Globalization has made the world really flat and an impact in one corner can put everything off balance. The market experienced volatile economic conditions in the earlier phase of this decade, however with a slow but steady recovery. An extreme makeover is also evident as we approach the second half of this decade. Clearly the Human Resources as a function is riding the wave of change from just being a transactional/operational function to a strategic resource. The new role of Human Resources in this novel phase is to support the business transformation and enable companies to be more agile and competitive with the new market realities which are an imperative.
2015 will have its share of surprises but we have highlighted some priorities in 2015 and beyond that will truly transform the HR ecosystem around the globe. All in all, the facts show an uptick in the activity.
The adoption of Software As-A-Service infrastructure is on the upswing albeit a lot of hype on the end benefits, ROI and real applicability. Clearly the HR on cloud can control your cost, present a flexible model and boost innovation by integrating all facets of HR functions. Continuing with this trend, a significant number of service providers will wrap their solutions with cloud offerings. Besides that, SaaS will also address the concerns over customer’s data security and privacy which will be comforting factor to further increase outsourcing of HR processes. Moreover for the buyers; Core HR and Recruitment process will consume a larger chunk about of technology investments in the overall HR functions.
Since the emergence of Robotic Process Automation (RPA) few years back; it has been on the To-Do list of enterprise buyers and providers of BPO services. Smart automation along with cognitive computing, will not only enhance the productivity but improve efficiency by simplifying and reducing manual interventions in the processes. In this changing face of business climate, “Digital Labour”- a combination of Robotic Process Automation and Cognitive Intelligence, is set to impact all the levels of work. Simply put software robots may manage all the simple and few complex processes instead of a living being at the desk. However, there’s a mixed feeling of strong adoption and avoidance on the subject of RPA. Industries like Banking, Financial Services, Utility, Telecom and Healthcare seem to be the early adopters of smart automation across different process functions.
Talent Management and Recruitment
Attracting & managing talent and improving leadership skills are some of the top challenges in managing the talent. Research indicates that organizations are taking strong steps to avoid any disaster like skill shortages. Many European firms have looked at India as a resource for their strategic as well as operational HR functions. A company that looks to expand geographic expansions and business growth will require greater number of highly skilled new employees. According to research 44% of global recruiting leaders agree that quality of hire is the most important metric for measuring recruiting team performance while recruitment using social media, employer brand and passive candidate recruiting are the “most essential” recruiting trends that will impact the talent landscape in 2015.
In coming years automation will significantly takeover the peripheral activities in Talent acquisition space and create more time for candidate selection. There are various examples, where Robotics plays and important role in Sourcing, Screening, Background Verification etc., with an improvement in efficiency in the range of over 40%.
The automation initiatives works best with RPO model where the investment in tools and technologies is in-built by the service provider.
RPO automation model will change the way of recruitment and will impact most of the leading service providers in this space.
Sushil Nimkar is the Global Head of Business Solutions for Hexaware. He is part of the BPS team with more than 17 years of experience in the fields of HRO, FAO & SCM across key verticals. In his current role, he has been helping Global customers for shaping their transformation agenda with innovative solutions.