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During the pandemic, many companies experienced a change in technology priorities. Digitalisation has gradually penetrated all areas of organisational activity and has become their natural stage. The results of a survey by the A professional employer organization (PEO) showed that in the coming year, 44% of enterprises plan to move to a new model of personnel management, 41% will automate HR business processes. Today we will talk about technologies in HR and effective recruiting methods.
Every year the growth of the world market for HR technologies is gaining momentum. The American company, Grand View Research, predicts that by 2025 it will reach $30 billion. The primary catalyst for growth was the development of Performance and Talent Management solutions. More than 20 million job seekers are expected to watch automated tips on ranking higher in job matching algorithms soon. Another trend observed in the global HR-Tech market is the growth in the number of SaaS solutions.
So, for example, foreign startups are striving with might and main to Canada. The main reason is the peculiarities of the local market (high purchasing power) and the current legislation in personal data protection. Canadian business today is at a high stage of automation. The digitalization index of domestic enterprises is 2.08. 75% of employers of record Canada have already stepped over the "paper HR" stage and reached the highest point – "smart HR." Finance and banking, IT and telecom, metallurgy, and mining became the leaders in implementing world practices. The media and the Internet, and pharmaceuticals are slightly behind the leaders. The situation is no worse with digitalization in manufacturing, transport, and logistics, the oil and gas industry, and the provision of professional services.
A couple of years ago, most of the presented systems for HR were optionally redundant. The "boxed" software was suitable for large corporations with a huge staff of recruiters. Still, for small and medium-sized enterprises, such solutions were expensive, and most of the functions were not necessary. With the advent of cloud technologies, everything has changed: many different offerings have appeared on the market, differing in focus, innovation, and functionality.
Today, it is challenging to build practical work for small startups, medium-sized companies, and large corporations without digitalization for recruiting. One way or another, the main goal of any business is to make a profit. For an enterprise to flourish, you need the maximum performance of its employees. An essential way in this direction is the digitization of KPIs, that is, the ability to track the productivity of each employee, examine the decline in activity and take measures to improve performance as quickly as possible. For instance, one of these measures could be making use of online resources, such as Startup Valuation Estimator, if you are only getting started with your company.
The results of the Hays study highlighted two main problems that keep companies from digitizing recruitment approaches: lack of budget and lack of digital awareness. Many top managers, line managers adhere to conservative views and will not abandon their usual working methods. Some people do not at all understand the need for digitalization and do not want to understand this. 7% of respondents faced difficulties in implementing HRM systems and services in terms of the need to comply with the law on personal data.
Some enterprises refuse to change anything at all, as they have outsourced all the recruitment units. Another barrier to digitalization is the lack of qualified IT specialists on the company's staff who can customize the software presented on the market for business tasks.
One of the most growing trends shortly is corporate training. Experts predict that by 2021 the online profession education sector will reach 11.3 billion rubles. Traditional pre-programmed educational approaches are a thing of the past. Cloud technologies and VR platforms are coming to the fore, allowing you to quickly draw up the necessary course directly related to the business's strategic goals. A promising direction in this area is "spot" training, when a specific employee receives the competencies he needs, for example, to move up the career ladder.
To transform a company into a digital innovation company, executives and recruiters need to build a digital culture. Employees must understand the need for innovation and share the views of top managers on technological innovation. First of all, it is necessary to ensure maximum awareness of the staff about the benefits of digitalization with examples of successful world practices. Also helpful will be thematic seminars, briefings, and other educational initiatives.
When selecting candidates, attention should be paid to their willingness to generate and apply new ideas in their work. A prospective employee must have some key skills and qualities: to respond quickly to incoming information, master the basics of technical training and audit, build relationships with colleagues, think for the future, and act proactively.
In the era of digitalization, both the role of the HR department in enterprises and the principles of working with personnel are changing: search, hiring, dismissal, relocation, training. Companies that have not embarked on technology adoption should start thinking about it now. A business that ignores innovation today risks losing to its progressive competitors in the future.
Andy Latkovskis is an HR Officer specialized in employee training and development. He is truly passionate about nurturing talent and ideas that evoke transformative change in individuals, teams, and organizations. When he is not working, you can find him exploring the deepness of nature.