The opening of our second B. Amsterdam building – B.2 – is approaching. One of the major business industries that B.2 will be hosting is HR Tech. But what is HR Tech? And why is it so hot these days?
HR Tech stands for Human Resource Technology and improves all aspects of employment within a business; from recruitment to retirement of your employees. The HR technologies help improve Human Resources ability to use gathered data in a more efficient way.
// why is it hot?
In the past years we see a booming number of companies investing in HR Tech. They’re replacing old HR systems with cloud-based alternatives. But why is it so popular? According to research by Forbes there are several reasons why:
1 // HR software systems are aging. An average company’s HR system is about five years old and fifty per cent of the companies even use seven-year-old systems. The systems become antique and companies are in need for new ones.
2 // cloud HR is easy to buy. Nearly every major HR solution system offers cloud-based HR systems. HR managers don’t have to update their systems because it gets updated automatically. Examples: Oracle, SAP, Kenexa (owned by IBM) and many others.
3 // more consumer driven platforms. Forbes’ research shows that the number one driver of change is the need for a more compelling, consumer-like experience. Besides, the mobile-applications enable employees to check holidays, pay and health care through an app.
4 // too many HR systems in one company. The research also shows that only thirteen per cent of the companies use one HR system, the others use an average of four to five HR systems. For instance used for recruitment and learning platforms.
5 // costs and talent. It used to be a difficult job to replace an HR system. Replacing the cloud-based systems is easier and lower in cost. Another advantage is that you can see the work process of one particular employee in a schedule. This data can also be directed to the employee.
We’ll have multiple HR tech companies within B. 2 opening this August. We keep you updated on our B. Building Business facebook page.
Want to read more startup for dummies?
Blog by: Misja Swain