Economics/Business

HR Digitization/components/importance and advantages/application

The digitization of HR may seem somewhat futuristic, but it is not. It is a process that is already in full use and offers many benefits to companies. In this sense, it can rely on numerous technologies, just decide which ones make sense for the organization . HR Digitization

Keep reading this article and discover how digitizing HR can change — for the better — the industry’s routine, bringing benefits you might not even imagine. Finally, see how to implement the technology in the sector with just three simple actions , giving more agility, efficiency and strategy to the business. 

What is HR Digitization?

It consists of using technological tools with the aim of automating general activities in the sector. In other words, digitizing HR is gradually putting aside manual and physical processes that professionals in the field have used for years. 

It is worth noting that the HR digitization does not just make use of tools to make it happen. It needs the company’s human capital to adopt an innovative mental model. Thus, people, with the help of new technologies, are able to qualify the department’s operational and strategic performance . 

Therefore, the HR digitization scenario brings together people with a bold mindset who, using software , tools and digital systems, manage to replace old processes. The result is the automation of HR routines , more speed in the workflow, increased productivity, reduced manual errors and a much more strategic sector.  

Therefore, it is often said that digitalization is the first step towards technological transformation in HR . Thus, technology offers resources capable of optimizing the tasks performed by Human Resources analysts , facilitating the management and access to information for employees.

These are benefits that significantly reduce bureaucracy in company relationships and activities. 

What are the components of digital HR?

The big difference between traditional (or analog) and digital HR are the components that each modality uses . In digital HR, the main technologies are:

  • use of automation tools (for managing benefits, controlling vacations, issuing payslips, among others);
  • data collection and analysis (such as People Analytics );
  • digital point (digital time clock or online application to track the journey);
  • Recruitment and selection tools (to integrate resume databases and screen). 

How does digitization change the industry’s routine?

The digitization of HR considerably reduces the manual, administrative and bureaucratic activities of the sector. This leaves more time for area leaders to invest in strategic issues of people management . Check out the main aspects of change in the Human Resources department:

  • working time is directed towards structuring and implementing processes of greater organizational value;
  • the use of intelligent tools, such as management software specialized in HR , offers functionalities that decentralize actions and make steps less bureaucratic;
  • manual processes can be done digitally, such as sending and receiving documents, scheduling vacations, consulting different histories, entering medical certificates, etc. Often these actions can take place on a single online platform. It is up to the HR analyst only to monitor the activities to ensure that everything is as expected;
  • activities gain speed, communication between people, departments and branches flows more accurately, the possibility of errors is reduced and rework is practically eliminated;
  • With digitalization, the HR sector is able to act with more emphasis on people management, developing and training talents for the benefit of the company itself. 

What are the importance and advantages?

Two of the world’s largest consultancies, Gartner and Deloitte, have pointed out in surveys that the digitization of HR is not an unfounded trend. 

According to Gartner, 92% of CEOs admit the need to digitize HR. And Deloitte shows that 56% of organizations are redefining industry management programs. 

These data prove that the digitization of HR is a necessity and a great benefit for the sector . In addition to being a competitive advantage for companies. Let’s look at the main benefits of automating processes in organizations. 

Reduction in paper usage

Digitizing HR greatly reduces paper and document printing. This practice makes the company more sustainable and ecologically responsible . In addition to contributing to the environment, management reduces expenses. 

Cloud document storage

Do you know the roles that the sector stopped using with digitalization? It is the same that will no longer store, as it does not take up space in physical files. With digital HR, relevant data is digital and stored in a centralized cloud . This eliminates the need for a physical structure to store them and facilitates information sharing across sectors. 

In addition, online storage ensures information security, as it eliminates risks and losses, so common in physical files. Also, digital protection is possible thanks to backups and access logs. 

Integration with other sectors, systems and tools

Intelligent platforms allow to interconnect related sectors . Accounting and finance, for example, benefit from the digitization of HR. Thus, employees of these departments have access to the same database and information centralized in it. 

This particularity provides uniformity to information and data, in addition to the rapid exchange between them. The result is reduced errors and rework due to miscommunication. 

In practice, the integration between related sectors allows, for example, the preparation of payroll, medical records, termination calculations, admission and dismissal processes, discounts, benefits and many others. 

Quick access to information

Digital documents give quick access to information as they are found in just a few clicks. Most computerized systems offer filters that help in the search and give the exact location of information and data within seconds. 

Loss reduction

With HR scanning, lost and misplaced documents are a thing of the past. This problem, so common in manual processes and physical storage of paper, becomes almost non-existent. 

Digital files also provide security , as they prevent improper manipulation of information. Also, the archives can be done in chronological order, favoring the search. In this way, area managers are able to have control over any unauthorized access, in addition to the modification or deletion of important documents. 

How to scan HR?

As we said, the digitization of HR is the first step towards the technological transformation of the sector . But it is not enough to just implement new technologies, software and platforms, without at least analyzing where and how they can help. 

That’s why we’ve listed three simple steps to be taken when a company decides to adopt digitization. Follow up!

rethink processes

In life and in business, we often need to take a few steps back to correct the course and conquer the top. In the digitization of the Human Resources sector, the same maxim is valid, that is, analyzing the scenario from a panoramic view of the business increases the chances of getting it right. 

In this sense, the HR analyst must have a systemic look at all processes and routines. In professional jargon, we can say that it is necessary to “clear the house”. Identifying the need for improvements, bottlenecks in processes and wasted time are some symptoms that digitalization can address. Also, discover manual actions that, when replaced or reinvented, become more agile. 

So, during this study, write down everything that is relevant, point out those lengthy and extremely bureaucratic processes. Doing so will make it simpler to understand where technology can help . 

This analysis must take place in all areas, from R&S to the Personnel Department. So, listen to employees and leaders, talk to key people and ask for their opinions. This will be of great help in this process. 

redesign experiences

Experiences lived in the professional environment will always be of value. If an experience is bad because it is slow, inefficient or bureaucratic, both sides – company and employee – will be harmed. 

Based on this premise and considering the survey carried out in the previous step, start redesigning the experiences inherent to the HR sector . But remember, using technology. 

Revisit your recruiting, selection, and hiring processes, looking at how they can be done digitally and online. Certainly, they will be activities with less paper and greater agility. 

Think of technology as a great ally, a tool that needs and will always need the human eye. Thus, the digitization of HR will be conceived as an alternative to improve the experiences of employees and the organization. 

invest in technology

The third and final step is the moment when technology actually enters the scene. Points that need improvement, process failures and unsuccessful experiences will be the fuel to know where digitization is needed and will make sense. 

At this stage, it is advisable to look for technologies that effectively help the Human Resources sector. Count on benchmarking resources from companies that are a reference in the market. 

Benchmarking consists of the study of the competition, making an in-depth analysis of the best practices used by companies in the same segment. With the aim, of course, of applying them to your own business. 

This action allows us to understand which tools successful companies use, the processes they have digitized and the results they have achieved. It works as a way to learn from mistakes and successes , from the experiences of other organizations. 

Finally, search the internet for software and platforms that can meet your business needs. Compare products and talk to technology experts. These are opportunities to clarify doubts and understand how digital tools can help management. 

How to apply in HR activities? 

In addition to all the advantages and benefits, the digitization of HR has positive impacts on very specific activities in the sector. Examples are the Recruitment and Selection processes, performance evaluations, climate surveys, among others. 

How automation impacts recruitment

The use of intelligent systems for R&S guarantees agility in the selection processes. There are platforms programmed to filter professionals who are aligned with the organization’s interests or with the organizational culture. Some examples are:

  • formation;
  • scores on specific tests;
  • language skills;
  • domain of tools.

Recruitment metrics allow you to track the most important metrics. From reports and dashboards with information about the selection process, recruitment becomes more agile and efficient. 

Also, vacancies can be customized, that is, they have specific fields according to the organization’s needs . But the R&S platform doesn’t stop there. The HR analyst can activate the chatbot to send knockout questions to candidates. Afterwards, Sólides technology performs the correction and classification, pointing out the candidates who meet the prerequisites. 

How Automation Aids Performance Appraisal

Updating employee performance records takes time and maximum attention. As a result, this activity ends up neglected in many companies. However , evaluating the productivity of teams is essential for decision making. 

With the digitization of HR, these processes can be efficiently automated, helping managers to visualize employee growth. 

 

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