Read Justa’s analysis of the HR Tech Market and gain insights about trends, market drivers, opportunities and customer needs.
HR technology market developments are determined by a number of underlying drivers, primarily technological, economic, demographic, labor market and HR trends. The growth of increasingly cheap computing power is driving advances in digitalization, datafication and AI, making it possible to automate various processes and decision-making. The fast pace of technology development is creating new business risks and opportunities, forcing companies to innovate faster while maintaining their core business.If economic and productivity growth continue at the same rate as in the past 10 years, over 55 million new jobs will have been created between 2015-2030 in East Asia, Europe and NAM. At the same time, the working age population in East Asia, Europe and NAM is projected to decrease by c. 70 million people between 2015-2030. New technologies are driving a skill shift in the labor market, with demand predicted to increase for digital, higher cognitive and social / leadership skills and decrease for labor that can be automated. As a result, many developed countries are likely to experience growing talent shortages in the medium term, especially when it comes to in-demand digital skill sets. To cope with a fast changing business environment and labor shortages, companies increasingly need to create more agile, flexible and diverse organizations. As a result of these trends, HR’s role is changing from an administrative support function to a business-critical and strategic value-adding function, but is facing obstacles on the road. HR should increasingly focus on talent acquisition and retention, candidate and employee experience, organizational design to support innovation, people analytics, alternative employment forms, employee health & well-being and learning & development.