The UK economy loses £340 billion a year because of disengaged employees – showing just how important a happy workforce is to the success of a business.
As recruiters compete more than ever before to find fresh talent that can help drive them forward, retaining employees has become more of a challenge. Good workers are in high demand, meaning keeping hold of existing employees requires a higher level of care and attention.
Digital transformation is changing the way recruitment and employee management look within a business. Technologies are streamlining the screening process, improving the onboarding of new recruits, and helping businesses maintain a happy workforce.
In this article, we discuss five of the different ways that digital transformation has impacted recruitment for good.
What is digital transformation?
Digital transformation refers to the integration of technology into a business. It brings together different tools and systems to create more streamlined processes that improve everyday operations.
In the context of recruitment, digital transformation has reset the way a business hires new employees and retains its existing workforce. By using powerful systems to improve the recruitment process and monitor employee engagement, the HR industry has become much more efficient.
One of the key components is AI. With the ability to make business decisions using a combination of data analytics and external resources, businesses are able to gain valuable insights that can be used to tailor their recruitment process.
By utilising modern technology capabilities to rework the way a business operates, companies are able to improve both their overall efficiency and the happiness of their employees.
Five ways digital transformation impacts HR processes
Here are five of the most significant impacts that digital transformation has made on the recruitment process, contributing towards a happy and engaged workforce.
Remove bias to improve diversity
One of the biggest issues in the modern-day recruitment process is bias, whether subconsciously or consciously. This sees applicants prejudged based on their race, age, gender, education, or other attributes.
Although 96% of recruiters think that unconscious bias is a problem in the recruitment process, it is an ongoing issue that results in teams that lack diversity and inclusivity.
Digital transformation is slowly tackling this issue by using AI systems to screen candidate applications based on their skills and experience. The recruiter is then able to assess the applicants fairly, regardless of their demographic. This not only helps a team find the best employee for the role, but creates a more diverse workplace.
Upskilling schemes
In addition to focusing their efforts on recruitment, HR teams need to make sure their existing employees are happy in their roles. Strong engagement is reflected in the output of a business since motivation is higher and there is a more collaborative environment.
Many businesses are introducing upskilling schemes that provide employees with training programmes designed to widen their skill sets. This is a mutually beneficial strategy that allows employees to work towards their personal career goals while helping businesses fill skill gaps without having to recruit.
Digital transformation facilitates upskilling schemes by tracking individual career goals and suggesting personalised training programmes for each employee. By investing in the growth of their team, a business is much more likely to maintain a happy workforce with a desire to progress within the company.
Integrated recruitment software
Having a system to manage recruitment centrally, a payroll software your business can rely on, and a performance tracking system to record performance reviews are all crucial elements to a successful HR department, but if they do not work together, it can create challenges.
Being able to integrate different systems can transform daily operations for an HR team, streamlining processes and minimising the risk of error. When data syncs up across different software, the need for manual data entry is cut out and delays will be kept to a minimum.
In addition to making the working day significantly easier for HR staff, integrating software is bound to reflect employee happiness and wellbeing. Smooth processes, little to no delays, and regular performance reviews create a more professional and manageable working environment.
Digital onboarding processes
In today’s day and age, 35% of companies still do not have a formal onboarding programme. If a new starter is faced with a lack of organisation and uncertainty over what they should be doing, it can leave alarm bells ringing and make them question whether the business is a good place to work.
Nowadays, the onboarding process can be automated to standardise the process and ensure new starters are quickly brought up to speed. This typically includes a portal on which every employee will have an account. This will include any formal documentation which needs to be reviewed and signed, training videos and tasks to work through, and other information such as team contact details and a holiday request form.
This process is designed to make the onboarding process a seamless one that leaves new employees feeling instantly welcomed and informed – a first impression that will hopefully be made to last!
Data-driven decisions
An HR department has access to a wide range of metrics, and these should be utilised to inform business decisions.
Insights from the hiring processes, performance reviews, and diversity metrics all offer valuable data sets that can help improve existing practices and create a more engaged team. By analysing the data to identify any patterns or weaknesses, the business can find areas that need to be addressed.
The use of AI systems makes data analysis easier than ever, allowing conclusions from years’ worth of data to be pulled in just seconds. This means businesses can keep an eye on their HR metrics to help improve their strategies and work towards their goals.
Embracing digital transformation
Digital transformation is not something that should be ignored by business owners – being able to use the capabilities of modern technology to their advantage can help them stay ahead of the crowd and transform their HR processes.
Remaining competitive in such a saturated landscape requires constant innovation. A business needs to continually reassess its strategy to find new opportunities that can set it apart from its competitors.
Streamlining the hiring process not only helps a business find the best talent to help grow its team, but ensures that existing employees are kept engaged and happy at work.
