Talent Leaders are facing increasing confusion and complexity as they navigate a crowded HR Tech market, stricter regulations, and shifting business needs. Here’s a breakdown of some of the key trends and challenges:
1. The Market is Getting Crowded
- The Talent Tech market is currently valued at $2.3 billion and is expected to grow to $3.7 billion by 2033.
- Companies have more options than ever for digital hiring solutions, making it difficult to choose the right tools.
2. More Tech in HR, but not all of it Delivers
- AI-driven tools for sourcing, screening and interview scheduling are becoming standard.
- Some vendors make bold promises but in reality, TA Teams are experiencing gaps between expectations and actual performance.
- Perform reference checks on your providers (not just the ones they give you), ask what clients they have lost recently and ensure your focus on your unique needs and not what suits another business or Talent Leader.
3. Compliance and Security are a Growing Concern
- Legal and IT teams are focused on GDPR, information security, and AI compliance.
- IT must ensure secure integrations with no disruptions to existing systems, but resources are often limited.
- Legal teams need to assess the impact of AI-driven hiring tools and collaborate with vendors to ensure compliance.
4. HR Tech Adoption Comes with Challenges
- Businesses invest heavily in HR technology, but many tools end up underutilized due to poor integration, optimisation and change management.
- Disconnected tools and apps create data silos, making hiring less efficient and limiting the potential of new solutions.
5. Business Needs are Constantly Shifting
- Mergers, acquisitions, business expansion into new regions and evolving stakeholder structures are reshaping hiring and workforce strategies.
- Some vendors enforce strict headcount/user control, while others are more flexible.
- There is a demand for mobile-friendly and easy-to-navigate HR tech platforms with high levels of configuration and roadmap.
I asked Sarah Blanchard, Head of Talent Advisory & Implementation at Solve By Talent for her advice, here is what she recommends:
“Securing funding for new tools and technology in today’s market is challenging enough, it’s critical to ensure you have C-suite buy in to the change outside of just HR to avoid the change being seen as ‘HR’ initiative. Alignment to the business strategy is key, and where possible quantify the time, cost, quality, and experience shifts that the new technology will drive – This allows you to set clear objectives and key results to measure post implementation.”
“Last, but not least, plan for the unknown throughout implementation. Rarely is it as “simple or as fast” as a vendor will suggest during the sales cycle, so ensuring you have the right level of expertise, with sufficient time, engaged on the project from kick off is essential. Post implementation, ensure there is clear accountability and capability to ensure system enhancements, additional configuration and ongoing reporting requirements can be met long term.”
“Over the years I’ve worked with many organisations who were excited by the shiny new technology, implemented an MVP with a promise to iterate over time, but once ‘go live’ happens and the project transitions to BAU, it becomes significantly more difficult to get the right expertise and resources to bring the full capability of the platform to life and in some cases, swapping out the tech within a few year’s time!”
The Path Forward
With competing priorities across departments—TA, IT, legal, and HR—companies must find ways to align technology, security, compliance, and business goals. Investing in the right tools, ensuring seamless integration, and maintaining a strong focus on user experience will be key to creating an efficient and scalable hiring process. Your change management program should begin the day the deal is signed. It’s not enough just to buy the tech. A well-structured and resourced implementation including communications, user training, adoption plan is essential for success.
Don’t be put off by the challenges, instead embrace and overcome them because the cost of NOT automating and having a strong technology base is greater than the burden of navigating the above issues.
