[Exclusive Interview] Here Is The Future Of HR Tech & Employee Journey Amidst AI Disruption

Recently, we interacted with Sumit Sabharwal, CEO of TeamLease HRtech – a HR tech startup that digitalizes employee journey from pre-hire to post-retire.

Here are the interview highlights:

1- How would you describe the current state of the HRtech market in India?

The HRtech market in India is currently promising, driven by a growing emphasis on employee engagement among organizations. Recent surveys highlight flexibility as a key factor in attracting new talent, making HR technology crucial in enabling remote work, performance measurement, and flexible hours. As Indian startups, SMEs, and Enterprises expand globally, the demand for HRtech solutions is set to rise, propelling the market’s growth. Embracing technology-driven HR practices, businesses seek to optimize operations and enhance their competitive edge, further underscoring the importance of HRtech in the evolving business landscape.

2- What do you believe are the primary factors that have contributed to its remarkable growth in recent years?

While the growth of HR technology can be attributed to automation, higher productivity, and the accuracy it brings to the HR processes, its success is not limited to these factors alone. The biggest strength of HR technology is that it is evolving along with the changing needs of the changing workplace. For instance, as the market becomes competitive, finding the right talent is becoming more and more difficult. So, products like Applicant Tracking Systems (ATS) are helping organizations to scale up their recruitment process by leveraging AI, ML, and automation.

Similarly, the increasing emphasis on employee mental wellbeing has prompted the adoption of employee engagement platforms. Furthermore, in response to the growing importance of Diversity, Equity, and Inclusion (DE&I), HR tech products are playing a crucial role in supporting initiatives that promote inclusivity and equality in the workplace. By analyzing and providing insights into diversity metrics, HR technology assists organizations in identifying areas for improvement and fostering an inclusive work culture.

In conclusion, while HR technology’s growth is fueled by automation, productivity, and process accuracy, its true strength lies in its adaptability to the changing workplace landscape. Its evolution and versatility make it an invaluable tool for organizations seeking to thrive in the dynamic and demanding business world, driving success beyond mere efficiency and productivity.

3- What are the key drivers behind the increasing demand for HR technology solutions in India, and how are corporate organizations leveraging these tools to enhance learning, productivity, and employee engagement?

As I said earlier, the demand for HR tech is rising due to the many benefits it provides to almost every aspect of the HR function, and its ability to evolve with the changing business requirements. Most of the HR technology platforms are equipped with hundreds of tools to increase productivity and employee engagement. But, you’ll find very few of them to offer integrated Learning Management Systems (LMS) as well.

Companies using end–to-end HCM platforms are leveraging their integrated LMS to skill and reskill their employees with personalized training modules. An LMS platform delivers a highly engaging training experience by providing visually appealing, interactive, and easy to navigate training sessions that are accessible on their smartphones and desktops at any time and any place. Organizations with LMS are better prepared than their competitors who rely on traditional classroom training.

4- As the HRtech industry evolves, what are the emerging trends that you see shaping the landscape in India? How do you believe these trends will impact the future of HR technology adoption?

The upcoming trend is the use of generative AI in HCM platform. HR professionals can benefit extensively with generative AI-enabled platforms because it can speed up tasks that require content creation. HR professionals are already using tools like ChatGPT for purposes like writing job descriptions, email communications, developing training materials, interviews, etc. Its integration with HCM platforms will make the workflows seamless.

5- Could you elaborate on the sectors or industries that are experiencing faster adoption of HRtech solutions in India? What unique challenges and opportunities do these sectors present for HR tech providers like TeamLease HRtech?
Almost every sector is adopting HR technology due to the many benefits it offers. Also, HR technology is universally appealing because it can be as per the business requirements from any sector.