In this digital era, no business can remain isolated from the use and effects of technology. Everywhere from finance to marketing operations, the use, impact, and result of technology are ubiquitously visible. Human Resources Management is one of the sectors which is in dire need of automation, to shift the employees and working professionals from mundane and repetitive tasks to more strategic ones. Automation and tech implementation in the HR department of organisations can benefit both employers and employees significantly.

Evolution of technology in HR

In the late 90’s and early 2000s, the function of the HR department was to track employee records and schedule recruitment interviews. This role has significantly changed since then and is further evolving now, aided by technology.

From being a support function to becoming a strategic one, companies have realised that Human Resource Management (HRM) is one of the primary business functions, and they need to win in the workplace first in order to be able to compete in this highly competitive environment.

Organisations are trying to leverage state-of-the-art technologies in the quest to attract, retain, and grow great talent, and become an employer of choice. With the advent of HR tech companies offering cutting-edge technology solutions for HRM strategy and operations, forward-looking organisations are automating their key HR tasks and using intelligent automation to store and access employee data and information seamlessly. This is ensuring easier access, analysis, and smarter data-driven decision-making.

Artificial Intelligence (AI), Employee Self-Service (ESS), Customised Applicant Tracking Systems (ATS), Learning Management Systems (LMS) etc., are some of the solutions and techniques being used by HRs in companies that are winning the talent war. The use of such technology is helping the organizations provide a conducive work environment and multiple growth opportunities to people based on their skill sets and aspirations, communicate and engage with them efficiently, and streamline their payroll, attendance, performance, and other related processes to ensure they feel cared for.

This increased use of technology is massively benefiting employees as well, as these tools can provide:

● convenience through self-help tools

● transparency through proper task allocation

● fairness through data-driven achievement and performance tracking and benchmarking

● flexibility to work from anywhere, anytime

● improvement through continuous feedback and coaching

How Different Technologies Are Being Used

Post the introduction of tech in HR, HR professionals are able to work towards improving the overall productivity and engagement of the workforce. They can keep track of important but traditionally neglected aspects such as mental health, and the overall holistic growth of employees.

Artificial Intelligence (AI): AI has become one of the most used business terms nowadays. Among other things, it is used by businesses to infer intelligent insights from data using high-level computing techniques and algorithms. HR applications are using AI now to help raise employee productivity by offering detailed performance insights. AI is being used in talent acquisition areas such as reviewing resumes to automatically match candidate skills with those required for a job, suggesting interview questions and analyzing candidates’ answers and what not. AI is significantly helping in the onboarding process of new hires along with their training and development as well. AI chatbots are handling regular queries of various employees and giving suitable solutions to their problems. With repetitive administrative tasks being done through the use of AI software solutions, HR personnel, employees, and management alike, are being able to do more with their time. Employee Self Service (ESS): This is an approach where the company uses technology through which employees can upload and maintain their own HR data. According to reports, 90 per cent of the surveyed organisations were in favour of using ESS processes. Many were already using the ESS system while others were planning to adopt the approach soon. In an organisation that implements the ESS application, many work related data points are maintained by employees directly. A proper ESS system helps employees in better decision making and increases their self-reliance. An employee using a well-designed ESS can access their payslips online, update their personal information, and perform other important tasks like adding their goals, hiring requirements, maintaining their leave balances, attendance, reimbursements. This approach is beneficial, both for HR personnel and employees in the form of cost savings and convenience.

E-recruitment: Another new use of technology in HRM functions is the automation of the recruitment process. This has drastically increased convenience and fairness for the applicants, in addition to saving a lot of time for the hiring managers and the HR teams. Applicants sitting at their homes can seek and apply to jobs anywhere in the world and give the interviews online. This method is effective, significantly widens the talent pool for organizations and the numbers of opportunities for talented individuals, and reduces recruitment costs significantly for the organizations. Some of these technologies are used together to make automation even more powerful. For example, E-recruitment combined with ESS and AI can enable candidates to upload their resumes for different jobs which they are suited to, according to their skills, and the technology can automatically provide them with data concerning their chances of getting hired.

Learning Management System (LMS): E-learning has grown exponentially in the last few years, and knowledge is now available to anyone who wants to learn and grow. LMS can help organizations in reducing training costs significantly and provide better control and management of the training and development needs of their employees. From the employee's point of view, this gives them the much-needed visibility into what they need to get trained on, in order to take their career to the next level. Work becomes fun for them as well, when they are not static and are continuously learning new and relevant skills in a fast changing world. In addition, employees can learn at their own convenience, leading to better control and learning outcomes.

Performance Management System (PMS): Organizations are continuously searching for ways to measure and evaluate employee performance better. PMS helps track the performance of employees and measure it in quantifiable terms and ensures everyone is effectively working towards the business's strategic goals. By offering goal tracking, 360-degree performance reviews, and feedback mechanisms with the use of PMS, organizations have experienced a major shift from biased and ineffective performance reviews to accurate and fair appraisals, ultimately leading to a better meritocratic system. According to Deloitte’s Global HR Trends report, 70 per cent of organisations have started to reinvent performance management processes. PMS also helps identify the need for certain learning and development modules that are required by employees to excel in their areas of expertise.

These are some of the most important ways in which technology is influencing our work-life and resulting in a better growth trajectory for employees.

Conclusion

Human Resource Information Systems (HRIS) have dramatically altered how HR services are performed in organizations. With the adoption of these technological advancements, not only are the employees happier and more productive at work, but they are also growing faster as professionals. This is beneficial for the entire economy. Employees working in an organisation that uses HRIS know how to add value to the business and tends to be more self-reliant, productive, motivated, and efficient than employees working in organizations where these new technology solutions are not being used.

The author is Co-Founder and CEO, Qandle

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.