Hr tech firms across the world have been busy laying off employees during the last few months, given the unprecedented spread of the COVID pandemic across geographies in the world. In the last few weeks, more than ten hr tech firms in the US decided to lay off employees in large percentages at their respective firms. This can be seen as an organic reset to the said country’s economy and business climate, given the rate of spread of the contagious disease.
Top Considerations on CHROs’ Minds Amid the Pandemic
A recent study conducted by Josh Bersin, a world-renowned industry analyst in the subject discipline of hr, learning, and talent, stated that health of employees is the number one priority for CHROs at the moment, followed by communication among remote-based teams within the organization, while the no. 3 priority being maintaining employee engagement while exercising a WFH protocol.
The LayOffs Were Bound to Happen
At the start of the year, before the virus-spread came to its full might, the industry experts had hinted at 4000+ hr technology professionals losing their jobs. And that’s exactly we are witnessing at the moment. The reason stated by the experts for these potential lay-offs was the point of saturation of hr tech tools to hit the market soon at the start of 2020.
Faltering Economy Amid COVID Has Depleted the Demand for HR Tech Tools
Technology in hr is still the demand in multiple industries across the globe, but a very few of them are running at their optimal, given the constantly growing pandemic. Newly opened retailers, distributors, restaurants, and service firms that had incepted in the recent past, are all struggling to survive at the moment because of the economic slowdown brought by the corona disease. Or else, they would have needed all kinds of human resource technology tools to get their business up and running with optimal efficiency.
In the normal times, such firms and businesses would have been in a dire need to leverage the advanced technology in hr, given the intense market competition in their respective fields of business. A few of the hr functions that would have required the help of hr tech software if there had been no corona, comprise human resources, payroll, talent management, hiring, and recruiting. Lately, the problem arised for hr tech startup vendors, because they didn’t proactively plan for a slowdown of this magnitude to hit the world markets.
The Case for Enterprise HR Technology Software Tools
The hr tech trends had been considerably strong for enterprise hr tech software over the years. But, in the last couple of years, the enterprise hr software market saw a slowing market. Actually, hr tech market is metaphorically similar to a barbell (a large number of SMEs associated with it (in millions), and a few thousand large MNCs too, having been its regular customers).
Hr technology vendors had specialized in the enterprise hr tech during the entire last decade or so, and it did hit the saturation point, a couple of years back, leading to a market slowdown for the same.
Then, What Do the HR Tech Firms Supposed to Do (The Conclusion)?
What the best hr leaders would advise to their higher management, is that the future holds a bright scope for the hr tech software market, and that they need to somehow survive this crisis period. Like airlines, hr tech market will also re-emerge at some point in time, sooner or later. Because, companies will always need some sort of advanced hr software to manage their monthly and weekly administrative tasks pertaining to human resource management.
For vendors, it’s an appropriate time to contemplate the vitality of their existing hr tech software products. They need to re-evaluate the applicability of their existing product range in the times of the crisis like this. Making sure what’s essential at this point in time to businesses, should be their top priority.