Signals that HR urgently needs digital transformation
Cost to chasing the newest and shiniest
There is no need to keep pace with the newest and shiniest. It is time and cost-intensive to do so. Upgrading comes with the following cos factors:
- The cost of the system itself, hardware and software.
- The cost associated with the time taken by users to learn a new system. The new process flow that comes with the upgrade should reduce the time needed to perform the same task or provide additional benefits.
- The cost of integrating with existing systems as very often bridging scripts and programs may be needed to gel the new incoming module with existing HR software.
- There is also the cost associated with data migration.
But there are reasons that far out weight the cost
An HR bogged down by manual processes or inefficient system will cause the following critical situations.
- HR falling short in the performance of basic fundamental duties. They often materialise in the form of delayed paychecks to employees (This is an emergency of the highest level), delayed or messy on-boarding. mistakes in leave calculation or benefits disbursements and more. These shortcomings reflect badly on the HR team and negatively impacts employees’ opinion of the company.
- High turnover rates. HR is unaware or fail to take early actions to find out where the issues lie. The reasons are many and it takes time for HR to find out.
- HR taking a long time to recruit the right person for the job.
- HR is losing in the marketing battle to market the company as an employee. To its target candidates as well as to institutions that supply young talents.
- HR is failing audits. documents and records are not properly filed for easy retrieval. Regulations of retention periods are not abided to. Personal information of employees and candidates are not protected according to the requirements of PDPA (in Singapore) or PDPR (Europe).
- Operations cost arising from the cost of paper, cost of printing and time needed to manage paper document has become unsustainable.
- HR budget is reduced. The HR department needs to perform at the same level with lesser staff.
- HR is unable to sync with the HR teams form the different offices located in different countries. This has often to do with unconsolidated information being tied down in physical form, making cross-border knowledge sharing difficult.
Start with a good foundation
Human Resource HR document management system is the foundation for HR digital transformation. And a single system will be able to resolve most of the critical situations above.