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Digitalisation Takeover: How Human Resources Keeps Up With Modern Times
Human resources management has come a long way. From a not-too-distant past when companies only had “personnel offices” whose only job description was to keep workers’ records and administer payroll, the HR department has ballooned into more robust roles.
Now actively involved in managing worker efficiency, streamlining customer journey, and even stretches to helping employees’ pursuit of happiness. HR has now become a field that moved from a purely functional job description to one that assumes more social implications and human considerations.
At the heart of these considerations is the need to embrace strategies like data management. Culling, analysing, and processing data to help HR Managers drive impactful change and improvements across entire companies are now every inch a part of the portfolio.
It’s worth going over the finer details of the evolution of human resources management — and running digital tools and technology that’ll feature prominently in the world of HR.
Role of Human Resources Management in an organisation.
Any business—forget the brilliance of its CEO and management team—is only as good as its workforce. Modern human resource management seeks to achieve maximum improvement for the workers themselves, not only in terms of skills but also in the quality of their working life.
This way, they engineer a healthy corporate culture, where worker performance is in tune with management goals. In a world where job descriptions are increasingly fluid and shifting from the traditional professions of the past generation, Human resource managers must position themselves to assign employees roles for which they are best suited.
Armed with all the crucial data on the capabilities of each employee and the needs of business management, they match workers to roles where the skills are most needed. This way, the business managers get what they want, and the employees get an avenue to hone their skills.
Another vital role of the Human Resources department is how it creates a pipeline that ensures a steady supply of talent. The labour market is often described as an ‘‘employee’s market.” As job roles get increasingly specialised, recruiters are having to compete for talent. HR departments do their bit by creating strategies to keep talent coming in and create an environment conducive enough to discourage workers from leaving.
A shiny example is America’s Wall Street. Wall Street banks regularly hold recruitment talks in the best universities to snap up choice talent fresh out of school. And to curb employee churn, they ply their workers with some of the most generous bonus packages.
Thanks to this strategy, the industry, well known for being such a high-pressure work environment, has never had to suffer a serious shortage of workers.
In what ways has technology changed human resource management?
Hardly do kids go to school on career day with ambitions in Human Resources. For too long, the profession has been an unglamorous job description usually involving a ridiculous heap-full of paperwork.
Thankfully, tech is changing the narrative. According to this:
Today, if you’ve seen a few articles or Ted/TedX talks about the future of human resource management, it’s very likely that you’ve seen terms such as “digital HR” thrown around.
Well, digital HR is simply modern human resource management where, rather than operating HR processes with endlessly needless stacks of paperwork, companies optimise their HR departments to rely on social, media, analytics and cloud (SMAC) technologies, enabling them to function more pro-actively, efficiently, and effectively.
All of these functionalities are present in CRM software. Though the name ‘CRM’ suggests a ‘customer'-facing tool, CRM can be deployed to store and coordinate employee information and manage relations between them and the HR department.
What more? Recruiters can also have a bite of the pie with CRM features that allow them to find, attract, and engage talent, all while selecting the most qualified candidates for roles. So, rather than having to deal with huge stacks of paper in each worker’s file, HR reps can simply call up everything without flicking a wrist.
How CRM helps Human Resource management.
While there is a lot of prospect in HRM tech, CRM software remains the one tool that has reached a considerable level of practicality and adoption by businesses globally. Here are 3 immediate payoffs that companies can hope to reap from integrating CRM into their existing tech stack and overall human resource management strategy.
Streamline the recruitment process.
Usually, HR officers have to first create job descriptions, screen applicants and then, invite selected candidates for interviews. Obviously, this process is not the most efficient.
With advanced tech tools like CRM, HR officers can instead have the system create automated job descriptions, clearly spell out directions for candidates to follow in their application, and then screen resumes for specific qualities. It’s only after these steps have been completed that the system then refers the few candidates who satisfy the criteria to the recruiters.
CRM then automates the recruitment process by gathering the resumes, and running a comparative analysis to see the most suitable persons before a final in-person/virtual interview by the management.
Seamlessly process payroll.
Accounting apps can integrate smoothly with your CRM to accelerate the pace of tasks like having to process employee payroll.
This includes aspects like keeping an eye out for absences, sick days, bonuses, deductions, holiday leave, and immediately notifying the accounting department of the necessary cutbacks or additions. This means CRM eliminates the all-too-familiar, tedious task of having to remove bonuses and deduct funds arising from uninformed leaves.
A CRM for HRs also means you don’t have to worry about tax compliance, as all financial obligations can be monitored and resolved from the CRM’s dashboard. Say an employee demands an early payment of their wages, the CRM suggests fair outcomes to such demands based on the performance history of the past and current months.
The alignment between the HR and accounting department means payroll is as seamless as ever, saving you time and financial resources, as automation and integration tools come in handy in speeding up the transfer of data with even more speed.
It automates compliance oversight.
Analogue compliance processes required employees to refer actions through the compliance officer for approval manually. It’s not hard to see how easily abused a system like that would become.
But a CRM completely automates the process. So, instead of having employees pass paperwork on what are mostly routine tasks, the software simply singles out and blocks potentially harmful moves. This reduces workload and enables businesses to execute decisions faster.
Provides real-time data on employee performance.
Employee performance review has always been a core aspect of the HR job description. However, the ability to collect and measure in-depth data has only just been introduced with CRM.
Now, rather than make review decisions based on just employee output metrics, HR managers can simply access CRM-generated analytics on each employee. And using this data, they can leverage deeper insights to drive more intelligent management decisions.
Collate employee feedback.
Just as CRM helps keep track of customer sentiment to curb churn, it also helps to gather and collate employee feedback from surveys and other channels. These feedbacks are usually an accurate reflection of employee sentiment, which can be leveraged as insights to optimize teams processes. Remember, the key is to avoid employee churn and boost talent retention.
Whether it’s a retiring employee or an existing employee that is leaving your shores for other opportunities, the reliable database of feedback coming from employees that have worked with the organization could prove to be an asset in driving positive change. It could also be a force for improved employee engagement.
Get your team on board with efficy today!
Technological advancements have changed how we conduct business — and manage employees! With CRM, AI, and other advanced tools, human resource management is poised to assume a continually strategic position in the growth of businesses globally.
The best places to work are not about million-dollar infrastructure or mega take-home pay. They do well to inspire a deep sense of belonging that the employees have towards the firm. Do they feel every inch an internal customer regarding how their physical, mental, and psychological needs are being catered to? Or, no?
In the eventual analysis, your employees are not just another functional branch of your business. They’re the customer-facing arm of your organisation that makes that people connection happen! A CRM software that builds stronger, personal, more lasting relationships with your employees will go a long way in passing on these values to your customers.
Here, at efficy, we provide a full suite of digital marketing products that empower your HR management to maintain a competitive edge in the 21st-century job marketplace.