7 Inspiring HR Trends to Stay Ahead in 2020-2021

 This year’s HR software trends are quite noticeable, from robots in recruitment to Automation and AI technology. HR departments across small to medium enterprises are following a very fast-paced route for attracting and retaining talent.

The evolution of the HR systems to simplify processes is one of the reasons why HR departments are becoming more tech-savvy. Workforces replacing baby boomers with millennials is also another reason which has been the reason for evolution in HR management software.

Sounds interesting, doesn’t it? So are the other overwhelming HR software trends! Check out these seven latest payroll software trends, projected to take the HR software industry up to USD 10 billion by 2022.

Top HR Trends of 2020-2021

1. Remote Working Teams

Approximately a decade ago, remote working was a concept meant for telemarketing or customer service positions and had no connection with a full-time employment job. However, this concept is reversing owing to new technology and changing HR policies. Also, as per a survey by Buffer:

“Remote work is not a trend — it’s here to stay!”

Though remote working is a complete pleasure for employees, it’s a major administrative challenge for employers. This is where HR software and HR automation tools turn out to be saviors. 

Remote working movement is a broader HR automation software trend that will see new directions due to the pandemic of 2020 and the coming years. 

2. Data Security

In every organization, higher dependency on data has enhanced the need to put systems and procedures intact.

The primary objective behind this is to handle and process the data correctly. And with remote working and virtual offices, the security of employees’ sensitive information is required. Thus, data security remains the primary concern area for the HR and tech departments. 

FinancesOnline highlights that 48% of employees are responsible for data breaches, hence increasing the need to secure official data. This further adds pressure on software creators to deliver robust data security features, particularly in HR and payroll software.

3. Adoption of AI

A Gartner report highlights the growing usage of AI and Blockchain in the HR software system. It states that by 2020:

“Around 40% of large organizations will be piloting or using HR solutions enabled by artificial intelligence (AI) or blockchain.”

The current hiring and onboarding employees’ system is lengthy as it happens through processes like - conducting interviews physically and online, background checking, gathering references, etc.

Thus to simplify this process and incorporate total transparency, various companies are getting on the AI and Blockchain technology adoption train.

A thought leadership report by Capita also mentions that:

“HR is going to go through a disruptive (hopefully constructive) transformation in which all employees have a digital passport based around mathematically-guaranteed identity and security (through the use of blockchain technology).”

4. Employee wellness with a focus on mental health

Employee wellness plays a pivotal role in every organization’s productivity and employee performance. This year, employee wellness took center stage amidst the Coronavirus pandemic fueling the HR software trend of integrating personalized health and wellness systems to avoid burnout and taking care of mental & physical health. 

According to Forbes:

“Organizations creating the right environment for their staff can have a positive impact on employees’ health and wellbeing, as well as their job satisfaction and productivity levels.”

These systems or platforms generally use to focus on employee mental and physical health. For example, Lantern is a mental health start-up that uses cognitive behavioral therapy tools & has partnered with digital health care providers to fight depressions & anxiety.  

5. A Drive Towards Incorporating Effective HR Software Integration

With an increasingly complex workforce, HR software is becoming more sophisticated to aid data handling and human resources professionals’ decision-making. That’s where businesses are continually incorporating their HR software and HRIS (Human Resource Information system) with additional solutions such as payroll software and attendance tracking software (ATS). 'What is the iCloud Unlock Bypass'

These solutions help reduce the long HR process queues by merging all HR related activities on an integrated platform from a single vendor via API (application programming interface), middleware, or iPaaS (integration platform as a Service). 

But before deciding on HRIS integrations, companies are also planning for the following considerations:

6. Learning and Development

Learning and development go hand-in-hand with employee performance. With the recent adoption of the remote workforce, employee training has been pushed towards the digital realm even more. 

The shift on remote working allows organizations to incorporate the latest innovations like AI, Augmented Reality & Virtual Reality to better train employees. Online training shall include personalized training with self-paced or instructor-led courses that fulfill individual learning styles.

HR Tech tools such as TalentGuard, PathSavvy, etc., are great examples of platforms helping organizations meet their needs to build a competent workforce.

7. Cloud-based HR Software

Cloud-based cybersecurity has made it easy for companies to focus on people instead of spending time on heavy paperwork and processes. 

If we swing back to the early ’90s, interactive phone systems used to be the strongest pillar of the HR ecosystem because the HR processes were confined to the office. But with the rising waves of technology, the complete HR system is moving to the cloud. 

Having a useful cloud-based HR software offers several robust benefits like reduced paperwork with apps like Box, Google Drive and additional services like higher security and employee engagement.  


Embracing technological developments in HR will lead to robust recruitment, talent management,  wellness management, or every aspect of HR. These cutting edge HR software trends will help HR professionals focus on strategic areas better by assigning monotonous tasks to the software. 

However, the most significant advantage of HR software trends comes in employer and employee satisfaction. 

One precautious thing that should be taken care of is not following every HR software trend blindly. It might complicate a smooth on-going HR management process, thereby making you lose the essence of incorporation of HR software & tools in the longer run.

So, which HR software trend are you seeking to accommodate in your organization soon? Do you know any that we missed? Let us know what we don’t about the new HR software trends in the comments below.

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