Does HR management still handle a lot of time-consuming, administrative work? Then it’s high time to change that. Societal changes such as the shortage of skilled workers or digitalization are presenting human resources management (HRM) with a major change process. HR must continue to evolve – just like all other areas of business. And technologies make an important contribution to this development. Digitization makes many of the processes more consistent, transparent and error-free. It is a must for all companies that want to develop positively and ensure future-proof HR management. In the HR area, the right software can take away many administrative, time-consuming processes, so that HR managers can devote more time to their employees. And the employees themselves also benefit in many ways from digitized and individualized processes in their everyday work. But as often as one hears and reads about the need for digitalization, so little has actually happened in many companies.
Great need to catch up in terms of digitalization
According to the “Digital Riser Report” 2021 of the European Center for Digital Competitiveness, Germany is now far behind other industrialized nations when it comes to digitalization: Germany ranks at the bottom of both the G7 and G20 groups. In this context, it is not surprising that the HR department of many companies is not up to date. But how does a company actually proceed when it decides to digitalize its HR management? Which areas along the HR process chain should be digitized and thus also automated? What does a company need to consider when selecting and implementing new tools?
What tools can take away in the HR area
The digitalization of the HR area does not only mean to digitalize the payroll or the personnel file. It is a process that facilitates and improves many work steps. If a company wants to introduce a new HR system, the first step is to analyze the HR processes and define the requirements for a system. This is where it is clarified which analysis tools and automation processes from administration to recruiting, employee development and personnel planning to personnel retention make sense for the company. One thing is certain: depending on its scope, a good HR system can do a lot and can relieve HR managers of a lot of administrative and analytical work, ensure transparency and, for example, noticeably increase employee satisfaction and loyalty through self-directed services. The tool that fits the company, its processes and its IT landscape is selected according to the company’s individual criteria and framework conditions.
360° digital manpower! How HR can benefit from digitalization
There are several well-known providers of HR software on the market, such as Personio, Sage or rexx systems. Once the right choice has been made for the company, the tool is implemented and tested before being rolled out in a pilot area, if necessary – depending on the size of the company. This is followed by successive implementation throughout the entire company. It is important that employees are involved in good time so that acceptance of the new software and competence in using it are increased. All employees should be able to cope well with the technical innovations.
What does the HR software actually do for the company once it has been successfully implemented?
The digitalization of HR brings many advantages:
- Standardized processes are automated and run more efficiently and are less prone to errors.
- The greatest possible transparency is created in all areas of HRM, which, for example, makes strategic personnel planning much easier.
- Recruiting and onboarding can be more target group oriented.
- Automated processes make many workflows faster and more professional, such as the application process or reporting.
- Digitalized processes and individual software solutions facilitate personalized learning and open up many personal design options and vertical knowledge transfer for employees.
In short, digitized human resources management offers a wide range of development opportunities that make a company and its HR department fit and strong for the future. Whether it is a small or large system that is implemented: Medium-sized companies always achieve significant added value by digitalizing their HR management. THE MAK`ED TEAM is an HR expert and has already supported many medium-sized companies in individual transformation processes. No matter what the framework conditions are: The goal of the transformation processes is that the HR department not only accompanies the changes but can itself actively and successfully shape the company’s future.