Digital HR is the online administration and delivery process of a range of human resource and human capital management services and data. Workforce information is rapidly accessible to HR practitioners, as it is to employees themselves through self-service capabilities. Digital HR is attained through the implementation of highly automated human resource information systems (HRIS) and supporting technologies such as e-signatures, delivered through or supported by cloud-based services.
For many HR practitioners, the start to the digital age began with portals, which began to reshape the way HR interacted with business. Not only are HR costs being significantly reduced—due to fewer manual processes and less paper being passed around—but more HR services are being delivered as well. This is because the ability to secure and manage the best talent available is essential to delivering innovation. As the bulk of corporate work is digitized, there is a sharp need for skilled people to design, implement, and maintain these systems.
Cloud and Software-as-a-Service (SaaS) represent a bold new stroke for the ongoing digitization of HR. A recent survey of 798 HR executives from across the globe, conducted by KPMG, finds 40% intend to replace their existing, on-premise HR system with a SaaS solution in the future. As modern HR significantly streamlines hiring and employee management processes, HR executives will have more time and resources for higher-level engagement with their businesses. HR staff will be able to more effectively and efficiently manage HR processes while retaining a digital library of all transactions and agreements with candidates, employees, former employees, partners, and contractors. Compliance, which has evolved into a large part of HR staff jobs, will be documented and verifiable in digital format.
Digital HR changes the game by elevating the role of HR. It helps them to be more data-driven and bolsters recruiting which, in turn, enables a streamlined process of recruiting. Employee on-boarding with the necessary training and development can be tracked and used to reshape performance management. While that may sound like a lot, what matters most is employee mobility, improving the quality of work life, easy exits for retirement, ensuring greater compliance, and legal coverage and customization of talent management.
Some key benefits being realized or expected from cloud-based services include improved user experiences, access to ongoing innovation, best practices that support the business, and faster implementation with quick value attainment. Such services greatly enhance the user experience—be it, employees, prospective employees, or HR staff members.
The range of digital HR solutions, from cloud services to e-signature technology, can begin to have an immediate impact on productivity and corporate growth. Some of these advantages include rethinking the HR process and workflows, focusing on interactivity, maintaining human touch, thinking in terms of data, working with managers and employees to identify key performing metrics, raising awareness, and providing training.
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