How Technology Affects Human Resource Management
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How Technology Affects Human Resource Management
Human resource (HR) is a crucial element of every successful organization and is a continually developing and advancing field. HR involves managing the day-to-day operations and activities of an organization, such as selection and recruitment, managing employees, employee training and development, managing employee performance, motivating employees, and providing feedback. In the 21st century, the rapid advancement of technology has dramatically impacted how things were previously done in organizations, especially in human resource management operations and functions (Noe et al., 2017). Technology has transformed how HR departments communicate with employees, keep records, and analyze employees’ performance. Technology can make HR practices and functions more efficient, such as collecting and breaking down data on employees to get the overall picture.
The internet has today taken over advertising, and most jobs are advertised online, thus replacing the traditional was of selection and recruitment of employees. Before the advent of email and the internet, connecting with prospective job seekers was through telephone, a letter, or face time. Additionally, technology has changed the way employee’s performance management is conducted as it is entirely done online through the use of rating rather than the traditional one-to-one meeting with HR managers (Noe et al., 2017). However, it is also essential to understand that it may negatively affect the management, functions, and operations of an organization’s human resources when technology is used poorly. This paper explores how technology affects an organization’s human resources, with a critical focus on the recruitment process as an HR function.
New Technology
New technology refers to a set of techniques that offers a substantial improvement over traditional technology.
Impact of Technology on Employee Recruitment
Technology has rapidly and continuously evolved over the years and significantly impacted an organization’s day-to-day operations and activities. One way technology has transformed the HR practices mainly involves the recruitment process and how organizations attract and retain the right talent that meets a particular job requirement. Before introducing the internet, most HR managers relied heavily on traditional recruitment methods, such as print publications like newspapers, to post job vacancies and get prospective candidates for the available positions (Milkovich, Newman & Gerhart, 2014). However, a significant problem of traditional recruitment methods was that the HR managers could not post job vacancies in numerous sites and locations for many potential candidates to notice simultaneously. Therefore, technological advancement has made the recruitment process more comfortable, cheaper, faster, and more efficient and effective. Using web-based technology for the e-recruitment process enables organizations to attract a more diverse and more robust pool of applicants.
E-Recruitment
Today, there are remarkable improvements and new recruitment processes, such as online recruitment or e-recruitment. E-recruitment is the practice of applying technology and web-based resources by recruiting managers to attract, find, assess, and interview potential candidates for a job vacancy. E-recruitment also refers to using online software to attract individuals seeking employment and streamline applicants who qualify for the job (Johnson & Gueutal, 2011). The E-recruitment process runs more effectively and efficiently with dedicated software systems and online services to reduce financial and administrative costs. Also, e-recruitment involves more than merely posting job advertisements online. It covers the entire hiring process, starting from preparing the job requirements and selecting the best applicant who is most qualified for the job.
Rather than use the traditional way of the complex recruitment process like face-to-face methods, letters, and print publications, organizations have turned to Internet-enabled software to improve and simplify the recruitment process. E-recruitment enables users to easily manage and control the process with a click of a button. While the e-recruitment process does not target a particular group of individuals, it tends to attract the younger generation because they are more technology-savvy and quickly adapt to new technological advancement (Milkovich, Newman & Gerhart, 2014). An excellent example of e-recruitment is through social media platforms, which help generate useful information in the recruitment process. When making an online application for jobs, potential candidates may be asked the social media networks they frequently use, such as Facebook, Twitter, WhatsApp, Instagram, and Linkedin. HR managers can use this information to create more awareness of the job vacancies and promote their companies.
There are different approaches to implementing e-recruiting, such as using the corporate recruiting website, industry-specific job boards, general online job boards, and regional job boards. A recent study of HRM revealed that while employee referrals remain the primary source of the best quality applicants, 4 out of 5 job applications are web-based (Johnson & Gueutal, (2011). Also, 37% of surveyed organizations acknowledged that web-based recruiting initiatives generate the greatest returns on recruiting investments
Advantages of E-recruitment Process
E-recruiting has radically improved efficiency, cut costs, and changed the organizations’ recruitment process. A significant advantage of using e-recruiting is the ability to reach numerous potential applicants. Online recruiting helps reach a bigger target audience from a broader geographical background as potential candidates can apply for the advertised jobs from any part of the world (Johnson & Gueutal, (2011). However, it also depends on the channel used to post job advertisements. For instance, it may likely limit the attraction range if it is through agencies since agencies have their network that everyone may not know. However, using new technology to advertise jobs like social media platforms, such as Facebook, LinkedIn, and Indeed, will increase the possibility of reaching out to a broader audience nationally and globally.
What is more, e-recruitment is much cheaper and faster than the traditional physical recruitment process. The recruitment process is considered one of the most costly processes for organizations as it encompasses the actual costs of hiring the candidate, training, and orientation. As such, recruitment is regarded as some form of investment, and if the employee decides to leave the company before the costs of the recruiting process are paid off, it becomes a loss as the company must go through the entire process again (Milkovich, Newman & Gerhart, 2014). E-recruiting helps reduce cost and also increase employee attraction and retention, which is a better investment. The process is cost-effective as it minimizes the labor costs involved in the whole process. Also, another advantage of the e-recruitment process is efficiency. It reduces time-wasting by selecting the right individuals that fit and match the job requirement by matching the applicants’ resumes to the job profile.
E-recruitment also enables direct communications between the employers and potential candidates, making it much easier and more convenient than the traditional way of sending application letters through the post office and waiting for a reply forever. Potential job applicants take advantage of the web-based system for the recruitment process to learn more about the organization, culture, values, and opportunities online (Milkovich, Newman & Gerhart, 2014). Through making this process faster and more convenient, organizations can reach out to well-qualified individuals who might not be actively seeking other new opportunities but who might discover a position and decide to apply for it due to the ease of completing and submitting the application.
Disadvantages of E-Recruitment
E-recruitment may have technical issues that can cause information loss, meaning that employers can miss out on the best candidates who may be well-qualified for the job. Also, although technology may be beneficial and efficient, not everyone likes it. For instance, some candidates, especially the older generation, may want to engage in the face-to-face process to get a direct answer (Milkovich, Newman & Gerhart, 2014). Additionally, the application system might operate slowly during the submission process, perhaps due to huge volumes of applications, and people may quickly lose their patience. Security concerns may arise because it is difficult to tell what websites are real. Many fake job advertisements may be misleading, and confidential and personal information may end up in the wrong hands.
Also, e-recruiting may be perceived as impersonal and a barrier to relationship building. An essential factor in the recruitment process involves creating relationships with the candidates and ensuring that communication sends the right signals about the organization’s culture (Johnson & Gueutal, (2011). However, it will be wrong to solely rely on the company’s website to give well-qualified applicants a better picture of the organization. Instead, the HR managers need to take initiatives, such as making personal calls, invitations to online recruiting events and webinars, “snail mail” communications, and other approaches to develop a relationship with the most qualified applicants.
Also, a significant setback in managing the e-recruiting process is the massive volume of applications. Besides receiving a greater number of quality applications, e-recruiting usually results in more unqualified applicants. Well-designed websites can help decrease the number of prospective applicants who might be a poor fit for the job or company culture (Johnson & Gueutal, (2011). For instance, organizations that mainly focus on individual contribution and merit as corporate values may showcase these, which will effectively help persuade potential applicants who are more comfortable working in a team-based environment to opt-out of the process.
Conclusion
There is no doubt that technology has dramatically transformed the HR functions in organizations by making them more effective and efficient, cheaper, and faster. Technology has dramatically revolutionized how HR managers hire employees, communicate with employees, give feedback, keep records, and conduct employee performance analysis. In particular, e-recruiting has today become an essential aspect of successful recruitment strategies for organizations. Through e-recruiting, organizations can conveniently reach potential applicants across the country and around the world. However, a significant disadvantage of e-recruitment is the huge volumes of potential applications, which may slow down the selection process. Also, the process may make it easier for multiple unqualified applicants to send their applications.
References
Johnson, R. D., & Gueutal, H. G. (2011). Transforming HR through technology: The use of E-HR and HRIS in organizations. Society for Human Resource Management Effective Practice Guidelines Series. Alexandria, VA. https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/HR-Technology.pdf
Milkovich, G. T., Newman, J. M., & Gerhart, B. A. (2014). Compensation. McGraw-Hill/Irwin.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage. McGraw-Hill Education