HR digital transformation is the change in the way human resource functions, using data to guide all areas of HR: planning and organization, payroll, benefits, compensation and performance management, training and development, rewards and recognition, and recruitment.
Various goals of digital transformation in HR include automating processes and reducing the time spent on repetitive tasks, maximizing employee experience and using the freed-up time to strategize and ultimately benefit the business bottom line.
The following are some of the benefits of digital HR.
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Enables Companies to stay competitive
Digital advancement has not remained a choice, it has become an essential part of competitive and surviving strategies. The key to good technology is that it works for you. Whatever the size of your business, start with a strong digital transformation strategy, and choose the right technology to fit your business objectives
Ease out the recruitment processes
Artificial Intelligence is also proving very helpful in automating the interview process by assessing candidates’ word choices, speech patterns and facial expressions.AI can turn a 15 min video interview into a set of 20,000 data points on facial movements, innovation and word choice to evaluate a candidate.
Data security and Transparency
Technologies have the power to discover whether certain corruption, bribery or other potential wrongdoings is about to be undertaken by an employee. Tools such as Big Data and In-memory technology allows companies to scan vast amounts of non-structured data (e.g. emails, texts, scanned invoices etc.) and search for critical clues to unwanted and potentially illegal activities (e.g. look for invoice referencing facilitation fee’),that ensure the legal assurance to the shareholders and the company employees. Ernst & Young (the Accounting firm) is already using such kind of a tool.
Machines can substitute humans in almost every task and can do better and faster but it also gives people, the opportunity to focus on what makes us human. Gary Kasparov, the Russian Chess Grandmaster who was the first world champion to be defeated by a machine has an interesting take on the same. He explains that machines have the calculation; humans have an understanding. Machines have instructions; we have a purpose. Machines have objectivity; we have passion”. This is the reason why the relationship between these two is so captivating that this progress has disrupted the HR space and is helping in filling the gap of technology in HR. Technology enables HR to connect its employees with modern tools for better understanding. Digitalization is proving very helpful for HR managers and professionals, as it frees them from long HR processes and enables them to focus on the activities that have more strategic value to their businesses. Almost all the functions of HR have witnessed an influx of technology in the past decade. It has gained more power in 2005 when Workday was founded just to provide software solutions to human resources and financial management.
More companies are now coming up with new technologies and the introduction of software applications (data analytics), are helping them in the hiring process, promoting their personal brand, striking a work-life balance among employees and taking proper care of their health. There is a report by Mckinsey & Company which reveals that half of all existing work activities could be automated by currently existing technologies, which will save around $16 trillion in wages.
A study by Manju Amla, Prof. (Dr.) Meenakshi (2017) Malhotra to find out the meaning of digital transformation in Human resource management and how Hr functions are taking advantage of it. This study concluded that Human resource management is all about human touch and that touch will gain more power with the aid of technology. As HR is at the forefront of the fourth digital revolution it’s important to facilitate this advancement without impeding the human element. In India also technology has helped companies like Reliance Jio, Hero Motor Corp., Kaya Limited, Jindal Steel and power limited and many more companies in managing their talent, services and requirements in a more streamlined way.
Digitalization has changed our lives and opened up new opportunities in the HR field. Wherever your organization may be on your digital HR journey today, the increasingly competitive talent environment justifies making HR strategy and HR IT central to every organization's strategic priorities. Digital transformation in HR can help your organization solve its most important shortcomings, creating a competitive advantage.
Keithley Tongai is a Consultant intern at Industrial Psychology Consultants (Pvt) Ltd, a business management and human resources consulting firm.