Although technological advancements in the field of human resource management have proven to be beneficial, they are not a panacea for the issues that HR faces in these unusual times. Like everything else in the world, HR technology also has its pros and cons.
COVID’19 gave the world an important message – staying connected is key. People around the world communicated with each other and saved thousands of lives. That is the power of communication. Why talk about it now? Communication remains key in the corporate world too. The current workplace scenario calls for organizations to listen to what employees want, reach out to them and value them for their efforts. Organizations seek results, and the best way to get them is through employees who feel connected. As a result, HR is transforming with technology-centered strategy at its core.
The pandemic played a pivotal role in how people work and interact, paving the way for the proliferation of COVID-triggered HR Software solutions. Companies are now looking forward to a future where hybrid workplaces are the norm, digital engagement is imperative, and employee experience is at the front and center of all business strategies.
As the pandemic upended the world, organizations were faced with the unique challenge of managing and staying connected with a workforce that worked from different locations. While the goal initially was to navigate the crisis, with the help of digital transformations, the focus has turned to creating hybrid workspaces. Ever since operations were disrupted last year, organizations have been relying heavily on technology for efficient day-to-day operations to ensure employees are productive and engaged while all the critical HR functions remain efficient. HR technology is now being used for a range of purposes that include virtual onboarding, employee upskilling, performance assessment, monitoring employee sentiments, and ensuring a pleasant remote working experience.
Although technological advancements in the field of human resource management have proven to be beneficial, they are not a panacea for the issues that HR faces in these unusual times. Like everything else in the world, HR technology also has its pros and cons.
Advantages of the Rise of HR Technology
Cost Reduction
HR technology and automation can significantly cut down on administrative costs. Through digital transformation and the adoption of tech, firms can eliminate the probability of human error and automate tasks, thus effectively reducing costs. Although adoption of technology can be expensive upfront, the return of investment can be high in the long run.
Increase in Productivity
Employee productivity has always been a key focus area, even more so in the past 18 months as most industries switched to working from home. As the demands of the hybrid workforce continue to evolve, the spotlight is on how to maintain and enhance productivity without compromising on the work hours. With automated HR software handling a significant portion of HR processes, there can be a significant reduction in the workload on employees, allowing them to focus on other areas.
Employee Engagement
In the hybrid workspace, clear and open communication is a necessity, and success in this area can help organizations optimize performance. With the help of advanced technology, firms can employ AI-driven software to help them gather feedback in real-time through intelligent surveys. The information thus collected can help the management get a clear and detailed picture of employee expectations and feedback.
Streamlined Recruitment
Organizational recruitment process is one of the most strenuous and important tasks under the HR department. Screening multiple applicants and vetting them can often become an exhausting task that can be effectively done with the help of automated software. The use of Artificial Intelligence-based technology enables companies to seamlessly sort, screen, and delegate qualified candidates for appropriate roles within the company, while avoiding the chance of any biases.
Disadvantages of Employing HR Technology
Requires Training
While AI and automated technology are the way of the future, companies who want to make the move will need to invest resources and train personnel on how to use the software effectively. Employee upskilling and the adoption of new technologies can be costly and time-consuming.
Curtails Human Interaction
HR processes have always been people centric. And, while technology can increase efficiency and accuracy, it cannot replace human knowledge. For example, AI-based technologies could help reduce human prejudice and streamline vetting processes during the employment process. However, it will not be able to weigh and implement important variables like company culture and values during the decision-making process.
The adoption of automated, AI-based HR software, despite its cons, is the future. No innovation is ever without its shortcomings, however, when the pros outweigh the cons, it is a sign that it might be a move in the right direction. With present-day employees constantly juggling between multiple roles and responsibilities, the employment of HR software can help improve their work management style and eventually their productivity. A shift to building robust technological tools can enable firms to streamline people processes. With the help of data and analytics-led ERP, managers and employees can effectively plan and align their tasks, manage teams, and track progress, helping achieve organization goals.
Harish Sarma, an IIM Calcutta & NIT Durgapur alumnus is VP Marketing at Sodexo BRS India.