LACK OF KNOW-HOW SLOWS GROWTH
Digitalization is the biggest driver of innovation. According to the 2018 Innovation1 Ranking however, German companies are no longer among the leaders in this area. In fact, only two out of five HR managers in Germany believe that their companies are digitally mature2, and three out of four companies complain about a lack of managerial know-how according to the German Industry 4.0 Index3. Thankfully, digitalization offers enormous potential for economic success and growth, however employees still lack the qualification and leadership needed for a successful digital transformation.
DIGITALIZATION FREES UP CAPACITIES
Digitalization is a challenge for companies and employees alike. Corporate culture and structure must adapt in order to keep pace with changing market and working conditions. When embracing change, there are more opportunities than there are risks. The digitalization of work processes and the use of digital tools in HR free up capacities for the actual core tasks of personnel management, such as personnel development or direct human exchange.
THE MOST URGENT TASK: DEVELOPING A DIGITAL CORPORATE CULTURE
The HR department plays a decisive role and is responsible for developing a common digital corporate culture that has a positive internal and external impact. After all, the shortage of talent remains one of the greatest challenges, with a focus on effective retention, development and recruitment. Human Resources can act as a designer and pioneer of digitalization in order to emphasize agility, future orientation and competence for both the existing workforce and applicants. However, this not only requires suitable recruiting strategies, but also a development plan for digital skills.
In many medium-sized companies, HR has only currently progressed to payroll accounting or time management in terms of digitalization. Many time-consuming processes still take place primarily on paper, only lightly supported by tools such as intranet applications. This leaves out critical points such as integration with master data or other processes, not to mention topics like user-experience or global harmonization. Instead of agile and IT-supported integrations, isolated solutions are unfortunately still common place. Improving data availability and use would not only help employees function faster and more efficiently but would also help with objectivity. Sustainable personnel management needs an awareness of usable tools and the necessary cultivation of skills in a digitalized environment.
CASE STUDY: FROM THE STAMP CARD TO THE ALL-IN-ONE SYSTEM
A medium-sized company uses one IT system for personnel information and payroll accounting. For time management, it uses a separate system in which the recorded times are transferred manually and the stamped times must often be recorded and corrected. This means that it is not possible to accurately assign employees according to the company structure, nor does Personnel Management have direct access to key HR data. Due to the high manual effort, the HR department must convince management to replace the existing isolated solutions with an integrated suite. Digitalization will ensure that the company can manage HR master data in one system as quickly as possible.
Step 1: The company seeks an experienced partner to help it digitalize. The partner should support not only the implementation, but also during process execution. The processes should not be redefined, rather proven standards should be used.
Step 2: Together with the external experts, HR develops a roadmap that includes the business case which is then released by management.
Step 3: The goal is to optimize and transform HR processes. The targeted digital solution also includes processes such as personnel development, talent management, compensation, on/off/cross boarding, applicant management, master data, and goal/performance evaluation.
Step 4: The individual processes are introduced step by step, based on best practices, within a few months.
Tip: Optimize and transform your HR processes with Pentos and SAP SuccessFactors. This ensures a fast, efficient, and cost-saving entry into HR digital transformation.
CLOUD HR – THE ADVANTAGES OF A CLOUD-BASED HR SYSTEM AT A GLANCE, BASED ON A CONCRETE EXAMPLE:
A global master data system ensures smooth and efficient processes. In many areas, it can be maintained via self-service by employees and managers themselves. The system offers numerous possibilities and can be expanded in a modular manner. Above all it provides the HR department with an urgently needed resource, namely time to devote to urgent personnel development issues and direct communication with the workforce.
An interface to payroll accounting provides up-to-date data, with completely integrated salary planning. Based on the current values and defined budgets, managers work out new salaries for their team. Once the salaries have been approved by the Executive Board, the employee’s master data is automatically updated and forwarded to payroll accounting. Complex and error-prone Excel-based processes are now a thing of the past. Managing bonuses which require information from a third-party application can also be integrated.
Direct promotions can be entered into the system just as quickly as information from external interviews. In addition, a mobile app enables the team and manager to provide continuous feedback. This digital personnel development leads to a quicker flow of information and overall better results.
The time for waiting was yesterday! Today, salary data is automatically transferred to the master data system, where the recipient can view it at any time. Documents such as the employer’s confirmation of employment can also be independently requested. Even business cards can be ordered this way.
The system ensures that critical trainings, such as courses on data protection or data backup, are assigned to the relevant employee groups in an efficient and timely way. If employees do not participate in the training as planned, the system can even escalate the situation, preventing any omissions and negative consequences.
Digital networking knows no time zones or local dependencies, no distinction between newcomers and veterans. As a global intranet, the new system provides a forum for collaborative groups and employees can share and update their knowledge online at any time. This makes collaboration a natural part of knowledge management within the company with integrated idea management as a logical next step.