In today’s digital age, companies have to be open minded towards new technologies to stay competitive in the long-term. Technology can introduce new flexible ways of working, boost productivity, and help you save time and money.
Many facets of a business have already gone digital. Marketing softwares are improving how companies manage and optimize their marketing campaigns; CRM softwares are helping sales track and maximize customer interactions; and communication softwares are transforming the way employees collaborate with one another.
But what about HR?
Digitization of HR
Even though HR has been slow to adopt technology, some developments have been observed in recent years. The way companies recruit, for example, has been completely redefined by technology. Gone are the days of posting job ads in print publications, and in with the proliferation of social media and job portals. Social platforms such as Facebook, Twitter and LinkedIn allow companies to reach more potential candidates and simultaneously evaluate their competency for jobs. Technology has also made it possible for HR personnel to engage in constant dialogue with potential candidates across multiple regions and time zones, alleviating the necessity of physical presence.
However, once a candidate is hired – HR forms have to be filled, excel spreadsheets are used to keep track of hours, and communication with HR end up in long e-mail chains.
The irony thus lies in that – companies attract talent digitally, only to switch back to analogous processes after the talent is hired.
From spreadsheet to software
A complete transformation of HR has been long overdue. The recent emergence of HR softwares are utilizing the full potential of digitization to make HR management more efficient. By digitizing data and integrating HR processes, HR softwares are reducing the burden of administrative tasks and allowing HR personnel to perform a more strategic role within the company. The right HR software can thus considerably enhance HR’s impact on business performance.
Of course, choosing the right product is easier said than done. That’s why we’ve highlighted 5 things to look for in an HR software:
It may seem obvious, but the first thing you should consider is whether the product is user-friendly. Regardless of how many functionalities an HR system may offer – if the user experience is poor, neither you or your team will enjoy using it. Complex structures often require additional training, and may not actually simplify your workload if employees have to spend a lot of time and effort to familiarize themselves with the functionalities.
The ideal HR system should have a compelling user experience, low familiarization period and cater to different digital affinities.
Most HR softwares offer demos or trial periods. Make sure you test out a few products to determine which one best suits the needs of your team.
Questions such as how many vacation days do I have, what is my tax ID, and when is my next pay day can take up a lot of valuable time from HR. With self-service portals, employees can answer these questions for themselves, and update personal data at their convenience. The time saved from obtaining data for employees can then be used for more important tasks, such as improving employee engagement and retention.
Self-service portals can also simplify your HR processes. Employees can manage their own hours and absences on the platform, and the responsible managers can easily approve or deny requests directly through their portal. You get a better overview of what’s happening in your team, which makes managing employees much more effortless.
3. Data access
Employees have different responsibilities that require varying levels of data access. HR systems with role-based user accounts can establish who can access what and keep your data in the right hands. Employees are assigned to a role, such as HR personnel, administrator, executive or employee. The system then customizes data access in accordance with each employee’s position. In doing so, employees are only permitted to access data and functionalities as required by their responsibilities in the company. Tailored user accounts not only allow the right employee to perform required administrative duties, but can also protect sensitive HR information and your employee’s privacy.
Nowadays, no one wants to wait for information. A cloud-based software will ensure your HR data can be accessed from anywhere at anytime. With the rise of mobile technology, being able to access the platform via mobile phone and tablet will make it even more convenient for your team to manage themselves. If an app for the software is not available, make sure mobile access will at least be possible in the near future.
4. Flexibility & Scalability
HR softwares are not one-size-fits-all. Look for an HR platform that allows you to customize and configure processes to accommodate your unique HR needs, and opt out of services that are unuseful for your team. Flexible HR systems can also better adapt to organizational changes, such as unpredictable business developments, internal restructuring and growth changes. If a platform is not scalable, you’ll find yourself searching for a new HR software in the near future. HR systems must be capable of growing and evolving alongside your business. A software provider that is willing to meet changing demands will actively seek your feedback, and continuously optimize the platform based on customer requirements and developments in HR.
5. Data security
In addition to providing HR solutions, HR softwares also serve as a centralized employee database. When you consider the amount of sensitive data HR involves, the safety of your team’s personal data is paramount. HR systems must comply with the latest security standards and encrypt all employee data and interactions with the platform. To ensure your confidential data remains confidential, make sure your data is stored in Germany and your software provider abides by German privacy policies. This is because German data centers and privacy laws are among the safest and strictest in the world. Software providers that take data security seriously will also employ proactive safety measures, such as continuous monitoring and running ongoing tests, to identify and mend security vulnerabilities. By identifying potential risks, software providers can implement better data security strategies, which will in turn – improve their ability to safeguard your data.
In times of skill shortage, companies have to transform the way HR is managed in order to have a competitive advantage in the war for talent. Digitizing data and automating HR processes help you save time on less important tasks and reduce the amount of administrative errors for your team. Access to readily available data and reports allow employees to manage themselves and managers to make faster, better decisions. HR softwares make personnel management more productive and efficient, and give you more time to build, train and develop the best team. The benefits of HR softwares can be best realized with the right HR software, which is one that is intuitive, self-service, flexible, secure and enables variable access.