The HR function, which is seen only a people oriented function, is the last place that most people think can be transformed through Technology. However, HR is a function that can multiply its effectiveness and reach through the proper use of technology. Technology can enable HR to move from Transactional activities to real transformation of the business.
This article would look at the following four key ways by which Technology can help in the Transformation of HR:
- Employee Self Service Technology
- Sharing, Collaboration & Content Creation through Web 2.0
- Data Management, Mining & Business Intelligence
- Process Integration
Let us look at each of the above four ways in detail.
1. Employee Self Service Technology
In a study[1] conducted by Employease (part of ADP), which had 336 respondents from companies which had 1000 – 10000 employees, nearly 42% said that Transaction oriented HR departments would be more likely to be burdened by administrative tasks. A main component of this burden comes from Transactional activities with employees which could be done more effectively through technology.
Employee self service technology give employees 24x7 access to HR. Instead of requesting for a pay slip or finding out benefits available, an employee can access one’s own information from the comfort of his or her desk. In organizations where computers are not accessible for all, self service kiosks or such facilities can be set up.
This technology not only helps HR teams save time and effort, but also gives a better experience to employees. Such time saved from transactional HR activities could be used by HR teams to connect with employees and focus on strategic initiatives.
Today, Web 2.0, “the second generation of web development and web design that facilitates information sharing and collaboration on the World Wide Web”[2], has brought to the forefront, two key terms “community” and “collaboration”.
Web 2.0 involves the end users creating information and collaborating to make the best use of information. This involves tools like blogs, wikis, forums, tagging, shared workspaces, virtual worlds etc.
This technology can help HR teams listen to the “voice of the employee” and respond in an appropriate fashion in a shorter time than normal. The other uses of this technology involve connecting and collaborating with prospective employees & alumni, sharing organizational updates with customers & other stakeholders along with retaining existing talent.
Web 2.0 transforms HR by changing paradigms on Content generation, Community building and Decision support[3].
3. Data Management, Mining & Business Intelligence
In today’s fast changing world, HR has to move beyond collecting, storing & retrieving data to creating meaningful information out of the data, in a very short time. This information could be then used for taking the next steps on existing initiatives/processes or starting new initiatives.
Master Burnett, from HR Consultancy Dr Sullivan & Associates, estimates that “only 1% to 2% of large corporations have begun harnessing analytics to evaluate their workforces”[4]. HR can use Data Management, Mining and Business Intelligence not only for evaluating workforces but also across different processes like screening of candidates, cost containment, retention and productivity[5].
Such detailed Intelligence derived out of data through Technology would transform HR to a true “Business Partner”, resulting in greater confidence from the business along with a vital role for the function in key decision making.
A new connected world, involves connected action and thinking. HR, as a function cannot work on a standalone basis to produce the best results. For example, while HR may be focusing on recruiting employees to offset attrition, if business processes are not integrated, the fact that the Business currently has low employee utilization rates may be overlooked. It is important to have Technology that integrates HR with all functions in the organizations, resulting in more informed decisions.
Such process integration would not only be useful across all functions, but also even within HR sub-functions, resulting in increased efficiency and reduced transaction time.
Technology that integrates HR with internal & external functions would definitely transform the role and effectiveness of HR as a business partner.
While the above are four key ways in which Technology can transform HR, these are not the only ways. Each organization can find creative ways to use Technology for HR’s transformation. However, it calls for coordinated efforts on the part of HR, IT and the Business to get this transformation into effect. Half-hearted or vendor-only driven efforts may not produce transformation – transformation and change starts from within; in this case, from HR & Business leaders, who really feel the need and the pain!
[1] Strategic HR vs. Transactional HR - Defining the Difference; Employease Sponsored Research Examined the Path to Strategic Contribution, Businesswire, Retrieved from http://findarticles.com/p/articles/mi_m0EIN/is_2005_August_9/ai_n14873912/?tag=content;col1 on August 7, 2009
[2] Web 2.0, Retrieved from http://en.wikipedia.org/wiki/Web_2.0 on August 7, 2009
[3] Six Ways to make Web 2.0 work, McKinsey Quarterly, February 2009, Retrieved from http://www.mckinseyquarterly.com/Six_ways_to_make_Web_20_work_2294 on August 9, 2009
[4] Data Mining Moves to Human Resources, Business Week, March 12, 2009, Retrieved from http://www.businessweek.com/magazine/content/09_12/b4124046224092.htm?chan=top+news_top+news+index+-+temp_top+story on August 9, 2009
[5] Business Intelligence: Realizing the promise of HR Technology, Workspan November 2006, Retrieved from http://www.bsiweb.com/mainsite/pdf/business_intelligence.pdf on August 9, 2009
------ Cross Posted at the NationalHRD.org Website ---------------------
