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Recent survey showed that the global HR tech sector has skyrocketed to 34 billion USD in 2022. Moreover, the HR tech market is estimated to grow at a rate of 25% due to the emerging HR tech trends. 

Due to technologies such as AI, HR professionals were finally able to discover innovative ways to minimize human work, streamline communication channels, and provide a more flexible & versatile working environment for both employers and employees.

HR tech platforms like OptimHire have redefined the use of HR technology and advanced hiring tools. There has been a significant surge in the number of HR tech start-ups in recent years. And it’s anticipated that they will improve the employment process and push the boundaries of innovation in the years to come.

As AI platforms get smarter and new hiring trends flood the marketplace, it’s hard to guess what’ll change in the HR tech industry and what’ll stay the same?

From adopting remote work policies to transitioning into a skill-based culture, there are several HR trends to be aware of to match the pace of technology changes.

So, if you are keen to know about the next big things coming down the line in the HR tech industry, you’re at the right place.

In this blog, we’ll discuss the emerging HR tech trends you should be paying attention to in order to grow in the future.

Let’s dust off our crystal balls and explore the entire scenario of HR tech trends in 2022.

The past few years have reshaped the dynamics of the HR industry in a plethora of ways.

Even after that, the HR tech sector is one of those sectors which has transitioned from a closed market to a sunrise sector.

During the pandemic, when other industries suffered major setbacks, the HR technology industry rose to prominence. The massive layoffs of people from jobs disrupted the work cycle. However, by implementing best practices and altering  the work dynamics, the HR tech industry is prepared to step towards a thriving future.

Recent surveys indicate that as a result of rising digitalization, the HR technology sector has seen exponential growth in both size and dynamics.

In 2019, HR tech firms invested around 116 million USD in the HR tech market. In 2022, the global HR tech sector has skyrocketed to 34 billion USD, with existing ‘Human Capital Management’ solutions commanding nearly $20 billion, ‘Payroll Software’ commanding $8 billion, and the ‘Gig Economy’ market commanding the remaining 6 million. Moreover, the HR tech market is estimated to grow at a rate of 25% in the coming years.

From manual inputs to automated hiring platforms, the HR tech industry has come a long way.

Now the question is…

What has prompted this significant shift in the hiring industry?

Well, a range of factors have contributed to the hiring sector’s enormous expansion. Continue reading to learn the reasons that led to this substantial change in the human resources sector.

So, let’s talk about how the HR tech industry evolved.

The Evolution of the HR Tech Industry

It’s funny how every day we feel like nothing is changing. But, as we look back, we can see that a lot has changed.

Something similar has happened in the HR tech industry.

After the unprecedented time of pandemic, the new trends in the HR tech industry has emerged as the future of work and a boon to almost all workplace uncertainties. Previously, HR were assigned to automating mundane tasks for an ever-expanding list of people. However, technology has freed up the HR teams to concentrate on their core area: people.

With some outstanding HR industry trends on the horizon, India’s HR tech market has shown promising growth in the past few years. However, the introduction of advanced hiring tools & trends is the most important reason for increased opportunities in the HR tech industry.

HR tech tools have automated time-consuming processes and navigated a paradigm shift in work dynamics. Everything from coding tests to the final onboarding process of a candidate can now be done with the help of technology which has led to reduction in human effort to a huge extent.

This is how by adopting new technologies such as AI and leveraging advanced hiring tools, the HR tech world has taken a step towards a thriving future. However, there are several other trends that have contributed to the significant growth of the HR technology industry.

So, now let’s dive deep and find out about the top 5 trends that have taken the hiring world to the next level.

Trends that are Supporting HR Industry Growth

We are living in a world where potential employees seek ‘interest’ in their jobs and growth opportunities within a company. So, to meet candidates’ expectations, HR professionals are continuously learning about the candidates’ behavior and upgrading their organisation’s structure to increase their chances of hiring top candidates. Moreover, there are several other reasons why the HR tech industry is the most thriving among other industries. 

  • Shift to a skills-based culture 

Skill-based culture will assist in finding the top-tier candidates!

Organizational culture is the key to keeping the organization and its employees on the same path. Previously, companies used to follow a hierarchy-based culture that emphasized long-term stability, consistent structure, and a set of values. However, due to digital transformation, HR professionals turned their focus on their most valuable asset, ‘the workforce’, to expedite their growth. They have comprehended the importance of a skill-based culture for employees and practiced innovative solutions to upskill/reskill their workforce and map them with the future business objectives. This movement has brought a paradigm shift to the working environment and has contributed significantly to the growth of the HR tech industry.

  • Introduction of advanced HR tech tools

Reinventing the future with HR tech tools!

In the present world, hiring tech talent has a perfect storm of issues, making it a challenge for HR leaders. Due to the digitalization, HR professionals have to constantly work on enhancing their professional skills. This is where HR tech tools have emerged as a boon. 

They significantly helped HR professionals in expanding their talent pool by connecting them with skilled candidates from all over the world. Moreover, they also helped them in focusing on other important issues, such as bridging the geographical divide, employee welfare, and timely feedback.

  • Upskilling/reskilling the workforce

Upskilling will fuel the future growth!     

In the present competitive world, employees are expecting better career opportunities and are keen to expand their skill sets to embrace the necessity of continuous learning. However, most organizations fail when it comes to upskilling their employees. So, to equip the workforce with the skills required to excel in the future, companies are incorporating cutting-edge digital tools and technologies to strengthen the overall business processes. They are employing advanced HR tech tools and providing necessary training as per the performance of the employees to prepare them for upcoming digitalization trends.

According to a poll ‘What is the best way to upskill?’ conducted by OptimHire – a firm on the front lines of global tech hiring, 54% of people believe that self-learning is the best way to upskill, 25% believe that online courses are the best way to upskill, 19% believe in live workshops and webinars, and the remaining 2% believe in all of the above.

Upskilling has become an essential way to build an agile workforce that can assist businesses in accomplishing their goals.

  • Remote working is the new normal

Remote work is empowering employees to craft a personalized work experience!

The unprecedented time of COVID-19 has transformed the way people work. This has prompted organizations to bet on remote working and other digital tools to promote a flexible and collaborative working environment. 

Remote working has led to several benefits, as employees get to work and learn in a favorable working environment that allows them to assess their working potential and bring the best ideas to the table. 

According to the poll results of OptimHire’s ‘What is the best part of remote work?’ to which more than three thousand people responded, 70% said they prefer remote work because they can work from anywhere, 18% said they prefer it because of flexible hours, 11% prefer it because they don’t have to commute to work, and the remaining 1% for various other reasons.

  • Integration of AI

AI is improving hiring effectiveness with judicious use of technology!

AI technology has become a helping hand for HR professionals in hiring top talent. It has also improved the flow of communication in remote and hybrid settings. From the first point of contact to the final onboarding process, it seamlessly transformed the conventional  work environment into a modern workplace. As a result, employers in the HR industry are leveraging next-generation technologies to hire, recruit, and retain talent. Additionally, technologies such as AI have streamlined communication channels, providing a more flexible and versatile working environment for both employers and employees.


To set the stage for a progressive future, it is vital to accept new technological trends!

In the upcoming years, significant developments in the HR tech world will continue to take place. Therefore, in order to manage the hiring challenges and keep up with the pace of change, HR professionals must recognize and capitalize on emerging trends and craft an impactful strategy around it to ultimately drive business success.


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