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Digital tools help you implement business strategies

Even though process digitization is implemented with a very clear goal – faster, better and more efficient processes, the organization may encounter difficulty in defining clear goals, unless they are well-thought-out.

Digital tools help you implement business strategies

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Digital technologies are significantly changing the way most of the industries work. Thus, the digitization of HRM processes in organizations is no longer a matter of choice, but a matter of time – when you will be able to attend to such transformation.

CEOs are in charge of a universal goal: to reduce costs and boost efficiency and productivity in the company. In a modern, increasingly digitized world, CEOs establish HRM in a way that transparently and measurably guides the company's digital transformation towards achieving this goal.

Leaders face the challenge of prioritizing strategic transformation tasks in the HR department so that they can guide the digitization of HR processes in their organization.

HR managers are nowadays under great pressure to realize business goals of a flexible organization while at the same implementing state-of-the-art digital trends. Organizations that fail to digitize their processes are at risk of experiencing chaos resulting from their flexibility.

Even though process digitization is implemented with a very clear goal – faster, better and more efficient processes, the organization may encounter difficulty in defining clear goals, unless they are well-thought-out.

A systematic approach is called for when introducing a new information system in the organization, or we may end up entering data multiple times across different subsystems, such as HRM, Time and Attendance, and Payroll system.

The goal of digitizing the basic processes in the organization is to reduce the volume of routine tasks, calculations and other labor-intensive work so as to save the time which can in turn be invested into strategic activities. An example of such tasks is also recruitment. A modern IT system enables you to announce job vacancies in a simple manner via internal or public communication channels, and collect and evaluate candidate competencies and skills, whereby all these steps are carried out digitally. Moreover, it also makes sense to digitize candidate selection and notifications. Reaching this point, we can envision ways of using Artificial Intelligence to provide insights into candidate characteristics. Is this the right way? Time will tell.

The above-mentioned processes will be followed by onboarding, keeping in mind that the process of getting acquainted with the job might be a stressful experience for the new hire. This is why it is important to prepare a plan of integrating and mentoring in order to define employee and employer activities. The onboarding process is of key importance, according to the article "Reducing New Employee Turnover Among Emerging Adults" published in SHRM, as one out of five new employees leaves the company in the first 45 days after being hired. From this data we can calculate the costs of turnover – the time invested in the new employee. The cost of mentor's time and the time used for unsuccessful onboarding of the candidate may exceed new hire's salary by multiple times.

Past analyses have shown that controlled process of employee integration and training leverages a substantial reduction of turnover in the onboarding phase.

A modern IT system facilitates the process with simple reminders guiding the mentor and the new hire through the first steps of integrating in the new environment.

The main causes of new employee turnover are:

  • new employee's conviction that the work is not suitable for them (28 %),
  • discrepancy between the work presented at the interview and the true work tasks (26 %),
  • disrespect for the supervisor (23 %) and
  • other factors (23 %).

                   

                     

These causes are manageable as employee turnover can be reduced by providing a detailed job description, conducting effective job interviews, and efficient onboarding. This way, we can avoid the new employees feeling misled or regretting their career decision.

Having completed the onboarding, the true process gets started: the acquisition of new skills and competencies.

The supervisor and HRM department face the challenge of motivating the new employee to further their knowledge and skills, and consequently contribute added value to the existing team. New skills and knowledge boost employee and company adaptability and flexibility.

According to Linkedin, there are 50,000 or even more professional skills (source: https://learning.linkedin.com/blog/top-skills/the-skills-companies-need-most-in-2019--and-how-to-learn-them). Of course, not every skill on the list can be managed, which is why a systematic and step-by-step approach is required, e.g. by starting with a skill catalog harmonized with organization's strategic orientation. Such catalog facilitates the preparation and management of a learning management plan, candidate application management and approval, assessment of training by means of surveys, and detailed statistics about the implementation and costs. Moreover, it leverages the assessment of learning process efficiency.

An optimal learning management plan should be a result of the employee management process as a whole – the goal is to fill in the gaps with regard to Competency Assessment, Management by Objectives and Succession Planning.

Client statement:

“At Mercator, we are aware of the importance of business process digitization. The fewer the forms to fill out and clicks to make, the more time our managers can dedicate to their colleagues, and the more time is left to all of us to share with our customers. We apply Četrta pot’s products in Time and Attendance management, and we find the company a good partner in achieving our management goals.” says Mirjam Trelc Ocepek, Head of Information Technology and Telecommunications for Poslovni sistem Mercator, d.d., describing the importance of business process digitization.

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Author

Urban Rozina

Urban Rozina, Management Specialist, CEO, Četrta pot, d.o.o., Kranj, and expert in IT solutions and tools for the digitization of HRM, Time and Attendance, and Payroll systems


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