Technology is revolutionizing industries across the board, and human resources are by no means an exception. HR managers are using programmatic job advertising in place of trawling through job applications and enlisting the help of artificial intelligence (AI) to offer data-driven insights on potential employees. The HR industry has well and truly reached the 21st century. But, will this increased use of technology and automation of HR processes have a knock-on effect on the industry? 

The Role of Technology in HR

Previous research has estimated that around 40% of current jobs in Australia have a high probability of being automated in the next 10-15 years (Durrant-Whyte et al., 2015). Advancement in technologies such as AI and machine learning have had a significant impact on largely data-driven industries such as human resources. Now, processes like onboarding and performance management that were once tedious and time-consuming can be fully automated, leaving additional time and resources to focus on strategic business decisions.

Software company Harver has developed a pre-hiring platform for talent assessment that uses an AI algorithm to support hiring decisions through data-driven insights. The algorithm can assess qualities such as cultural fit, cognitive ability and situational judgment, and even give a candidate the chance to experience what it would be like working for a particular organization before employment. 

Organizations will need to adapt to a rapidly changing workforce and advancing technologies, which will require an increased demand for human resources professionals to manage this change. RMIT University commissioned Deloitte Access Economics to conduct a report analyzing the occupational and educational trends in human resources in Australia, and the findings represent the view that technology is driving disruption throughout the industry. To keep up with this rapid change, it's expected that the demand for human resources skills will grow by 2.3% by 2021-22.

The Netflix Generation

The HR industry is undoubtedly evolving in line with technological advancement, but this doesn't mean to say that automation will lessen the need for human input. Creating a healthy company culture that puts employees first can go a long way toward ensuring a successful team and subsequently, a successful business.

In a document that's been viewed over five million times on the internet, Netflix bosses outlined their company culture and performance management strategy – and it’s been making waves within HR ever since. It focuses on five key elements:

1. Hire, reward, and tolerate only fully-formed adults
2. Tell the truth about performance
3. Managers own the job of creating great teams
4. Leaders own the job of creating the company culture
5. Good talent managers think like innovators first – and like HR people last

These five key points were alongside other enticing benefits such as unlimited leave and generous severance packages. HR isn't dependent on technology to evolve or streamline processes, it's dependent on the C-suite's outlook towards company culture, growth and motivation.

An online Master of Human Resource Management at RMIT University focuses on a diverse global workforce, giving insights into managing a rapidly changing workplace. From start-ups to not-for-profit organizations to multinational corporations, a masters degree in human resource management provides the tools to contribute to businesses of every scale.