What can we expect from HR management digitization?
Globalization and web technology advancement are stepping up the transformation of business environments into dynamic processes that often take place all over the world and present themselves in a variety of types and forms of work.
Transformation dynamics spans across different stages of management style. The first management style stage, the so-called Management by Hope, has become a thing of the past in most companies. A great improvement, The Management by Analytics - Objectives, enables you to make decisions on the basis of past results. While this management style yields better results compared to the previous one, it nevertheless turns out to be a poor strategy when facing the onset of economic fluctuations. This is why Competency-Based Management is gaining recognition, building on employee skills and competencies, and placing competent human resources in the forefront.
The management of organizations is becoming increasingly more complex and difficult to handle (featuring for instance virtual teams and remote work). It seems that the AI (Artificial Intelligence) trend will also take a strong hold in assisting management and decision-making processes in companies. But even when taking such tendencies into account, the company's competitive advantage will draw from the fundamentals shaped by the competencies and skills of its employees.
Administrative work, once considered a significant part of the Human Resource Management process, has been shifted towards strategic planning and employee development, driven by digitization.
The first stage of such HRM process transformation is, as we can surely understand, the digitization of personnel files and simple processes such as Time and Attendance registration, absence planning, travel order records and short-term planning of recruitment. The digitization of the said processes simplifies and resolves the issue of how to eliminate physical and time restrictions. The bulk of the mentioned processes are shifted to the origin, leaving it to the employees for instance to enter travel order details and be responsible for their part of the process. The same principle is applied to other simple processes.
The second stage of transformation aspires to simplify administrative procedures in alignment with laws and regulations adopted by the government (mostly related to a variety of required reports). As this aspect brings no added value to the company, it makes sense to use software that is seamlessly integrated with the local environment and is able to cover such tasks. Special-purpose modules support easy creation of required reports based on previously collected information about an employee, job or company. As a result, you will not waste your valuable time for tedious administration, and instead dedicate your energy to strategic plans and employee development.
Having digitized the first and second stages of HRM processes, the strategic function of HR management will be targeted next. The transformation will include the implementation of the Annual Performance Appraisal Interview, the preparation of learning and training catalog, and monitoring of completed training courses, as well as the monitoring of employee skills and competencies – to summarize: the management of people.
An important requirement for modern IT solutions designed to digitize HRM processes is to comply with standards that apply to IT security.
The HRM department by nature maintains and collects personal data, as well as special categories of personal data, which is why it is a must for a modern IT-solution to be GDPR compliant.
The Role and Importance of HRM Department
The role and importance of the Human Resource Management Department is under constant change. Its importance, complexity and requirements are expanding, as it has a central responsibility in HRM processes.
It responsibly covers activities such as finding new competent employees, monitoring employee development, and promotion of personal and professional growth.
These activities are entrusted to the HRM department on top of other responsibilities related to management and maintenance of data and documents, as every organization is required to do. Let us not forget to point out that a large number of reports normally need to be prepared for internal/external purposes.
Handling the HRM work and tasks with the support of a modern IT-solution
In order for the HRM department to work efficiently, an effective tool is indispensable. A modern IT solution supports and assists HRM in successful and good performance of its tasks.
By digitizing the HRM processes, the HRM professionals will cease to be only simple task performers who manage data written on paper or stored in Excel files. They will no longer need to write down important dates and deadlines in calendars and agendas. Moreover, their field of work will focus beyond merely making sure that employees register their Time and Attendance when arriving at work, enter their travel order details, have a valid medical exam certificate, have an appointment with a doctor when it is due in order to ensure compliance, keep track of who is due to receive a jubilee reward (and which anniversary it is), and what is the number of people with disability above quota, checking that all employees receive appropriate mentorship bonuses, making sure that new employee onboarding programs are ready, appraisal grades are entered and promotion candidates are identified – and whatever else needs to be done. HRM professionals are meant to primarily dedicate their time to people, not to trivial tasks.
A modern IT-solution makes it unnecessary for HRM professionals to perform tasks such as entering the data in a number of Excel files and sending payroll data to another department via e-mail (possibly to be reentered manually into another software). A modern IT-solution enables you to enter the same data at a single spot and only once.
A modern IT-solution enables you to prepare sets of data that are needed for internal processes and analysis, and also the data that need to be sent to governmental institutions.
IT-solution will also support you in activities to build and maintain the "soft skills". This includes competency assessment, education and training, Management by Objectives, Annual Performance Appraisal Interview, Work Performance Assessment, promotion in pay grades or title, finding and recognizing talents, and succession management. All this is the responsibility of the HRM department.
A modern IT solution enables the HRM department to reassign the time needed to maintain Time and Attendance, as well as payroll data, to the activities dedicated to employees.
Figure – A modern IT-solution featuring functionalities that HRM departments needs to fulfill their responsibilities.
A modern IT-solution makes sure that you are notified of important deadlines. By using appropriate functionalities and settings, your responsibilities and tasks will be distributed across managers and employees. HRM department only makes sure that such tasks are executed in a timely manner.
HRM is also the source of payroll data. In certain segments, the data collected also affect the compensation amount (promotions, rewards, assessment from annual performance appraisal interview, and more). The application needs to be configured according to required calculations, and it will automatically provide correct and appropriate data for payroll calculation.
A variety of reports are required from the HRM department. Based on high-quality reports, it is easier for the management to make better decisions in a more efficient way. Moreover, such IT solution also enables you to prepare a variety of reports and print documents (e.g. agreements and other documents that an employer needs to hand to the employee). The need for HRM to invest long hours in the preparation of reports for the management or an external institution, will also be eliminated. A modern and advanced solution namely enables you to prepare documents that are customized to your needs. You will be able to generate a specific report by a single click.
The role and importance of the HRM Department are prominent. HRM is the heart of any company. In order for the HRM department to work quickly and well, it needs a modern IT solution enabling the user to enter and maintain the data in a simple way.
The digitization of the HRM department supports HRM functions and brings added value also with regard to security and personal data protection.
The time that was once wasted by the HRM department for laborious administrative tasks can now be used for the activities that are key in working with the employees.