5 Digital HR Trends that will Shape Businesses in 2022 and Beyond

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5 Digital HR Trends that will Shape Businesses in 2022 and Beyond

Employee burnout. Work from anywhere. Rearranging lifestyles with the global pandemic.

The COVID-19 crisis had quite an effect on human resources (HR) and the work culture in 2021. Additionally, the worldwide health event has left human resources (HR) executives tied up as they assisted workforces in addressing the new reality. Now, both employers and employees realize the ups and downs of remote work and flexible working setups. 

At the same time, digital HR has grabbed the top spot for today’s people teams. The move toward digital HR will help companies optimize and make the HR role more efficient and connective by leveraging multiple leading-edge technologies. 

To achieve that, it is high time for HR leaders to recognize ongoing industry trends and learn to use them to stay relevant in today’s ever-evolving business and work ecosystem.

Time for a deep dive.

XLRI-HR ,HRM, People Analytics, hrm transformation, hr analytics

Operations Migrate to Cloud 

Work from anywhere has become a staple in the HR tool kit. Indeed, about 2/5 of employees might quit if their current organization does not support remote work.

While productivity and collaboration tools are crucial to this transition, HR software needs to become cloud-based as well. Talent management processes meeting the needs of globally dispersed teams quickly and in a scalable manner is only possible through cloud-driven HR solutions.

Cloud-based HR offers two complementary benefits. First, it enables HR to access employee information in real-time and make decisions accordingly. Second, the cloud-driven self-service tools also offer workforces significantly better control over their data. This, therefore, makes it much easier for businesses to assess engagement and productivity.

More Focus on Data Security

With data in the cloud alongside remote work, companies will encounter new cybersecurity challenges. For instance, over 80% of Indian businesses have witnessed a rise in phishing attacks.

Hence, HR professionals must work with IT vendors to find and implement measures to secure clients and employee data. Additionally, organizations must install systems and procedures to ensure the data is adequately processed and managed. No doubt, this will be a prominent trend in the tech realm at large, and existing HR tools and solutions will require immense remodeling to offer people more control over their information. 

AI-driven Hiring

AI-powered algorithms will experience an abrupt shift in how employers look for talent. These algorithms considerably slash manual hiring responsibilities, such as filtering out the resumes that are automatically unqualified for the role. Staving off these routine tasks from the HR department’s to-do list frees them up to concentrate on higher-order tasks, such as interviewing candidates. 

Besides, AI helps find particular phrases or skills in a resume or even to decrease unconscious bias. While humans are inherently biased, digital HR is not – it looks at qualifications and facts and screens aspirants based on those factors. 

As it trims the chance of recruiting an unfit candidate, AI-based recruiting can result in a 20% increase in performance and a 4% revenue surge per employee. 

From Project-based to Product-based Mindset

Conventionally, the HR department worked with a project-based mindset. A project has a precise time frame, predefined resources, and specified deliverables. The aim is to operate as efficiently as possible.

On the flip side, a product-based mindset is ongoing. It need not have an end and looks to deliver value, with (extra) resources being allocated as the impact soars.

This shift in approach will not only boost quality the quality of HR’s service delivery but will also empower HR to build the capabilities better to enhance businesses’ bottom lines.

However, such a change will demand an upgrade on the side of the HR department. They will need to better understand their organization’s internal customers and evolving preferences and habits. Furthermore, they will need to level up their game in offering a more customized and unique employee experience.

XLRI-HR ,HRM, People Analytics, hrm transformation, hr analytics

People Analytics for More Informed Decisions


People analytics is a missing link between decision-makers and employees. A study reveals that 9 out of the 10 chief human resource offices (CHRO) have included data and analytics as critical elements of the HR strategy. 

Using artificial intelligence (AI) and data science, people analytics investigates, gathers, processes employee information, and deduces patterns from it. For instance, it maps out employee engagement levels, determines what is contributing to the volatilities, and receives tailored reports with relevant team management tips. Likewise, it outlines the ways to utilize the organization’s internal workforce to avoid recruiting new employees.

Stay Human, Embrace Technology

Digital HR has exploded in the new digital environment like never before. When utilized properly, these solutions can spur organizations’ workplace efficiency and growth and boost employee experience.

HR executives must begin planning the introduction of new technologies within HR operations and existing applications. In the end, while the top technology trends continue to gather the center stage, HR professionals must understand their technology capabilities and needs. This implies making decisions with multiple business functions, and not in silos.

One thing is clear, without a proactive and future-ready HR, organizations will stagnate. Hence, HR leaders must build on their success in 2021 and explore new horizons in 2022 to add even more value to their companies. 

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