Top HR tech trends in 2023: Metaverse & More

Businesses are giving a thrust to human resource (HR) technologies with the ultimate goal to create a working environment that is secure, welcoming, and accessible to people from all walks of life and locations.

Several innovations and new solutions have been implemented in HR functions across industries, with multiple trends being witnessed.

People Matters gathers trends that are going to change the dynamics of how the HR domain operates in 2023.

AI-enabled chatbots

Several elements of HR management will benefit in the year 2023 from the application of AI-powered data analytics.

These innovations will serve as the basis for future human resources and the workplace, says Vikas Kakkar, Founder of HR tech startup –  Amara.

“HR has already advanced to boardrooms in a number of organisations. In the future, HR will be able to make more informed decisions with the help of data analytics. AI-powered employee engagement chatbots can be used to track employee engagement at work, identify employees who may be contemplating leaving their position, and perform many other tasks. This information will greatly assist HR leaders and business partners in making informed decisions and mitigating risk if it is readily available,” he says.

Kakkar adds that there has been an increase in the use of AI to improve engagement and create a safe and diverse company culture this year, but the rate of adoption of HR technology and AI-powered data analytics platforms will skyrocket by 2023.

Wearable devices

Wearable devices have gained much traction of late. Wearables, like smartwatches, can have multiple use cases in HR tech. Employees can punch their attendance with just a tap on their watch, and the geolocation tracking can verify its validity, avoiding touching traditional biometric devices that are prone to contamination.

The smartwatches also contain valuable health-related information such as average heart rate, blood pressure, SPO2, sleep quality, and physical movement. If used correctly, such data points can quantify employee wellbeing. AI can further assist in using the same data points for understanding employee engagement at the workplace.

According to TeamLease HR tech, companies leveraging smartwatches to deliver best-in-class employee experiences while also improving health and wellness awareness among the workers can be a common scene. 


Metaverse is perhaps one of the most discussed terms and a buzzword today. Managing the workforce efficiently can become challenging, especially with today’s remote working scenario. At such a juncture, Metaverse is the perfect solution for HR managers since it has the potential to expand what hybrid work is known now. 

Employees can leverage augmented reality (AR) and virtual reality (VR) to collaborate efficiently and engage more authentically from remote settings. As per TeamLease HRTech’s projections, the metaverse could bridge the gap between physical and virtual offices.

People Analytics

The ability to generate and capture data has increased exponentially in the past few years. Today’s businesses make data-driven decisions that are far more accurate than the intuition-driven trial and error method. HR tech has made it possible to do the same with human capital management as well.

TeamLease HRTech’s analysis reveals that SaaS platforms like zero-touch applicant tracking and one-touch payroll, along with advanced analytics, will play a pivotal role in analysing HR productivity. With remote and hybrid working models likely to prevail for the foreseeable future, People Analytics will play a prominent role in performance measurement, workforce planning and management, analysing employee engagement, promoting employee development, making promotion and salary decisions, and every other aspect that can be improved with data while maintaining optimum work-life balance.

Compliance Automation

As cutting-edge technologies and automation take centre stage, regulatory compliance won’t be unaffected. With the help of tech, more and more compliance activities will be automated, making processes more cost, time, and resource-efficient. Besides, TeamLease HR Tech expects this to become an intrinsic part of HR technology in the coming months and years, giving a seamless, unified experience to businesses.

Sumit Sabharwal, CEO of TeamLease HR tech, says, “HR technology has leapfrogged in a short period to the extent that would have been almost unimaginable a decade ago. At TeamLease HRTech, we are committed to a tech-first approach and leverage the latest technologies to ensure employers and employees benefit from our services, making it a win-win situation. Our trend predictions based on previous in-depth analysis show that the aforementioned will become immensely popular among the HR fraternity. It’s time for the world to experience the best of HR tech, and now that it is here, there’s no stopping such advancements. We look forward to witnessing these trends and the numerous innovations that will be born.”

Open HR Tech – A paradigm shift expected in 2023

HR tech startups in India have raised over $13 billion in the year 2022 with a huge portion of this going into recruitment technology.

Sudhakar Raja, Founder and CEO of HR tech startup TRST Score says the advent of UPI and ONDC has led to awareness of the scalability of open platforms. AI-based candidate-role matching, interviewing platforms and many such technologies are becoming prominent.  

Open jobs network similar to ONDC

There are over 1500 government and private job portals that exist in India. No recruiter has the time to create a login, manage the post and collect profiles. There are 40 plus sector skill councils managed by NSDC and many more under each state managed by the local governments. Each of these sector skill councils have an independent job portal besides the labour ministry and apprenticeship portals. 

Besides this, there are over 1000 private job portals. No HR has got the time to create a login post jobs and manage the candidates in so many job portals. Hence the need of an open platform which will simplify this process. This is similar to the ONDC platform that the government has created for e-commerce. This will change the way people hire in 2023.

There are over 1 million people getting trained by sector skill councils annually besides various private institutions which skill numerous people. On one side companies are looking to hire and on the other side, there are people who are still looking for jobs. The problem today is the matching of these two.

Open BGVs and UPI of BGVs

The entire Background Verification (BGV) Industry and how people hire will undergo a change.  The BGV process of today is expensive and time-consuming. Hence only 5% of the companies in India do any sort of BGV. Gig economy is poised to grow exponentially and no HR can afford to conduct a BGV on these temporary staff. A few companies are changing the BGV landscape. 

Open BGV allows BGV sharing by companies thereby reducing cost and creating openness in this unorganised sector. The gig worker BGV process is a new unexplored territory where companies need to be open to sharing such information.  Open Offers as an example is trying to streamline the offer and acceptance process. Many others will come in 2023.

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