Management perspective and data utilisation are essential for human resources in the HR tech era

In recent years, the introduction of technologies and services in the field of human resources called “HR tech” has been progressing worldwide. As the use of cloud computing and big data increases the efficiency of operations, HR jobs will shift from management tasks to management strategies such as acquiring talented professionals. In preparation for the coming era of AI collaboration, HR departments are expected to have a strategic role such as being actively involved in management strategy planning while taking advantage of data utilisation and management strategy.

HR tech is being introduced worldwide

The term “HR tech” is a combination of the words “human resources” and “technology.” While HR has traditionally been an area lacking innovation, this is changing as an increasing number of companies worldwide are adopting cloud, AI, big data, and other technologies to improve operational efficiency. HR tech will be implemented in a wide range of tasks including recruitment and recruitment management, attendance management, payroll accounting, social insurance procedures, staffing and employees’ professional development.

Management operations could possibly be reduced by 90%

So how will the role and operations of HR change as HR tech is adopted? To date, much of HR’s time and resources have been spent on passive management. Examples include formulating and operating an evaluation process, conducting and counting employee satisfaction surveys, addressing legal issues of employees, and considering the placement of highly skilled professionals in vacant positions. But with the introduction of HR tech, these tasks will change dramatically. A recent Oxford University study predicts that these administrative tasks will be 90% automated by 2035.

Will automation eliminate HR jobs? The mainstream view says otherwise. Rather, it is expected that the benefits of automation and labour saving will allow HR to focus time and resources on critical operations in line with the organisation's overall strategy.

Understand the business strategies required of the HR department in the future

With the introduction of HR tech, the focus of HR departments shifts more towards a strategic approach that aligns with company’s management strategy. Future HR will require an understanding of the overall direction of the business strategy, such as where the company is heading, and a deeper commitment to the planning and execution of the business strategy.

It is necessary to identify external factors and analyse the company’s strengths, threats and opportunities and strategically allocate the company’s resources. Additionally, it is important to build your corporate messaging to follow when you communicate with your employees.

Simply executing personnel tasks based on the management strategy decided by the management is not enough. From the perspective of securing talent and building an organisation, more active involvement and proposals from the stage of discussing management strategies are to be expected.

HR will also need to be professionals in data strategy. Collecting data alone is not useful, and in the future, HR departments will need to consider what kind of data to collect and which method to gather the data. Utilising the data can help them to better understand employees, improve decision-making, and optimise operations in line with management strategies.

Specifically, HR will be able to focus on leveraging performance reviews (capacity-based assessment platforms), developing talent, increasing employee engagement and productivity, enabling diversity, and recruiting.

Fulfilling your management strategy as a recruitment partner

Acquiring and training potential talent is not quite enough to create and grow effective teams who can realise the business strategy both now and into the future. It is necessary to secure skilled professionals who can play an active part in the organisation from outside.

At that time, you will need a long-term partner who can discuss what kind of people are needed to realise your business strategy and what organisations can perform well.

Robert Walters can help your HR department in assessing the required skill set and experience and finding talented candidates who can play an active role and match the company's vision and culture. We focus on developing and continuing long-term relationships as a trusted human resources partner.