In recent years, digital efforts have been attracting attention in human resources. A technology called HR Tech is booming. What kind of background and challenges are there? This time, I would like to introduce HR Tech of Human Resources.
What is HR Technology (HR Tech)?
In the world of human resources, the word HR tech is used as a buzzword. However, not many people understand the meaning of HR Tech.
What is HR Technology (HR Tech)?
HR technology is a coined word that combines HR (Human Resource) and technology. It means technology that enhances the research, analysis, and management of human resources and enhances business performance. In recent years, it is one of the fields that has been attracting attention with the acceleration of digital transformation.
Definition of HR technology
On the other hand, there is no clear definition for HR technology. HR technology is a general term for technologies in human resources and related fields, such as human resources, work styles, and improvement of organizational productivity.
HR Technology Range
The scope of HR Tech is extensive. It is not limited to the scope of basic personnel operations such as recruitment, human resource development, labor management, and benefits. In unusual areas, there are technologies close to IoT such as health management tools, vital sign measurement, and work log collection. In this way, if it is adjacent to the area related to people and organizations, it can be called HR Tech.
Background of the spread of HR tech
HR Tech has been booming in Japan since 2019. What is the background behind the spread of HR Tech?
The most important factor is the development of technology. In particular, the development of technology for collecting and analyzing large amounts of big data and cloud technology has made it possible for anyone to analyze data. In addition, the development of AI and RPA has gradually made it possible to replace human workers with technology, which has also supported the penetration of HR Tech.
Human resources department sophistication
On the other hand, looking at the human resources department, it is necessary to respond to the drastic changes in recent years. In Japan, work style reforms have progressed since 2019, and the personnel department is taking the lead in making changes in line with the times, such as responding to the new coronavirus and introducing job-type employment. In such a social environment, the human resources department is under pressure to carry out advanced and strategic planning work rather than traditional clerical employment management. Data analysis is indispensable for planning work. Therefore, HR Tech, which can easily analyze data, can be said to be essential infrastructure for the modern human resources department.
Technology fields related to HR Tech
I think there are many human resources departments that have never been involved in technology. Therefore, I will briefly explain the related technology fields that are the basic knowledge of HR Tech.
First of all, AI technology is particularly important in HR Tech in recent years. AI learns by reading certain data, which is called machine learning and outputs analysis results based on the learned data. Not everything can be done with AI. First, you need to prepare the basic data and set a learning period. Since HR tech is a new field, data is not yet available, and AI technology may be considered to be in the developing stage.
SaaS stands for Software as a Service. I used to have a server in-house and install software on the server. However, with the development of cloud technology, it is now possible to use software without having to keep the server in-house. This allows the software to be used internally without worrying about server capacity. What’s more, if you have an internet environment, you can access the software from anywhere, making it easier for the same company to share the same software. It can be said that the evolution of SaaS technology was an essential element for the spread of HR tech.
Robotic Process Automation (RPA) is a technology in which software robots take over the work, as it is called a virtual intelligent worker. With the development of RPA, the software has taken over the data entry work that was previously done manually. In human resources, there are many clerical tasks such as payroll. RPA has evolved to do some of this clerical work almost perfectly.
People analytics means analytical techniques and methods for human resources. With the development of data collection and analysis technology, it has become possible to objectively analyze human resources with data. Talent data includes all data about a person, including skill data, personality traits, and most recent achievements. By analyzing such data, it is possible not only to understand the strengths and weaknesses of the human resources but also to realize the optimal placement based on the analysis results.
In addition, we have prepared the “HR Brain Introduction Casebook” for those who want to learn more about the personnel system, which is convenient for introducing a human resources database, along with examples. Please use all means.
How to implement HR Tech in large companies?
Even if you want to use HR Tech, you may not know where to start. Technology adoption tends to be large, especially when it comes to large companies. How should we proceed with the introduction?
Perform business inventory
First of all, let’s introduce HR Tech as a part of drastic business reform including the sophistication of human resources, not just utilization. HR Tech is still expensive, so cost savings are needed for HR departments with low budgets. Therefore, let’s take an inventory of the business and identify all the business that you are currently doing.
Classify operations that can be replaced by technology
After identifying all the tasks, first, find the tasks that can be reduced. Many of the tasks I have been doing for many years have a mere purpose. First of all, let’s take this opportunity to streamline our business. After that, from the remaining work, we will find work that can be replaced or advanced with HR Tech.
Find the best solution for your purpose
Once you have found an alternative job with HR Tech, find the best solution for your purpose. Find recruitment-related HR tech for streamlining recruitment operations and engagement-related technology for it. When selecting a vendor, it’s a good idea to try several companies before making a comparison. If you want to use it for a long time, it is recommended to choose one that is comfortable to use.
Launch an implementation project
After completing the vendor selection, launch the implementation project. Since the Human Resources Department rarely has the opportunity to introduce IT, people who are unfamiliar with IT tend to handle it. If you are unfamiliar with IT, the idea is to introduce it for the time being. However, in reality, it is necessary to define detailed requirements for what kind of business to replace with the system. So let’s launch an implementation project that involves not only HR personnel but also IT personnel and vendors.