Digitizing vs. Digitalizing Human Resources and Why You Should

DIGITIZING is the process of making information available and accessible in a digital format.

DIGITALIZING is the process of considering how best to apply digitized information to simplify specific operations.

Digitizing Human Resources (HR) has been a recurrent theme as companies look at ways to ‘better’ themselves as employers and remain competitive in the market place.  Digitizing portions of HR tasks introduces better work environments for employees and smoother processes for companies.  By taking the ‘paper’ out of paperwork, organizations can speed up the flow of information, as well as improve accuracy in their record keeping.  The precision of paperwork, from compliance driven data to recruitment and selection files, is only one key factor.  Modernizing portions of HR, via digitalization, allows companies to be adept and more responsive to employees and the modern business expectations.  It also gives HR the opportunity to work on strategic activities, like streamlining hiring processes and developing key talent, just to name a few, versus sorting, processing and filing employee paperwork.

For organizations that are new to a digital approach, taking small steps can be a good path.  Start by asking a few questions like:

• How do you manage your employee’s time?
• How is payroll processed? 
• How do you organize and store your employment applications?
• What job boards do you use to find candidates?  

One step, such as implementing electronic time and attendance management, can help with not only tracking attendance, but running payroll and assessing attendance issues.  In this case, a single digital implementation improved three distinct processes. 

Recruiting software is another way organizations can dip their toe in the “digitization pond.”  By automating the recruitment process, companies find the hiring process to be more streamlined and more effective.  By using HR recruitment software, job postings occur automatically, giving you access to many screened candidates within days.  The automation allows HR to manage the hiring process stage by stage, ensuring not only compliance, but finding the best candidate within the needed timeframe ("Sutihr Platform", 2016).

For organizations that have already conquered the basics of digitizing HR, the next step is to consider adopting Human Capital Management (HCM) to increase their efforts in digitization. 

What is Human Capital Management?

HCM is an approach to HR and people management. The method is constructed around the idea that employees are “assets.”  They are needed to make the organization competitive.  They are assets who offer skills and value that can be measured and enhanced. HCM technology provides the tools necessary to do just that. It does it throughout workforce acquisition, workforce management and workforce optimization (George, 2017). 

What are the benefits of incorporating HCM technology to help digitize HR?

• Modernizing your HR department helps to achieve business strategies.  By perfecting the administrative aspects of their role through the use of technology/digitization, HR can focus on other critical decisions. 
• Technology allows for analytics and metrics, giving HR teams a way to tie their objectives to ‘real’ dollars and savings.
• Electronic files help to secure your records and make it easier to access them especially if needed across multiple locations.
• Allows for potential self-service employee stations, e.g., putting in time off requests, checking payroll stub prior to being processed, etc. Taking care of errors early on in processes frees up extra time for HR team members.
• Cloud based HR services allows for real time access to information.  Employees, especially Millennials, are looking for the ability to ‘see’ their information including their performance appraisals. Having mobile access to their own information provides an avenue to enhance employee satisfaction and potentially employee engagement.
• Cost savings, according to some organizations, HCM can return an average of $9.13 for each $1.00 spent (George, 2017).  Many have also cited the cost savings of “file storage”, as it is no longer needed with electronic files.

As the digital and technology world continues to grow, organizations will have to adjust all operational aspects of their organizations – including HR.  

Sutihr platform(2016). Retrieved from https://www.sutihr.com/blog/digitizing-hr-what-are-the-key-benefits/

George, J. (2017). Business solutions. Retrieved from https://www.ibusinesssolutions.com/hcm-software/five-benefits-digitizing-hr/