Tech-Driven HR: How Technology is Empowering HR Professionals
According to a Deloitte report, 96% of CEOs say they’re currently implementing GenAI or plan to do so soon. That’s actually great news for the HR community too!
The role of human resources (HR) has transformed radically in recent years. They are expected to foster a culture of collaboration and reshape their workforce dynamics. Furthermore, they have to contribute to strategic business initiatives. But not all organizations have the processes and technologies to make this a reality. Many still count on manual processes and legacy tools that have limitations.
According to a Deloitte Insights study, a majority of business and HR leaders (72%) believe that HR will shift beyond managing traditional employment activities to orchestrating work. |
HR teams also encounter the challenge of optimizing their processes and tools. Key metrics like cost per hire, absenteeism rate, and diversity ratio can also enable a business to optimize their entire business operations. None of these can be achieved without the budgets, the right tools, and relevant skill sets. Isn’t that a catch-22 situation?
The Tech-edge: The Much-needed Edge for HR
Thanks to the cloud, technology has now become affordable and accessible to many. Moreover, more HR departments have begun to implement new-age technologies to optimize their processes. The growing role of virtual reality (VR) and augmented reality (AR) in HR deserves special mention. These emerging technologies make work more exciting by stretching the limits of the real world.
Although there are numerous benefits of deploying automation tools in HR departments, many are still on the fence. While some organizations, especially the smaller ones, may lack the financial resources and know-how to take a call, others might be skeptical. Application tracking systems (ATS), payroll management systems, performance management systems (PMS), and learning management systems (LMS) are some of the most common technologies used by modern HR teams. Someone who knows how to manage all of the above has a greater chance of progressing to become future leaders in the HR space. A future-ready leader can make a bigger difference to progressive organizations.
The Benefits of Technology Infusion in HR
There are innumerable technologies used by organizations and their HR departments worldwide. As per an HR industry study across Asia Pacific and the Middle East, 84% of respondents feel identifying and selecting the right digital platforms is a challenge.
In this article, let’s explore the most common benefits of implementing HR tech and other related tools in the HR function.
Creating More Bandwidth
Today’s HR function is not just about employee recruitment and payroll management. HR professionals, irrespective of the industry, have a significant role to play. They have to perform operational tasks faster and smarter while contributing to strategic initiatives. If they have enough bandwidth, they can focus on developing retention and career development initiatives for their employees.
A full-suite HRMS platform can automate and streamline several processes across the employee lifecycle. For example, companies can deploy AI-based virtual assistants to conduct preliminary interviews and guide new hires. AI tools can also perform complex payroll calculations and analyze employee performance data. Consequently, HR will have the bandwidth to focus more on larger goals than operational challenges.
Minimizing Manual Work
Although a humane touch is crucial in modern workplaces, not all manual tasks can be performed effectively and flawlessly. Given the increase in the number and scope of HR activities, manual work is error-prone and slower when compared to automated processes.
Offline storage of documents could result in misplacement and theft of vital information. Excessive and time-consuming manual work can also lead to a high level of stress and turnover in the HR function.
Digitization and cloud storage make documentation a hassle-free and safe process for HR. Artificial intelligence (AI)-driven tools can handle repetitive tasks, like data entry in payroll processing, with greater precision and speed. Gen AI writes job descriptions and ads, neuro-linguistic programming (NLP) speeds up assessments, and chatbots address repetitive employee queries. When an organization implements the right AI and automation tools, their HR can innovate and add greater value to business.
Drawing Actionable Insights
Data is everywhere, but not everybody gets what is required for well-informed decision-making. HR teams face the challenge of analyzing a vast amount of data. The challenge gets compounded when this disparate data comes from multiple sources. What if a unified platform could do all of this in one place? HR would love it since they can quickly run analytics for their activities and confidently present better MIS reports to the management.
In a Deloitte Insights study, 70% of leaders agreed that HR will need to shift to measuring and unlocking human performance and potential; a bold move away from a function long devoted to standardization. |
Be it for creating policies, studying employee sentiments, or predicting talent needs, HR requires the right tools to perform these tasks. HRMS platforms have tools to extract and analyze employee data through custom reports and dashboards. HR can use analytics tools to analyze performance data and customize training programs. HR analytics help achieve higher cost savings, efficiency enhancement, and sales improvement.
Connecting the Workforce
Usually, smaller organizations manage their workforce easily. When they start expanding, their HR feels the heat. They may face challenges in employee engagement and monitoring. The same challenge applies to remote environments also. These issues get compounded when HR relies on physical or legacy methods of management. They lack visibility, and nothing much can be done about it. The result: high employee dissatisfaction, lowered productivity, more conflicts, and turnover.
Modern tools for messaging, video conferencing, project management, and employee engagement enable HR to stay connected and know what’s happening. Team members can connect anytime to discuss and share experiences. HR tools have built-in leave and attendance modules that help HR manage employee discipline. Advanced HRMS platforms have features to engage with employees and appreciate their great work. Managers can also roll out polls to know the challenges, gather feedback, and understand the preferences of employees.
Delighting More Employees
Spotting and hiring the right talent are the common challenges of acquisition teams. Given the options in the job market, retention has also become equally challenging. Some employees resort to quiet quitting, doing the bare minimum, due to stress or dissatisfaction. Therefore, organizations have to build a supportive workplace where every employee is given an opportunity to innovate, perform, and thrive. In other words, HR has to meet employee expectations, from hiring to exit.
According to a Gallup report, recognition has to be authentic, personalized, equitable, and culturally relevant. Only then will it fulfill employee expectations. |
An HRMS automates multiple tasks and helps create more bandwidth for HR to focus on improving candidate and employee engagement. Advanced platforms have modules to enhance employee communication and personalize employee experiences. Satisfied employees are likely to be more productive, passionate, and loyal.
Empowering Every Employee
It’s not uncommon to see HR team members getting exasperated while handling basic employee queries repeatedly. If employees had a provision to perform certain tasks on their own, they wouldn’t need to reach out to HR. Even simple tasks, like updating employee information, could result in a nightmare if not handled systematically. Delayed responses from HR can actually impact employee morale since they may have to take career-related or financial decisions based on the same.
Thanks to modern HRMS platforms, employees have information at their fingertips. When they use employee self-service portals (ESS) and HR mobile apps, they can access information from anywhere and on any device. They can submit applications, download payslips, and generate reports on their own. Also, chatbots are available to answer basic queries, so the dependence on HR is minimized. All of these tools help save time for HR and enable them to focus on tasks that enhance employee experience.
Optimizing HR Spends
Cost cutting is not always a healthy way to improve an organization’s health. Smart spending is a smart way to eliminate waste and optimize existing resources. HR is certainly a time-consuming and manpower/resource-intensive function. Excessive paperwork can lead to increased costs for organizations. Also, every extra hour of HR work implies additional costs. Time is money!
As per a study, generative AI has the potential to save expenses by up to 70% by streamlining the employment process and minimizing reliance on external agencies. |
An HR management system (HRMS) can enable organizations to work more smartly and responsibly. Digital documentation and automated workflows can reduce waste and save time and money. It also eliminates the need for printing multiple copies for multiple stakeholders! Centralized storage and role-based access can address this issue. Also, AI/ML-based workforce management ensures the optimum number of employees are in the right roles, leading to increased cost savings. Even HR and functional managers can make data-driven decisions for the benefit of the organization as a whole.
Simplifying Statutory Compliance
Organizations have multiple policies, rules, and records for managing their workforce. The government enacts new labor and tax laws and amends old ones. So, the HR teams have to adopt multiple processes to adhere to these changing requirements. Noncompliance can lead to expensive litigation that not only affects the profitability of the business but also adversely impacts its brand image in the marketplace. Sometimes, even larger enterprises find it tough to navigate the complex legal maze.
Modern HRMS platforms have built-in capabilities to track, manage, and report on several compliance aspects. The centralized documentation feature helps HR and employees access and process information whenever required. Nowadays, even the IT declaration and proof of investment submission happen online. HR automation can help solve this puzzle since many modern platforms are designed to meet statutory requirements by default. Therefore, even if sudden changes are made to the labor laws, the statutory reporting team members need not fret.
The Ideal HR Function: Tech Savvy & Future Ready
When it comes to investing in technology, the organization’s size doesn’t always matter. An HR that functions efficiently would find it easier to keep their employees happy, and the organization benefits eventually. Now that technology is affordable even to small businesses, they must implement the same to derive the maximum benefits.
The technology market has something for everything and everyone! The HR team can either choose to deploy multiple tools for multiple functions or pick one that has everything inside. The decision depends on multiple factors like budget, nature of business, geographic spread, and speed of expansion, among others. When it comes to an HRMS, it makes sense to choose a platform that is easy to deploy, use, and scale. Most of the HR tech providers will follow data security protocols and adhere to the local laws. Some technology providers also offer an entire HR ecosystem comprising a strong community, an HR academy, extensive online resources, and more.
Today’s HR must keep abreast of what’s happening in the contemporary technology space. Only then will they be prepared for tomorrow’s challenges and trends. When HR ensures a judicious mix of the best processes, tools, and skills in the market, they can delight more employees and foster a culture of collaboration and camaraderie.
A Gartner survey found 76% of HR leaders believe their organization will become a laggard if it doesn’t adopt AI in 1-2 years. |
Of course, as cited earlier, AI, collaboration tools, digital workspaces, and other emerging technologies will continue to make a difference in workplaces across industries. HR has to keep this in mind and explore what works for the organization. Only then can they make the right recommendations to the leadership. The bottom line: improved learning, productivity, agility, and growth for everybody. When people grow, the business grows. When an organization’s workforce is happy, it reflects on the products and services they deliver to customers. That said, a tech-powered HR is in a better position to add greater value to the organization and its employees.
Concluding Thoughts
The HR function handles an organization’s most valuable asset ‒ its people! Although it’s a great responsibility, the team members face a slew of operational challenges due to excessive workload, manual processes, multiple errors, employee complaints, and compliance complexities. Today’s employers and employees are counting more on technology to get things done. But the challenge of HR lies in selecting the essential tools to assist them.
Modern technologies can empower HR professionals by transforming challenges into opportunities. Emerging technologies like AR and VR not only simplify tasks but also make the workplace more exciting. Imagine taking an employee on a virtual tour of a factory in a remote location. An AI-driven full-suite HRMS platform will enable organizations to augment HR productivity, boost employee satisfaction, and ensure hassle-free compliance.
Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.
- Tech-Driven HR: How Technology is Empowering HR Professionals - October 3, 2024
