In the last few years, the rate of digitalisation has grown exponentially across all industries. Spurred on by the post-pandemic preference for online operations, technology is rapidly advancing—which means compliance and workforce management strategies need to keep up.
Up and coming HR managers are digital natives, and they expect the always-on, automated nature of digital operations. Beyond recruitment expectation, these managers are using tech for risk mitigation. It’s already the new standard.
HR management shifts towards technological solutions
In 2021, venture capital poured up to $12 billion into the HR tech market. The agenda? To create data-led solutions that identify risks and streamline workforce management. (Thompson, 2022)
“In the wake of the Covid-19 pandemic, the unique demands of a globalised workforce and, more recently, the emergence of the gig economy, organisations are looking for smart, intuitive, and effective ways of managing their talent.” (Karra, 2023)
And technological advancement is only one contributor to the growth of digital HR systems. Mass workforce reductions after the economic downturn have meant that digital systems are vital for automating processes. HR managers are leaning towards swifter solutions, rather than becoming overburdened with manual labour that once required more hands-on deck.
A new generation prioritising digital workforce management
The next generation of professionals have different expectations than before the pandemic, valuing flexibility and remote working policies. And as the new generation of HR managers move into senior roles, they are spearheading the implementation of technological solutions. (Karra, 2023)
They’re throwing out traditional models to focus on digital solutions that save time and resources. These comprehensive systems monitor remote work, attract talent, and mitigate evolving digital risks. (Fertig, M & Pickett, J, 2023)
“It is a myth that tech will eliminate the human element from HR. In fact, if anything, efficient implementation of the right technology can help in freeing up more time and enhance the human touch.” (Karra, 2023)
The risk of conventional screening methods
Technological HR solutions match the digital operations of a remote workforce. Whereas with traditional manual strategies, companies can run into unfamiliar tax and employment regulations, or fall into complex data hacking traps. (Fertig, M & Pickett, J, 2023)
Where is risk-mitigation data gathered from?
- Supply chain data
- HR and personnel files
- Legal filings
- Sales trends
- Financial reporting
- Third-party data.
Digital systems allow HR managers to view all of this risk signal data and understand their company’s overall profile. (Thompson, 2022)
In 2024, digital solutions are essential
Three years on from the pandemic, remote working and technological advancements are the norm and the importance of digital solutions is undeniable. As we enter 2024, it’s time for companies to re-evaluate their current workforce management and compliance systems and make the change to more modern solutions.
References:
Thompson, S. (2022, November 9). Why The Next Era In Risk Management And Compliance Requires Digital Transformation. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2022/11/09/why-the-next-era-in-risk-management-and-compliance-requires-digital-transformation/?sh=675b7bb27e35
Karra, S. (2023, February 15). HR’s Role In The Next-Gen Enterprise. Forbes. https://www.forbes.com/sites/forbeshumanresourcescouncil/2023/02/15/hrs-role-in-the-next-gen-enterprise/?sh=1495b6d91874
Fertig, M & Pickett, J. (2023, April 19). Create A Remote/Hybrid Work Policy: A Guide To Assist With Talent Retention And Manage Compliance Risk. Forbes. https://www.forbes.com/sites/deloitte/2023/04/19/create-a-remotehybrid-work-policy-a-guide-to-assist-with-talent-retention-and-manage-compliance-risk/?sh=2c2b27dd48a6
