May 201919 Human Resource (HR) today is not the same as HR back in the 1990s or even 2000s. Gone are the days where business looks at HR as only a processing department for payroll, claim, leave, etc. Today, HR plays a strategic role in planning workforce for business needs, preparing an organization for the future of work, and positioning the organization as an employer of choice.As such, the term HR transformation has rung in our ears for the past few years. And technology plays a significant role to enable HR to transform. The way I look at HR technology from an HR perspective is categorized into two groups. The first group of technology focuses on making HR more efficient and the second group is opening up new opportunities for HR that was not possible before. I believe the latter is the one that will give us a competitive edge. I will describe further on each of the groups Employees go through several stages during their life cycle in a company, and there are many HR processes and transactions at each step, starting from talent acquisition, development, up to employee exiting the company. In order for HR to be more efficient, there are two core drivers that we need to keep in mind. The first is the push for more self-service. There are a lot of transactions, such as employment letter, change of personal data, initiate employee transfer for example that should go toward self-service. Most of HR master data platforms that are available in the market, such as Success factors and Workday have provided such features, and they are making more transactions available for end users to execute. The other driver is the push to automate as many operational works as possible that are performed manually by HR. Once processes are standardized, the operational work can be automated. We might not be able to move away from manual operation, such as data validation for employee details. However, we can aim to automate 80% of all HR processes following 80/20 rule. For this purpose, we have quite a number of automation solutions available in the market. The new trend is Robotic Process Automation (RPA) where it can simulate a virtual person doing all the standardized manual work and performing it over and over again and I think HR should leverage on this.Looking into the second group of technology, the first thing that comes to mind is data and analytics. With the digitalization of HR, which occurs along with HR transformation, we collect more data than it was before. And the trend will go even further with the introduction of more digital platforms. As Clive Humby, UK mathematician said that data is the new oil, we are now sitting on a pile of gold with more data CXO NSIGHTSTHE FUTURE OF HUMAN RESOURCESDaniel KusmantoBY DANIEL KUSMANTO, GLOBAL HEAD - HR ANALYTICS, ASM
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