HR Technology
From OrgChart.net
Contents |
Overview
It is the writing on the wall and HR professionals can no longer choose to ignore it. Technology is becoming integrated with every aspect of business and there is no escaping it. If HR professionals want to stay efficient and not be left in the dust, it is necessary to start implementing and taking advantage of new technologies. As the juggernaut rolls, if one cannot steer it, one is sure to be crushed by it.
Until a while ago, it was only the big organizations that were actively engaged in incorporating HR technology and analytics for better management. The advancement of technology and the proliferation of the use of the web in a multitude of ways have helped technology to percolate and be available for use by smaller enterprises. Cost reduction is achievable without sacrificing efficiency.
Technology is the Driver
Studies conducted by a global business advisory firm, the Hackett Group, indicate that top ranked world-class companies spend an average of 25 percent less than their peers. Not only do they rank high in terms of effectiveness and efficiency, but their need for HR staff is also 16 percent less. The major influencing factor in these companies was found to be the HR leaders. These leaders were well versed in almost all aspects of applicable technology in their domain and made every effort possible to derive maximum benefit from it.
The critical role of HR, as understood in the big firms, is to ensure that the HR heads report directly to the CEO, giving HR the deserved place as a strategic partner. This in turn puts them in a better position to requisition and incorporate still better technology. Incorporating technology to automate and standardize administrative and mundane processes gives the HR professionals the opportunity to contribute much more as they get more time to focus on strategic issues.
The Turnaround
Development of workforce analytics has helped HR transcend beyond just data – random and voluminous, to a tool that can have a lasting impact on an organization’s performance, if decisions are made based on insights and understanding based on the analytics. Workforce analytics give fact-based support to decision makers, and allow them to gauge the impact of their decisions. HR can review its decisions in the light of facts and also improvise its strategy. In fact, the entire realm of talent management is taken to another level with a scientific edge to it.
The Internet revolutionized HRM through the Software-as-a-Service (SaaS) model, where a third party provides and manages software-based services. It enables small and medium businesses to gain competencies and reduce costs in a competitive environment. It not only eliminates the cost associated with getting licensed software, but also takes away the liability the organization would face with regarding rapid changes in technology. Here the provider is responsible for constant upgrading and maintenance. Small organizations also outsource HR processes from the HR outsourcing industry, which is growing at a rate of 30 percent per year.
There is no looking back and as costs come down, familiarity with technology grows and it becomes more user-friendly. The deciding edge will decidedly will lie with the technology implemented by an organization. Organizations that have the advantage of having HR professionals who are equally comfortable with the knowledge and the language of IT will be at an advantage.
Every aspect of HR, including complex compliance factors related to succession planning and standard functions - compensation and benefits, recruitment, training and career development, and employee relations will see rules rewritten in light of technology. It will be the union of knowledge and technology that will turn out to be the major driver of growth and success.
