Happy to share with you all my article in the January, 2018 issue of "SightsIn" magazine on the theme "Human Resource in 2018 and the Future of Work".

1. INSIGH T S
32 January 2018SightsIn
H
R Technology can be defined broadly as the use of scientific
knowledge and skills in the practical application of HR
tasks and activities. It essentially includes the use of tools
like big data, statistical analysis and systems automation in the
application of HR.
One of the biggest challenges for us today is transforming the HR
function from what has conventionally has been a 'soft' (qualitative,
subjective, intuitive and perceptive) function to a 'hard' (quantitative,
objective, analytical and logical) function. This will mean undergoing
a paradigm shift - from the old, traditional HR to the new,
transformational HR. I think what we are going through currently is
the transitional HR, trying to find the best ways and means to make
this shift.
"If it doesn't challenge you, then it won't change you."
Today, we hear about how HR is clamoring to be a 'Business
Function' and if that has really to happen successfully, then it has
to quickly make the above paradigm shift and adapt to new ways
of thinking and working. If it wants to play a more critical role in
helping businesses anticipate and manage change, then it must
embrace and apply technology at its core.
With millennial comprising of more than 50% of the global
workforce by 2020 and 75% by 2025, HR will have to quickly embrace
transformation and build on technological advancements to meet
both employee expectations and business requirements. Workforce
and workplace analytics will become increasingly important and
companies using data in their decision makings will become far more
competitive and attractive to both employees and customers.
“It is not the strongest, or the most intelligent
who will survive and grow,
but those who can best manage change.”
Let us now look at the key elements of HR Technology that
organizations must understand and adopt to make this transition to a
more optimized business-oriented HR function:
Indranil Gupta
HRTECHNOLOGY
THEKEYTOBUSINESS
TRANSFORMATION
"You cannot mandate productivity;
you must provide the tools to let people become the best."
–(Steve Jobs)

2. INSIGH T S
33January 2018 SightsIn
GET SMART WITH BIG DATA
HR has been traditionally mired with time-consuming tasks
and endless paper documentations. What it needs more is the use
of quantified information and digitization to maximize the power
of data, especially that of big data. This is important for HR to
understand well the employees, the external customers, the market
audiences and the social community. If HR has to use data as an
enabler, then it needs to build a culture for the same.
"The focus must be on both quality and quantity of data
that can drive today's critical decisions."
I often see some reluctance on part of HR professionals to use
quantified information in their work, but this mindset has to change
eventually. Today's advanced research and workflow techniques give
enough access to the power of big data and the use of the same must
be optimized to the fullest. When combined with other technologies,
big data also provides a tremendous amount of insight and helps to
make decisions that can drive both people and business.
“You can draw insights from your workforce data to improve
your company’s return on investment in human capital and align your
company’s HR programs with your company's objectives.”
However, what needs to be kept in mind here are the source, quality,
integrity and authenticity of the data being used. The quality of any
systemic output will invariably depend on the quality of input that
gets processed, and the same has huge ramifications on costs, time
and outcomes.
IMBIBE AN ANALYTICAL CULTURE
It is said that data and not perceptions must drive both HR and
business decisions. It is important that HR uses data in the maximum
possible ways and progressively at all the four analytical levels
(Descriptive Analytics, Diagnostic Analytics, Predictive Analytics
and Prescriptive Analytics) to be a party to any significant business
decisions and actions. Over the past few years, big data analytics
has become the common language used across the organizations
in other disciplines like Sales, Finance, Operations, Marketing, IT
and Customer Service, and now the HR function must also start
maximizing on the possibilities of the same.
"Based on mounting evidence, what I can state with total conviction,
is that if HR does not adopt analytics,
it will not be a party to any significant business decisions."
– (Dr. Jack Fitz-Enz)
Increasingly, more of HR and hence business decisions will
require the use of real-time data and predictive analytics to ensure
improvement in organization judgments and assure better
management of potential risks. It is also bias-free, since it depends
on logical use of data and statistical methodologies like correlation,
regression, trends, variance, analysis, benchmarking, forecasting and
modeling.
"The onus will be on measuring and tracking areas like cost, performance
and productivity in the employee lifecycle management process."
Some of the critical areas in HR Analytics that will come into use
more often are Workforce Planning & Optimization, Workplace Safety
Analytics, Workforce Transitions, Recruitment Analytics, Retention
Risk Analytics, Leadership Development Modeler, Organization
Accelerator and Health & Productivity.
Sophisticated and full-scale HR Analytics capability will also be able
to create the opportunity for HR to impact business outcomes like
sales, revenue growth and operating income. Today, companies like
Starbucks, Limited Brands and Best Buy can very precisely identify
the financial impact of the increase in employee engagement score
amongst their employees at any particular store of the company.
"At Best Buy a 0.1% increase in the level of employee engagement
adds more than USD 100,000 in the store’s annual operating income."
According to a recent Rexer Analytics Survey, the most popular
HR Analytics software packages that can be used by organizations
are IBM SPSS Modeler, SAS Enterprise Miner and Dell Statistica (I
personally would recommend using SPSS software packages from
my own experiences).

3. INSIGH T S
34 January 2018SightsIn
AUTOMATE AND ACCELERATE
HR Automation is an umbrella term for software platforms and
associated hardware used for digitization of the Human Resources
functions in organizations. This can include one, more or all of the
areas starting from employee hiring to exit management processes.
In organizations today, the core HR Automation systems come
under different bucket names like HRIS (Human Resources
Information System), HRMS (Human Resource Management
System) and HCM (Human Capital Management). Though there
are few differentiators among these three labels used, however their
usage and features are not exactly the same.
While HRIS is essentially meant to provide technology for storing
employee database and automating some basic HR functions like
employee attendance and leave management, HRMS also provides
tools for other areas like recruitment and payroll management. HCM
is a broader platform that integrates the core HR areas with talent
management systems and helps organizations to treat employees as
'assets' (Human Capital), in exactly the same way as they would treat
money, machinery and material.
A full-fledged HCM system can include discrete processes for
Recruitment & Selection, Performance Management, Learning &
Development, Compensation & Benefits, Rewards & Recognition,
Career & Succession Planning, Payroll and Compliance Management.
In recent times, HCM has begun to displace both HRIS and HRMS
in organizations due to their adaptability and versatility.
Today HCM platforms are offered by large enterprise software
companies such as Oracle and SAP, as well as smaller specialized
HR technology firms. Some of these companies like SuccessFactors
and Workday are also accelerating into the next generation HR
digitization by migrating from on-premises systems to new cloud-
based technology or SaaS (Software as a Service) platforms.
"Continual experimentation is core to innovation.
You can't apply learning principles to technology,
if you don't understand the technology.
Similarly, you can't truly leverage technology,
if you don't understand how people really learn."
–(Clark Quinn)
THE HR TECHNOLOGY APPLICATION FLOWCHART
It will be through an integrated application of these key elements
of technology, namely - big data, statistical analysis and automated
platforms that will help HR to create those robust 'Decision Support
Systems' in the different people processes to maximize not only its own
inherent potential, but also ensure that timely human capital inputs
are given into critical business decisions for an organization to sustain,
scale and grow in a highly dynamic and competitive market place.
Given below is a recommended HR Technology application process:
Technology is the key to HR and business transformation, as it
helps us to collate, process and use a range of information about the
workplace and the workforce to achieve company goals and objectives.
In the HR Technology Workflow Process - the big data usage can be
seen as the input, data-mining through various statistical tools can
be seen as the throughput and systems automation to drive business
transactions can be seen as the output.
These elements put together can immensely help to improve the
end-user functionality experience for HR and employees, ensure that
critical decisions can be driven through tangible numbers and assure
that efforts can be measured more in terms of the outcomes.
"HR Technology is now here to stay.
Today, it is no more just 'nice to have it', but you have 'got to have it'.
That is, if you want to change, and not perish in the transformational
world of business." l
About the Author
Indranil Gupta is a MBA from one of the leading Management Schools in
Human Resources in India, with more than two decades of experience in
the function as both industry practitioner and consultant. He has worked in
various leadership roles with companies like Sprint-RPG (RPG Enterprises),
Ericsson-Hewlett Packard Telecom (EHPT), Mahindra-British Telecom
(Tech Mahindra), Bharti-Televentures (Bharti Airtel) and Xansa (Steria),
driving their Talent Acquisition, Talent Development, Talent Performance
and Talent Rewards processes with impactful results. He has been a guest
speaker in national seminars, a visiting faculty in management institutes and
a panel member in forums like NHRDN, PHDCCI, AIMA and DMA. He
is also the Founder of Meritt (www.merittconsultants.com).