DIGITIZED HUMAN RESOURCES in 2021: SOFTWARE & TECHNOLOGIES

 

DIGITIZED HUMAN RESOURCES in 2021:

SOFTWARE & TECHNOLOGIES

The contribution of Human Resources

The CEOs of many companies are pushing their human resources (HR) departments to contribute more strategically to the success of the company. For a long time, people have perceived the HR department as a spending sector, and many times it is not easy to know what that means. CEOs, who naturally care about growing the company and delivering good results for its shareholders, want HR to support the company's goals and have the information necessary to support decision-making in the organization. And they are right, because in reality HR should be doing all this and should make sure that the workers of the company are qualified, satisfied and at the right time and in the right place. 

To meet all these conditions, It is necessary to ensure that the processes are of quality, that there are integrated HRMS systems and that the HR department disseminates accurate and updated information. When these elements are put together, HR can come to play a role that can greatly influence the bottom line of the company.

It may seem like too much, but it is not impossible, and the HR department is not alone. There are technologies and service providers that can help take the HR department out of its routine, free up the workforce so that it can focus on more strategic tasks and take advantage of the capabilities of business intelligence to generate the desired results.

Enter Outsourcing

Companies that are dedicated to offering HR outsourcing services play a critical role. Many times, companies decide to work with these types of service providers because they want to access the most advanced technologies without having to make the capital investment that this implies. In most companies where HR functions are outsourced, the first level of value is well established. It has been possible to normalize processes and give a professional turn to interactions between and with employees. Transactions take much less time to complete, plus they're easier, simpler, and less expensive. When employee programs become more complex and difficult to administer, outsourcing becomes the option for quality services.

However, while HR outsourcing companies perform very well at this first value level, it is at the next critical level where they can really represent a strategic advantage because they gather and combine the pieces of data that vertical HRMS systems handle, and isolated. When data from the various departments of the company is integrated into a solid and centralized source of information, the HR department can make more informed and strategic decisions. In this way, HR programs and practices can be evaluated and interesting and important information about the workforce is discovered.

Sophisticated analytical logic can be used to measure how HRMS systems and programs affect the behavior of employees and customers (for example), and to find out what the ultimate impact they will have on financial results and company growth. Company. Companies are already realizing that reducing HR administrative costs is just the beginning; the new priority is to use the technologies that give company’s data and analytics capabilities to achieve the savings represented by the HR department.

Enter the Technology

For example, your punctuality and attendance schedule tracks workers' hours and absences, and accounts for all the prep work to generate payroll. It also has another program that handles short-term and long-term disability payments. Both systems are certainly important, but separately they reinforce the traditional administrative role of the HR department. An outsourcing solution that combines information from both systems and uses business intelligence functions could be a human asset management program that tracks absenteeism, peak work periods, and employee turnover. With it, you could use your data to find out what the consequences are on labor costs, the extra hours your employees work and the money you spend on temporary and replacement employees. 

This business intelligence can help you align your workforce with your long-term labor needs, manage absences and labor utilization, and therefore reduce your operating expenses. Link training programs, staff acquisition and hiring. There are many technological tools with which potential employees can submit their resumes online. But does your HR department use that information for anything other than the hiring process? If you integrate data and information about potential employees' skills with your company's development plan and training programs, you can “funnel” qualified people into the organization and educate your employees. By doing this, you ensure that you make more strategic hiring decisions and put your people to better use.

There is another key area in which HR outsourcing can provide strategic value: succession planning. For example, a company has an employee turnover rate of 10 percent and it generally takes 30 days to fill a vacant position. What do these figures mean for employees? They mean that the company is constantly shorting about 1 percent of its staff. This means that in a company that has 50,000 employees, 400 workers do not meet work due dates or do not produce, and this affects the level of customer satisfaction.

Now, let's add in the time it takes for new hires to adjust and learn all about their position; "down time" can be up to 60 days per position. If we also consider absenteeism and long-term disability, sabbaticals, maternity or paternity leave, job sharing and other benefits, the number of employees is further reduced. Business intelligence and analytical logic technologies help HR departments’ better see what is happening with their employees and take the right actions and predictive measurements can help them plan their activities in ways that adapt on the go.

Now the selection

However, selecting the right partner is just as important as making the decision to outsource your HR functions. The decision to partner with an HR provider is really important, therefore, it must be approached with the same care that a merger or joint venture would be approached. The companies to join must be culturally compatible and must share a common vision.

Your outsourcing partner's work schedule and delivery model must be tailored to meet your needs, and the coverage in terms of the services they will provide you must be clearly defined. Outsourcing objectives must be converted into service level agreements in order to measure performance against expectations. Most large companies will want a full service provider and not one that only handles one item (such as payroll). Potential vendor references need to be reviewed and vendor has to demonstrate that they have capabilities across the full spectrum of HR outsourcing (and that they have the financial backing that will allow them to be around for a long time). 

Remember that working with an outsourcing service provider does not mean you have to give them the lead. Rather, it is about finding the best way to provide a quality service, have an impact on the company's economy and provide the data that will allow the HR department to align with the organization's results.

Metamorphosis

Today's economic environment means that the CEOs of companies have a growth agenda that requires a solid and committed workforce. In other words, they have to have the right people at the right time and place. The true value of the HR team will be measured in how it aligns with this growth agenda. It is imperative that business intelligence technologies for HR be well integrated if it is to move from being an administrative expense sector to becoming a strategic contributor to the growth of the company.

HR Strategy

Here are some quick examples of how companies can leverage their HR areas to get good results. The following list contains only a few of the areas that can be benefited and some results that can be obtained.

 

·   Staffing levels - By aligning time tracking with disability and absence information, it is possible to better understand staffing needs.

 

·   Hiring: by combining the information in the curriculum vitae with the needs that the company will have in the future, it is possible to "channel" qualified people to vacant positions.

 

·   Succession planning: By evaluating the skills of current employees and comparing them to open positions, internal hires can be promoted.

 

·   Benefit Costs - By integrating HR survey data with company goals, changes in organizational contribution rates can be predicted that will lead to increased job turnover.

 

·   Hiring evaluations: By extracting data from different HR functions, you can determine if the hiring increase is due to growth and more skills in people or to unwanted employee turnover.

 

Important points for selection

Not only must the utility of outsourcing service providers be considered, but there are some specific questions to consider by which companies can determine whether they are compatible with a potential provider.

·   Can the vendor's systems meet the business and technology requirements of the business? Note that the answer to this question can be negative for two main reasons: the vendor's systems are either too general to meet these specific needs, or they simply don't cut the width (when they do address these particular needs).

 

·   Does the outsourcing service provider have a good understanding of what capabilities the company needs?

 

·   Will the operation be transparent, both financially and managerially?

 

·   Do the outsourcing service provider and the company have the same vision?

 

·   Is the outsourcing service provider considering a partnership?

 

·   Is the culture of the supplier compatible with the culture of your company?

 

·   Will the supplier take an active role in trying to help the company solve problems?

 

·   Are service coverage and provider performance levels clearly specified in the service level agreement?

 

·   Can the supplier allow the company to perform better? 

If companies do a detailed review of the tangible and intangible elements that are behind these questions, they can ensure that HR is more than a fundamental element to achieve the objectives of the company, they will make it an integral catalyst for the success of the company.