HR Tech 2024 recap: the evolution of AI apps, enhanced integrations, and renewed focus on internal engagement

So, let me say this upfront — HR Tech is my favorite event of the year. It feels a bit like the annual family reunion and an HR Super Bowl all in one. I meet up with partners and industry friends and we share insights, progress, and lessons learned. It’s the ultimate meeting of the minds and it’s amazing to have those conversations in person over a drink, a meal, or on the show floor as we visit each other’s booths and learn about what’s next. Now that I’ve had a few days to collect my thoughts, I wanted to share a few insights from the show: 

1. The Evolution of AI in HR Tech

It’s been a few years since ChatGPT really exploded onto the HR Tech scene. Back then, it felt like every booth touted its AI capabilities while being a bit more vague on what that meant for the customer. While the hype surrounding AI has slowed down, we’re starting to see more interesting products being launched that go beyond the AI-chatbots of yore. Notable examples include ADP Lyric and Rippling Talent Signal, both of which create new ways to solve everlasting HR problems like performance management. I wouldn’t blame you if you’ve fallen off the AI-hype train, but we’re going to see more and more game-changing launches in the years to come.

2. ATS + Sourcing = Future of Talent Acquisition Tech?

Another growing trend is the bundling of applicant tracking systems (ATS) and sourcing tools. This is usually combined with an AI layer into a single (and really compelling) offering for talent acquisition teams. This is now possible due to better connectivity between ATS and sourcing systems, both of which operated in silos until recently. Talent teams can now review more people (both applicants and non-applicants) and better identify the ones that represent the best “fit” for the roles they are trying to fill. 

For employers, this means they can buy more services from a single vendor, saving money in the process. Talent teams not only have one less tool to deal with, but can also leverage new AI tools that simplify and automate tasks such as creating job descriptions (JDs) or parsing through resumes.

For ATS, this move up the candidate funnel helps them better serve their customers by giving them full visibility into their recruitment funnel. This also helps with retention, as existing HRIS/payroll providers are building their own ATS and continue to push into the recruitment space.

3. Engagement and Retention: How to do more with less (or the same) as before

Many, if not most, companies are trying to drive growth with existing teams without hiring too many net-new workers. We all want to work smarter and be more effective. This creates a few challenges for People teams who are tasked with driving high engagement and productivity: 

• Dissatisfied employees are staying longer in their current roles to avoid a tough job market, decreasing voluntary turnover. This means fewer openings for new workers, promotions, or internal transfers.
• With fewer openings, strong performers are not seeing the promotions or raises they are used to. There is rebounding demand for top talent, and other companies may successfully lure top talent away. If high performers leave, it adversely affects morale and makes it harder to maintain an internal high bar of excellence.
• Employee engagement is positively correlated with productivity — a highly engaged team is 18% more productive than one that is not engaged. This combination of both low engagement and low turnover makes it more likely that a team will be performing well below its potential.

Many people engagement/analytics platforms are trying to boost engagement and retention in the following ways:

• Internal mobility and talent development: Better analytics and reporting are helping companies identify and promote top talent from within their existing workforce. Companies with higher rates of internal mobility have an easier time retaining top talent, and have an easier time attracting and signing promising candidates they can develop into star performers when positions do open up.
• Employee experience: A growing number of employers are treating employees more like customers by offering self-serve, tech-driven experiences at work. Employees often share their employment experiences online (e.g. Glassdoor), and positive reviews make it easier to win over new workers as well.
• Smarter employee recognition and rewards: Technologies that help businesses recognize and celebrate their star performers are key, especially in this macroeconomic environment when salary increases and promotions are harder to achieve. Many companies I spoke to are using tech to dial in personalized rewards to keep employees motivated and engaged.

This focus is a clear signal that companies are rethinking their strategies for maximizing workforce potential in this shifting macroeconomic environment.

4. Connectivity Still a Challenge, but Progress is Being Made

One recurring theme across my conversations at the show was the ongoing struggle with connectivity — particularly the lack of integration from the HRIS/payroll system to third-party applications. This is where Finch shines: we’re enabling better connectivity between systems of record like HRIS/payroll and the core platforms used to manage everyday employment workflows. This impacts both the employee and the employer experience, as well as the companies that serve them. As the paradigm shifts toward more open marketplaces and interoperability, platforms are discovering ways to provide better experiences for their customers and new revenue opportunities by creating innovative workflows, products, and features that are powered by Finch's underlying API. They are also empowering customers to choose which applications they want to use, an important requirement for companies as they grow in size and complexity.

Final Thoughts

HR Tech 2024 made it clear that the future of HR is rooted in practical AI applications, enhanced integrations, and a renewed focus on internal engagement and mobility. For Finch, it’s exciting to be at the forefront of solving connectivity issues and providing solutions that help HR teams adapt to these growing trends.

With the right tools, HR leaders can look forward to a future where AI, connectivity, and employee experience converge to create a more productive, happy, and dynamic workforce.