How Technology is Transforming Human Resource Management

HR Technology has changed the industry's most fundamental practices. HR Tech is the application of cutting-edge technologies like AI (Artificial Intelligence), RPA (Robotic Process Automation), and ML (Machine Learning) to critical HR processes.

• HR technology is allowing repetitive tasks like on-boarding and payroll to be automated, and AI is helping to improve recruitment processes.
  
  
• Employee engagement is also driven by HR technology, which includes determining employee satisfaction and facilitating employee development and retention.
  
  
• HR technology has numerous advantages in various areas of HR, ranging from employee scheduling to automation of repetitive tasks and cost savings, to timely information access.
  
  
• Companies that seamlessly integrate HR Tech are far more likely to retain talent and increase productivity in an increasingly volatile, uncertain, complex, and ambiguous (VUCA) environment.
  
  
  
  
  Figure 01

Introduction 

In the last two decades, technology has wrought massive change across a variety of industries. Technology has been the foundation for many major changes, disrupting industries such as travel and hospitality and rapidly transforming functions such as finance and marketing.

HR had been late to the party until recently. In the 1990s, when recruiting moved online via job portals, the HR department was spared from the sweeping changes that other departments, such as finance and marketing, experienced.

However, things have changed in the past few years. AI (Artificial Intelligence), RPA (Robotic Process Automation), and ML (Machine Learning) have transformed key HR processes to the point where everyone is now talking about HR 3.0.

Digital transformation strategies can best be understood in a business centric perspective. These strategies have as their focus the transformation of products, processes and all organizational aspects as a result of new technology. Digital transformation strategies bring about changes to and have implications for business models as a whole (Matt et al., 2015). Similarly human resource management is also business centric and brings about change by adding value to organizations as a strategic partner, administrative expert and employee champion (Ulrich, 1997).

What is HR Tech?

Figure 02

Simply put, HR Tech or HR Technology is the use of technology to reimagine core HR processes such as recruitment, talent management, compliance, payroll, performance management, and employee engagement.

In the HR industry, emerging technologies like AI, ML, and RPA are being used to improve research, business intelligence, people analytics, and automation. As a result, the way basic HR functions are carried out is changing. Furthermore, it is reshaping the HR department's objectives. HR is moving away from simply putting processes in place and toward a broader goal: maximizing talent value.

Where is it Being Applied?

According to McKinsey & Company, existing technology can automate roughly 56 percent of conventional "hire-to-retire" operations. Similarly, emerging technologies are being leveraged to broaden HR's function and link it with productivity and employee engagement. Here are a few of today's most popular HR Tech applications:

• Smart Recruitment

• Automation of Repetitive Tasks

• Employee Engagement

• Employee Development

• HR Virtual Assistants

I hope to discuss the benefits of HR technology in the next article. Click here for that article/post.

References;

• peoplehum. 2022. 5 ways technology is changing the face of HR | peopleHum. [online] Available at: <https://www.peoplehum.com/blog/5-ways-hr-technology> [Accessed 15 March 2022].
  
  
• Scnsoft.com. 2022. [online] Available at: <https://www.scnsoft.com/blog-pictures/digital-transformation/hr-digital-transformation2.png> [Accessed 16 March 2022].
  
  
• Static1.shine.com. 2022. [online] Available at:<https://static1.shine.com/l/m/images/blog/dfhg.jpg> [Accessed 16 March 2022].
  
  
• AIHR. 2022. HR Digital Transformation: The 6 Stages of Successful HR Transformation. [online] Available at: <https://www.aihr.com/blog/guide-hr-digital-transformation-hr-transformation/> [Accessed 17 March 2022].