Technology has evolved over the years, driving efficiency, agility and optimisation. There is no doubt that technology has significantly improved, even enhanced, numerous workflows and daily lives. From automation of administrative tasks to predicting technology and artificial intelligence, technology is deeply ingrained in our routine tasks that we are seemingly handicapped without it.
Nonetheless, technology has transformed the way we execute business operations today. Even administrative business functions, such as HR, are not privy to the benefits of technology. HR technology today goes beyond merely automating payroll calculations and directly disbursing money into employees’ accounts. HR technology today is a central data repository that contains employees’ information and details. It is a digital HR platform that utilises employee data to make insightful analysis and predictions about employees’ trends such as turnover rates, engagement levels and manpower needs in the next 5 to 10 years.
In the 21st century, HR technology is no longer optional. In fact, it is a crucial tool in contributing to the success of an organisation. Numerous research has shown that organisations that use HR software perform better than those who do not. HR professionals who are unfamiliar with HR software tend to lag behind their tech-savvy peers. Today, HR technology is more complete, dynamic and better integrated than before.
Here are some ways in which technology is revolutionising the HR business function today:
1. STRENGTHENING HR ANALYSES
Artificial intelligence (AI) has overhaul administrative HR tasks today, automating repetitive workflows and freeing up more time for HR teams to focus on strategic and high-impact tasks. With the proliferation of AI-driven HR tools, this allows for in-depth analysis of employee data to generate actionable insights and even make manpower predictions. HR professionals and business leaders now have access to insightful employee data and visualization — all of which helps to facilitate data-driven human capital strategy planning.
2. REAL-TIME MONITORING OF EMPLOYEES’ PERFORMANCE AND HEALTH
The workforce today, which is largely made up of Millennials, expect the performance management process to be real-time, continuous, and integrated with other existing HR functions. Gone are the days where performance management involves an employer-employee conversation that happens biannually. HR technology today drives an ongoing cycle of expectation setting and feedback by providing a platform for employees to input their work history and career aspirations — similar to that of a professional social media platform such as LinkedIn. Employee welfare is rapidly becoming an integral part of the organisation’s overall productivity levels. And companies today recognise the importance of building a holistic employee value proposition that encompassses physical, mental and emotional well-being in addition to competitive pay.
3. IMPROVE EMPLOYEE ENGAGEMENT
HR technology also helps to modernise the employee engagement process today. In addition to real-time monitoring of employees’ performance and health, HR technology leverages on the data gathered through ongoing performance management to customise learning paths, highlight learning gaps to managers and business leaders for mitigation and dissect what motivates each individual employee throughout their employee journey. This allows HR and business leaders to understand the inherent factors that motivate and engage employees, allowing them to tailor the work environment to drive optimal performance from employees.
4. REDUCES DATA ERRORS
Some of us may be familiar with the old-school method of processing payroll — checking of employees’ punch cards, manually entering the data into the payroll system, and tracking relevant allowances and deductions. This method is not only time-consuming but highly prone to data entry errors. HR technology not only helps to automate these administrative tasks, it minimises the likelihood of data entry and calculation errors while integrating key HR and payroll information across systems to reduce duplicate and incorrect entries.
5. DRIVES OPERATIONAL EFFICIENCY
An infographic by totaljobs revealed that the tasks that HR spend most of their time executing are meeting with senior staff and business partners, employee engagement and relations, and meeting with employees. This leaves little time for HR to deliver their own strategic initiatives. The beauty about HR technology is that it acts as a central data repository for all HR functions and data. Employees can easily submit their HR requests, look for relevant HR information and view their HR details on this central platform without having to go through their HR team all the time.
6. FACILITATES DATA-DRIVEN DECISION-MAKING
Employee records is a database that is rich with insights and trends. The question is, are organisations maximising the potential of this data? Organisations today recognise the importance of people analytics, with some even creating a new role known as People Analytics Manager to oversee the detailed analysis of employee data. With the right analysis, employee records can provide valuable insights on people movement, such as turnover rates, hiring trends, absenteeism, and even manpower forecasting to determine the optimal span of control.
HR technology is no doubt a powerful tool in revolutionising HR functions today. What is clear about HR technology is that it adapts quickly to changes in the dynamic business world. In fact, HR technology will help to drive business transformation, while adapting to the new business functions. HR technology is thriving like never before in our new digital world. If these tools are used appropriately and efficiently, they can help to accelerate business growth, drive productivity levels and boost the overall employee value proposition within the organisation at rapid speed.
