6 Trends On How Technology Is Transforming Human Resource Management

by | Jul 29, 2021


According to governance theory, a business infrastructure includes 4 key elements: People, Processes, Organizational Structure, and Technology. When one of these four factors changes, the other factors will influence and change accordingly creating a new equilibrium for the business. While the technology trend is increasingly present in life and in business, human resource management as one of the four key components mentioned above will change a lot today and in the future under the impact of technologies. 

How does technology transform human resource management?

Technology has been changing the core of Human Resource Management in consideration of the following trends:

Transparent Organizational Structure

Technological changes have made the business model more open and shared than ever before. Manpower in the business will include a variety of types that are no longer just contracted staff. Due to the technology, the relationship between businesses and employees will change from a legally binding contract to binding on a commitment to work performance and principles of work-sharing, profit sharing.

The reason why enterprises can apply change models compared to the past is the technology that allows them to measure, calculate, and determine the specific contribution between businesses and employees in real-time.

Changes in Business Model and Processes

Technology has helped streamline organizational structure by connecting customers directly to production processes. In addition, the increasing deployment of automation in business processes also changes the interaction and processes within the business. HR professionals need to integrate personnel functions faster, direct combat with operational functions. The measurement software will notify the ineffective working status of the staff. the online personnel specialist will have to do something immediately to resolve the immediate situation.

Real-Time Performance Evaluation

The human resource evaluation will be much less administrative when there is real-time performance evaluation software on smartphones. HR professionals will spend most of their time helping employees optimize and maximize their performance. HR professionals need to self-study and upgrade job value themselves in preparation for major changes in the technology revolution.

Big Data and Quantification of HR Work

Not being measurable means not managing well. Quantifying all aspects of management has always been the dream of business executives. Big data and computer systems have made the dream of human resource management a reality. So far, human resource issues have been difficult to quantify through data such as employee engagement, ability to develop processes, and job satisfaction. Now through big data and technology tools, we can digitize these problems.

Through centralizing data on social networks, email exchange, intranet in the enterprise, KPI system, the enterprise has a data warehouse about employees. On the basis of that data, businesses can use it to analyze and make judgments and forecasts about each individual employee.

Artificial Intelligence (AI)

It is said that AI and big data are the perfect couples to completely change the picture of HR. Artificial intelligence applied with big data will replace human resources such as recruiting, evaluating, training, developing, and engaging employees. For example, the AI ​​will automatically check and analyze to make a list of 5% of employees most likely to leave the job within the next 6 months and options for these employees.

HR specialists will decide which option and how to implement it for each employee on this list. Artificial intelligence can automatically analyze the operations of salespeople. Make automated training recommendations so that trainers decide how to implement training programs in the business.

Labor Administration

  • Human resource management in the 21st century will focus more on helping human resources in businesses
  • Managing life balanced against the pressure of life
  • Mental energy management
  • Managing career help for employees to prepare for change with future career awakens.
  • More accurate and faster payroll processing

HR professionals must not only be responsible for human resources at work but also responsible for helping them in their everyday technology lives. 

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