Why Investing In Technology Will Redefine Human Resource Management

August 28, 2022

Technology has taken over almost all the HRM dimensions and functions in the modern business world. A recent study found that the global human resource technology market is projected to grow from $24.04 billion in 2021 to $35.68 billion in 2028. With that future speculation in place, here is why HR experts believe investing in technology will redefine the overall HR system of businesses in more ways than you think.

The Power Of Big Data

One of the primary functions of HRM is to collect and process data to arrive at feasible people management decisions in an organization. However, this data collection and management handled in a traditional HR setting comes with many tedious tasks and manual errors, making it somewhat challenging to gain deep insights and make effective decisions.

The concept of big data in HR technology is a powerful tool that allows HR professionals to understand their workforce through a 360 analytical view, giving a comprehensive fact-based picture of the current workforce, HR strategies that are working and not, and most importantly, the emerging HR trends to watch out for. All these effectively support an HR team to come into meaningful, cost-effective, competitive, and reliable HRM decisions, along with a clear focus on risk management.

Makes Recruitment Faster

Modern high-volume recruiting is extremely time-consuming and costly. Investing in HR technology benefits organizations with automation and AI (Artificial Intelligence), which helps to quickly screen and filter suitable applicants for a given job role.

From attached resume screeners to robot interviewers, recruiting has never been easier as it is today with the integration of advanced HR technology. AI is especially proving effective in conducting a credentials-blind process for candidate evaluation and assessment, which goes a long way in finding talents in a skillfully targeted method rather than just being centred on qualifications.

Data Storage And Security Simplified

The advent of HR Cloud-based software has made data storage extremely simple, easily accessible and most importantly, highly secure. This paperless storage is also cost-effective and allows easy filtering and scanning of relevant HR data when needed, saving time and encouraging efficiency. The easy accessibility also allows HR professionals to request data from employees and even update them almost instantly. In addition, the centralized HR platform can be accessed from anywhere, yet again improving efficiency through real-time engagement.

On the other hand, when it comes to security, it’s important to emphasize that cloud technology features servers located in warehouses that other employees can’t access. The files stored in the cloud are also encrypted, i.e. scrambled, making it far harder for cybercriminal access, thereby ensuring a high level of security compared to a traditional paper-based data HR data storage system.

Better Performance Management

Usually, performance management is done through monitoring, collecting supervisory feedback, and facilitating employee reviews, which are often subject to tedious processes, manual errors and biased interventions. HR technology integration into performance management can eliminate all such issues and unnecessary steps, encouraging an efficient, effective, unbiased and error-free performance management process within the organization.

Especially the influence of people analytics will allow HR professionals to pull raw data through which they can create actionable insights and ultimately support data-driven decisions regarding performance such as promotions, termination, layoff, compensation revising, training and development, succession planning, and agile cross-functional team staffing.