Digitization in Human Resources Processes

Technology affects our lives more and more, traditional methods used for the management of business processes is no longer sufficient. Complex business processes in enterprises have become manageable only through technology. Digitalization naturally affects human resources processes as it affects all our lives. Now data management of businesses is more systematic and easily accessible in the digital environment. The use of technology by the new generation and the increase in the number of employees in the business have become more important in digital transformation.

What is Digital Human Resources? Digital Human Resources; A large portion of his work in the human resources department is conducted in the digital environment. With digitization, it is anticipated that there will be process improvements in the fields of recruitment, performance management, talent management, employee commitment and HR analysis, which are involved in human resources processes.

Especially with the increasing computing power of computers, it becomes easier to analyze meaningful results by analyzing the accumulating data. We will be hear more about Predictive Analytics and People Analytics in human resources processes in the coming years. With these methods, enterprises will be able to produce more meaningful results by analyzing the data they have about their employees.

During the recruitment process, human resource workers analyze candidates’ social media accounts to determine if the candidate is suitable for the institutional culture and determine their personality profile.They also conduct testing and evaluation tests of eligible candidates online. Thus, time and cost savings can be achieved by finding more qualified candidates for interviews and post-processes. Especially with the involvement of the Y generation in the business world, it has become very important to increase the commitment of the existing employees to the business. The Y generation that uses technology intensively is pushing businesses to digitize. Y generation workers who are in a hurry and want everything to grow fast are waiting for personalized, fast digital trends from businesses. In a sense, businesses are forced to keep pace with the rise of Y generation in business.

With the digitalization of HR processes, performance evaluation, questionnaire management, suggestion management, internal communication and employee satisfaction activities are managed online, more efficiently. Thus companies saving time and cost.

Along with the increased involvement of artificial intelligence and robotic technologies in our lives, recruitment, selection placement, orientation and other routine tasks of human resources in the human resources processes will be handed over to artificial intelligence-assisted digital systems so that they can manage processes faster and more efficiently with less workforce. For example, the human resources worker can perform a chatbot instead of the human resources worker by responding to routine inquiries that the employee needs to perform in the orientation process, or questions that businesspeople are worried about, thereby reducing the workload on the human resources staff.

Performance appraisal is another intensive process that both the manager and the employee spend time in the business. A survey shows that in an enterprise with 500 employees in performance processes, there is a loss of about 3000 hours per year. This creates a cost of about $ 200,000 per year. The real benefit of digitalization is that it can be measured when these costs are reduced. Another research shows that digitalization will reduce the workload in human resources processes by about 30%.

Businesses can save both costs and make their processes more efficient with digitization. In this context, we can easily observe the achievements in the performance evaluation processes especially in the enterprises we work with. As an example from our digitization efforts, we have saved time in the performance appraisal time of 50% and 60% of the total evaluation time in an enterprise with 800 employees who digitizing human resources processes. In addition, we observed benefits such as alleviating the workload in the human resources process and increasing internal communication. 

In summary, digitization increases productivity in the field of human resources as it is in every area, and it causes businesses to question their own business processes and the competences of their employees.

Kaan Penekli