Feb 28, 2024
In today's dynamic business landscape, where companies are navigating through hybrid work environments, remote teams, and global operations, the role of HR has become more critical than ever. As businesses strive to attract and retain top talent while maintaining operational efficiency, strategic investments in HR technology have emerged as a cornerstone for success.
Why should I invest in HR? Is it a threat to my employees?
- PwC HR Tech Survey 2022.
As per the report above, one of the key areas where HR technology can have a significant impact is recruitment and onboarding. With the rise of candidate-driven job markets, companies must invest in modern recruiting tools to attract and engage with top candidates quickly and efficiently. Applicant tracking systems (ATS) help streamline the entire hiring process, from posting job listings to screening resumes and scheduling interviews. This not only saves time and resources but also improves the candidate experience, leading to a higher quality of hires and lower turnover rates.
83% of HR professionals believe that tech onboarding tools have improved their talent acquisition process.
- Zipdo, HR Tech Statistics.
In addition to recruitment, HR technology plays a crucial role in employee development and engagement. With performance management tools, organizations can track employee progress, identify areas for improvement, and provide timely feedback. These tools not only improve employee performance but also boost engagement and retention, resulting in a more motivated and productive workforce.
Industry leaders like Carrie Rasmussen, the CEO at Ceridian, have emphasized in a past interview, the urgency for HR leaders to make strategic investments to engage talent effectively and retain high-value employees. In this context, the return on investment (ROI) of HR Technology becomes a pivotal metric for organizations looking to optimize their HR functions.
Establishing a Baseline: Where Are You Coming From?
To accurately gauge the ROI of HR technology investments, organizations must establish a baseline by assessing pre-implementation costs and performance metrics. Understanding the resource allocation and productivity levels before and after the adoption of HR technology provides insights into the value generated.
Engaging senior leadership throughout the decision-making process ensures alignment with organizational goals and priorities. By posing pertinent questions related to talent acquisition, employee engagement, and workforce diversity, HR leaders can drive discussions that lead to strategic investments in HR technology.
Understanding the Metrics
Investments in HR technology yield measurable outcomes across various facets of organizational performance. To see what works for your organization, it is important to understand KPIs that can be measured effectively.
Improved Employee Engagement
What: HR technology facilitates seamless access to information and resources, fostering a collaborative environment among employees.
How: Assess enhancements in productivity and operational efficiency resulting from HR technology investments.
Increased Employee Retention
What: Effective HR technology streamlines processes, empowers employees with easy access to information, and ensures their voices are heard.
How: Monitor the tenure of top-performing employees to evaluate the impact of HR technology on retention.
Greater Efficiency in Recruiting
What: Modern HR technology, including applicant tracking systems, accelerates the recruitment process, enabling organizations to fill open positions swiftly and with minimal effort.
How: Evaluate the time taken for new hires to reach optimal productivity, reflecting the effectiveness of HR technology in onboarding and integration processes.
Reduced Costs
What: Automation of HR processes not only reduces manual effort but also cuts down on expenses related to paper, postage, and labor.
How: Compare recruiting costs pre and post-implementation of HR technology to assess cost savings and efficiency gains.
How to deploy HR Tech wisely?
Many HR leaders report missing opportunities to drive tech adoption, resolve cloud challenges early, and build a business case for disruptive tech.
- PwC HR Tech Survey 2022.
Apply proven solutions, leveraging mobile capabilities, embedded training, gamification, and incentives to overcome adoption challenges.
Address cloud security and skills challenges promptly, integrating cyber and privacy teams for robust security policies and HR data protection.
Avoid vendor regret by prioritizing long-term considerations during technology vendor selection, focusing on holistic assessments beyond short subscription terms.
Embracing Innovation for a Better Future
We all have to start somewhere, and to propel ourselves to a better place, we need a strong and talented workforce. In this journey of transformation, having the right tools and resources is paramount. That's where Frankie comes in. Frankie is your friendly, automated recruitment monster, designed to streamline your candidate management processes and make recruitment effortless. With Frankie by your side, you can discover the best talent efficiently and effectively.
Experience the difference for yourself with a complimentary trial of Frankie for the next three months. Let Frankie revolutionize your recruitment journey and empower your organization to thrive in the evolving landscape of talent acquisition.