A key source of competitive advantage is the effective management of an organization’s human capital. Increasing the management, support, and delivery of human capital all relies on technology – specifically the Human Resource Information Systems (HRIS). The HRIS software is highly preferred by most companies as it efficiently provides automated software solutions for most of the individual components at work. By implementing this software, an organization’s long-term productivity and profitability can be effectively enhanced.
Keys to leverage HRIS technology
Organizational leaders must focus on human resource processes supported by this technology. The keys to pair these human capital processes with human resources technology are as follows:
Self-reliant human resources
Employees are data consumers in their non-work lives and they expect the same level of control and access in their work lives. Increasing HR perception of control using HRIS technology as data maintenance software toward their information can lead to increased transparency, job satisfaction, and a sense of fairness.
Communication while monitoring performance
Computer-based performance monitoring is a valuable element of a performance management system, but it is vital to inform the human resources about the reasons for they being monitored using this human resources technology. Communicating with human resources this way leads to improved performance and increased acceptance of monitoring.
Using more data to procure answers
Implementation of HRIS technology lets human resources answer questions with newly- available data. For instance, basic questions like: “What information on job application predicts retention and long-term performance?”, “what issues do employees face in the current system? are answered by forward-looking companies?”. These kinds of HR technology solutions allow managers to evaluate human capital data and quickly respond to questions from CEOs.
Key trends to watch
The benefits of HR technology systems have been instrumental in transforming this field, the latest tech trends to follow to keep pace with the changing dynamics are provided below:
Growth of social networking
One of the most vital challenges faced by human capital executives these days is integrating information from social networking sites. HR professionals must overcome this challenge and adopt social media for multiple purposes. According to Facebook statistics, over 34 percent of human resource professionals use social media for training purposes. Social media is not just for hiring employees, it can be used by companies for brand awareness purposes. For instance, a Facebook campaign was run by Stillhouse Spirits, a liquor company, to stimulate outdoor enthusiasts toward selecting their brand, and the firm achieved a 17-point lift post campaigning.
Employers often complain about the extra hours required to manually evaluate all the applications received. AI-based HR technology solutions significantly reduce manual recruitment work, like automatically filtering resumes that are unqualified for the role. This technology can also be used by human capital recruiters to look for specific skills and to reduce bias.
Greater use of dashboards and business intelligence (BI)
A key challenge in several organizations is to convert human resource data into measurable contributions for a company’s profitability. Sophisticated BI applications can be used by companies to evaluate the large amount of data available using HRIS. Web-based analytical tools like Google Analytics, Mixpanel, and Piwik can also be used to push data farther out to managers. For instance, Mixpanel helps organizations to measure what matters, make faster decisions, and develop better products using data.
Human resource technology and software have drastically changed how human capital services are managed and delivered by organizations. When used effectively, these solutions make the HR functions better informed, more efficient, and better able to communicate adding value to the companies. Organizations need to combine effective human capital management processes with technology and must be ready to manage various challenges.