Digitalization in HR: How to revolutionize your HR department
In the modern corporate world, digitalization in HR is a key component that underpins sustainable organizations. The digitalization of human resources has led to a shift from administrative tasks to an environment marked by creativity and technological progress. The article explains what digitalization in HR actually means, how such a transformation is achieved and the associated software that we recommend.
Definition: What do we mean by digitalization in HR?
Digitalization in HR refers to the integration of digital technologies into human resources management. It incorporates the automation of administrative tasks, the use of digital HR management systems and the use of data analysis to optimize employee management. The aim is to increase efficiency and productivity within the HR department while at the same time taking the human aspects of employee management and retention into account. This allows organizations to remain competitive in the digital working environment.
Changes in the law
Advantages of digitalization in human resources
Although digitalization in human resources does initially demand time and resources, it also offers many long-term advantages that significantly increase both efficiency and effectiveness in human resources management. Artificial Intelligence (AI) is also creating many new opportunities, such as recruiting systems that automatically analyze incoming applications.
According to a study conducted by techconsult GmbH, the following savings can be made by using software in HR administration (reductions in %):
- Administrative expenses: 22 %
- Routine tasks: 21 %
- Wage / salary preparation time: 29 %
- Personnel costs: 15 %
- Error rate / data inconsistencies 22 %
- Employee queries: 26 %
- Manual preparation of key figures & reports: 31 %
The use of software also improves the quality of work and increases transparency, which in turn boosts employee satisfaction and improves personnel retention.
Goals of the digitalization of HR processes
Companies that digitalize their HR processes can achieve the following goals thanks to all the advantages offered:
- increased efficiency
- increased transparency
- increased flexibility
- increased mobility
- higher employee satisfaction
- greater employer attractiveness
HR digitalization supports employees in their work wherever possible, thereby increasing satisfaction as well as efficiency. By digitalizing standardized, rule-based processes such as payroll accounting and document management, time and resources can be saved, and errors avoided. This transformation allows HR managers to free themselves up from routine tasks and focus more on personnel development so that they can help to shape digital transformation within the company. This leads to greater employee satisfaction and efficiency.
In which areas are HR processes being digitalized?
Digitalization in HR is an important part of corporate digitalization and involves not only the optimization of operative processes but also strategic aspects of HR management. Some of the key areas in which HR processes are being digitalized are listed below:
- HR administration: Payroll accounting, absence management and personnel planning
- Recruitment and talent acquisition: Optimizing data minimization and access to information, planning, conducting and following up on job interviews
- Appraisal interviews: Appointment planning and preparation with target attainment and training measures, logging
- Performance management: Evaluation processes, data consolidation
- Employee retention: Managing benefits and training measures, feedback and whistleblower processes, logging
- Internal communication: Managing inquiries, data protection and data minimization, secure communication channels and exchange
- Data management: Data consolidation, reports and analyses, secure access and provision
An overview of the solutions available for HR is also provided in this compilation of JobRouter® extensions for HR.
Digital applicant management at top speed
DMG Dental Material mapped a business process for digital applicant management in just two days and automatically archived over 400,000 email processes!
“Thanks to digitalization, we have made huge gains in terms of speed and security”
Martin Hüsgen
IT Manager
DMG
Conclusion on digitalization in human resources
Digitalization is progressing rapidly in the HR sector with the use of new technologies and the on-going development of Artificial Intelligence (AI). This means that routine tasks can be dealt with more efficiently and AI-supported analysis tools can optimize recruitment, for example. The employee experience is also improved thanks to personalized digital offers. The continued development of AI and machine learning means that more precise employee satisfaction analyses and more advanced personnel planning models will be available in future.
Digital tools to promote communication and cooperation support an inclusive working culture and a healthy work-life balance. Companies that actively adopt these digital trends and follow ethical guidelines can significantly improve their HR processes and create sustainable added value.
FAQ on digitalization in the HR sector
What do we mean by digitalization in HR?
According to the definition, digitalization in the HR sector means using information and communication technology and adopting all the associated changes. For example, this could involve cooperation methods, changes in recruitment or similar measures. When it comes to digitalization within the company, the HR sector also offers great potential for process digitalization and process automation.
What are the current challenges facing the HR sector?
In the ever-changing world of work, HR departments have to face many challenges that emphasize the urgency of digitalization in this sector. The implementation of digital solutions is crucial if these challenges are to be addressed effectively to ensure that HR functions are sustainable for the future.
Challenges that justify digitalization in HR:
- Shortage of skilled labor
- Desire to work from home
- Increased demand for flexible work models
- Compliance with complex, frequently changing data protection guidelines
- Efficient talent acquisition and retention of top talents
- Increased demand for personalized, tailor-made employee experiences
- Employee development through continuous training and skills development
- Flexibility in the face of changing labor market conditions
- Expectation of transparent, rapid communication and sharing of information
- Pressure to identify potential savings and optimize resources
- Promotion of employer branding to strengthen employer brands in a highly competitive market.
How digital are HR departments at the moment?
In a study on digitalization in HR departments forcont (2020), over half of respondents stated that their employer had already automated certain areas of HR or entire processes. 23 percent of companies are planning optimization and automation processes for the future. Almost a fifth do not intend to implement any measures for the time being.
Why digitalization in HR makes sense
There are many reasons why digitalization in HR is beneficial. Some of the advantages of digitalization are highlighted below:
- Overview of all processes: HR software automatically coordinates individual tasks between stakeholders. The software reduces the likelihood of errors and speeds up the process for standard tasks. Terminology is automatically updated and the current process status can be consulted at any time.
- Compliance with deadlines: Digitalization helps you to keep track of all on-going HR processes. It simplifies the digital on-boarding of new employees, the planning of a company anniversary or the timely processing of offers. You will receive email reminders of important deadlines and will never forget an appointment again.
- Legal certainty and GDPR compliance: The archiving and deletion of personnel files are governed by clearly defined regulations. Digitalization guarantees transparent, traceable HR processes, as all changes are documented. Legal certainty and GDPR compliance at your fingertips!
- Effective use of time: Your documents are available immediately thanks to HR software. This saves you the trouble of searching through a dusty collection of documents and reading through the entire file. You can locate centrally stored personnel files and find what you are looking for in just a few clicks.
- New user experience: Working remotely, from home or in the office? Thanks to more transparent, secure processes, you can work efficiently from anywhere. You can offer your employees greater scope to work creatively, helping employees and managers to develop their personal responsibility.
How can I make use of automation in the HR sector?
You can use automation effectively and efficiently for a wide range of tasks in the HR sector. Process automation helps, for example, with the on-boarding and off-boarding of employees. Thanks to intelligent automation, you can respond to holiday requests and approve applications in good time. Processing expense claims is child's play. You can use automation to carry out all tasks quickly, confidently and transparently while at the same time reducing the associated costs.
Examples of digitalization in HR
There are many examples of digitalization in HR: You can digitalize employee on-boarding and travel management including business trip requests and travel expense reports. You also have access to digital personnel files in HR.
You can digitalize all your HR processes with the help of a digitalization platform such as JobRouter®.
What digital solutions currently exist in the HR sector?
There are various HR software providers. The JobRouter® digitalization platform is a comprehensive digital solution that supports you in areas such as human resources. It combines process automation with data and document management so that you have just one point of contact for all your company workflows.
Find out more about digitalization in HR with JobRouter®
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Reference project: electronic personnel files with JobRouter®
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