Key HR Solutions For Organisations Today
11 Jan 2022
Gone are the days where human resources (HR) is an administrative business function. Today, HR is evolving from a paper-based process to a technology-driven function. Almost all firms today deliver HR services through technology or web-based applications. Given that most organisations would have automated basic HR tasks, simple automation of HR processes can no longer provide organisations with a competitive edge. Instead, organisations need to focus on capitalising technology to transform their HR practices and position HR as a strategic business partner to employees and the organisation.
There are multiple reasons why organisations need to drive digital transformation within the HR department. Cost savings, time efficiencies, streamlined processes, real-time data tracking, and analytics are some of the key drivers of HR digital transformation. HR technology solutions can broadly be classified into the following areas:
- Core HR (an umbrella term to describe the basic HR function
- Time and workforce management
- Compensation management
- Benefits management
- Talent management
- Learning and development management
- Recruitment management
While they are all no doubt critical to the overall HR transformation, organisations need to prioritise their HR technology adoption. Which sub-functions consume the most time and costs? Are there any administrative or manual processes that can be streamlined or automated immediately? Which HR process will deliver the maximum productivity levels post transformation? These questions will help to guide HR leaders in prioritising workflows and processes that need to be transformed.
That being said, HR leaders should have in place strong HR foundations before moving to take on a strategic HR agenda. According to PwC’s HR Technology Survey 2020, 72% of respondents report that they will have adopted Core HR systems in 2020. Core HR, an umbrella term to describe the basic HR function, includes the basic data captured about employees as well as the software used to manage basic HR processes. Core HR is an imperative for organisations as it serves as a central platform where HR can store and access employees’ details, payroll records and historical information. Core HR also automates the administrative aspect of HR, eliminating the need for shelves of p-files and physical payroll reports. Once organisations have their core HR functions in place, HR leaders can then look at streamlining frequently used HR functions such as payroll, and time and leave management.
Finally, organisations who have invested in HR information software should strive to be in a position to generate reliable data. Capitalising on HR analytics will help organisations to make better decisions in terms of quality of hire, skills development, and people retention. HR analytics allows business leaders to discover evolving employee trends and insights that will facilitate decision-making. Generating statistics such as employee turnover rate, absenteeism rate, cost-per-hire, etc, provides a visual overview of business and HR leaders to monitor and track changes over the past few months or even years. HR analytics today moves beyond descriptive to predictive HR analytics, leveraging historical data to forecast future occurrences. This powerful ability allows business and HR leaders to take existing actions today to prevent and/or improve the future.
As HR software becomes a norm today, it brings about a new set of challenges. According to Information Services Group’s 2021 Survey on Industry Trends in HR Technology and Service Delivery, the top 3 factors that affect a business leader’s purchasing decision of HR software are data security, ease of use and ease of maintenance. As HR technology becomes increasingly complex today, HR leaders need to also invest in robust data security protocols and practices to protect this sensitive and highly valuable employee and payroll data.