10 HR Digitization Practices

What is HR digitization?

Human resources (HR) digitization is the most significant change impacting organizations and has grown exponentially over the years. HR needs to adopt new methods and processes to keep up with the rapid modernization of the workforce.
The benefits of a systematic process lie in the creation of new operational HR processes that improve communication, collaboration and access to data analytics.

Studies show that digitization practices like “Monjin” video interviews improve hiring accuracy by up to 86% by automatically identifying candidates’ specialization, technical skills, and years of experience. This streamlines the process, leading to greater efficiency and productivity, saving your company time and money.

In addition, an Oxford University study found that 90% of HR administrative tasks are expected to be automated by 2035. In Malaysia, talent already says they are affected by AI. 61% of respondents to a Hays survey confirmed that they have experienced the impact of automation either to some extent or to a significant degree.

What are the challenges of digitization?

According to a report by NST, 98.5% of Malaysian SMEs are lagging behind in implementing digital HR solutions. This could be due to a variety of reasons, from financial constraints to bureaucratic hurdles for management. A survey conducted by Vase. Ai and Digi found that the main barriers to adopting digital solutions are as follows:

• Ineffective and unsystematic data (32%).
• High cost of platform processes (44%)
• Doubt that digitalization will make their work redundant (15%)
• Inefficient system when consolidating tasks (17%).

Regardless of whether companies embrace digitization or not, the world is undergoing a digital transformation and companies that don’t digitize risk losing relevance in an increasingly internet-heavy environment. The silver lining is that the survey showed Malaysian workers are looking for ways to upskill, learn the efficiencies of digital tools, and improve data accuracy digitally.

What are the opportunities to drive digitalization?

01.go paperless

Given the daily use of email and Microsoft Office, it’s no surprise that many HR processes are still not paperless. This includes huge stacks of forms for benefits applications, leave requests and other items that require significant effort to track and organize, not to mention the time it takes to process.

For paperwork that needs to be approved across departments, a single sheet of paper would travel through multiple floors to get the required signatures. Consider that HR departments at large companies process hundreds, if not thousands, of pieces of paper every day. Not to mention that some companies hire data entry clerks to type information from paper documents into Excel spreadsheets.

02.employee self-service app

Nowadays, everything is simplified by mobile applications. The use of smart apps has simplified HR processes for employees and is changing the way employees interact with the company. Mobile apps help employees get information at their fingertips without having to visit HR for transactional information. This is “employee self-service” at its best.

Deloitte had developed a system that tracks the time consultants spent with their clients, as well as billable hours, and compares them to their peers. Using the data, the system provides intelligent suggestions for improving ineffective ways of working. Another application analyzes the user’s voice and detects disruptions, allowing the employee to take action to improve his or her well-being.

03.automation in motion

Automation eliminates hours of manual labor. Typically tedious tasks like processing hundreds of medical claims can be automated. The HealthMetrics platform, for example, connects businesses with healthcare providers and enables cashless treatments for employees, digital medical bills and consolidated billing through the platform. Because of the innovative approach that solves an existing problem, companies quickly adapt the solution. Moreover, manual work is prone to human error.

04.recruiting via social media

Recruiting has changed with the advent of social media. For example, LinkedIn has changed the way people post their profiles and how recruiters can better understand an applicant’s background. Not only that, but on more social platforms like Facebook, you can better gauge an applicant’s personality.

05.VR for training

Learning is always better through hands-on, real-world experience or practice. With the advent of virtual reality (VR), companies can simulate real-life examples during training.

Walmart, for example, uses VR technology to prepare its employees for Black Friday sales. Simulations based on past experiences and data are used to show how a crowd reacts to products on sale, how to measure in-store customer traffic, and how to respond to confrontations and crowd management. In this way, new employees can experience firsthand what it’s like to deal with real-world scenarios before going into the field.

06.gamification at work

Applying game dynamics in typically non-game contexts helps companies increase employee engagement. For example, companies can reward employees for hitting their KPIs, recognizing their efforts in overcoming difficult situations, or just being a good colleague!

Companies can also introduce real-time leaderboards to create friendly competition between employees. This encourages employees to interact with each other and improve their performance. Astro, for example, rewards employees who take less sick leave with points that can be used to purchase gadgets or travel expenses.

07.employee analysis

It is important that the company’s understanding of its employees matches the actual scenario. Often companies tend to make assumptions or rely on industry benchmarks, but is that accurate? In addition, as Millennials enter the workforce, companies must adapt to changing demographics.

How can we capture employee behavior, which seems to be more qualitative than quantitative? Consider HealthMetrics, an employee medical benefits management platform that provides real-time data analytics on employee health behaviors and automatically reports relevant information such as the most frequently used treatments.

Let’s say a manufacturing company with many medical claims related to respiratory conditions might indicate that employees may be exposed to airborne particles. Therefore, companies can develop simple and specific wellness programs, such as providing appropriate face masks, to reduce such ailments.boundaryless training
Providing training to employees located in different countries around the world can be a real nightmare. A cloud-based training system can solve this problem, with the only requirement being an internet connection. Gone are the days when employees need to be physically present to attend a training session. Text, video and audio materials can be made available with the click of a mouse. When combined with VR technology, employees can even participate in hands-on training that can be repeated at any time.

08.digital platforms

What do companies like Uber, Airbnb and Amazon have in common? They are digital platforms that connect two or more groups of people who are either looking for or offering a product/service. This creates a decentralized approach where people can access many options with just one click.

Companies are trying to mimic the platform approach by appointing panel clinics to seek treatment from company-approved healthcare providers in the HR context. The issues that arise are that HR must manage the administration and relationships with these clinics, including billing.

Typically, the number of clinics that are included in the panel is limited because it is difficult to manage multiple providers. By using the HealthMetrics platform, we connect businesses and employees with healthcare providers, synchronizing information on both sides in real time and automating manual processes.

10.digital culture

Finally, digital platforms in various HR processes have created a new culture that is relevant to the growing number of Millennials. As Baby Boomers and Generation X retire, Millennials will make up the majority of the company’s workforce. One survey found that in 2016, a total of 75.4 million Millennials were recorded in the workforce, surpassing 74.9 million Baby Boomers (ages 51 to 69) in the United States.

This group of young and passionate adults has grown up with technology and knows how to use it to their advantage. It also speaks to this type of digital culture, which aligns with the other nine digitization practices mentioned earlier.

Conclusion

Adopting digital solutions for HR processes is critical for organizations because they offer many benefits by reducing redundant/repeated tasks, lowering the risk of errors, and freeing up space for critical tasks that HR can focus on. It’s a common misconception that going digital is a challenge, but these ten practices can provide a low barrier to entry.

If your organization is looking for a complete and hassle-free digital solution, icehrm.com allows the organization to get started with analytic employee data, access to cashless treatment and seamless billing consolidation through the portal.