13 Bold Predictions for HR Tech in 2023

From moving to a completely digital hiring process to changing how we accept and manage equipment returns, here are 13 answers to the question, "What are your best predictions for HR software trends in 2023?"

Brett Ungashick
OutSail HRIS Advisor
July 4, 2023
user comparing HRIS systems

As we turn the page into 2023, we wanted to talk to innovators and big picture thinkers in the industry to see what they expect from the HR Tech Landscape in 2023

  • Shift to a Fully Digital Hiring Process
  • Increased Usage of AI for Bespoke Solutions
  • More ChatGPT Integrations
  • Rise in AI-Enabled Features
  • Expanding Value for People Analytics
  • Move to Cloud-Based HR Systems
  • Support for Apps that Develop Mental/Physical Health
  • Further Automation to Eliminate Busy Work
  • Hyper-Personalization
  • Small Players Will Get Acquired or Die
  • Need for Stronger Cybersecurity
  • Remote Worker Time Tracker
  • Additional Streamlining for Equipment Returns 

Shift to a Fully Digital Hiring Process

The biggest trend in HR software in 2023 will be the shift toward a fully digital hiring process. As the talent shortage continues to worsen, companies will look for ways to streamline their hiring processes and cut down on administrative time and costs. 

As a result, we will see more companies adopt digital hiring platforms such as AI-assisted video interviews, virtual job fairs, and virtual campus tours. These platforms allow candidates to self-schedule their interviews, participate in video conversations with hiring managers, and tour company offices without leaving the comfort of their homes. 

This not only saves companies time and money but also helps to improve employee engagement and satisfaction during the recruitment process.

Matthew Ramirez, CEO, Rephrasely

Increased Usage of AI for Bespoke Solutions

In 2023, I think we're going to see increased usage of AI for bespoke solutions in terms of how advanced software will be looking to completely integrate into the HR department of an organization. This could span as far as training and personal development, not just HR processes behind the scenes. Used correctly, AI integrations can truly revolutionize how departments both manage and train their staff across all departments.

Wendy Makinson, HR Manager, Joloda Hydraroll

More ChatGPT Integrations

Like with many tools and software update releases bound to occur in 2023, there's no denying that ChatGPT Integrations will be huge for the industry as a whole. I expect to see some of the larger HR software businesses look to integrate some form of AI into their systems as a means of ensuring processes can be streamlined within HR teams, with little input from the actual user.

Tracey Beveridge, HR Director, Personnel Checks

Rise in AI-Enabled Features

My biggest prediction for HR software trends in 2023 is a huge acceleration in AI-enabled feature sets. For the last several years, many applicant tracking systems have been rolling out candidate evaluation AI, but now we are seeing HR software companies roll out AI for internal use. 

The CEO of a publicly traded HR software company discussed on a recent conference call their AI payroll bot helping their customers' employees change and update their payroll information without human intervention. I think we will see increased usage of AI to address transactional HR/employee interactions.

Gordana Sretenovic, Co-Founder, Workello

Expanding Value for People Analytics

The value of people analytics is expanding to make managers better at doing their jobs. As organizations scale people analytics software by putting data, insights, nudges, and recommendations into the hands of those responsible for managing people, managers are becoming more effective at planning, budgeting, scheduling, coaching, supporting collaboration among their workforce, and more. 

In leading organizations, they are reminded through nudge solutions to support their people with recognition, career counseling, and crafting achievable objectives. Engagement solutions give managers insight into the potential burnout of their team members. There are many solutions to inform managers, but leading organizations bring all these solutions into a single people analytics platform so that line managers can explore how to do their jobs better using data to inform their actions.

Lexy Martin, Principal, Research, Visier

Move to Cloud-Based HR Systems

Cloud-based HR systems will be a huge trend going into 2023. In terms of optimal user experience for employees, having it cloud-based enables access from anywhere. In today's increasingly modernized world, this is crucial to accessing benefits information at the click of a button. Plus, built-in data analytics will continually improve the system itself too.

Adam Bem, Co-Founder & COO, Victoria VR

Support for Apps that Develop Mental/Physical Health

Since HR software systems have come onto the market, more than 80% of the work burden has been reduced in companies. It is because they improve efficiency and productivity by automating tasks. 

Well, there are many HR software, but what can be the biggest trend in 2023? Mental health could be the biggest trend. Companies can suggest applications and software to employees to focus on their mental health so that they can balance between professional and personal life. 

We know that for the last three years, mental and physical health has been important topics, and they will continue to be in the future as well. Around 56% of HR leaders in the USA implemented mental and physical well-being programs after the outbreak of the pandemic. More than 53% of employees look for more mental support from their employers.

Yogesh Kumar, Digital Marketing Manager, Technource

Further Automation to Eliminate Busy Work

The busy work of HR is going to see more automation in order to free up professionals to work on the more nuanced aspects of the job. We've seen this trend developing over the years, and with the continued sophistication of AI and automated processes, we're highly likely to see it continue. 

In particular, rather than phasing out workers, automation will likely focus on tasks that are otherwise menial, which should provide HR personnel more time to put towards job aspects that could be improved with more direct human interaction, such as talent acquisition. 

By lowering the amount of busy work that needs to be done by hand, HR teams will be able to be more efficient and free them up to make better use of their skills during their work day.

Neel Shah, Founder, EZ Newswire


Hyper-personalization will be a major HR software trend going into 2023. The three pillars of a hyper-personalized work experience are interactivity, inclusivity, and accommodativeness. Each element offers employees the flexibility to work in an environment that best suits their individual needs. This model of communication ultimately creates a better sense of company culture as well.

Annu Daniel, CEO, Elohim Company

Small Players Will Get Acquired or Die

Since 2020, hundreds of new HR tools have sprung up, many of them focused on remote workforces. Many of these players remain small and will struggle in 2023, a time when companies are cautious to buy new technology and new investments will be hard to come by. I think this will leave new HR software struggling to survive, either getting acquired or closing their doors before running out of cash.

Julian Schaaf, Head of Marketing, Gomada 

Need for Stronger Cybersecurity

More companies and their HR teams are taking big steps toward strengthening their cybersecurity measures. The new software will either include a strong cybersecurity aspect or be specifically designed with that in mind. 

The online world is becoming more dangerous all the time, and HR teams are taking the lead in doing whatever they can to protect everyone and information that shouldn't be leaked. Specific divisions are doing more to implement encryption and the latest developments in cybersecurity, and HR software will be doing this to keep the information of employees and clients safe.

Shaun Connell, Founder & CEO, Credit Building Tips

Remote Worker Time Trackers

With remote work becoming the trend, the biggest impact will be related to it. That's why a remote worker time tracker will be the most impactful HR software in 2023. A time tracker like Hubstaff and Time Doctor will be vital in maintaining the productivity of remote workers. 

They will also be helpful in other aspects, such as employee evaluation. With features like screenshots and video capture, it will be easier to document what the remote employee is doing. It will be simpler to point out what needs to be corrected, improved, and changed to fully utilize an employee's potential. A time tracker is a powerful tool that should be integrated into your system. It can also help automate your payroll and make it more efficient.

Fawaz Naser, CEO, Softlist

Additional Streamlining for Equipment Returns 

AI onboarding and offboarding are evolving to add equipment returns and management to the equation. With an estimated 26% of workers being remote, businesses need a way to send and receive company-owned equipment (which averages about $2,500 in value). This new trend will streamline and automate the process.

Michael Lazar, Executive, ReadyCloud

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Meet the Author

Brett Ungashick
OutSail HRIS Advisor
Brett Ungashick, the friendly face behind OutSail, started his career at LinkedIn, selling HR software. This experience sparked an idea, leading him to create OutSail in 2018. Based in Denver, OutSail simplifies the HR software selection process, and Brett's hands-on approach has already helped over 1,000 companies, including SalesLoft, Hudl and DoorDash. He's a go-to guy for all things HR Tech, supporting companies in every industry and across 20+ countries. When he's not demystifying HR tech, you'll find Brett enjoying a round of golf or skiing down Colorado's slopes, always happy to chat about work or play.


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