Digital transformation is reinventing the way organizations perform and measure their success. Before we dig deeper to understand why HR digitisation is important for organisations, let’s understand the basics first.
What is digitization in HR?
The digitization of HR refers to increasing use of digital technologies to drive business objectives in HR. For a long time HR professionals have mostly worked in isolation, performing their daily administrative duties religiously. They were hired for employee management and legal compliances. However, due to the rapidly changing digital technology, even HR is undergoing a reinvention. Hundreds of software vendors are transforming the HR processes as we know them with breakthrough technologies. HR departments are embracing ownership of IT systems to achieve automation in their processes and drive business objectives. Whether it is the adoption of advanced recruitment management systems for automating recruiting or use of cloud based HCM systems, digitization is blurring the lines between IT and other business functions like HR.
It therefore doesn’t come as a surprise that technology is disrupting corporate human resources functions. The HR scene has witnessed an outburst of umpteen worthy digital tools that are reinventing HR role and opening up new productivity channels. This is the age of technology, which could be a challenge for the HR, albeit shrouded in a great opportunity. Only those who are able to harness the power of digitization can lay their claim to remain competitive in the long run.
Benefits of HR Digitization
- Digitalization in human resource management provides a strategic edge to business
- Need for hr digitization for better employee engagement
- HR digitization for better decision making
Digitalization in human resource management provides a strategic edge to business
There was a time when automation was merely a means to cut costs and improve productivity. Thanks to the new age cloud based HR solutions, there is new role that HR has to play in the new future; that of a strategic anchor to the business. In this competitive world, the work of HR is no longer limited to doing daily chores of hiring and managing employees. They have to contribute with data-driven insights that help in strategically positioning of business.
Digital solutions offer real time information on employee behavior that is useful for improving services for them. HR can use data analytics to compete more effectively for global talent. It helps streamline the processes and reducing administrative workload. Thus, digitization will act as big catalyst in overall HR transformation in future, carving out a more strategic role for them in the business.
Need for hr digitization for better employee engagement
Implementing digital HR solutions enables organizations to reduce workload while minimizing capital spending on IT equipment. This frees up the valuable bandwidth of the HR department to relocate their resources to other activities. Plus, these solutions provide the capability to gather vital employee data and feedback. This paves the way for HR analytics to add value in employee engagement. Using this data, HR can develop a sound understanding of their employees and accordingly create new engagement tools, incentives and training programs. They can segregate the employees in different categories and customize their engagement efforts. Those who think digitization of HR means dehumanizing HR, cannot be more mistaken.
Digital HR solutions are supposed to help HR create a new, more comprehensive understanding of employee needs and behavior through application of HR analytics. Based on this interpretation of data, the HR can deliver customized solutions tailored to individual strengths, which is more meaningful.
(Also Read: Importance of HR Analytics)
HR digitization for better decision making
The ultimate purpose of HR digitization is only fulfilled when instead of just adopting new technologies HR departments are able to reshape themselves as a new fully digitized function which can set its own digital agenda, rather than work on a technology strategy created by the IT department. The evolution is similar to what we have witnessed in marketing where marketing departments have seized control of their technology strategies and placed themselves at the forefront of the organization’s digital transformation. With data insights at their disposal, HRs can make better decisions.
For HR professionals, while the human touch will always remain the vital part of their job, they must also be able to derive insights from the humongous employee data that they have. For this to happen, HR managers need to make themselves and their team digitally literate. They need to take ownership and responsibility of their IT assets and fortunately, with so many analytics tools, cloud based SaaS HCM solutions, it is quite possible. In cases where the HR needs customized reports and added features, they can establish communication with the vendors for the same.