Digitization in human resource management
Updated: 4 days ago
Author: Melissa Sartini
Date of Publication: 09/05/2023
Digitization is a transformation process that is affecting all companies on many levels. This consists of transforming traditionally manual processes into automated ones through technology. However, it requires a radical change in corporate culture and organization.
In fact, companies are opting for digitization for two reasons. On the one hand, they intend to streamline and simplify the workload of the HR (Human Resources) department. On the other hand, they want to optimize themselves in terms of speed and competitiveness compared to other companies.
What is Digitization about?
Human resource management is that set of practices that make employee performance more effective. Personnel management is one of the most difficult tasks and is fundamental to running a business. So, personnel selection is very important because employees must be motivated to achieve business goals.
Human resource management consists of:
- Optimizing the recruiting phase
- Planning perfect onboarding
- Managing staff requests (vacation, leave, leave of absence)
- Measuring job performance
- Ensuring job security
- Implement policies designed for corporate wellbeing and worker motivation
The tasks of this department have increased. So has the impact of proper human resource management on business success or failure.
What has changed
Digitization has led to the use of HR software and human capital management systems (HCM software) that enable:
- Automate personnel search and selection
- Standardize processes
- Access even remotely and from any location
- Control and manage vacation and leave requests
- Share reports and documents in real time
- Manage payroll, new hires and terminations
These functions enable better planning strategies: to acquire new talent and to better organize the workforce. In general, we can say that they improve decision-making processes. Thanks to digitization we now have access to data and metrics inaccessible in the past.
What does not change is the relationship between the way workers are taken care of and business success. Therefore, effective human resource management is linked to the actualization of business strategies. Apart from that, it has to do with the achievement of high levels of productivity and the attainment of set goals.
The advantages of Digitization
An HR software can effectively support all related processes in the department with benefits for both the company and the workers. Let’s take a closer look at these advantages:
The first benefit is the ability to be able to accurately coordinate staff members. One then improves the management of the recruiting process. Thus, there is greater ability to monitor workers' performance at all times. As for workers, they can take a view of all aspects of the organization. What’s more, there is improvement in the levels of transparency, trust toward management, and loyalty. This brings positive effects with regard to satisfaction, engagement, and productivity.
So, in general, digitization is a great way to better manage human resources. In fact, it saves time and money and results in the optimization of some key processes and the ability to take full advantage of technological advances.