With millennials and Gen-Z comprising the biggest cohort in the workforce, employers across the world are looking at tech-powered ways to recruit, manage, and engage their employees. Here are some of the most important HR technology trends in the coming year:

  • Artificial intelligence algorithms are transforming a range of HR practices — from recruitment to engagement to people management. Augmented analytics also enables employers to gain actionable insights about employees to make more informed HR decisions.
  • Cloud-based HR Tech to enable an increasingly remote and gig economy workforce, distributed across the world.
  • Focus on transferable skills and customized employee development to prepare for the changing nature of work.
  • Focusing on HR tech that creates a more continuous process of employee evaluation and performance management, while creating a more integrated approach to people management, productivity, and well-being.

Keep reading to learn more. 

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In the last few years, HR technology has dramatically changed the landscape of how people management works. There are a couple of reasons that have powered such a big shift. The first is that millennials are now the biggest cohort in the workforce. This is a generation that has grown up with access to the internet and mobile devices — and as such HR technology is no longer a preference, but a necessity.

The second reason is the advancement in the technology itself. Emerging technologies like Artificial Intelligence, Machine Learning, and RPA (Robotic Process Automation) have caused actual disruption in HR practices, rather than incremental improvements

HR trends in technology

What are Human Resource technology trends?

HR tech or HR technology is a term that denotes a group of tools and technology like software and apps dedicated to delivering better HR processes.

Every function of the HR team, starting from creating job advertisements and onboarding to exit processes, can be automated, made more efficient, and managed easily with the help of HR tools that adopt this technology.

When we talk about HR technology in 2022, there are so many exciting things to look out for. Integrating these tools into your everyday processes is not an option anymore. It is going to be the difference between an organization leading from the front and lagging, thanks to its HR practices.


HR trends in technology

To a large extent, the 2010s were about using HR technology to automate existing HR processes for better people management and to make the workforce faster and more efficient. However, the upcoming decade will be about going beyond functionality and improving productivity.

In today’s world of knowledge workers, the most significant factor for success is the productivity of the workforce. And 71% of business executives across the world agree that retaining and engaging employees is critical to the success of their companies. In other words, emerging HR technology trends are now going beyond existing HR functions to re-imagining areas like people management, talent management, employee engagement, and performance management.

Top HR technology trends for 2022

We have compiled the top HR technology trends for 2022 that are going to steal the show this year and the years going forward. So, if your team has been looking for practices to adopt, to improve your current functionalities, then these are the trends to lean towards.

1. AI (Artificial Intelligence) in HR

Artificial Intelligence is becoming an integral part of most new-age HR technology trends, which is dramatically changing how these mechanics operate. Here are some of the ways in which AI is going to be impacting HR practices:

Augmented analytics

Using AI algorithms to understand and automate repetitive tasks will free up more time for HR teams, who can instead focus their energy on strategic and high-impact tasks. What’s more, AI-powered HR technology tools will enable easier access to curated data and visualization, which will make insight-driven, strategic thinking a lot easier.

Augmented analytics automates insights using machine learning and natural language processing. This becomes a more self-service and user-friendly way to analyze employee data and generate actionable insights.

Improving employee engagement  

The use of AI-driven algorithms in areas like employee engagement and performance will modernize the HR technology processes. The software will now be able to focus on improving the lives of employees in a very real and substantial way. Through tools like continuous performance management and customized learning paths, the focus will be on ensuring employees’ psychological safety while creating an environment where they can perform at their peak.

PossibleWorks understands employee engagement like none other. That is why most of our HR technology tools, including the continuous feedback tools, rewards and recognition platforms, and goal-setting tools are created keeping in mind engagement levels. These tools are designed to work on increasing employee engagement organically.

AI-driven recruitment  

AI-based algorithms, combined with an increase in cloud computing, will cause a rapid shift in the way employers find talent using HR technology. AI for talent management will help understand people’s profiles in an unprecedented way — drawing from a variety of sources, including their social media activity. This will help in creating the right kind of matchmaking.

Cloud based Performance Management Tool

2. Cloud-based HR

Remote working is fast becoming the new normal. While this HR technology trend has been catching up for the past few years, the COVID-19 situation has really brought it to the forefront. Increasingly, many companies will move to a remote-first model while others will usher in remote working options for their employees.

Cloud-based HR has two complementary benefits. While it allows HR to access employee data in real-time and make decisions accordingly, the cloud-based self-service tools also give employees better control over their data. This, in turn, makes it a lot easier for companies to evaluate productivity and engagement.

3. Continuous learning and development

There’s no denying that rapid advancements in AI will change the nature of work in the days to come. According to AI Guru Kai-Fu Lee, 50% of all jobs will be automated by AI within fifteen years. This does not mean that there will be no jobs — it simply means that the nature of work will change.

Loyalty can be earned by preparing the employees for this change. That’s where updated HR technology processes that personalize learning and development come in. While up-skilling is necessary when it comes to the current job role, building more transferable skills and competencies is equally important. In a world where automation will take over repetitive tasks, having software that invests in soft skills training like communication, being a good team player, employee management, etc., has become important.

4. Performance appraisals

Performance management is going to become a real-time, continuous, and integrated process. HR technology will be gradually used to develop a cycle of expectation-setting and feedback, which in turn will ensure better monitoring and improvement in employee performance.

The era of Annual Appraisal is coming to a close, and organizations are upgrading to more frequent reviews (quarterly/monthly) with the ability to have more granular check-ins (weekly).

Organizations are increasingly adopting feedback interventions like Feedback 360 to make their performance management genuinely holistic.

Have you checked PossibleWorks’ PMS system? It is built on four critical pillars – OKRs for goal setting, Continuous conversations, 360-degree feedback, and timely recognition.

Get in touch with us to know how best to use this HR technology to upgrade your existing PMS system.

5. Employee Wellness

Employee wellbeing is now considered a crucial part of productivity and performance. The best companies are looking at a much more integrated approach to that factor — in terms of physical, mental, and emotional health.

The pandemic period has clearly shown where employee priorities lie – companies that had rounded wellness policies in place found their employees immensely grateful for their benefits and performed better, despite the happenings around.

Check out our latest blog that gives you a gist of the Post-Pandemic Benefits survey by Mercer for 2022. You can see how important employee benefits have become after COVID-19.

Now, there are HR technology tools developed around employees’ physical health — this includes gamification and wearables. At the same time, mental wellness and health tools are increasingly being incorporated into HR software to focus on employee wellness and productivity.

6. Gig economy

The gig economy has been around for a while, but it is likely to witness a sharp spike as people are increasingly looking to work on their own terms and conditions. Employers are fast realizing that using a mix of contractors, freelancers, and full-time employees is the best way to achieve results faster.

For many employers, gig economy workers comprise as much as 30% of the workforce. In such a situation, the role of such HR technology is to bring these diverse workers on one platform and manage people, their recruitment, performance, compensation, and so on. This is where customized tools will come in handy.


To wrap up, the world has changed rapidly over the last few months. While this change may seem temporary, it is likely to spark behaviors that will transform the future of work in permanent ways. In such a scenario, HR technology is also likely to adapt accordingly to meet these changes.

A definite commonality across all the HR technology trends — whether that’s AI or gig economy, or virtual reality — is that they will help to power this transformation.

Can’t wait to make your HR practices future-ready? PossibleWorks helps organizations adapt to the latest HR technology trends, with ease and minimal need for revamp and unlearning. Contact us to know more.

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