7 min read
Nov 18, 2020
Human Resources

Top 3 HR Software Trends To Look Out for in 2021

Three HR software trends worth keeping in mind to tackle post-pandemic remote work challenges in 2021

H.S.S.D.
Harshit Srivastava, Supriya DekaSr. Content Analyst, Market Research Specialist

Remote work has thrown in many new challenges for HR managers like you. From moving the complete recruitment process online to finding new ways to keep remote teams engaged, you had to make some big changes this year. And 2021 isn’t likely to be any different. 

You should, therefore, start looking for HR software solutions that can make the transition easier for you and your employees. HR software lets you perform tasks such as recruiting and onboarding online. It also allows your employees to access their information from any location and at any time, helping both parties adapt to the remote work environment. 

But HR software technology is evolving fast, and you need to keep track of recent trends and developments to ensure your software doesn’t become outdated.In this report, we’ve explained the top three software trends your HR department should adopt to stay competitive in 2021. We identified these trends from HR software-related resources published on GetApp in 2020 and validated them through our 2020 Category Leaders reports for various HR software categories.

What is the Category Leaders report?

Category Leaders is GetApp’s annual ranking of top software tools, leveraging ratings from over 1 million user reviews on the following parameters: ease of use, value for money, functionality, customer support, and likelihood to recommend.

Top 3 HR Software Trends To Look Out for in 2021
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1. AI-enabled HR solutions are expected to play a large role in employee retention strategies

AI technology is expanding its reach in the HR function. Its predictive analytics capability can help you retain employees by predicting their flight risk. 

When you know which employees are likely to quit their job, you can proactively begin discussions to check what’s bothering them and how you can help. You can create personalized retention plans for top performers as well as start making arrangements to backfill soon-to-be-empty positions.

Businesses like yours have started realizing this benefit of AI technology. Accordingly, the use of AI-enabled HR software for employee retention is expected to increase in 2021.

Examples of top-ranked software to improve employee retention

The following products from our Category Leaders report provide AI-enabled flight risk prediction to help you retain your employees:

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2. Communication gap in remote work is likely to drive demand for employee engagement solutions

In GetApp’s 2019 Remote Work survey, 61% of employees said they don’t work remotely, as their job requires physical presence. But the situation isn’t the same anymore. 

Today, most of your employees are working from home, and keeping remote workers engaged is a tough job. Employee engagement software can simplify this job by letting you set up communication channels that allow remote employees to share ideas and collaborate with their teammates in real time. 

You can also collect feedback on employees’ remote work challenges and recognize workers who are performing well. Thus, the software can help boost the morale of your remote team, and for this reason, its adoption is expected to increase in 2021.

Examples of top-ranked software to enhance employee engagement

The following products from our Category Leaders reports can help you achieve better communication and higher engagement among remote teams:

  • HR Cloud, featured in GetApp’s 2020 Category Leaders in HR, offers Workmates, a platform that lets you set up an intranet page to share business updates and achievements with your employees. It also allows you to manage employee rewards and recognition programs. 

  • Kudos, featured in GetApp’s 2020 Category Leaders in Employee Engagement, helps you implement employee recognition programs and manage peer-to-peer rewards, service awards, manager badges, and more. You can use its communication management feature to make announcements, send newsletters, and track events such as employees’ birthdays and work anniversaries.

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3. Data security is expected to be the most important consideration in HR software purchases

Remote work has made businesses like yours more vulnerable to data breaches. In GetApp’s 2020 Data Security survey, 45% of responding businesses identified remote work as a major data security vulnerability. And when it comes to HR-related data, this vulnerability only increases. 

Breach of sensitive employee data such as social security number (SSN), contact details, and payroll information can lead to severe penalties from state and federal authorities. Data security, thus, will be a key consideration when purchasing HR software, and features such as data encryption, multifactor authentication, and firewalls will gain traction due to the data security challenges of remote work.

Examples of top-ranked software to protect employee data

The following products from our Category Leaders report have built-in data security features to help you minimize the risk of HR data breaches: 

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Stay on top of HR trends with GetApp’s Category Leaders reports

To prepare your HR department for 2021 and beyond, you need to keep track of the latest industry trends and developments. GetApp’s Category Leaders reports can provide you a strong starting point for that. Each year, GetApp ranks market-leading business apps in the HR software category to give you a breakdown of key software selection factors.

The products in these reports are selected based on ratings by real software users and, therefore, provide unbiased, data-driven rankings of top software products in the market. Listed below are some HR Category Leaders reports you can assess:

For more options, you can check out our HR software directory and filter software tools by price, features, company size, industry, and specialization.

Disclaimer

The products selected in this article have been obtained from GetApp Category Leaders reports accessed on Nov. 05, 2020.

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