A Look Into How Digital HR Has Revolutionized HR Tactics

June 15, 2021

Tactics move you around the battlefield in a way that will give you an upper hand over your enemy. The same meaning applies when it comes to HR tactics. In the business world, HR tactics will give your business or especially your human resources a competitive advantage over the competitors. 

HR tactics can be as simple as giving enhanced communication for employees to bring in their valuable inputs or be as strategic as providing effective training and development programs to improve an organization’s human resources. 

This article will give a clear breakdown of two crucial ways how the concept of Digital HR has revolutionized HR tactics. 

Enhanced accuracy in decision-making 

The key to work out any tactics is to make sure they are planned accurately using reliable and accurate data or information. Many HR tactics don’t work as effectively as they are expected to because of the lack of reliability with the data. One best example of this can be a manual performance appraisal. 

In a manual performance appraisal process, the decisions are made solely based on personal relationships, experience, peer evaluations, risk avoidance, gut feeling, and predictions- which is highly prone to errors and biased decision making. 

Any learning and development programs developed or decisions regarding employee retention or termination made using the results of such a faulty and unreliable appraisal process will slip potential employees out of the organization and demotivate existing employees, affecting an organization‘s performance and competitiveness in the market. 

Digital HR has plenty of HR software with in-built performance indicators and metrics that produce error-free, accurate, and reliable performance measurements for tactical HR planning. In addition, these performance indicators are also aligned with the business goals to make sure they are effective and reliable for future business and HR decision-making.

On the other hand, since Digital HR has minimum manual intervention – employees believe the performance appraisal is bias-free. While this keeps them satisfied and engaged, they also focus on self-improvement based on these automated performance indicators. 

People analytics to build rewarding HR strategies 

A key HR tactic many businesses follow to stay ahead of their competitors is to build unbeatable HR strategies. This includes building strategies that will give a competitive edge in pretty much all key HR functions like recruiting, employee engagement, performance management, and most importantly, employee retention.

But effectively using this HR tactic has always been chaos in the traditional manual HR system. Especially with the tedious paperwork and repetitive tasks involved, along with the complexities in sorting, filtering, and analyzing data from piles of documents, building an effective HR strategy was time-consuming and overwhelming all together. 

Thankfully with Digital HR, businesses are now making significant use of People analytics – a data-driven approach to managing human resources and relevant decision-making. People analytics collect and transform HR and organizational data into understandable and actionable insights that can help you make effective HRM decisions and improve the way you do business to stay competitive. 

These are some of the areas people analytics provide greater insights on

  • Employee hiring and selection
  • Employee performance management
  • Employee engagement and satisfaction
  • Employee turnover rate
  • Employee retention rate 
  • Employee early failure rates
  • Management leadership capability
  • Management accountability
  • Organizational communication effectiveness 
  • Organizational innovation 
  • Organizational culture/aligned values

Organizations that use people analytics to build HR strategies have seen 300% improvement in the success rate of selecting future high performers and an over 40% average reduction in employee turnover and early failure rates. This is why nowadays more and more businesses are using people analytics as a tactic to restructure their HR strategies more effectively.

EmiratesHR is an HR software company in Dubai that provides cloud HR solutions to make the digital HR transformation process for business easy. We focus on ensuring all our platforms provide accurate and reliable outputs that can be utilized effectively for tactical HR planning.