HR Tech: Migrating Operations to Digital World

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We live in a much more agile time because of digital solutions, which operate from our daily lives to our professional relationships. And that’s where HR Tech works.

By associating technology with activities in the area, HR Tech emerged, as the companies that provide technological solutions for the sector are called.

The purpose of HR Techs is to reduce bureaucracy in the Human Resources area and make it more strategic.

Automated processes optimize the employees’ precious time with boring and repetitive tasks. And at the same time offer fast and intelligent results that a professional would take a long time to accomplish the same mission.

In this article, you will find out why HR techs are the real deal for helping companies to get away from bureaucratic practices into better work resolutions instantly.

What is HR Tech?

HR Techs are startups or companies that the main goal is solving problems in the Human Resources sector. As the name suggests, it’s specifically about using technology to automate HR processes.

This is because they work to identify companies that use technology as a key resource to increase the productivity of an industry or even to give a new meaning to any need or human or social activity.

New organizational trends understand that companies need to innovate not only in processes, but mainly in meaning, culture, new mentality, or mindset.

It is not just about software, but also about an industry, where technology enables better data processing. While HR and managers can manage this data in an assertive and strategic manner.

The First Wave – Only Large Organizations

The technology market for Human Resources began to develop with software market giants such as SAP and Oracle that developed products for the large corporate market.

Trying to solve the complexity of large companies when managing their employees, this software is complete, but at the same time complex.

The Second Wave – The Great Revolution in HR Tech

Around the year 2012 startups initiatives for the HR market began to emerge. These are companies that identified that not only large corporations had this problem, but the entire market. After all, people management happens in any company that has a workforce.

More accessible software, in the cloud, began to emerge and to enter the taste of people managers around the world.

The evolution of HR with HR Tech

The Human Resources area is undergoing several transformations thanks to the technological boom of recent years. What accelerates this process is HR Tech. They enable the sector to act more strategically within companies.

HR Tech is a set of technology-based solutions. Thus, they help to innovate, reduce costs, increase efficiency and intelligence in the processes of the Human Resources area.

Therefore, in this scenario, the digital transformation helps and favors the sector’s innovations.

This is due to the improvement in time management, which makes it possible to develop a greater number of strategies.

Impacts of HR Tech

Each company is unique in many ways. Values, culture, mission, and vision are just some of them. And the uniqueness of some of these items, such as culture, can go beyond the company, with each sector having its own.

However, some characteristics of HR tech, or technological HR, impact the entire company in a positive way. How, in process integration, in the ability to gather and analyze metrics, and much more.

This, in addition to improving the experience of employees as a whole, also allows HR to be more strategic and assertive in its tasks.

What are the benefits of joining an HR Tech?

The principle of these new startups is to solve complex problems in a simple and more democratized way. The adhesion of HR Tech companies makes the HR environment more dynamic in the company because it presents the solution in a short time and offers a broad view of the processes.

Technology makes everything interesting when it decentralizes bureaucratic and complex processes and makes room for a more interactive environment, with more human connections.

In addition to adding value to the production chain, the good use of these platforms can promote an organizational environment that mainly comprises human issues.

When it comes to employees, for example, the thought turns to issues related to the obligations and labor laws of both, with this, companies end up inflating their HR sector and suffocating employees with bureaucracy. HR Techs seek to transform this picture and make HR a more communicative sector that listens and considers your needs.

The companies’ decision-making was very time-based, questions such as whether such an employee could fulfill his workday on time were essential.

The digital transformation in the sector improves the management process from recruitment, employee monitoring to offboarding. It implements technology in this sector that may reflect strategic performance in other departments. And it deals with the human being as an invaluable and important resource for competitiveness.

How does HR Tech optimize the process in the human resources area?

The HR sector has undergone transformations over the past few decades. The way in which point management is done, the recognition and bonus of an employee, even the online selection of candidates made things easier and more assertive.

The challenge for the sector now is to initiate innovation and creativity in corporations. Since currently, the main needs of the sector vary between:

  • Manage competencies;
  • Conduct training for managers;
  • Understand the profile of the workforce that makes sense for the organization’s next steps;
  • Enable strategic management of the company.

With a more dynamic, assertive, efficient, and decentralized sector, managers began to actively participate in the management and performance evaluation of their employees. They also do not just manage processes, but mainly become people managers.

The market is moving towards a change of mindset, so that companies understand that the world has changed, and look for the best ways to perform in this new generation and new technological era. A department that is modernized and aware of innovations can inspire the company to reinvent itself as well.

In the field of decisions, technology can broaden the manager’s view of certain aspects and offer points of attention or new paths for change and also reduce possible errors. Several platforms are capable of presenting solutions that are more likely to get it right based on the data.

What are the main types of HR Tech?

The most common types of HR Techs are related to 6 areas: Recruitment and Selection, HR Core, Talent Development and Management, HRMS (Human Resource Management System), Office Services and Offboarding

Each of these areas uses technology in human resources, which makes the pre-employment search journey, management during and post-passing procedures of the employee in the organization more efficient.

See more about each of them:

1) Recruitment and selection

B2B service businesses that work finding solutions for candidate mapping processes. They hire interviews, skills analysis through the behavioral profile of employees in order to select talent for each vacancy.

2) HR Core

They work together with HR administration, doing operations such as hiring employees, managing timesheets, making payments, and offering benefits.

3) Talent Development and Management

HR Techs work on developing and managing the company’s talents. It seeks to manage jobs and salaries that bring well-being and increase productivity.

4) HRMS

They develop software to unite multiple systems and processes, seeking to give the company a panoramic view. This brings easy, affordable, and fast management of human resources, business processes, and data.

5) Office Services

HR Techs that help organizations with the development of offices, facilitating physical installation, paying attention to superior ergonomic solutions, and usability of the collective space.

6) Offboarding

These are startups that support organizations with the employee dismissal process, managing the ex-employees community.

Why use HR Tech?

The specific benefits of HR Tech are many and varied. They depend on the features of the company and the objectives of the Human Resources sector. But there are some advantages that make sense for every type of organization:

Efficiency

The shortcut is achieved by quickly analyzing numerous variables and performing many operations at the same time, tasks that depend on technology.

This efficiency is a potential that can be explored by Human Resources professionals. With technology, they are able to focus more on strategy and less on operations.

This leaves almost the entire mechanical and manual aspect of the process to the machine.

A variable such as a candidate’s background, for example, can be analyzed on a large scale in seconds with technology. When this issue requires the professional’s look, much more time is wasted.

Efficiency

In addition to increasing efficiency, the adoption of HR Tech also increases effectiveness. In other words: on the one hand, technology makes the process faster; on the other hand, it raises the hit rate.

In this way, a contract has the potential to be done in less than half the time and with a much smaller margin of error. This effectiveness, in turn, has a direct impact on costs.

Cost reduction

With the efficiency and effectiveness of hiring at its highest level, there is less wasted time and greater allocation of effort in tasks. They require the intelligence, strategy, and planning of Human Resources professionals.

In addition to the gain in analysis time, there is the optimization of basic conference operations, document review, and other manual actions.

Perception

With technology, it is possible to understand what employees actually think about the company and their working conditions. And how to improve their perception of the environment.

For this, it is possible to offer assessment and diagnosis tools that guarantee the anonymity of employees and valuable insights for managers.

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Leonardo Salles

Copywriter for GitScrum.