The world we live in has undergone far reaching cultural, societal and economical changes based on the increasing dominance of digital technologies. These changes have led to the current period being characterized as the digital age. In line with these changes, digital technologies play an increasingly prominent role in both the lives of employees and human resource management, which seems to be affected in multiple ways.
The new digital world of work will change the way we work dramatically. In this era when the talent has already gone digital, digital HR is now a survival for organizations. To our surprise, Digital HR does not mean process automation and digitization. Rather, it is a kind of organization practice which meets the needs and expectations of future organizations with the help of HR technologies. Digital HR can impact each and every corner of an organization and help it gain efficiency and effectiveness.
HR processes would be made faster and more flexible by the advent of Digital HR in coming years. From the sanction of leaves to attrition rate, routine transactions can be managed easily by various HR information systems. Digital HR makes the processes less time consuming and more responsive and reliable. For example, it will be a tedious job to maintain employees’ leave records, daily transactions and internal feedback conversations of HR department. However, with robust digital HR techniques, the information can be automated and made hassle-free with digitization.
Recruitment and talent management can be made simpler and effective using digital tools. External recruitment and job posting providers like LinkedIn, Indeed, Glassdoor, Intern theory, Career builder and others can spread and expand their recruitment like never before using cloud-based systems. These technologies are an integral part of HR functionality.
Digital HR can increase employee engagement. Organizations want their HR transactions to be managed in ‘always on’ mode. To ensure the activeness of the transactions 24*7, mobile enabled devices can be used. A recent global survey on HR systems by Sierra Cedar reported that the digital workforce enablement yields up to 64% higher employee engagement.
To make the training process of millennials more interesting and appealing, digitized learning approaches like e-learning tools, webinars, online tests etc. can be practiced. This will foster the learning and development culture in the organization. An organization can also use social tools for collaboration and cross functional communication.
The HR department of any company deals with a lot of data. Managing the data is a tedious, time-consuming and critical task. Moving towards the digital cloud based platforms like Workday, Salesforce will help the organizations build the data in a structured manner and access the same anywhere at any time. Furthermore, as HR is all about the people of the company and how they work, it is becoming mandatory for HR processes to be digitized for maximum effectiveness.
Rethinking of HR in a challenging world is an essence of every organization these days. It is truly subjective in nature and HR initiatives have a qualitative impact on the organizations’ internal and external environment. The HR department of any company deals with the people resources of the company. There is an emotional quotient attached to it. By digitalizing human resource activities, business will be understood clearly and in entirety. I found something interesting when I was browsing through the website of KPMG’s HR strategies. The company conducted a survey on the HR transformation trends. The result is an eye opener for every company striving to give its best in this 21st century. HR is not being extinct, rather it is stepping into digitization and automation.
are looking to change the HR structure in order to:
Are adding scope to their HR shared service functions
|Gain further efficiencies
See better functionality as the primary benefit of implementing a new HR technology
Will replace their existing, on-premise HR system with a SaaS solution
Will spend more money on HR technology
Are using or planning to use mobile technology
Source: KPMG’s Global HR Transformation Survey, 2016, KPMG International
The parade of new technologies lead to new disruptive innovations. Disruptive innovations in mobile internet, autonomous vehicles, IT applications have a power of completely reshaping the world we live in. Nevertheless, disruptive technologies are not confined to a product innovation, a disruptive innovation in HR strategies can reshape the entire organization. Innovation can be of any form ranging from using cloud storage for storing the data to using social platforms for the purpose of talent acquisitions. For example, many companies have switched from traditional recruitment methodology of BGV through resumes to verifying the details on LinkedIn, Facebook etc. As a result, less time will be consumed besides experiencing an efficient and effective output.
Being digital means finding ways to be nimble and unburdened by necessary assets and liabilities that lock the business into a fixed revenue model. The largest hotel company in the world, Airbnb, owns no hotels. Uber owns no cars. Facebook does not create content, it just brokers it. They own only what they need to delight customers and drive employees towards greater levels of excellence. Being a digital business does not look the same across every industry, and no two companies will follow the same road map for digital transformation.
The digital age has changed a lot of aspects of our professional as well as personal lives. The way organizations function has been drastically changed in the past few years. In fact, according to studies by Gartner, by 2017, 25% of the organizations will lose their market position as a result of digital business incompetence. From payroll maintenance to grievance management, routine tasks can be managed easily via various HR Information Systems(HRIS). This is the future of our world of HR as the employees are demanding a single space to store all the data related to HR. The companies which will transform into a techie version of themselves will survive in the competition and some might fail trying.
By: Jyothi Sree Movva