Technology has completely redefined the role of HR all over the world. From sourcing candidates to performance management of the employees, nearly every aspect of HR has been transformed. If the technology is used well in small businesses, it has the potential to enable good HR practices ensuring maximum benefits and minimum problems.
Technology offers numerous tools to streamline the processes and engage the talent in organizations. Another advantage of embracing technology is that the HR managers can concentrate more on driving profits to the company rather than just managing the workforce. Let’s have a look at how the wave of technological transformation can impact small businesses:
1. Technology Transforms the Recruitment Process
Long before Internet and email came into existence, job posting were advertised using print media, and potential candidates were contacted either through telephone or letter. Recruiters had to look high and low for the right candidate. Even after going through thousands of paper resumes, it was very difficult to find the exact fit, and most of the times, due to the flawed talent pool, it was easy to make the mistake of hiring the wrong candidate. Thus, wasting both time and money. But with technological advancements such failures can be minimized.
An applicant tracking system (ATS) makes the recruitment process easier. Through social media integrated ATS, job postings can be instantly posted on social media. The job seeker can directly apply for the jobs online, thus saving a lot of time that the HR would have spent on browsing paper resumes or attending personal calls. The system has also made sourcing candidates a lot easier.
2. Technology Reinvents Performance Management
One of the crucial HR functions is performance management. It is usually conducted through exhaustive, time consuming meetings and performance reviews. While a lot of efforts and time are invested in evaluating the performance of the employees, the whole process lacks transparency.
Technology has enabled supervisors to bring about transparency in the performance management process. The software programs are designed to trace the team and individual’s accurate contributions backed by solid data. These programs can also point out the areas of improvement of the employee so that necessary training can be provided. Technology has streamlined the evaluation process by providing an accurate and open feedback loop that encourages transparency.
3. Technology Enables Payment and Benefit Information
Employees may often be in need of information about their paycheck, benefits, and taxes. Providing this information to the employees means more work for the HR department. But technology has decreased the burden by making it possible to make this information available to the employees at a click of a button. Many software tools are designed to keep records of this information and make it available to the employees anytime and from anywhere.
4. Technology Enables Innovations in HR Practices Through the Cloud
The cloud has changed the way the HR functions. Collecting and storing data have always been a challenging task for the HR professionals. Filing cabinets, managing piles of papers, and storing data on drives, not only led to inefficiencies, but also posed security threats with the risk of data loss. With the evolution of cloud technology, automated processes are designed to collect data through forms, which is then stored online for easier access. Cloud-based ATS empowers recruiters to speed up the screening process create a talent advisory function and reduce unconscious bias.
Technology plays a crucial part in centralizing the data through which workflow and operations can be streamlined across the organization. Technology not only makes processes simpler, it also gives small businesses an opportunity to improve employee engagement. Therefore, it is essential for small businesses to embrace technology to grow and bring in profits.