For HR Tech, Employee Engagement is Big Game
It is estimated that the global HR technology marketplace is $400 billion.
Many startups have sprouted up worldwide focusing on products that
service all HR functions—recruitment, engagement, compliance, and
learning and development (L&D). While the functional requirements of
recruitment and L&D roles are quite straightforward, the workings of
engagement function are subject to variable factors.
For Indian HR tech startups, 2018 began on a promising note with at least
six firms notching about $50 million in investments. Investor interest in this
sector is steadily growing as organizations are turning toward digitalized
HR processes. HR tech startups attempt to address HR challenges with
real-time data and insights-driven decision support system. The variable
factors at play in the engagement function is reason enough to spur more
competition and differentiation. For instance, Hyphen is a startup that
provides an engagement platform to help management listen to their
employees on a real-time basis. Similarly, another startup, Benepik,
provides a mobile solution for employee engagement as part of its
integrated offerings. Artificial intelligence, analytics and UI are emerging
key differentiators for HR tech firms focusing on the engagement function.
Reports estimate that Indian firms can save at least $600 million annually
with HR tech. Earlier most of the HR tech development was attuned
towards recruitment, but things have changed. Today, HR is no longer an
administrative support function; it is now a strategic business function.
Startups have been focussing on building capabilities to help HR take
strategic decisions that impact business.
Focus shifts from core HR to a more experiential HR
When it comes to the pace of development in the HR tech field, core HR
functions have taken a back seat. Startups are reinventing tools
for employee development, pulse surveys, culture, engagement, and realtime analytics. For instance, new tools for employee well-being are now
strategic parts of the technology market. Companies are now able to
understand how to diagnose their culture in a measurable way, courtesy
the new culture and engagement measurement tools. The transition from
web-based systems to mobile systems is largely customer driven. As more
companies opt for an easy-to-use, integrated mobile experience, vendors
are competing to fill the demand gap. Developments in mobile interfaces,
AI, natural language processing, and integrated case management provide
opportunities for employees to manage their life at work in much easier
way. This upsurge in HR tech has shaken up the marketplace: the fastestgrowing companies in HR tech cater exclusively to small businesses.
With HR technology getting more flexible to implement, startups have to
contend with comprehensive HCM platforms, such as PeopleWorks, that
bring together employees, HR and management. It remains to be seen
whether standalone HR systems can compete with integrated HR systems
in the battle for workforce engagement, or whether the mergers and
acquisitions phase will kick start again in the HR tech scene.

HR Software Solutions for Employee Management and Engagement