More and more companies are turning to automation, technology, and digital innovation to make their operations more efficient and cost-effective. In the business world, this process has been dubbed Digitization – essentially using computers and other modern technology to increase efficiency in an organization’s HR management efforts. While digitization can be very effective at helping businesses operate more efficiently, it may have some unintended consequences that leaders should be aware of. In this article, we will explore digitization’s impact on the future of payroll and HR management in organizations around the world.
1) Employee Self Service
Research shows that people are less likely to change companies if they have an easy way to get information from their existing employer. It’s a problem for you, though, if they can access that information without going through you. So give your employees a great resource by creating a self-service portal with what they want—and none of what they don’t need. With cloud-based payroll software solutions available today, it’s never been easier or more affordable to build such a tool and empower your employees to make informed decisions about their work lives. And in doing so, you could improve retention rates and experience happier employees who feel like they’re in control. All while saving money!
2) Hiring Process
Regardless of your industry, there are certain aspects to hiring that every company must handle. Whether you’re looking for a new employee or searching for an internship, you have several options in terms of how to hire people. Networking is a great way to get your name out there while building relationships with others in your industry. The downside is that you might end up wasting time by interviewing someone who isn’t qualified for the job or doesn’t seem like a good fit. Taking applications online can be effective, but it can also keep you from getting to know applicants personally before bringing them in for an interview.
3) Recruitment
The rise of mobile technology has led to an increase in real-time payments. Payments are becoming increasingly immediate, with business models like Uber changing how people expect to be paid. This change has caused many businesses to consider digitizing their payment processes. Thanks to digitization, these companies can track payments, issue invoices, and reduce risk while making life easier for their customers. Real-time payment systems aren’t just for startups; they’re also a great fit for established companies that want a modern business process that is both easy to use and secure.
4) Real-Time Payments
With real-time payments, your company will be able to transfer money immediately after a transaction occurs. This is useful for industries such as e-commerce or transportation, but if your business still handles some transactions with cash, you may want to hold off on adopting real-time payments until it’s more widespread. Additionally, while some countries have these systems in place, others do not. Make sure you understand where you fit in and whether it’s a good idea to get started yet.
5) Real-Time Expenses
As there are thousands of records that need to be tracked, complete automation is often not possible. This is where real-time tracking comes into play. Real-time tracking should be used to provide customized attention to each record at different stages in its journey through your organization. Real-time tracking should also be used for alerts, so you don’t have to wait until after the fact when you’re poring over reports or monthlies trying to figure out what happened with a particular employee or benefit claim. Alerts give you an opportunity to take action now before things become crises instead of waiting until it’s too late.
6) Real-Time Tracking
Businesses are slowly digitizing their payroll processes, with 39% of organizations currently automating time tracking. Organizations that track employee hours in real-time are able to cut down on payroll errors caused by manual data entry, thus reducing overall processing costs. But current adopters may only be scratching the surface of what’s possible. With advances in artificial intelligence (AI), businesses can automate even more payroll tasks, including data acquisition, approval workflows, tax calculation support, and more—making for a smarter working world that’s also easier to manage.
