Talent Management

3 Effective, Innovative HR Practices You Can Adopt Today

Published by in Talent Management

Human resources is one of the most important business functions, so it’s no surprise it’s a constantly evolving field. Read up on three innovative practices and how your HR team can embrace them in order to become more strategic.

checklist of hr practices

Human resources is one of the oldest business functions out there, and the history of HR is full of innovations. From the invention of the employee timecard in the late 1800s to the rise of automation in the 1980s, it took many HR innovations to lead to today’s version of personnel management.

But in the modern era, it can be a challenge to determine which HR trends or new ideas are actually worth investing in. Fortunately, we’ve done the hard work for you. Below, we’ve identified three innovative HR practices that you, an HR leader, should consider adopting to give your company a competitive edge.

1. Automate core HR roles

According to a recent Capterra survey, 69% of recruiters say their organization has already, is planning to, or is considering eliminating certain roles altogether and replacing some aspects of the HR function using automation and technology. This means that in the future, traditional HR functions at many organizations may be executed completely through automation.

This is because HR software has come a long way over the last decade. Today’s HR tools can automate tedious tasks such as payroll or time tracking, as well as benefits administration, tax documentation, and even resume screening.

Automating communication with applicants in JazzHR
JazzHR‘s automated responses allow recruiters to effortlessly communicate with candidates (Source)

Organizations that embrace automation drastically reduce the number of manual tasks their HR team has to complete, which in turn allows them to spend their work hours focusing on more complex responsibilities. Plus, Gartner research shows that 90% of HR leaders plan to either maintain or increase their investment in technology this year, and failing to do so could mean falling behind your competitors. (Full content available to Gartner clients.)

How to embrace automation and start thinking about HR strategically

Ready to start automating your most tedious tasks? Great! The first step is to evaluate the capabilities of your current HR tech stack. There’s a good chance your organization is already automating some HR functions, but if you feel like you could be doing more, it might be time for a software upgrade. Check out our Human Resources Software 2021 Shortlist for an overview of the best HR tools on the market.

Next, think about which workplace challenges your HR department should focus on once their workload is reduced with the help of automation. Examples of strategic HR initiatives include improving the employee experience, starting a learning and development program, and developing future workforce planning goals.

2. Create a formal HR tech team

As we said above, HR technology is constantly evolving. For most organizations, researching, adopting, and implementing new HR tech solutions is a process managed by either their IT or HR department. But according to Gartner, formal HR tech teams are growing in importance and size, with nearly half of HR leaders indicating an increase in dedicated HR technology staff over the next two years. (Full content available to Gartner clients.)

And it makes sense: The best way to ensure that your HR tech investments will achieve their desired ROI (return on investment) is to assemble a team whose primary focus is to oversee the adoption and integration of new HR tools. For example, this team could poll employees about the features they’re most interested in, and follow up after implementation to collect feedback from users about whether the tool is truly helping them achieve their goals.

Leaving this responsibility to employees with other projects and duties to attend to can lead to suboptimal adoption rates—according to the same Gartner research, over half of CHROs say that adoption of human capital management (HCM) technology by employees is their top challenge with managing HCM solutions.

How to build a formal HR technology team

You can build out an HR tech team at your organization by recruiting employees who have experience with the software buying and implementation process, like a software implementation specialist. These new hires should work closely with your existing HR and IT departments to make sure that all current and future investments in HR technology are fully effective and adopted by your workers.

If your workforce is small (fewer than 1,000 employees), a formal team may not be needed. In this case, you can assemble an HR tech task force as needed with existing IT or HR employees.

3. Adopt on-demand pay

According to Capterra’s Compensation and Payroll Survey from this August, one in three companies implemented on-demand pay during the COVID-19 pandemic, and an additional 22% are considering it.

We all know that benefits play a big part in attracting new talent. As of late, one benefit businesses are embracing as a way of appealing to their employees is on-demand pay.

On-demand pay allows employees to receive their earned wages before their next scheduled payday. This idea isn’t all that foreign; you’d pay your babysitter or dog walker right away for their service, so why not your employees?

Plus, there’s evidence that on-demand pay is a benefit employees are ready for: According to research from the Workforce Institute at Kronos, 76% of employed American adults want access to their wages before payday.

Pay employees on-demand with Dayforce
Paying employees on-demand in Ceridian’s Dayforce (Source)

How to offer on-demand pay as a benefit option

In order to determine if on-demand pay is a benefit that’s right for your organization, use a survey to ask your employees if it’s a perk they’re interested in. This will also help you get buy-in from leadership.

Next, if you’d like to move forward and offer on-demand pay, talk to your payroll software provider and see if their platform supports on-demand payments for employees. If it doesn’t, it might be time to consider making the switch to one of the many payroll platforms that does. You can find over 500 options in our payroll software directory, or use the search function to discover tools with on-demand pay functionality.

Step up your game: Put these practices into play

A strong, forward-thinking HR team can make the difference when it comes to attracting new talent and planning for the future of the business.


Survey methodology

The Capterra 2021 Recruiting Strategy Survey was conducted in August, 2021. We surveyed 307 professionals involved in the recruiting process at U.S. businesses. We worded the questions to ensure that each respondent fully understood the meaning and the topic at hand.

The Capterra 2021 Compensation and Payroll Survey was conducted in August, 2021. We surveyed 300 U.S. workers with knowledge of their company’s compensation strategy and payroll systems. We worded the questions to ensure that each respondent fully understood the meaning and the topic at hand.

Note: The applications selected in this article are examples to show a feature in context and are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.


Looking for Talent Management software? Check out Capterra's list of the best Talent Management software solutions.

About the Author

Sierra Rogers

Sierra Rogers

Content Writer at Capterra, covering the human resources and learning management industries. BBA, Baylor University. Based in Austin, TX. You can find me either hiking with my dog or collecting vintage designer clothing.

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