What is digital HR?
Digital HR is the digital transformation of human resources services, using cloud technologies, data analytics and software, including mobile apps, to improve accessibility and efficiency for employees as well as employers.
Historically HR tasks have been paper-based, time intensive and vulnerable to errors. For example, employees would have to write down their weekly hours on a timesheet and hand it in to the human resources officer, who analyses each timesheet to determine the wage each employee is to be paid. However, if the HR officer misreads the employee’s handwriting, the business can unwittingly overpay or underpay the employee.
With digital HR, this task can be digitised to reduce manual labour, save time and improve accuracy. Some software tools enable the hours worked by an employee to be automatically calculated, while others may still require the employee to add unusual activity completed each pay period, such as overtime. Once the employee saves the record on their computer or mobile device, the software can immediately organise payment to be made. While an approver may still need to analyse the time worked, the software can be set up to show red flags to note unusual activity that should be checked. If all is normal, it can be simply approved and the employee paid.
However, it is not just automation and payroll that digital HR techniques can apply. More complicated tasks such as employee and workforce performance, recruitment and employee engagement can benefit from digital HR.
Types of digital HR tools
There are various software packages that can be tailored to meet all HR needs, such as talent management systems and human resource information systems.
However, there are tools that only digitise a few tasks that can be just as useful as a complete package. For example, applicant tracking systems collect and sort resumes from job applicants, analyse them to determine the best applicants that fit the role’s requirements and create a shortlist of applicants to be contacted. Training tools allow employees to upskill or keep industry certifications up to date, sending out automated reminders when a training module is due to be completed and enabling employees to learn in different ways such as watching videos or completing quizzes. Employers may want to start small when introducing digital HR to ensure change is embraced by their workforces, or they may have irregular needs that do not warrant a permanent digital HR solution.
Consider what other digital tools the business uses or would like to implement that may not be HR-specific but can facilitate HR tasks. For example, project management systems that assign tasks for a project to team members are useful for employees to see who has been assigned which task and if a project is on track. However these are also considered to be digital HR tools as they take the manual labour out of the task of a supervisor giving an employee their list of duties for the day. Meanwhile, video conferencing tools facilitate communication between employees and managers, especially in this age of remote work.
The benefits of a digital HR strategy
There are three key benefits to implementing digital HR into the workplace.
Save time
Whether the business has a dedicated employee responsible for completing HR tasks or it is the employer who juggles it with day-to-day business, a digital HR strategy will save people time.
For dedicated employees, this will free them up for other HR tasks. For example, when the HR officer does not have to manually call job candidates to set up an interview, they can give more time and focus to devising the best interview questions to ask them.
For employers, they can focus on running the business, rather than running around trying to schedule interviews.
Increases access
Using digital HR tools can make life easier for employees too, not just the business leaders. For routine tasks such as submitting annual leave, for example, employees can do so at a time that suits them, rather than having to wait for their employer to be free to ask for their time off.
As employees also have access to these digital tools, they can check if they are on track to meet their key performance indicators (KPIs) or ask a chatbot a question about a particular work policy at a time of their day that suits them.
Most employees are used to technology as it encroaches further into other areas of their lives, so there should be minimal resistance to using digital HR. Some employees may appreciate its implementation as they feel they are working in a modern workplace.
Provides data
Data can paint a more accurate picture about many business issues and challenges as well as provide evidence to continue with business plans.
The data does not have to be complex and outlined in bar graphs, although it can be useful in those circumstances.
For example, employees are often well aware of how much annual leave they have accrued, but are not so sure about the amount of long service leave they can access, as the two accrue at different rates. Digital HR gathers that information for them.
For complex situations, digital HR can be very effective and help the business operate proactively. For example, it can project when extra staff may need to be recruited by analysing annual sales trends, coordinating employee engagement surveys and listing the results or provide real-time feedback and coaching.
How to devise a digital HR strategy
Employers will need to provide an upfront time investment to devise the digital HR strategy but the planning will pay off in the long run.
They can survey their employees to determine if there are any common problems or bugbears that are experienced that can be improved by implementing digital HR tools. They can also ask how their tasks can be improved, even if challenges are not experienced regularly. Employers can then research what tools may be available to meet these needs.
For example, the HR officer may state that they would like a video recording of job interviews to reflect on later and share with other leaders in the organisation. Hiring platforms are available that can streamline this process with candidates and distribute the recording to all relevant parties.
Employers can also work in reverse, researching the capabilities of various software and tools and adapting them to their business. Most software is available in a demo version or for a free trial period, which minimises the risk of purchasing software that is soon found to not be relevant or useful for what the employer intended.
A trial or demonstration is particularly useful to ensure the business has the equipment necessary to operate effectively and that it is user-friendly to the employees who will need to access it. If the digital HR tool decided on is too complex for the user, or there are internet connectivity or hardware compatibility problems, employees and business leaders will not enjoy using it and may resort to using their former tried-and-test methods anyway.
Businesses also will need to keep in mind data privacy and security issues that can be created by implementing digital HR tools in the workplace and ensure that there are policies and appropriate measures in place to protect this information from being accessed by the wrong people. However, even in this regard a digital HR tool can help, as it can facilitate digital literacy training programs for employees to complete to stay up-to-date with techniques to prevent the business from being hacked.
Whether employers decide to use one or two digital tools or a complete software package, implementing a digital HR strategy can seem like a daunting process. However, once it is set up, the improvements it will bring will make the initial effort feel worthwhile.
