What are the benefits of digital HR?

Everyone can think of the current phase of technological change as the fourth industrial revolution.

Technologies such as artificial intelligence, automation, robotics and digitization have brought a new look to business, reduced costs and made processes data-driven and more efficient.

Digital transformation is not only a daunting technological task, but also a human challenge. As the digital economy evolves and the skills and expectations of the workforce change, companies must be ready to respond to the challenge.

HR has always been an important cog in the wheel of a business, and one of the most important roles of HR is to make sure it runs well. The growing importance of the HR function as the strategic arm of the business has made digital transformation even more important for HR leaders.

The function needs to be involved in identifying the roles that can be automated or robotized and the roles that should be performed by humans. By identifying what skills are needed, HR teams can develop employees internally and recruit externally in a targeted manner. At the same time, HR departments must help their employees adapt to and remain relevant in the new world of work.

HR leaders should prepare to embrace digital HR through data literacy and apply complex problem-solving and project delivery methods such as design thinking, as these technologies will be the catalyst for the new face of HR.

According to Deloitte’s HR tech disruption study, the use of AI, cognitive bots and intelligent predictive software in HR has increased, and many organizations today are rapidly bringing new capabilities into HR to manage the workforce.

Digital HR has proliferated over the past decade, and many companies are now using some form of digitization within the HR function.

Digital HR is a form of process optimization that uses social, mobile, analytics and cloud (SMAC) technologies to make the HR function more efficient, effective and connected. In other words, it is a tectonic shift in the way HR functions.

However, the application of new technologies alone does not make HR digital. As Jeff Mike of Bersin puts it, “Digital HR should also align culture, talent, structures and processes to balance efficiency and innovation, and have a measurable impact on the entire organization as it continually transforms.”

The benefits of digital HR tech can include faster, more accurate and efficient processes, as well as lower HR costs. Here’s a list of the benefits of digital HR:

Advantages of digital HR

Time/Leave Management
Manually managing time/leave can be disastrous for any organization. Digital HR can track relevant information and manage leave requests, monitor remaining leave days, and automate the time-consuming process of time/leave management.

Manage information
Digital HR management simplifies access to all important employee information and facilitates decision-making by making all data instantly accessible and up-to-date. Just as employees want to decide how and when to manage their work emails and workload, they also want to manage their HR data.

On the other hand, access to confidential information can be controlled for employees to ensure the right information is available to the right people at the right time. Managing all company data, information and content in a central, secure location can ensure that it is accessible at all times. Digital workforce management can also provide document management capabilities – the company learns what employees are reading and can improve productivity by minimizing strenuous paperwork, accessing old documents or archiving training manuals or handbooks.

Leveraging data and analytics
As organizations begin to understand the value data analytics can bring to the business, areas such as pre-selection, learning and development, and employee engagement can be measured through digital HR. HR can benefit greatly by learning to make sense of this data. Predictive analytics tools made available to HR can also help improve HR processes and ensure employee satisfaction.

Future-proof recruitment
Frictionless mobile experiences, data-driven pre-screening processes, and personalized AI-powered onboarding programs. These are just a few of the many examples of the benefits of digital HR in recruitment. According to a 2018 study by Undercover Recruiter, AI is expected to replace 16% of HR jobs within the next 10 years.

Improve the employee experience
For Millennials, the line between their professional and personal lives has become blurred. Yes, they check their social media account during office hours, but they also check their work emails on weekends. As a result, they expect to be treated as customers, and they want their employer to provide them with a similar user experience when it comes to the digital work environment. Enterprise social platforms like Slack, Yammer, and Workplace by Facebook allow employees to collaborate closely on group activities and tasks, and keep all users up to date on the latest developments.

Shifting focus to core activities.
Digital HR can automate time-consuming manual processes so you can focus on more productive and important tasks. Any organization with a large number of employees will find it difficult to manage their information on paper. With Digital HR, HR managers can streamline their workflows to improve overall work management and productivity.

Employee Development
Digital HR can help with training, learning and development activities. It can facilitate employee development from training to performance appraisals. Regular appraisals boost employee morale and incentivize them to maintain high work standards – the software stores data on topics discussed, feedback given, and goals set together.

Digital HR solutions

AI-based digital HR solutions for recruitment and selection.
There are some fascinating and imaginative applications of AI in recruitment. AI-powered products and services like Gloat, Beamery, Textio, Paradox, Restless Bandit, Paññã, TextRecruit, Woo, RampUp, Mya Systems, Hiretual, Entelo, ARYA, XOR, and Wade & Wendy dispel the myth that AI is only applicable in areas like automated cars and humanoid robots.

Innovation in HR and recruiting continues to boom, with more and more new AI-powered solutions emerging to address various problems.

Blockchain-based digital HR solutions
Blockchain, which first made waves in the financial industry, has spawned a new business model that relies on technology rather than people as intermediaries. This is exactly what makes Blockchain a valuable tool for the recruitment industry. Most Blockchain applications for recruitment are still in the theoretical stage, but their potential cannot be overlooked.

This can be applied to employee information as well. Personal information – previous addresses, previous employers, previous salary data, certifications, degrees, credentials, social security numbers, visa status and more – can be pre-validated and stored in a secure blockchain application.

Digital HR solutions for L&D
Organizations place a high value on learning and development, but according to a study covering 14 industries in North America and Europe, 78% of training managers are not satisfied with the solutions currently available to them and are in the process of changing their learning technologies.

While AR and VR are often used in entertainment, such as gaming, these technologies will also have a larger, lasting impact on L&D in organizations. A 2018 Capterra survey on key technology trends found that 46% of small and midsize businesses are considering using VR in the next two years.

According to Deloitte, VR is a training method that can address the trade-off between learning and hands-on training in a safe and cost-effective environment. In the near future, companies will embrace the AR-VR training method and use it to better understand their employees.

Artificial intelligence and machine learning will have two major impacts on the way we learn in the coming year: personalization and measuring effectiveness. IBM recently noted that by using AI in the workplace, employees can receive personalized recommendations to facilitate perpetual, curated learning paths and predictive career management.

Automation and ChatBots are being used to update services that have long needed augmentation. Organizations embracing automation need to work closely with L&D to teach employees how to work with these new tools.

As work becomes more creative and objective, L&D’s role will change along with our teams in response to automation. The bots themselves will become vehicles to quickly deliver training to employees, and using a chatbot system to distribute your training will literally bring learning to the fingertips of employees.

Conclusion: digital HR = productivity

By driving transformation and digital HR, it’s clear how much technology can improve employee workflow across the organization and free up valuable time that can then be spent on core activities.

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