Digital innovations bring many opportunities, which unfortunately often go untapped. With the help of digital platforms, employees and candidates can access information easily, monotonous administrative processes are facilitated and data is stored in a safe environment without unnecessarily using up valuable storage space.
With the digitalisation of HR procedures, you can now place greater emphasis on monitoring employees, using innovative methods of personnel analysis. Research shows that HR professionals are very satisfied with the digitization of personnel selection and management, as it improves work efficiency and saves them time and resources. If you follow the steps and consider the goal, culture and needs of the company, at the end of the process you will achieve a new and improved organization, ready for technological challenges.
In the Slovenian market, most companies are ill-prepared for digitalisation. Jana Petkovšek Štakul predicts that both smaller and larger companies with an unadjusted business model will fail in the future. On the contrary, companies with a digital mentality will succeed - those that know how to adapt to the ever-changing nature of the 21st century. As HR work is very complex and greatly affects the success of the company, a suitable technological tool for human resources is essential for their growth.
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Human resource technology is becoming more and more established, but many HR professionals are unaware of its importance and benefits. HR technologies include analytical tools that enable secure data storage and strategic decision making. Staffing technological automation reduces time and money costs, alongside the possibility of human error.
The time for digitalization is now
Many associate digitalization with the »new age« generations. The European Commission predicts that Generation Y or »millennials« will account for as much as 75% of the workforce by 2030. The first problem with such change is intergenerational differentiation, which often includes disagreements about the use of technology.
TIP: Make sure the digital world becomes a stepping stone to the goal and not a hindrance to achieving the vision of a company.
An important aspect of the digitally literate workforce is also approaching the modern way of thinking of employees and improving their user experience. As many as 95% of young people and 77% of the total population in the European Union use the Internet on a daily basis. Johnson and Gueutal report that the level of online presence has a strong impact on job seekers, who see technologically less advanced companies as less attractive.
Uses of digitalization of staffing
In the Paychex study, 85% of HR workers reported an improved contribution to the company due to digitalization. Moreover, 80% of technology participants recognized the opportunity to improve the productivity of their employees in several areas. These results clearly show the importance of digitalization of staffing.
Digital platforms enable accessibility and responsiveness
With the digital platform, relevant information about your employees is just a click away - anytime and anywhere. By storing information about the organization in one place, you also facilitate accessibility for your employees and potential candidates.
Technology relieves and accelerates staffing
HR departments most often have an administrative role. According to a survey by M. Božič, as many as 43% of Slovenian companies have such a strategy. Their work thus mostly includes entering absences, vacations, business trips, registration of working hours, calculation of salaries, etc. By doing so, they neglect the management of employee motivation, satisfaction and knowledge.
TIP: Digitize your processes so you can focus your energy on other key factors to optimize employee performance.
Data is stored securely and easily
Processing physical documents requires a lot of monotonous manual work and storage space. With technological processing, the manipulation of structured or semi-structured data systems is automated, and at the same time the possibility of disclosing private information is reduced. Digital documents are therefore easier to access and more efficient to store.
New ways to use personnel analysis
PwC reports that as many as 77% of directors value soft skills highly, but do not know how to use them. The human resources profession has developed many ways of obtaining information about employees, which are often time-consuming and subjective. Technological advances bring new possibilities for data analysis, while digital platforms make it possible to explore different aspects of employees.
Digitization of frame selection
Online recruitment can reduce costs by more than 95% and the number of interview rounds can be reduced by 25%. Therefore, Johnson and Gueutal claim that more than 75% of companies are expected to use technology to hire employees.
TIP: With digital recruitment, you can access both active and passive job seekers.
Digitization of personnel management
Tucker and Mullich proved that by implementing technologically supported employee education, a company can save up to 40-50% of funds. With the help of videoconferencing or videos, mentors can easily guide employees. In order to do that, some companies even use interactive videos or video games. This also gives your employees the freedom to learn, as they can view the content at any time and adjust it to their own pace of learning.
Work from home
The covid-19 pandemic has brought an important question for employees: "Can I work from home?" Lund and others predict that 50% of the workforce will be able to work entirely from home after the pandemic and 20 % of all employees will bi able to work 3-4 times a week. The sectors that have the most potential to work from home are: financial, insurance, business, information and management. Due to the increasing quantity of work from home, staffing is becoming more difficult to manage and will soon become very difficult without technological support.
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How to digitize staffing?
Digitization does not happen overnight. You need to be aware that such a process takes some time and brings a lot of changes to your business. In the long run and with careful implementation, the result will be a renewed culture and health of the company. There are 4 steps to follow for a successful transition to digital staffing:
1. Choosing the right platform
Most HR professionals do not have sufficient technological knowledge to be able to design their own digital staffing system, so they often turn to external contractors. You can choose integrated systems or multiple providers that provide a variety of HR services. The decision must take into account many different factors and characteristics of the company. The most appropriate option combines everything into a platform for a comprehensive overview, which allows personalization according to the needs of the company. This ensures time, money and organizational simplicity, while making sure that all aspects of the company are taken into account.
2. Knowledge of company culture
Many companies want to keep up with the digitalization, so they quickly implement various technological processes. However, they rarely take into account the needs, history and goals of the company - its culture. Only with an in-depth analysis of all employees can you determine for whom and why you are implementing technological change. With such an approach, you have a greater chance of success.
3. Setting a suitable goal
Data acquisition and implementation of digital technologies should not be a goal in itself. Identify those areas that need digital support the most. Always keep your goal in mind - what system you want to use and which areas you want to focus on. This way, you will ensure that technological changes bring visible results.
4. Adaptation to the needs
A successful human resources department is one that is constantly evolving and adapting. Test, complement and adapt the platforms to the needs of your employees. If the platform does not suit you, there is no reason to worry. Innovations that can suit you better appear on the technology market every day.
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Božič, M. (2004). Funkcija kadrovskih služb v slovenskih podjetjih [Thesis]. University of Ljubljana, Faculty of Social Sciences. Retrieved from http://dk.fdv.uni-lj.si/dela/Bozic-Maja.PDF
Workforce generational changes (n. d.). European Commission. Retrieved from https://knowledge4policy.ec.europa.eu/foresight/topic/changing-nature-work/hyper-connected-tech-savvy-millennials-workforce-rises-2030_en
Johnson, R. D. and Gueutal, H. G. (2017). Transforming HR through technology: The use of e-HR and HRIS in organizations. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/documents/hr-technology.pdf
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Lund, S., Madgavkar, A., Manyika, J. and Smit, S. (2020). What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. McKinsey and Company. Retrieved from https://www.mckinsey.com/featured-insights/future-of-work/whats-next-for-remote-work-an-analysis-of-2000-tasks-800-jobs-and-nine-countries
Technology trends in HR for 2021 (23.10.2020). Paychex. Retrieved from https://www.paychex.com/articles/hcm/technology-trends-in-hr
Petkovšek, Š., J. (2016). Večina slovenskih podjetij je na digitalizacijo slabo pripravljena. Delo. Retrieved from https://www.dnevnik.si/1042755708
PwC’s HR technology survey (2020). PwC. Retrieved from https://www.pwc.com/us/en/services/consulting/workforce-of-the-future/library/hr-tech-survey.html
Seliškar, V. (2017). Ne pozabite na zaposlene. Monitor. Retrieved from https://www.monitor.si/clanek/ne-pozabite-na-zaposlene/180727/
Swart, M. (n. d.). The digitalization of HR. Retrieved from https://www.sumtotalsystems.com/_downloads/whitepapers/STS-WP-Digitalization-of-HR.pdf