In the corporate world, digital transformation demands a major mindset shift within teams that must be facilitated by the human resources department. In the digital age, talent management has emerged as a major strategic concern for all organizations.
Disruptions like the coronavirus crisis are driving new operational dynamics, including, most notably, telecommuting. Similarly, the present circumstances require a shift towards digital human resource management.
Understanding the demands of these new circumstances is no easy task, given the high speed imposed by disruptive technologies.
To meet its objectives, the human resources department needs to understand the new technological landscape and build a new culture for the entire organization.
Digital human resources for digital companies
The cornerstone of smart people management should be laid by the human resources department, but this has not been the case in many organizations. The Observatory of Human Resources and Technological Innovation (ORHIT) has found that 68% of companies are not investing in technologies in this area.
In any organization, digitalizing human resource management is a twofold challenge: it demands both a transformation of traditional operations (evaluations, performance management, recruitment policies, etc.) and a change in how the organization operates (agility, efficiency, workforce, etc.). To meet its objectives, the human resources department needs to understand the new technological landscape and build a new culture for the entire organization.
However, getting that message across to individual employees requires tools and channels capable of permeating the entire organizational value chain and reinforcing trust. To borrow a term from the field of logistics, reaching each and every employee is the “last mile” for the human resources department. Technology can be very helpful in this regard.
For businesses, the road ahead is paved with new opportunities related to critical matters such as recruitment, performance management, staff training and development, and of course, the employee experience.
Investing in analytics
Nevertheless, ORHIT has found that just 30% of companies are investing in people analytics—an unfortunate state of affairs, given the crucial importance of this tool in digitalization generally and in the “last mile” in particular. Employee data are a source of information that can inform decision-making, even in real time.
Individualized actions informed by the integration of multiple sources—such as social media and other channels, always in compliance with the European Union’s General Data Protection Regulation—illustrate the utility of this approach. In this regard, trust is essential to creating a favorable work environment, since employees may perceive this sort of analytics as a threat to their privacy.
The key is to emphasize the “human first” philosophy: the benefit to people takes precedence over all else, so technology must be harnessed to maximize this benefit.
Employees may perceive this sort of analytics as a threat to their privacy.
Flexibility, agility, and innovation
The application of this strategy in human resources will make work environments more flexible and agile, while greatly increasing efficiency. This approach lays the groundwork for tackling business-related changes and is a prerequisite for the exploration of new models.
Beyond these competitive advantages, the process will also foster greater innovation. People analytics is characterized by an innovative spirit and an openness to change. Technology and new models of trust that emphasize the human component are of paramount importance in these projects.
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