3 min read

Digital technologies in HR management.

Nowadays, HR is undergoing a breakthrough process when technologies are playing an increasing role in decision making. The main advantage of using technologies in HR is the ability to measure and control the impact of HR on business.

Digital HR is an approach to managing human capital as an asset, built on the principles of measurability, data integration, real-time analysis, and technological flexibility. Let’s take a closer look at modern tools and workforce management methods, from the labor market’s digital screening to personnel development.

Digital technologies in HR management

Meaning of digitalization for HR.

The digitalization of business processes has long ago turned from a vague perspective into an integral part of organizations’ operational activities of various forms of ownership. Many medium and large companies have managed to automate most of the operations previously performed manually, and attaching an employee to the office workstation is no longer mandatory.

Open space and remote work technologies, including freelancing and outsourcing, are widely used. The readiness of organizations to reconstruct business processes taking into account the latest IT trends and, first of all, digitalization is currently an important condition for companies’ competitiveness. Sometimes it is also necessary for their survival in the market.

Digital technologies have imparted special features absolutely to ALL THE AREAS of workforce management, such as selection and recruitment of employees, adaptation, training and development, assessment, organization of work, motivation, and remuneration.

Many authors write that digitalization does not change only the technologies but also changes our communication, socialization, and interaction, which implies huge changes for any personnel manager.

“Digitalization not only changes how we communicate and interact as humans but in turn also revolutionizes how organizations operate, which implies big changes for any human resources manager.”

J. Larkin,  2017 HR Digital Disruption

Digitalization requires the adaptation and development of new knowledge and new operating models and methods. Automation of many HR processes, increasing speed of operations,  and increasing flexibility are upsides of digitization. Its downsides consist of shortage of qualified employees handling workforce management and a large volume of the information accumulated, that is calling for processing.

hr team

<< Digital HR is a process optimization in which social, mobile, analytics, and cloud technologies are leveraged to make HR more efficient, effective, and connected. >>

How does the digitalization of HR look like?

Focus on strategic workforce planning through automation

Digital technologies also enable automation of many tasks in workforce management. Technology helps to increase labor productivity and cut back costs.. By applying data-driven tools (find the best-practice examples here) you can create accurate headcount forecasts, optimize your workforce structure and drive workforce transformation. The algorithms can simulate different workforce scenarios, would it be the economic crisis, Brexit, or COVID-19*.

*COVID-19: Impacts on the industries & labor market

*COVID-19: Impacts on the labor market

Automation in recruiting and talent development

The use of digital technology provides many benefits, such as freeing HR employees from routine activities, optimizing the process of searching for candidates and automating the process.

Moreover (and what is highly demanded nowadays), it enables to analyze large amounts of data in a short time, use other sources of data about candidates, and make HR the Business partner and coordinator of productivity growth.

  1. Recruiting. There are different approaches and automation tools that are already widely used. : recruiter chatbots, virtual recruiters, digitized interviews, intelligent screening software, skill matching software. Robots replace a human to carry out the functions that are repeatable and time-consuming: automatic selection of resume depending on specific parameters, calling up candidates, communicating with candidates in chat, conducting a video interview.
  2. Learning & Development. Digital technologies are used to train employees . These fast learning technologies,  enable to create individual learning journeys covering the training needs of each employee.

Skill gaps closing

This fact shows a problem with a shortage of qualified human resources versed in workforce management and a lack of skilled workforce possessed of required digital competencies. Digitalization of  workforce management functions involves a command of competencies in the digital economy, modern digital tools for automation of HR-processes in a company.

Subject to change in this area is to be professionals and executives of all the levels: HR-Directors, HR-Consultants, HR Business Partners, HR-Analysts, recruiters, employees specializing in corporate training, compensations and benefits, HR-branding, as well as division heads and business owners.

digitalization in hr

Digital programs of workforce management.

Currently existing programs and apps by their functionality can be divided into four main groups:

  1. Tools for the HR department processes: payroll, time, and personal records.
  2. Tools for internal candidates evaluation and selection for open positions by skills and unique qualities. E.g., skill matching software. It is designed to automate personnel assessment processes at the enterprise based on the model of best-fit match: you can staff the vacancies with the employees who are the most suitable for the position.
  3. Tools for the recruitment department: storage of resumes, vacancies, employers, search, and publication on the Internet.
  4. Complex programs that cover the first and second groups (and partly the third group). Such programs cover a full cycle system that automates most of the routine operations in recruitment and internal management.

Digital tools in workforce management.

  1. HR modules of integrated software packages (ERP level).
    Strategic business management systems (BPM)

To develop a functional HR strategy, it is necessary to conduct a workforce audit: to determine which areas of HR work need to be changed first of all, what are the goals and objectives of digital-tools implementation, what the company wants to get as a result, what business goals will be accompanied by the new tool. Then it is necessary to describe what precisely a set of channels and technologies to implement.

  1. Digital communication tools

Use of social networks and messengers – from the simplest, for example, WhatsАpp, to specialized solutions for teamwork, for instance, MicrosoftTeams or Bitrix24.

  1. Digital CV screening

Reduction of routine manual operations, especially in the first stages of recruitment, by automating resumes’ pre-screening. It allows the recruiter to do what brings additional value to the company, namely, examining, evaluating candidates, and negotiations. The service of CV pre-screening based on machine learning has been offered by HRForecast since 2014.

  1. Employee up- and reskilling based on Big Data and AI

There are specific difficulties in assessing the development of employees who always find themselves in new roles, even if the position’s name is preserved. A necessary tool for evaluating candidates is to use feedback, polls, and trajectory corrections to keep regular evaluations and build all other processes.

It happens  often that employees’ skills are not “visible” to the top managers or supervisors. Sometimes employees list only their primary skills that they apply in their current jobs and skip their other abilities as they think this information is irrelevant for the employer. Another reason may be lacking analysis of the stored employee data.

Fortunately, modern digital approaches enable us to make all the skills in your company transparent. Smart apps help both the CEOs and the employees discover and develop employees’ skills to identify the skill gaps and faster skill transformation.

digital hr apps

So, what’s the line on this?

Digitalization is indeed the most crucial issue of our times. Previous workforce management system and the conventional methods are not sufficient and require improvement.

Digital technologies rapidly transform both business practice and society, and they are an integral part of the future innovative economy.

Digitalization can boost organizations’ productivity and become one of the critical avenues and paths followed by executives and governments.

<< Development trends for growth in the area of the Internet of things, analysis of the Big Data, cloud computations, and creation of AI impact all the types of activities, specifically – technology in the sphere of human resources.

The digital transformation of business can ensure that labor productivity and competitiveness of the organization grow and improve. >>

More insights.

As leaders in People Analytics, we support the working world with smart solutions for complex issues across the globe. We are here to answer all your questions on how your business can benefit from Labor Market Analytics, Market IntelligenceTalent availability in the context of Digitalization.

To foster the successful employee development process, HRForecast offers you a skill platform smartPeople, that enables upskilling the workforce and revolutionizing talent mobility. It helps infer and identify skills and skill gaps for development.

Like the end-to-end career development platform, smartPeople assess the employees’ skills, match them to jobs, projects, tasks, or mentors, and facilitates the creation of personalized career paths. The platform links the disciplines of AI-based recruiting, Big Data-predefined succession management, and L&D together.

Book a demo or contact our business development team and help your people with their career growth!

smartPeople L&D

smartPeople enables talent mobility

Close the skill gaps. Identify people in your company with the best fit for a vacancy or a project task. Empower internal talent mobility, open new possibilities for your employees, and motivate them to learn.

Let´s start the rocket!