The HR technology within the North America region is driven by AI enhancements, a push for diversity and inclusivity, and the growing need for efficient, innovative, and adaptable workforce management solutions. Well established companies like Workday and SAP SuccessFactors continue to drive innovation, but there are an increasing number of emerging names that are reshaping the future of work with technology that prioritizes employee experience, engagement, and global employment capabilities.
Catch: Understanding The Evolving HR Tech Segment in North America – Part 1 here.
The Rise of Employee-Centric Workplaces
A key trend in the HR tech landscape is the growing shift towards more employee-centric workplaces, supported by data-driven solutions. Companies like HiBob are leading this change, offering platforms that integrate all aspects of HR automation with a focus on culture-building, diversity, equity, and inclusion (DE&I), and pay transparency. HiBob’s recent acquisition of Pento, a payroll automation platform, highlights its commitment to creating transparent and inclusive workplaces. According to a survey by HiBob, organisations with strong DE&I initiatives have 22% lower turnover rates, emphasising the business value of fostering inclusive work environments.
WorkForce Software is another key player in the HR tech space, offering comprehensive workforce management solutions that cater to complex regulatory environments. Their partnerships with platforms like SAP Business Technology Platform provide businesses with the tools to scale their operations efficiently. In a recent case study, a global manufacturing company using WorkForce Software reported a 15% increase in workforce productivity after implementing their solution, demonstrating the tangible benefits of adaptable workforce management.
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Global employment and remote work are becoming increasingly important in HR tech as well. HRtech companies like Oyster HR offer solutions that help businesses manage employees across multiple jurisdictions, ensuring compliance with local laws. This is particularly crucial as companies expand their talent pools beyond traditional geographic boundaries, with 74% of business leaders surveyed by Oyster stating that remote work has allowed them to access a more diverse and skilled workforce.
AI and Data-Driven Decision Making
Artificial intelligence (AI) is rapidly becoming a cornerstone of HR technology, helping companies make more informed decisions about talent management and recruitment. Gloat, for instance, uses AI to offer career and talent management solutions that help employees navigate their career paths while enabling organisations to tap into the full potential of their workforce. In a recent report, Gloat found that companies using their AI-powered platform saw a 19% improvement in internal mobility rates, highlighting the growing importance of personalised career development in retaining top talent.
Greenhouse and Lever are revolutionising the recruitment process with AI-driven solutions that reduce bias and improve collaboration in hiring. Greenhouse’s tools for structured hiring have helped companies achieve 2.7x higher diversity in their candidate pools, according to a 2023 report. Lever’s collaborative hiring features foster inclusivity by ensuring that recruitment decisions are made by diverse teams, a practice that has been shown to improve hiring outcomes by up to 32%.
Another company leveraging AI for recruitment is Jobvite, which uses AI-driven features to enhance candidate engagement across multiple platforms, including social media. Jobvite’s annual survey found that organisations using AI in their recruitment processes experienced a 16% reduction in time-to-hire, showcasing the impact of AI in improving the efficiency of talent acquisition.
Supporting Employee Development and Engagement
Employee engagement remains a critical focus in the HR tech space, with companies like 15Five and TINYpulse offering platforms that prioritise continuous feedback and development. According to a study by 15Five, organisations that implement continuous performance management systems see a 27% increase in employee engagement scores. These platforms encourage ongoing dialogue between employees and managers, fostering a culture of growth and improvement that is essential for retaining talent in today’s competitive market.
Learning and development are equally crucial for sustaining business growth. Companies like Docebo and Litmos are offering learning management systems (LMS) that cater to the evolving needs of employees, particularly in areas like remote work, cybersecurity, and diversity training. According to a 2023 study by Docebo, companies that invest in LMS platforms experience a 14% increase in employee performance, emphasising the value of continuous learning in driving business success.
Additionally, Apploi is addressing the specific needs of the healthcare sector, offering credentialing and compliance solutions that streamline the vetting of medical staff. In the wake of the COVID-19 pandemic, healthcare organisations have faced increasing pressure to remain compliant while ensuring that they have the right staff in place. Apploi’s technology has helped healthcare organisations reduce credentialing time by 30%, allowing them to stay agile and efficient in a rapidly changing environment.
Benefits Administration and Payroll Automation
The importance of seamless benefits administration and payroll automation cannot be understated in this landscape. Companies like Gusto and Namely are making employee management easier, especially for small and medium-sized businesses. Gusto’s integration of health benefits into payroll systems has helped businesses reduce errors and save time. A 2023 report by Gusto found that companies using their platform experienced a 25% reduction in payroll errors, a significant improvement that translates into cost savings and improved employee satisfaction.
Similarly, Namely provides businesses with a streamlined platform for managing payroll, benefits, and compliance. In a case study, a midsize company using Namely reported a 20% reduction in administrative tasks related to payroll, allowing HR teams to focus on more strategic initiatives like employee engagement and development.
What does the future of HR Tech look like?
The HR technology landscape in North America is poised for continued growth and innovation as companies seek to adapt to the changing needs of the workforce. With a growing emphasis on diversity and inclusion, data-driven decision-making, and global employment solutions, the future of HR tech is one where technology and people are more seamlessly integrated than ever before.
Companies like 15Five, Oyster HR, Apploi, Greenhouse, Lever, Jobvite, WorkForce Software, HiBob, Docebo, Litmos, Gloat, Gusto, and Namely are at the forefront of this transformation, helping businesses navigate the complexities of modern workforce management with greater confidence and success. As these companies continue to innovate, they are not just shaping the future of HR but also creating more adaptable, inclusive, and employee-centric workplaces that are better equipped to thrive in an increasingly globalised and technology-driven world.
The combination of cutting-edge technology, data-driven insights, and a commitment to inclusivity is driving the HR tech industry towards a future where businesses can achieve greater efficiency while supporting the well-being and development of their employees.
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