Containment and Impact on the Digitization of the HR Function

containment and impact on HR

Almost every segment within various companies are worried by the recent sanitary containment caused by Coronavirus. HR segment is particularly concerned with the sanitary situation.

HR understands the importance of personnel and communication to the success of organizational goals. As such, it understands the impact the sanitary containment could have on the productivity of the company. In order to address efficiently the issue and keep the staff productive, many HR departments opt for digitalization. What could be the Impact of containment and digitalization on the HR fonction?

Why do companies opt for digitalization?

HR is the people epicentre in any organization. That explains why HR departments all over the world are working to develop a personnel-focused response to Coronavirus outbreak.

At the same time, they are also quelling the incessant queries and fears of their workforce. In essence, this is a demanding time for HRs. Yet, they could do more.

Coronavirus has changed the way many organizations work. More and more HR departments refer today to the devices of digitization to assist their respective organizations to reinforce the following aids:

  • Communicate with employees
  • Cancel face-to-face meetings and embrace virtual meetings
  • Consider remote work

With that said, there has never been a better time for HR to start digitalizing its approaches. Moreover, digital tools are proving as effective as they are safe.

Advantages of digitization in HR

Decision making

HR departments, over the years, have undergone a series of changes due to the ever-changing world. One of such changes transformed their primary roles.

Years back, the HR department only perform administrative roles – manage the human resources in an organization. Now, on the other hand, their roles are skewed towards organizational leadership and strategy.

Put simply, HR departments are now more involved in critical decision-making processes of their respective companies as never before. For that reason, they can no longer depend on guesstimates.

Hence, HR needs to go digital. When HR departments embrace digitization, decision making becomes easier for all.

For starters, digitization helps HR to understand big data, and draw solids insights from such data. As such, HR can help its parent company to take calculated actions in important processes such as recruitment.

Lastly, digitalization makes payroll processing less headachy for HR. Unlike in the previous method of manual reporting and cross-balancing with labour laws, digitization compiles everything in one database.

Employee engagement

Employee engagement is a major contributing factor to the successes of businesses. If employees feel their efforts are recognized by their employer, they tend to perform even better. Otherwise, the business suffers.

So, where does digitization comes in all “that”?

According to various industry researches, employee engagement is a complex of simpler factors such as:

  • Employees’ relationship with their direct coordinators,
  • Employees’ feeling towards leadership, and
  • Employees’ perception of their companies.

In essence, HR needs to get a hang on those to improve employer engagement for their parent company. Luckily, digitization can help with that.

Digitalization software enables HR to create personalized feedback to their employees. Remember that digitalization oversees payroll! Why not use it to tailor payroll to your employees’ needs? That will sure stimulate them.

Another thing is that digitization allows employees to access their profile at any time. That way, they get to engage more with their organization’s culture.

Cost-effectiveness

One of the ways HR department accrue expenses is through managing various work platforms (such as HR management, payroll services, and benefits packages). Fortunately, they don’t have to anymore – thanks to digitization.

With the help of digital technologies, HR can roll multiple platforms into just one. A single digital platform can hold all sorts of administrative and leadership roles.

What’s more is that those digital platforms require no maintenance costs – they’re usually cloud-based technologies. Also, the user interfaces for digitization tools are easy to understand – meaning no need to employ IT supports.

In the end, digitalization saves HR time and money while achieving more than what they would using their traditional methods.

Effectiveness of HR units

Digitalization enables HR departments to delegate their duties. And that makes their work faster. How?

Digitalization offers HR the option to delegate self-services to their employees. Services such as job and salary overview and benefits package do not necessarily require special attention. Employees can handle those themselves.

Overall, digitalization allows HR to focus on important tasks. Simultaneously, it stimulates a sense of belonging on the part of the employees through its self-service.

However, it is good to note that self-services template needs to be flexible. Otherwise, employees might get rebuffed and feel that HR is not doing her work.

How it is in the UK and the USA presently?

The pandemic hits even harder on organizations in the USA than their counterparts in the UK. The USA is one of the top 3 countries with Coronavirus incidences.

Fortunately, a lot of their companies are already well-steeped in digital transformation. According to a report by Mercer Benchmarking HR Digital Study, 98% of companies in the USA and UK have already started working in their digital transformation model.

You should consider digital transformation for your organization. If perhaps you don’t know where to focus on, here’s a guide below:

Where to focus digitization in your company

Customer relationship

Customers are undoubtedly crucial to businesses. For that reason, it is vital to have a good working relationship with them. It is a good thing that digital tools such as Customer Relationship Management (CRM) can be of help. CRM is a complex that collects, manages, and organizes customer information. It assists companies to solidify their relationship with existing customers.

That's not all; it seeks potential customers as well too. The apex of CRM is the option it offers companies to personalize their services to their customers' behaviours and preferences.

Recruitment and E-learning

One of the important parts of a company is its workforce. As such, recruitment and training comes to fore.

Recruitment, in particular, can be hectic - especially the traditional methods. Chances are that HR will already be tired before processing one-quarter of the applicants for any job.

Thankfully, recruitment software can reduce such stress and improve the efficiency of the recruitment process. HR simply lists the job postings and the software systematically processes the applicants using predefined guidelines.

For training, e-learning platforms are cheaper and more accessible to employees. E-learning can prove useful for a short training on recent global trends in your industry. Besides, it can assist your employees to learn at their pace.

Management

Digitization allows the manager to track and analyze different units within their organization. That way, it is easy for managers to source out underperforming units and work on such units. Furthermore, it assists managers to supervise companies' commodities or products at various storage levels.

Account and billing

Digitizing your organization’s account details makes business transactions faster and safer. For starters, monitoring sales and revenue becomes easier with accounting software.

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