Digital disruptions impact how HR systems operate and how employees interact with these systems. For instance, social media disrupts the traditional employee recruitment process; mobile devices disrupt the way employees access their HR records; big data disrupts how HR departments store and analyze employee data.
However, digital impact on HR systems cannot be ignored as in the last two years, HR systems continuously evolved to become the backbone of HR departments. These systems efficiently manage every HR process from payroll processing to employee engagement to asset relocation.
What is Digital HR?
Digital HR is the term used to use digital technology in human resources management. This can include using digital tools/ applications to manage employee lifecycle, tracking and analyzing employee performance, and managing payroll. Additionally, digital HR encompasses using social media platforms to recruit employees, communicate with employees, and develop training programs.
Digital HR systems can automate many HR tasks, making it easier for HR managers to create a more efficient and responsive workplace by supporting primary HR functions such as recruiting, onboarding, upskilling, payroll processing, and many more.
Benefits of Digital HR
There are many benefits of digital HR. Some key benefits include
1. Increased efficiency:
Digital HR tools can automate HR processes like payroll processing attendance tracking and help to increase efficiency within various departments and the entire organization. This can lead to smoother and seamless operations and processes.
2. Improved accuracy:
Automated systems are often more accurate than manual processes, leading to fewer mistakes and less need for correction. This can improve the quality of stored data within the HR department and help to ensure compliance with regulations.
3. Better data tracking and analysis:
By tracking employee data in a digital system, employers can better understand what is happening within their organization. This information can be used to make strategic decisions about hiring, training, and other business areas.
4. Enhanced reporting:
Digital HR systems often provide enhanced tracking and reporting features, which can help businesses better understand employee engagement, performance, and other aspects of their workforce. This information can be used to make better decisions about managing and developing employees.
5. Greater flexibility and mobility:
With a digital HR system, employees can access their records from anywhere in the world with an internet connection. This allows them to manage their own files quickly and conveniently, no matter where they are.
6. Increased security:
By storing employee data in a secure digital system, employers can rest assured that their information is safe from cyber theft or accidental loss. This can help to protect the privacy of employees and ensure that sensitive data is not compromised
Digital HR Transformation: Then to Now
Digital HR transformations include increasingly adopting digital technologies and tools with ongoing business trends to manage HR functions. The transformation consists of deploying online platforms for recruiting and onboarding employees, automating payroll processes, and utilizing cloud-based storage systems for tracking employee data. Ultimately, a digital HR revolution aims to make it easier and more efficient for businesses to manage their HR operations using the latest technological advancements.
The way our HR teams used to work drastically changed with changing times of pandemic from work from the office to work from home to hybrid model. Let us look upon the major breakthroughs and understand how digital HR transformation took place.
Before 2021, the recruitment process starts with posting job requirements on digital platforms, scanning resumes, calling selected candidates at office premises for further rounds, and finally confirming the role. However, if we look back to 2021, the recruitment process has changed 360 degrees.
From candidate sourcing to issuing appointment letters, everything started changing and was managed efficiently by various software deployed in the company’s system. Recruitment-related tasks started running on autopilot mode with digitally advanced tools. With a recruitment module in place, posting the requirement on every job search platform in one go, automatically screening candidates by putting a few filters, sending invites and reminders to people involved in virtual interviews are becoming quicker and smoother than ever with digital evolution.
2. Workforce Management:
Before 2021, workforce management included manually maintaining lots of spreadsheets, switching between several software to check data and creating metrics, spending high amounts in purchasing cloud space for storing database securely and real-time monitoring of workforce was a painstaking task in itself.
When we look back to 2021, every process of workforce management from hire to retire has been redefined with HR’s technologically advanced tools and software. MWM or Mobile Workforce Management Tools, Employee Self Service modules, performance management software, and much more are gaining traction among various industries to help manage your employees with a smile.
3. Performance Review:
Before 2021, regular face-to-face discussions, jamming sessions in conference rooms, filling survey forms, and lots of effort were required to monitor the progress and growth of employees. The performance review process was a challenge for organizations irrespective of their sizes and industries.
As the pandemic evolved, every HR process became more digital and automated, including the performance review process. From goal settings to giving continuous feedback to maintaining performance-related graphs, everything is now handled in a few clicks with automated, customizable workflows of HRMS, HCM, and various other software.
Stages of Digital HR Transformation
Any organization can change its working and managing HR functions by introducing digital tools or applications in its system. However, these tools cannot be deployed in a day and require a step-by-step process for successful implementation. And only after successful implementation can organizations digitally transform their HR processes.
The stages of digital HR transformation are as follows:
The first step is to assess the current state of the organization’s HR operations. This includes evaluating how well employee data is currently being managed and determining opportunities for improvement.
Once the assessment is complete, the next step is to develop a plan to implement digital HR solutions to improvise the workflow of faults processes. This plan should include specific goals and timelines for completing the various stages of the transformation process.
Once the plan is finalized, it’s time to start implementing the new digital HR solutions for smooth operations, increasing productivity, and improving employees’ experience. This typically involves installing software or systems that will help manage HR functions more effectively.
Once the new systems like payroll software, HRMS software are in place, it’s essential to evaluate how well they are working and make any necessary adjustments or improvements. This stage of the process should be repeated regularly to ensure that the digital HR solution continues to meet the needs of the organization.
The digital age significantly impacts human resources (HR) systems. HR systems can now manage and process large amounts of data more efficiently and effectively than ever before. Additionally, digital technologies have allowed for the development of new and innovative HR applications that can help organizations improve their overall performance.