The importance of Human Capital Technology to support company’s productivityand efficiency

The inevitable digital transformation has actualized the set of opportunities for companies which eagerly have a vision of high productivity and efficiency for human capital management. But for the company that is unable to match the reality, the situation will create a set of problems and the risk is falling further behind, where they might lose the opportunity to attract new talent or even retain their current employees.

To avoid this condition occurring, companies can start to establish a digital system that not only assists in the first-hand experience of attracting and recruiting talent, but also along the employment journey. The system is often called the "employee digital life cycle system". The realization of the system can sometimes become critical for many companies, especially for the Indonesian market. As we know, Indonesia’s digital denizens are among the world’s most active globally. This situation has continuously pushed the company and its human capital environment with multiple vibrant to be able to catch and match their tech-savvy ambition by establishing a unique human capital digital ecosystem, and to ensure the company does not lose the hype and precious moments during the digital development era. One of the strategies is by creating the company’s employee digital life cycle system.

The employee digital life cycle system does not always have to be a brand-new system and environment. The company can also embed it with the company’s current human resource information system or HRIS. This can also be a measurement to ensure the ideas co-existed with the good existing culture, also keeping the company in good shape-pocket for efficiency. To ensure the system gets along with the rapid pace of technological advancement in the world, there are seven aspects companies need to ensure are included in the system. Here they are:

Attract Me

The system can include a chatbot and an application tracking system to interact with talented candidates. The company must expect the system to be able to provide the gamification of competency assessment and profiling. It would be ideal if the system could support automated video interview scheduling in order to create a real-time communication approach during the recruiting process. All the activity can be compiled into a candidate dashboard for future hiring.

Get Me Started

Once the hiring process is done, employees can be virtually welcomed by the company’s executive through the virtual office tour in the system, also to share the company values and culture. Including by providing easy administrative support all supported by a system, eliminating the traditional bureaucracy process.

“Deployment of digital technologies such as intelligent machines.... -and real time communication enhances process efficiencies... -enables optimal resource allocation, resulting in faster processing times, leaner operations.”

Development & Engagement Program

In this part, we believe most companies' HRIS already have learning materials. What we need is to enhance the learning method from the paper and PowerPoint-based to video learning and live session training, including a leader board for scores, completed modules, survey, learning forum, news and ‘special’ learning intervention for employee that consider as High Potential in Talent Management grid. It would be better if the system supported an automatic notification email (nudges) for new features and modules. 

Performance and Recognition

One step that has become crucial in order to ensure the employee digital life cycle system can accompany the employee throughout their journey is to enable and integrate the performance appraisal and MIG (Most Important Goals) dashboard and regular performance coaching sessionin the system. Company can choose to provide a recognition from data and report generated by system. It can include automated salary and remuneration adjustments based on performance achieved and potential (Leadership, Ability, Agility & Ambition) by the employee. In some companies, point reward programs are created to be given to certain employees for their participation in the company’s selected program, such as the CSR program.

A Wish Me Farewell

Well, none of the companies' employees wish to give a good-bye, especially by using the company's newly implemented employee digital life cycle system. But what we call a farewell is not as simple as a resignation; it can be more. Including movement, promotion, retirement and termination. The company needs to digitalize the employee transition into a transparent process. This process can be monitored parallelly by all related parties. This will give the company a seamless administration for employee career transitions.

By connecting all employee life cycles into a digital system, a company can also use it as a backbone of its human capital strategy implementation support. Moreover, if the system advanced into a mobile application, it would be a step forward. This idea might not be a new thing, as companies around the world have implemented such a strategy years ago with different approaches and starting points.

If the company is still using the traditionalist-approach to human capital strategy without digital interference, it won’t be able to provide the best survival weapon in order to capture the best resources in the market. While the competition is fierce, the digital strategy become a compulsory course for company to remain exist. But for the company that implemented such a system, ensuring the system goes forward is always crucial.