Technology

HRM and The Digital Era

Latest Human Resource Management (HRM) models emphasise importance of forming organisational goals

Umema Syed

HRM and The Digital Era

Latest Human Resource Management (HRM) models emphasise importance of forming organisational goals

HRM and The Digital Era

HUMAN  Resource Management (HRM) models:

In today's world, employees play a vital role and act as a long-term investment for business profitability. The latest Human Resource Management (HRM) models emphasise the importance of forming organisational goals that are strategic and focus on control and rationality. While many attribute the fast-moving evolution of digital transformation in Pakistan to COVID-19, this is only the tip of the digital iceberg we have yet to discover. There is still a long way to go as the digital transformation continues after the changes that came with the pandemic. Any company undergoing a digital transformation relies on the HR department and the chief HR officer to accelerate that transformation. Many companies seek the help of professionals to streamline their transition and help them create strategies that will allow them to reach their maximum potential.

Syed Anns Ali, entrepreneur and co-founder of a digital marketing agency, talks about the changing role of HRM in an era of digital transformation.

"In terms of the top technology trends for HR, we have been focusing on automation, analytics, and accessibility. The workspace of 2023 will focus on engagement and efficiency. Given the current labour market in Pakistan, businesses must adapt to the future of HR operations."

He added that the combination of a solid HR strategy and the right digital tools help his HR team stay on top of a competitive market.

“We attract the right talent, create consumer experiences that inspire loyalty, optimise business processes, and generate a strong ROI of time, resources, and cost-saving,” Anns said highlighting the significance of adapting to technological advancement in HRM.

THE HR IMPACT

1. Customer relationships

The main aim of the HR department during this period is to drive the transformation of the business instead of only its functions. Many multinational companies are switching to business models combined with digital platforms and product development. Through enhanced data analytics, HRM uses customer insights and feedback to build relationships and ensure a smooth customer experience.

2. HRM position

Once all the departments have started their journey towards transformation, HRM guides and supports their upcoming digitalisation. It benefits the company by increasing its agility and using internal networks and advanced tech such as data analytics and Robotic Process Automation.

3. HR processes

The HRM department has to think about the company as a whole when visualising its transformation. They must think about how they can turn business processes into digital and enforce new working and management methods. For instance, HR uses AI to train employees and managers to function more effectively and uses apps to give everyone a better experience.

4. Employee side

Digital transformation also involves augmentation and automation. Augmentation includes hiring tech-savvy talent from around the globe on a contract basis. This means the HR department now has new workforce categories to source workers for, for instance, contingent workers. Automation improves the ecosystem and builds a new network within the organisation.

HR AND THE INTERNAL ORGANISATION

The success of many renowned companies has come from building relationships with consumers and getting closer to their employees. To enhance employee satisfaction, HR managers can redesign jobs for employees, which is also a great way to improve business operations. Stimulating work and new staffing models combined with technology can also be very effective in getting employees used to the transformation.

All these methods enable the HR department to encourage a worker's personal and professional growth. However, the existence of many barriers is delaying this process in companies around the world.

BARRIERS TO DIGITAL TRANSFORMATION FROM AN HR VIEWPOINT

HR can make a massive impact when a company faces issues regarding technological innovation. Some of these barriers can be:

• Not being able to experiment quickly

• Lack of corporate vision

• Inability to merge IT with lines of business

• Risk-averse culture

• Poor change management

• Low budget

• Cybersecurity

Alyzeh, founder of a talent acquisition company – who wants to keep her last name anonymous, mentions external barriers and the talent that the competitive industry requires in an age where firms around the world are experimenting with digital transformations to ensure quality recruitments and innovation in the sector. 

"Due to the expected recession in 2023, we in the HR industry believe it would be more suitable for us to not hire workers full-time but recruit freelancers with the technical skills we need, use digital tools for coordination, and pay them for projects accordingly,” she said. Commenting on the benefits of letting go off in-house recruitments, she said that outsourcing talent rather than hiring in-house workers permanently also helps save resources in case “uncertain economic conditions cause clients to lose sales and cut budgets”.

ROLE OF HR MANAGERS IN DIGITAL TRANSFORMATION

HR managers have to face both opportunities and challenges when it comes to digitalisation. They act as strategic positioners, advocates for technology, and agents for change within a business. 

They can evaluate external factors from a business perspective and learn digital skills themselves to fulfill their position effectively. HRM finds and implements strategies involving training, building loyalty, and increasing engagement with the workforce, all of which play a crucial role in renewing digital transformation.

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