Human Capital Management (HCM) and the Impact of Technology
Human capital management (HCM ) is undergoing a transformation of sorts in the post-pandemic era. Embedded AI, automation, and predictive analytics are seen as game-changers in Human Capital Management. Business leaders use different HR Technologies and tools to make smarter, faster, and more intuitive decisions in improving the overall effectiveness of various HR practices. We analyzed the recent developments in the HR software applications and how these have improved the way HCM functions at all levels of management.
Evolution of HR in the Recent Years: A Snapshot
The function of HR has evolved largely in the recent past, and most organizations have started to accommodate a more diverse workforce. Digitization tools have worked wonders while coping with changing patterns of work habits has been identified as a regular practice for organizations. Upgradation of skills and knowledge is a non-negotiable requirement even as most HR experts acknowledge that managing critical functions in HR has been made possible through digitized initiatives.
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How Has Technology Intervention Helped in Fuelling Changing Perspectives?
A paradigm shift has been noticed in the human resource ecosystem as far as performances have been concerned. Industry experts acknowledged that, post the outbreak of the pandemic, optimizing performance has been assured through updated learning platforms, coupled with virtual technology and the intervention of analytics. Industry experts had repeatedly emphasized that securely storing data has been a work-based requirement while automation has improved performance on a regular basis.
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Has Blockchain Integration Created a Major Impact in the HR Department?
Blockchain Integration has improved the security of data. Technology wizards have acknowledged that sound security related to data transfer remains to be a major indicator to improve performance. Integration of blockchain has allowed encryption of business networks wherein a secured data transfer could happen at any given point in time.
Enabling complete access to such data, it has been quite easy for HR teams to verify confidential data pertaining to a particular employee.
But, how has performance improved as a consequence of blockchain integration?
Blockchain technology has been proven to improve collaboration amongst talent processes thus providing scope for development. At the same time, blockchain technology can prevent unauthorized access to data, which are specific and are exclusively related to an organization’s function.
Technology experts when interviewed have disclosed that human capital management has been made easy through the empowerment of employees and blockchain integration has made it possible through the dissemination of relevant data.
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Evolving Skill Requirement: How Has It Created an Impact?
The evolution and introduction of new HR skills have been another focused area, and this has created a significant impact on the management of human capital. COVID-19 pandemic has forced the evolution of business models wherein hybrid models of work have emerged as a replacement for traditional office space.
At the same time, defining new parameters of performance through ‘hyperlocal work models’, has initiated the hiring of outsourced staff. On the other hand, flexible workplaces have been dominated through digitization while task managers have emerged with flexible job roles. On the other hand, leadership and mentoring have emerged as key strategies to manage human capital, and a focus has been created on skill base besides talent acquisition frameworks.
Has Digital Learning Been Identified as a Quality Strategy Encouraging Human Performance?
Pandemic has created a paradigm shift in the learning mode, and digital learning has emerged as one of the best options to equip the employees for challenging roles. Right kinds of tools have been deployed in order to create a significant impact and outcome-oriented inputs have been shared across verticals. Simultaneously, managing human capital has been enforced through digital learning platforms while work-based learnings have become popular within organizational frameworks.
Has Technology Enabled a Better Control on Human Capital?
A pertinent question asked by the target audience. Most industry experts have disclosed that technology tools have brought better control in managing human capital. Technology has changed the way to plan, and scheduling work has become much easier.
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At the same time, technology has enabled the lowering of employee expectations, while employees have started to deliver easily and had met targets from virtual locations.
Bringing in several advantages therefore technology intervention has helped in developing a clear-cut communication strategy besides enabling information management among the stakeholders’. Digitization has created a continuous interaction among the managers as well as the employees in order to create a ‘value connection’. At the same time, Diversity, Equity and Inclusion have become an integral part of organizational strategy while a fellow feeling has been nurtured within business organizations.
What Has Been the Major Advantages Created Through Technology Intervention?
Technology interventions have created opportunities for investments related to employee well-being measures. Mobile applications have been easily adopted by global organizations, especially post-pandemic, thus, promoting continuous connectivity within a virtual framework of operation.
Most HR leaders have acknowledged that mental health has been better managed this way, and a work-life balance has been brought in within a well-defined virtually run business environment. Digitization has thus strongly promoted psychological security amongst the employees, and this, in turn, had created a better control of manpower to make them perform according to desired outcomes.
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Employee relief policies have been formulated through digitized information thus building on trustworthiness within the workplace. Focussing on user experience, continuous support is created to pursue the best performance.
Has Artificial Intelligence Played a Significant Role in Human Capital Management?
HR experts at the HRTech Interview Series reveal that artificial intelligence has been successfully deployed by many of the companies post the pandemic. As a matter of fact, artificial intelligence and machine learning have played a significant role in improving workforce feedback. On the other hand, most of the employees surveyed by Mckinsey, reveal that virtual eco-systems have been promoting greater efficiency of work across verticals of operation. Technology has ushered in perfect compliance while an effective production schedule has been built up. Below is given a snapshot of certain technology trends which have reshaped the expectations of HR managers in the organizational context.
Speaking in the context of improving the total user experience through technology intervention, David Cearley, a distinguished analyst from Gartner has acknowledged, “TX is about more than improving the experience of one employee or the use of one device — it improves experiences at the intersection of multiple constituents, leverages multiple devices that surround these constituencies and removes silos,” He emphasized further by saying that. “As a result, TX creates business advantages and resiliency in the digital experience economy.”
Following the above, a survey conducted by Gartner on the employees in the US revealed that technology intervention had created a flexible space for the employees to manage customers continuously. The pandemic had actually unfolded various opportunities to stay connected, while shared experiences of the staff and the customers had been weaved to mark an integrated journey.
Transformational outcomes have been generated thus, wherein technology has already started to play a pivotal role. Management experts, on the other hand, have emphasized that ‘communities of practice’ have given rise to ‘fusion teams. Wherein points of intersection have emerged through a clear integration of employee versus customer journeys.’
Conclusion:
Technology intervention and a paradigm shift toward complete digitization have changed consumer expectations while driving organizations towards better performance. Speaking in the context of the US economy, most organizations have shifted operations on a virtual track and employees have shifted themselves to remote locations permanently. Managing human capital nevertheless has been much easier as technology has created the most desired virtual connection while reducing costs of operation. Artificial Intelligence and Machine Learning have been identified by experts as emerging technologies that would control the reins of management in the future.
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