The Human Resources (HR) vertical that was earlier viewed as a support function to recruit people, maintain attendance registers and issue pay cheques has come a long way and become a part of the core management team.
With organizations adopting customer-centric approach to reach out to external consumers, significant transformation has been observed with respect to HR practices for internal consumers i.e. employees.
Organizations today recognize the fact that a better work-life balance can improve employee motivation, performance and productivity, and reduce stress. Therefore, several companies are not only providing traditional incentives like bonus and sick leaves but also going beyond these levels to provide additional benefits such as flexible working hours, a casual dress code, stock options, insurance, paid leaves, free meals among others.
Also observed is a gradual shift to reliable digital solutions.
Employees can now connect with each other and check internal updates through in-house chat portals and intranet from any part of the globe. Doing so, reduces carbon footprint as compared with long threads of countless emails getting exchanged amongst them.
The sudden rise of digital transformation in HR-centric activities are also observed in areas such as online gaming, hackathons, social media etc. A number of organisations use these for various recruitment purposes and in attracting talent.
Chat bots powered by Artificial Intelligence (AI) are also being deployed to take new recruits through induction processes. It also helps to resolve employee queries related to on-boarding, pay roll, taxation, company policy accessibility, FAQs etc. Chat bots are also transforming workforce engagement and ensuring efficiency across organizations.
Apart from this, companies now maintain digital employee records in an organized fashion and use several HRMS [Human Resource Management System] tools to analyze their data. This has led to an increase in adoption of predictive analytics tools.
Predictive analytics is rapidly becoming a trend in HR considering the use-case is not limited to assessing how employees work but also to predict and optimize the impact of people policies on employees as well as the overall business.
In addition to the initiatives mentioned above, organizations are proactively bridging skill gaps by providing customized training programs to employees that addresses their needs.
Suitable training is provided on the basis of feedback received from induction programs and on-going appraisals.
It is a win-win situation for both employee as well as employer when the former is empowered with necessary digital skills training.
It is also recognized that interactive and engaging learning through digital models lead to significant rise in productivity of employee. Gamification of learning, digitized training solutions based on AI etc. offers a huge opportunity to transform learning and can accelerate revenues significantly as a lot of work can be executed with few resources.
One of the critical things that brings administrative costs down is successful implementation of Enterprise Resource Planning (ERP) suite which helps businesses in organising day-to-day processes efficiently. The availability of an ERP tool also helps HR professionals with demographic, emergency contacts, employment, and payroll related information.
With the right tool, HR teams are geared to track and manage data and also automate several key functions. It goes without saying that digitization also helps organizations in effective employer branding which builds the right perception in the minds of potential employees. It facilitates the company's ability in attracting, recruiting and retaining ideal employees and also gives a platform to ex-employees to be in touch with their employer.
With most organizations vying to feature themselves as 'Great place to work', Digital transformation in HR is certainly a strategy that should enable organizations to reaching that coveted trophy.
Zarin Bhathena heads the Human Resource practice at Worldline India, a payments technology provider. Views expressed in the article are solely that of the author and not necessarily of Sify.com.
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