Rapid developments in technology have impacted human resource practices in more ways than we can imagine. Bersin by Deloitte has stated that companies with newly upgraded HR systems see cost savings of 22% per employee.
Businesses are making significant investments on cloud-based HR solutions than on-premises HR software. A Gartner report shows that cloud-based HR software will be 50% or more of total HR technology spending by the end of 2017. In addition, companies that have transformed their manual HR processes to well-structured online human resource management have seen higher annual revenue growth as compared to those who don’t.
HR technology and automation not only boosts employee productivity, engagement, communication and collaboration, but also results in better business outcomes and improved organizational effectiveness by creating smart offices.
The need for a Smart HR Technology becomes crucial when –
1.The most fundamental responsibilities of an HR department fall short. For instance, slow onboarding of new hires, inaccurate decision making during appraisals, inconsistency in payroll management and more.
2.Manually managed paper records take too much time of the HR staff. As a result, enough time is not devoted to core HR activities.
3.Operational costs of maintaining human resource department takes a toll on the company’s overall budget.
4.An organization expands geographically. Existing manual paper-based processes will not be able to meet the growing needs of the organization.
Inefficient, manual HR processes keep human resource staff engaged with short term urgent tasks, rather than long-term important employee engagement goals.
On contrary, smart HRM tools enable managers, employees, HR and the leadership to effectively manage and prioritize company processes for better business results.
Advanced HR tools have simplified human resource management process. Smart HR technology enables effective decision making by using analytics and data insights.
HR tech Improves Employee Productivity
According to Brandon Hall, 54% of HR professionals want to replace their existing HR software to acquire advanced functionality and capabilities. Smart HR apps and tools enable employees to achieve more in given time by increasing their work efficiency. Advanced tools help human resources to get their job done faster and reduce the risk of connectivity issues. Appraisals, training programs, succession plans and other processes can be easily managed by using automated tools.
These reliable HR tools also maintain a centralized repository of employee data – making it easily accessible to managers, HR, and employees and cutting down HR queries.
More than 41 percent of increased employee productivity is due to the advanced HR technology. For instance, creating a feedback system enables managers to continuously provide performance feedback to their team members. Meaningful feedback improves performance of individuals while motivating them to do better each day.
Make Data-Driven Decisions
Human resource professionals manage employee appraisals, training schedules, workforce planning, create engagement activities, and a lot more which involve time-consuming and never ending paperwork. The good news is advanced HR technology has broken this monotony!
Highly functional HR platforms and integrated tools successfully digitize information needed by HR to manage processes. Availability of Big Data and Analytics makes it possible for human resource to transform the way companies conduct business and understand its employees.
Big Data provides data-driven insights to HR about the current workforce and identifying emerging trends that businesses can adapt.
For instance, HR can identify employees who are struggling to improve performance and who can benefit more when given additional training and development opportunities.
Technology has influenced human lifestyle in all walks of life – education, business, social, healthcare and more. Traditional marketing has transformed to digital marketing, face-to-face sale meetings are now conducted through web conferencing. Then what’s stopping human resource professionals to use technology to meet ends!
HR technology has a lot for human resources – cloud computing, easier storage for employee data, better insights for upcoming HR trends, more transparency in the processes, increase in employee productivity, better communication and collaboration.
It’s not just about adopting HR technology. It’s about having a smart data driven technology that will enable the HR to perform better.