Many HR departments are being left behind as new technology becomes available and the job market becomes more transparent. The also need to make faster decisions as the amount of information they need to manage grows, which is creating new challenges for HR directors, writes SANDRA SWANEPOEL, MD for Sage HR & Payroll.
The world of human resources (HR) is changing at a speed that is leaving most HR departments behind. New technology is bringing more transparency into the job market and into the performance of the HR department, creating new challenges for HR directors.
It’s also changing the expectations that employees and job applicants have of the employer experience. What’s more, HR departments need to make faster decisions, even as the amount of information they need to manage grows. For example, I know of a business that received 100,000 CVs after advertising a group of positions. Meanwhile, a volatile labour market, growing competition for scarce skills, and tighter regulation all bring with them complex and constantly evolving pressures. Line mangers and senior management are putting more pressure on HR departments to add value to the business and to serve as their strategic partners.
As a result, HR departments need to become more tech-savvy. They need to put in place systems that allow them to automate routine paperwork, make sense of growing volumes of data, and respond to the needs of the business and employees in a more agile fashion. Without technology, they will not be able to meet the demands they face.
Digging through big data
As a start, the recruitment market poses some interesting challenges for HR managers. They have access to a wider potential pool of talent, thanks to the Web and social media, but that also means that they need to be able to process more information. Here, online applicant tracking systems and career portals can be a massive help in filtering and managing data.
In much the same way as the Internet has given employers access to jobseekers, it also gives talent access to expanded employment opportunities. Let’s face it: anyone who has a CV on a career website or a profile on LinkedIn is on the job market for the right price and opportunity. It’s easier than ever for recruiters to spot great talent – which means the HR department’s job is harder when it comes to skills retention.
Engage and retain
As such, it’s also important to apply technology for engaging, managing and retaining employees. When it comes to managing staff, HR departments can gather rich data about the business and use it to analyse skills gaps, performance, costs, and more. Increasingly, HR decisions about hiring and training are driven by good information housed in HR and line of business systems.
In the background, a robust HR platform enables the HR department to capture data about employees’ key performance areas (KPAs) and indicators (KPIs), performance reviews, training and development requirements, medical history, occupational injuries, and more. This information can help the business to make better hiring and training decisions. HR directors can get better insight into trends such as staff churn, the costs of training and development, and the skills they may need to attract and develop to support the business’s future growth.
IT also has an important role to play in employee engagement. Tools such as employee self-service can reduce paperwork for the HR department while delivering better service to the workforce. When people can apply for leave, fill in expense claims and pick up payslips online or from their mobile phones, everyone wins from the gains in efficiency and convenience.
In a world where employees are ambitious and connected, and where business has high expectations, HR departments must become more flexible and focused.
Technology is an important enabler for them, offering them the ability to streamline operations and make better decisions. And with today’s cloud-based options, it is easier and more affordable than ever for HR departments to modernise and automate the way they work.