HR Transformation

Today, companies that do not execute human resources processes digitally are in the minority. Instead, many big companies operate digitally. Every business has an accounting software program. The payroll preparation process in this program touches a small part of human resources. Obviously, the importance of a responsive organizational design structure appears to be important.

If companies increase the level of digitalization, they can even manage processes such as recruitment, human resources current management processes, satisfaction surveys, leave management, talent management, competency-based performance evaluations, career planning. As a result of all these, companies can easily optimize their workforce(aka strategic workforce planning).

In Which Areas Do Companies' Digital Transformation Levels Are Limited?

The areas with the most digitalization deficiencies are listed as follows;

  • Companies may think they have digitalization. While recruiting, companies necessarily use various recruitment portals and job posting websites. These systems also have various benefits. In companies there is a common belief: "We, as a company, already use the products of the X recruitment site, post jobs, send mass messages and interview those who accept, so our recruitment process is digitilized.", but it can be mistaken. Recruitment site use is partially digitalization, but we think that digitalization should be viewed as a whole. Every company has a recruitment procedure. Especially the biggest problem of small and medium-sized enterprises is not having the right candidate database. A job posting is posted, but there may be many relevant or irrelevant applications for that job posting because applying is very simple for job seekers.

Naturally, job seekers make a lot of job applications to increase their chances and don't look at the details of the position. To eliminate job seekers who are not eligible for job posting, restrictions such as “only graduates of the Y department can apply” depending on the relevant position, thus reducing the potential of employers. For example, a company is looking for a software developer. "Only computer engineers apply." If it writes, the loss can occur, because there are employees in the software world who are not computer engineers but who provide valuable contributions. The advertisement is more oriented towards their work experience, that is, "Those with software experience apply." When it is said, filtering is not enough, as every engineer usually has experience in software. Some employers create candidate databases themselves. As Prosoftly, we recommend that companies create their candidate databases. It is necessary to scan the suitable candidate from candidate databases, transfer them to their systems, and interact with the candidates one-on-one. Companies that do not make this transformation within the scope of recruitment receive massive applications for job postings and cannot find the candidate they want. Digitalization enables the management of a large audience in a more detailed and more automated way. In some processes, various case studies, various tests, etc. It is necessary to send, analyze according to the results, and continue communication with job seekers according to the filtering. The process goes beyond just giving a business space to a website. It would be healthier for companies to move to a process in which self-candidate evaluation and follow-up processes with candidates are made, and this can be possible with digitalization. As Albert Solino that launched Prosoftly, we install various systems according to the needs of the company.

Even if human resources software exists, one point that this software cannot achieve is interaction and communication with the outside world. Candidates may not be able to apply directly to the system. The system to which the candidates apply is separate, and the companies' own human resources system works separately, so there is no connection between the two. Integrated management cannot be achieved. The level of digitalization needs to be increased by moving to a structure that will bring these two systems together at the midpoint. The systems must be talking to each other. If there is no complex structure, candidates should be able to fill out a form even from a website link and the result should be revealed as an analysis in a database. Then, information such as the activities carried out with the candidates, namely case studies, tests, surveys, interviews, and their results should be accessible in the system. 

We see that the processes after recruitment also have problems in the field of digitalization. In a company with 100-200 people, even birthdays should be able to be detected by the software. In practice, there are many companies where even this is not quite right. Rather than buying software from scratch, it is necessary to go to the point of actively using the existing systems. The level of digitalization does not mean the level of the owned tools, it is about how much these tools are used and adapted to their management. 

The software can meet the needs, but the company may not use it. When the system is not used, there is a lack of digitalization level. We see that the way birthdays are celebrated in the system is missing and we make evaluations on them. If there is a software tool, we are trying to increase the degree of using the application. 

Leave management must be done through the system. I went to the human resources department and said, "How long have I left?" If the question is asked, it means there is a deficiency in digitalization. In a company of 250 employees, more problems may arise when there are 500 people in the future if the problem of leave management is not resolved. In a company employing 1000 people, this digitalization should already be present. In a company with 1000 employees, almost every day is someone's birthday. The most important asset of companies is their employees. There are no customers without employees. The better and more effective human resources processes can be managed, the more we will have success in areas such as morale, motivation, and efficiency. The digitalization of human resources should not only be seen as operational efficiency, cost reduction, or good management, but also as an improvement of employee experience. If the employee feels the efficiency from the recruitment process to his daily work life, a great contribution will come out in motivation and commitment to the company. 

Employee satisfaction surveys must be conducted over the system. Systems may be fine, but screens may not be very good. The dynamism of cloud-based software is not found in closed box ERP systems. Companies told us, “I have a module. I have leave management in human resources. There are modules where I can do satisfaction surveys.”. We told them, "How much do you use these modules as you and your employees?" According to cloud-based software, closed box software has huge shortcomings. Even the expense statement form made in Excel may sometimes be a problem. Making forms on a single system has great benefits in terms of employee experience and companies' management of processes. Even the systematic operation of approval-rejection mechanisms has positive effects. Thanks to the cloud-based system, the number of mails is decreasing and more effective management is provided.

We see that competence management, career management, and performance evaluation processes are also purchased modularly in companies that have traditional ERP systems on the human resources side but are not implemented. Generally, on the human resources side, payroll and personal affairs are done over the system. Leave management is carried out relatively, but processes such as satisfaction surveys, competency management, and career planning are not used very effectively.

Some companies may own the software but do not have processes. Processes are not already implemented in the company. The reason for the absence of digitalization can also appear as the absence of processes in the company. Within the scope of management consultancy, we also implement processes. Errors are not fully originated in systems, sometimes misdemeanor can happen to business owners and businesses.

5 Benefits of Digital Recruitment

  • Digital recruitment is the first point of the human resources management. Digital recruitment’s 5 benefits can be listed as follows;
    1. It offers a good recruitment experience for candidates. If the candidates apply for a job, are included in the interview, and can see the recruitment processes clearly, the company creates a positive impression. First impressions are very important to companies and people. As a company, you must present your best version to your candidate. Digitalization will be necessary for terms of ensuring the candidate's commitment and making him / her happy. 
    2. It provides the ability to manage large data. You can have the opportunity to evaluate and manage hundreds or thousands of applications. For example, a company can say; "We have a recruitment form on our website, so some of the job applications are sent to us by email, so we are digital." If he says, it is partially true, but essentially inadequate. When the form field on the website is filled, the CVs are accumulated in one place. Someone needs to get these CVs and edit them. Someone has to download the CVs sent by mail and then give feedback to the human resources department. This process, which starts with filling out the form on the website, proceeds completely manually. Compared to giving a resume to the office or factory by hand, filling online forms is a partial digitalization, but essentially, digitalization does not occur. To effectively manage a large volume, it must be registered in a specific database. Name, surname, telephone, etc. It needs to be able to be pulled. Digitalization is not possible when manually entering the CV that comes as a pdf document. The system should automatically allow this. Digitalization in recruitment processes enables access to more candidates and effective management of candidates through a single system. On the other hand, digitalization naturally helps to decrease costs.
    3. It provides automation of repetitive processes. “The candidates were interviewed and the interviewed candidates do not match the specifications we are looking for." Candidates should be answered when it is called. The system needs to filter out unsuitable candidates and send messages. Instead of sending emails one by one manually in the process, it can be carried out one system at a time. If we assume that we make an evaluation every month, there are candidates from online recruitment sites and applications from the website. Applications from these two sides accumulate and we make monthly evaluations. Each month, a meeting will be held with eligible candidates and another process will be carried out with candidates who are not found suitable. Since it will be carried out every month, it appears as a repetitive process. Digital recruiting also has advantages in managing recruitment.
    4. Thanks to the database, it is possible to make more data-oriented analyses. We can do a data analysis consisting of questions such as which gender, how old people, which profession, which department graduates, and thus the processes are improved. The data collection process can be messy in manual operations. Obtaining data from emails, names, surnames, and numbers from pdfs or CVs in different formats can take a lot of time and incomplete information may occur. It is not digital to manually extract data from 1000 CVs one by one. The essence of digitalization is that purchases come from the digitalization environment and have regular data sets as much as possible. If the name-surname fields are determined while applying, you can easily save this information in your databases. When hiring, you can ask the applicant to enter the correct data. In recruitment, we can think of digitalization as data collection, creation, taking actions, and analyzing the data to feedback or improve processes. Data collection and the collected data should be ready properly (structured), then analysis and action follow. Firms generally collect data, but they cannot perform a regular data collection structurally. Manually collecting data can be a very tiring task, so there may be no time for action and data analysis. They may not even be able to calculate averages such as age, education, profession, experience. Many applications can be overlooked while batch processing, and it becomes a very routine and boring job for the employee doing this job.
    5. It provides a reduction in recruitment costs. If the data can be retrieved structurally, it is necessary to manually extract thousands of applications every month, process, mail, etc. operations can be carried out by one person.


What Will Be the Future of HR Transformation?

The future of digitalization in human resources processes is not independent of the future of normal digitalization. We anticipate that, together with the analysis of data and processes, the inclusion of more processes in the digital environment will be more efficient for both job seekers and employers. By performing analyzes with various artificial intelligence algorithms, advertisements can be made in a personalized and direct way to find the person. And when the job seeker sees the ad and applies, we see that the experience will go to an even better point. Social media companies also take various actions. Looking at more private recruitment and job postings, you can do this even on Facebook today. It seems that there will be more developments in this area. Another innovation is parsing resumes, instead of a person performing the analysis, various software, algorithms, etc. It can be realized according to suitability. In short, we think that a process in which the experience will improve for employees, job seekers, and employers will be ahead.