In the fast-paced world of digital transformation, it’s easy to be apprehensive about HR tech and the role it will play in an uncertain future. However, as we look to 2020 and beyond, the prevailing sentiment is that technology will play a supporting role behind the scenes rather than taking centre stage. As the tools human resource professionals use become more sophisticated, the end goal of HR tech remains the same: to ensure your organisation attracts and retains the best talent, reduces tedious, manual processes, and frees up time for more strategic, value–adding work.
By 2025, the growth of the technology toolkit will increase. Generative and agentic AI can be used to automate many of the administrative tasks involved in the recruitment process and provide nudges to the recruiters when they hit snags, rather than requiring HR teams to directly handle the administrative challenges, though the process provides human oversight to make the final decisions.
Here we explore the top five future trends shaping HR tech and recruitment, and what they mean for the professionals working in this space, as well as business leaders:
Analytics and big data take centre stage
Today’s world is all about data. And the importance of data management in human resources is unquestionable. Analytics and big data are changing industries and are now often included in talent management software suites. HR professionals will need to embrace the technology that utilises analytics and big data to become strategic leaders in their companies.
This trend towards data may also signal a need for HR departments to hire data specialists to accommodate the increased use of analytics. This will enable HR to demonstrate its value further and drive positive change by leveraging the insights gained from data analysis.
In the 2020s, blockchain remained largely niche in HR. Instead, organisations have focused on predictive analytics and talent market intelligence: workforce analytics tools now forecast attrition, predict future skill shortages and optimise workforce planning. Recruiting platforms analyse labour market data and internal skills inventories to identify candidates based on skills rather than credentials.
AI matures but still has a way to go
Heralded as an unstoppable force of industry disruption, AI has been portrayed simultaneously as both the answer to all recruiters’ problems and their biggest competition. The reality lies somewhere in between the two extremes, as AI matures, and early adopters gain perspective on its strengths and limitations.
Going forward, AI will be used to enhance the role of the recruiter, rather than to replace it.
Another benefit of AI is that it can be leveraged throughout the candidate journey to free HR tech teams from manual processes and enhance the candidate experience. Conversational chatbots can engage candidates at crucial points in the recruitment journey. AI can also do the heavy-lifting when it comes to pre-screening candidates and creating an intuitive recruitment experience.
Evidence from regulators and lawsuits shows that AI can reflect and even amplify historical biases if not carefully designed. Today, AI augments recruiters, but final hiring decisions still require human oversight. Generative and agentic AI tools draft job descriptions, answer candidate questions and suggest interview questions, yet organisations are embedding ethical safeguards and transparency into these systems. Another shift is skills-based hiring: rather than filtering candidates solely by degrees, recruiters use AI-driven assessments and market data to gauge job-relevant skills.
Managing remote workforces and agile work practices
HR will increasingly have to tackle the challenge of managing a remote workforce. As human capital becomes more global, businesses will need to leverage employees where and when they are most productive and impactful, regardless of their location. This brings with it a new set of management challenges for HR technology to address.
The pandemic accelerated remote adoption; by 2025, hybrid work will have become the norm. Roughly 6 % of new US jobs advertised in early 2025 were fully remote, yet those positions drew about 60 % of all job applications. Remote-capable employees now divide their time across hybrid (50 %), fully remote (30 %) and onsite (20 %) arrangements. Research shows that remote-only workers are, on average, productive for 51 additional minutes per day compared with onsite staff. HR tech has shifted from time tracking to outcome-based performance analytics and uses collaboration platforms to maintain engagement and well-being across distributed teams.
HR will market their brand
For years now, companies have been taking to social media to bolster their reputation and the image they present to prospective employees. According to LinkedIn, 72 per cent of recruiters agreed that a company’s brand and reputation have a significant impact not only on the recruitment process, but also on the organisation’s bottom line. A positive brand can reduce cost-per-hire and result in more qualified applicants.
HR tech will evolve the ‘internal marketing’ role to include social marketing coordination and brand ownership. That means outside talent ‘buying’ into the brand – the company – with a view to working for the organisation. Data and social media platforms will be central to this push to identify specific micro-segments of either job seekers or job holders.
In 2025, employer branding is inseparable from employee experience. HR leaders now prioritise designing meaningful work, psychological safety and flexible career paths because these factors directly influence employer reputation. Sustainability and purpose also weigh heavily on candidates’ decisions, so employers highlight social impact, environmental goals and inclusive cultures. Internal mobility plays a major role: LinkedIn data shows employees stay nearly twice as long at companies committed to internal hiring, with median tenure 4.9 years at organisations with high internal mobility versus 3.1 years at those with low mobility. HR platforms now include internal job marketplaces and skill-matching tools to promote career growth.
HR technology for employee mental health
Employee wellness has a significant impact on any company, as it directly affects individual job performance and team productivity. Given its links to productivity and profits, it’s little wonder the wellness trend has made such an impact on the corporate world.
In 2020 and beyond, we’ll see HR tech leading more personalised health and wellness systems fuelled by employee data. Platforms using gamification and wearables will continue to grow, but there will be a notable shift of focus towards employee mental health.
Recent surveys reveal the scale of the mental health challenge: 76 % of US workers report experiencing at least one mental health symptom, 84 % say workplace conditions contributed to a mental health issue, and 81 % will seek employers that support mental well-being. HR tech platforms have evolved to include confidential teletherapy services, well-being apps and analytics that detect burnout patterns. Employers also invest in training managers to recognise signs of distress and foster psychologically safe work environments.
Looking to 2020 and beyond
Looking to 2020 and beyond, the changes for HR professionals are reflective of those sweeping businesses everywhere. The challenge for human resources will be to embrace the right kind of HR tech to make the fundamentals of their role easier: attracting and retaining the best talent and ensuring their ongoing productivity. 2020 is the time for HR to use data and technology to reduce the administrative burden and to become strategic leaders.
Looking to 2020 and beyond, the changes for HR professionals are reflective of those sweeping businesses everywhere. The challenge for human resources will be to embrace the right kind of HR tech to make the fundamentals of their role easier: attracting and retaining the best talent and ensuring their ongoing productivity. 2020 is the time for HR to use data and technology to reduce the administrative burden and to become strategic leaders.
By 2025, HR’s role as a strategic partner is even more pronounced. Data-driven insights, ethical AI, hybrid work management, internal mobility, sustainability and mental health support are no longer “nice to haves” – they are critical levers for attracting and retaining top talent in a competitive labour market.