Trends and Impacts of Digital HR

Trends and Impacts of Digital HR

Many companies have already switched to a more digital system for various work sectors among their departments, and this includes Human Resources. For a long time, HR has always been thought to be more of a human job, thus requires HR managers to do various tasks manually with as much human contact as possible. But this might not need to be the case. While an HR manager is still welcome, the use of solutions or platforms could help streamline and perhaps improve many of the processes.

The Trend of Digital HR Activities

69% of companies in the US believe that Digital HR is becoming an important aspect of a company. Over 83% of Southeast Asian companies agree. Of course, these would include:

  • Using crowdsource recognition data to substantially increase performance review accuracy
  • Using AIs to better improve multiple aspects of HR
  • Digitalizing or using online recruitment platforms to streamline hiring processes
  • Doubling down on people analytics efforts to get better employee data

Many more trends, of course, exist such as using onboarding platforms, networking with employees, and using an employee’s digital work signature to monitor their performance. However, among the many digital initiatives one could apply to the office, how will it impact the behavior around it?

The Impact of Work Culture

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A company’s work culture is something very valuable and one might even say that it is what defines the soul of the company. With something corroborated so tightly with HR, it will also be affected should a more digital HR system be implemented. Be it for automation of employee data, recruitment or even onboarding, companies have been known to even go to the length of redesigning their whole organizations. And such lengths are undergone for the sake of adapting to a more digital business model.

The main impact on a good digitalization of your HR processes shouldn’t simply be to streamline processes (although it is part of it), but to also improve retention rates of your employees. After all, the reason you ease HR processes is to ease your HR managers to keep your employees cared for and satisfied with your company.

Why Digital HR is Helpful to the Company Culture

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During a survey, it was found out that only 72% of the respondents do not understand their company culture that well. Although this seemingly feeble, it may eventually lead to a breakdown on a psychological level. Many employees undergo the provided work culture without knowing any better. In the meantime, they might not know that they’re subjected to something bad at all and thus stay silent while their stress builds up. This could result in an eventuality of employees resigning or relocating.

Digital HR Use for Welfare Management

With the shift in how welfare management is being approached, a Digital HR could help in this regard. The current shift in trend, that HR practitioners are starting to look into and prioritizing the employee’s mental health as well as physical. This could benefit highly from a proper two-way communication.

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A Digital HR not only helps with creating a more efficient environment but communication as well. An instantaneous feedback or survey system can easily help HR managers and the employees reach a better understanding of how the company culture should be molded. By doing so, it is expected that it would help to create a true two-way communication and, in turn, create a more stable environment and culture to maintain the mental well-being of the employees.

Benefits of a Digital HR System

A digitally-enabled HR system would create a much more improved work environment for your employees and managers alike. Such improvements would include:

  • Innovating and Streamlining Processes would help transform time-consuming administrative tasks.
  • Providing Data and Analytics to process more accurate and detailed employee information within all HR activities would help improve decision making.
  • Improving the Workplace by digitally-enabling the work environment would help employees become more flexible and efficient.
  • Providing Instantaneous Feedback and Service to your employees would help them and HR managers collaborate to create the ideal culture to increase their retention rates.