CHIEF OF STAFF TV: The HR technology market is an enormous part of businesses, both big and small, in the current operating environment, and is undoubtedly one of the fastest-growing industries in the world today.
Its value keeps increasing annually, and the Covid-19 pandemic has not slowed it down, making it one of the few global industries to prove truly pandemic-proof.
As of October 2021, the value of the HR tech market was said to be at USD 24 billion, a rise of USD 1.2 billion from 2020. The market value has been projected to rise to USD 35.6 billion by 2028, which equates to an impressive 8% growth over the next six years, as reported by GlobeNewswire.
There are some key reasons behind this surge. Not only does technology in HR make jobs such as administration and payroll easier, but it has also provided solutions to more complex matters such as hybrid working- something we’ve all had to adapt to during the pandemic.
According to Chief of Staff Asia’s Technology Editor, Vandana Nanwani, the pandemic has shone a spotlight on the HR technology industry. Speaking on the inaugural episode of The HR Agenda, she said hybrid working and talent management systems are being used more than ever before due to the existing travel restrictions that make it difficult to hire foreign talent.
HR analytics has also become more wanted due to the importance of employee well-being, mental health as a whole, and workplace flexibility, during the pandemic.
The need and development of these technologies can be seen in the HR tech market in Southeast Asia. Asian tech startups including HR tech firms defied the pandemic and attracted more than USD 8.2 billion in investments last year alone, as reported by Bloomberg.
Businesses across the board are demanding so much more from their HR teams these days, which is driving the demand for modern HR tech.
From artificial-intelligence-enabled platforms to new talent management software solutions to customizable employment services, they can all be found and are even being built here in Southeast Asia.
The HR tech market in Southeast Asia will certainly grow bigger and expand. The startup culture is huge in Asia, allowing for new innovations. Moreover, Southeast Asia has a collective manpower of more. than 40% of the world. Hence, Southeast Asia could actually be the world’s next HR technology innovation hub.
Hear more from Vandana Nanwani in the clip below, or see the full episode of The HR Agenda, featuring Justin Harper and Sam Neo, at this YouTube link.