last decade, HR technology has significantly changed the landscape of HR management. The reason for this shift is the increasing number of millennials in the workforce–the generation that has grown with access to mobile, internet, and other handheld devices.

Further, advancement in the technology itself is leading to development. Emerging technologies like artificial intelligence, machine learning, and RPA (Robotic Process Automation) have disrupted HR practices rather than just incremental value.

The future of HR Tech

In the 2010s, HR technology was about using technology to automate HR processes for better people management and make processes faster and efficient. The upcoming decade, however, is about going beyond functionality and improving productivity.

Productivity is the highest measure of success in the current workforce. To bring products to life, employee engagement is critical to the success of companies. New technologies are going beyond existing HR functions to reimagine areas like people management, talent management, employee engagement, and performance management.

Top HR tech trends

Here are a few highlights of HR technology and how it is impacting HR management.

Artificial intelligence

AI algorithms understand and automate repetitive tasks and free up time for HR professionals, which can be further used on strategic and high-impact tasks. AI-powered devices further facilitate visualization and make data-driven strategic decision making much easier.

Improve employee engagement

AI algorithms for employee engagement and performance are modernizing HR processes. AI-powered software helps to focus on improving the lives of employees in a very real way. Continuous performance management and custom learning paths focus on ensuring employees’ psychological safety and create an environment for maximum output.

AI-driven recruitment

AI algorithms help organizations to understand people’s profiles better after sourcing resumes from various sources and matching their skills with high-performing team members. This helps in creating the right matchmaking.

Cloud-based tools

Remote work is slowly becoming the new normal. While it was here for quite some time, COVID-19 has sped up the shift to remote work. Several companies are going remote-first model, while others are increasingly incorporating remote work option in their work policy.

Collaboration and productivity tools like Slack and Trello are critical to this move. To achieve the goal of effective remote work, HR software is increasingly becoming cloud-based. People management processes that meet the needs of globally distributed teams is only possible through cloud-based HR tools.

People management processes that meet the needs of globally distributed teams in a quick and scalable manner are only possible through cloud-based HR tools.

Virtual reality

Virtual reality, a groundbreaking technology, is now transforming various HR sectors. Job and exit interviews, employee onboarding, and more are now being aided by virtual reality. As the industry increasingly moves toward remote work and social distancing, virtual reality will help bridge the gap.


Overall, HR tech is paving a way for innovation and work, making HR processes more efficient and productive.


I just find myself happy with the simple things. Appreciating the blessings God gave me.

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