Digitisation of HR

As HR strives to further enhance efficiency and functionality, streamline processes and squeeze more out of finite resources it is becoming more of a necessity and less of an option to embrace HR technology. Organisations across APAC are investing increasing time and money in HR technology—particularly in the area of HR portals and software-as-a-service (SaaS) systems—via cloud and mobile applications. But does this technology always benefit staff?

Tech spend growing
Over a third of companies globally plan to spend more on HR technology in 2015 than they did last year, with nearly a quarter of those anticipating a 20% hike in spending, according to the 2014 HR Service Delivery and Technology Survey, recently conducted by Towers Watson. The Survey also revealed that this year adoption rates of SaaS systems in APAC firms—typically to handle functions such as performance reviews and leave approvals—climbed to 46%, up 11% from last year. Significant increases in the adoption of cloud technology are also noteworthy, particularly in markets where the government has taken a more proactive approach to the development of cloud, such as in Japan, New Zealand, Australia, Singapore and Hong Kong.

Realising benefits for staff
The rising popularity of digital media is undoubtedly improving efficiency and effectiveness in the workplace. These benefits so far have mainly been reaped on the employer side. Moving forward, HR needs to look at milking workplace technology to also help maximise its benefits on the employee side. Ashley Clarke, COO, FlexSystem commented, “Generally, technology has facilitated the marketplace and made people more productive. The increased use of technology in business has, until now, mainly helped employers—with easier access to data on the business and a reduction in time spent on company administration. Conversely, the realisation of such benefits for staff is really only just beginning.”

There has been a progressive ‘consumerisation’ of IT as workplace technology, which has gradually migrated away from spreadsheets and towards systems that finally ‘look’ and ‘feel’ a bit more human and intuitive. The timing of this consumerisation process couldn’t be better, as it also coincides with the recent, if gradual, move in HR to present relevant data to their staff in smarter ways. Mobile access to such ‘smart data’ is undoubtedly making work life easier for HR professionals and employees alike. From the employee perspective, Clarke explained, “HR systems that are automated to provide the right information, at the right time, to the right person decrease ‘clutter’ by ensuring employees are not bothered by irrelevant information.” From a HR perspective, critical HR functions can also be made significantly easier by being able to properly, effectively and efficiently interact with the HR system. Clarke noted, “The relationship with today’s HR systems has become more contextualised. For example, it is now possible to request very specific information, or set up ‘contextual alerts’—which notify relevant staff members of required tasks at specific times—as an automated  response to specific criteria previously set by HR.

How critical
Clark explained that, for those designing HR systems, the fundamental question is: ‘How can we help HR professionals achieve more, by getting more relevant information to them?’ The answer lies in the fundamental design of the HR systems deployed. Making HR systems intuitive and user-friendly is important, but key is getting them to ‘think’ like HR does—this can bring huge time and effort savings. One such way in which IT systems can provide HR with help is by incorporating auto alerts of potential staffing issues. Mission-critical positions in organisations that have been vacant beyond a designated ‘tolerance period’ could be flagged by the system—alerting those responsible to take action. This not only helps trigger more timely HR responses to urgent staffing needs, but also eases the complex, and often thankless, task of them trying to keep track of actual headcount in busy large-scale organisations. Another example of IT making life easier for HR can be found in well-designed payroll systems. If, when HR reviews payroll, only relevant information is highlighted—this avoids the need for ploughing through a huge pool of numbers which are, more often than not, simply the same as in previous months.

As well as considering the design of HR systems, mindset changes in the workplace are also very often depend on how such technology is utilised. Baroness Susan Adele Greenfield (CBE, HonFRCP)—writer, broadcaster and member of the House of Lords—speaking at the recent HRM Expo 2014 in Germany, noted, “As far as HR managers are concerned, it’s all about recognising and accepting technological developments—only then can they act appropriately. People with low empathy and weaker identities need constant feedback and, in this respect, it is important for HR to give all employees a sense of identity and to show them that their actions have consequences.” She added, “Companies need a conceptual framework to help employees join up the dots, so that things mean things.”

In terms of HR technology and HR portals, Jonathan Lo, Regional Practice Leader, HR Service Delivery—Asia Pacific, Towers Watson advised HR to be specific about exactly how they use digital media to engage with employees in the workplace. He explained, “Companies are seeing the value that the smartphone and other consumer-grade technology brings to HR—with an increased appetite to make strategic investments that can adapt and grow with the business over time. Companies that are intentional about how they‎ engage with their managers and employees through HR technology acknowledge it as an effective way to meet their intended objectives.”

For better or worse?
Communication at work has undoubtedly, and probably irrevocably, changed as a result of advances in technology—but has the digitisation of work communication been for better or worse?

Many HR analysts have raised concerns that the growing trend towards digitisation of workplace functions may be having a negative impact on employees across the globe. Greenfield contends that the culture of instant messaging, network identities, diminished privacy and here-and-now experiences that pervades modern-day life creates an increasingly complex experience in the way people live and work, which in turn affects the way their brain operates. She commented, “Heavy internet users show similar brainwave patterns to those seen in autistic people.”

A rapid process of digitisation may lead many to feel overwhelmed when confronted with a barrage of different digital media—especially in the workplace. Greenfield said, “[An overload of] digital media may now be causing problems with empathy and interpersonal relationships of employees at work.”

To improve employees’ wellbeing, aside from HR systems, Greenfield recommends trying to adopt offices with access to the outdoors or—in environments like Hong Kong where this is can be a serious challenge—at least a view of the natural environment outside. She explained, “It has been shown that creativity is raised by exposure to natural environments. We also know that thinking can be inspired by walking. That is why it is helpful if employees can simply walk around in a building. This gives your eyes a rest—because you are not focusing on the screen, and has the added advantages that you may bump into someone who inspires you.”

While on a macro level there may have been significant de-personalisation due to workplace IT systems, and lack of ‘breathing space’. Clark claimed that, at the same time digital HR platforms have provided the opportunity for staff to communicate more easily, and through a much wider variety of channels than was previously possible. In turn, this has facilitated a much greater level of collaboration between colleagues. In SAP’s recent Twitter debate on Millennials, Evan Tan, Regional Director—Southeast Asia, Freelancer.com said, “I think technology in the workplace affords employees flexibility and can enhance relationships…We see it happening.” A spokesperson for the Centre for Future-ready Graduates at The National University of Singapore added that, “IT is an enabler to foster greater collaboration and communication, especially in a globalised workplace.”

There is compelling evidence to support the case of going all out and fully digitising HR to foster greater workforce connectivity, collaboration and even enhance staff IQs. It is, however, still prudent for HR to use such systems to complement, rather than replace, traditional face-to-face communication strategies. The importance of maintaining human contact within the workplace is something that Nicole Lui, Associate Director, Randstad Hong Kong, keenly advocates. When discussing the role of digital media from a recruitment perspective, she explained, “Technology can be a good thing and a bad thing. Nowadays we don’t only use our mobile phones or emails to communicate with each other, we have Whatsapp and various social media outlets to connect with people. This is particularly common in the recruitment world when we are dealing with candidates who are not based in Hong Kong. Whilst technology can undoubtedly help to bridge the communication gap, it can often remove the human element from our daily interactions. That is why it is so important to meet face to face with colleagues and have conversations, not only to maintain human contact, but also to learn and develop from others.”

This sentiment was echoed by Y. K. Pang, Chief Executive, Hong Kong Land Limited, when referring to recent increases in technology and digital media in workplace training and development methods. Pang noted that when HR adopts digital technology in the L&D sphere this helps facilitate different platforms for training which—whether through online conferencing or tailored modular courses—increases efficiency and saves time. Immediate feedback is also available which increases the efficiency of the course and staff’s development. Pang underlined, however, a note of caution for those adopting technology, “IT should be a complement to, not a replacement of traditional L&D methods—you still need human face-to-face contact in the end.”

Digital recruitment revolution
The phenomenal growth of social professional networks recently, with 73% year-on-year growth over the past four years, means they are already fundamentally changing the way companies hire. The data on potential hires that social networks can provide companies with helps them enormously in their recruitment process. Eric Yee, Head of Talent Solutions, LinkedIn Hong Kong, Macau and Taiwan commented, “People are starting to become much more data driven in recruitment…Companies can use social professional networks to proactively seek out good quality candidates rather than posting something on a job board and hoping and praying you’ll get the right person to apply.”

As a direct result of digital professional networks, hiring managers are now able to set specific criteria for the person they want, and can contact individuals with a certain number of years of experience, from a particular background, from specific companies and a specific geography. By leveraging such platforms, hiring heads can now get answers to two of their biggest questions: ‘Where am I losing talent to?’ and ‘Where is the best talent coming from?’

Yee described one of the key differences between more traditional methods of recruitment and the new professional network, which also brings a big advantage for companies. Whereas internet job boards tend to attract those people actively looking for work, social professional networks can get the attention of passive candidates. These are individuals who are happily employed and busy at work without the time to go through arduous job application procedures. For companies looking for people who fall into this category, professional networks allow them to make it easy for the right person to apply with a few simple clicks.

Why bother?
Today there are still many in HR, even in relatively large-scale organisations, using spreadsheets for handling employee data. The Towers Watson survey indicated that in APAC around 50% of all companies surveyed are still using manual or paper-based methods for internal and external recruiting, onboarding, compensation, career development, workforce planning and succession planning. So, even with traditional methods, HR, it seems, is able to meet business objectives, interact with staff, avoid cross-platform integration issues and is happy to follow the adage, ‘if it ain’t broke, don’t fix it’. So, if moving towards a highly digitised HR system is so contentious—why bother at all?

When HR takes the lead in making changes to HR systems, it is crucial that they also manage this change and help motivate staff to take on new developments. Clarke highlighted, “The important thing is to manage change in a way that ensures staff understand why it is happening. It must be meaningful for the staff member—they don’t want to do something they can’t see the value of. And today’s technology is facilitating this change more so than before.” Even though technology is facilitating more and more information exchange in both business and social contexts, it is essential for HR to reach a balance between the different forms of workplace communication. Each time, HR should ask themselves how much more time could be freed up through the use of HR technology.

Adoption rates for manager self-service platforms are on the rise in APAC, with Towers Watson reporting a 30% increase in uptake since last year. In contrast, according to Clarke, only a relatively small percentage of firms in Hong Kong have implemented employee self-service—so it seems there is still a long way to go in terms of HR fully utilising technology in their organisations. It is up to HR to not just drive the process of digitisation, but also more importantly steer it to ensure that any new work process is end-user driven, easy and intuitive to use, and in line with the latest social digital media.