Betting big on HR technology is yielding dividends for startups
Technology has revolutionised the process of hiring and on-boarding new employees
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Entrepreneurs have started bringing a variety of new services and alterations to the current human resource operations to address this issue like working with service providers, including technology's pivotal role in the HR process. This has grown significantly from pre-hire to post-retirement
It's a common perception that startups operate in a fast-paced environment. They don't want to be weighed down by restrictions and pointless bureaucracy. But is that truly where startups should put their attention?
Startups have realized the importance of having a robust HR management while starting a company that needs rapid expansion after learning that half of startups fail to reach the pinnacles of success in the first four years.
According to a research report presented by startups.com on why startups fail, over 23 per cent of businesses fail because they hire inefficient workforce, whereas frequent resignations were also a common practice leading to the failure of startups in the initial years of operation.
Entrepreneurs have started bringing a variety of new services and alterations to the current human resource operations to address this issue like working with service providers, including technology's pivotal role in the HR process. This has grown significantly from pre-hire to post-retirement. Technology has radically changed the hiring and on-boarding new employees, and this includes the interview stage, which is now amenable to automation.
Startups can now provide a smooth experience throughout the whole employment process, including candidate identification, interviews, assessments, and salary negotiations, thanks to technology.
Given that most businesses struggle to make profits in the initial phases of operation, automated payroll systems that assist startups in managing their funds are essential for enhancing growth. Young firms tend to overlook payroll and human resources in lieu of more pressing business promotion issues. To manage these two critical functions, it is a wise strategy to either hire or outsource HR services as it can help one with a plethora of compliance-related issues as well as
help you choose the hiring and training practices that will steer to the success chart.
Talking to Bizz Buzz, Sumit Sabharwal, who leads TeamLease HRTech team, says, “The initial stages of startups are mainly focused on market expansion, revenue growth and scalability. As a result, the HR processes in startups take some time to reach their optimum efficiency. But, HR technology has brought tremendous improvement in the situation.”
State-of-the-art HR tech products have enabled startups to manage and improve their employee engagement right from the introduction and
growth stages of their business. HR technology provides ready-to-use advanced analytics tools to manage the workforce with data-driven
decision-making. It allows startups to leverage their workforce most efficiently and gain a competitive advantage over contemporaries not tune to utilizing technology to improve their employee's productivity, he said.
Currently, AI appears to be the latest trend in the HR tech industry. Startups want HR technology products that work intelligently to source the best talent and help their HR managers on being more efficient. AI is being used in many HCM modules made for talent acquisition, workforce management, payroll and compliance, he added.
But the arrival of ChatGPT has started conversations around the use of generative AI in HR technology.
“We”, he went on, “can safely assume that many startups will start looking for HCM platforms embedded with generative AI once the technology matures."
