Digitally transforming in human resource management

“A high salary offer does not necessarily keep good candidates for the company. Many young people have good qualifications but leave after only 1 week of probation because they feel the company environment is a bit lowtech. This is something that makes HR feel very regretful.” Through discussions with hundreds of human resource specialists and managers, we realized that this is a common problem of many businesses: wanting to find talented people but not being able to retain them because of poor experience and not applying the right tools of technology in human resource management.

1. Digital transformation of human resources management: Don't let talent slip away because of lowtech

In the last three years, the global labor market has undergone major fluctuations. Besides opportunities to promote the development of the working environment, organizations face many challenges, including demographic changes, diversity of working forms and new working trends. of Gen Z – the main workforce in the near future.

In this context, if the business still maintains the old, traditional, lowtech way of managing human resources, the HR department may still operate normally. However, it is worth mentioning that businesses will fall behind quickly, making it difficult to compete with competitors in the labor market. Because young workers tend to choose companies with more dynamic working methods and a more modern, balanced working environment.

When asked to make predictions about the factors that are likely to become employees' top priorities until 2025, there are two factors most chosen by human resources experts: Work balance - flexible life and working form. Salaries and financial benefits are no longer the only priorities of workers.


3 Best Practices for Digital HR Transformation in 2024

2. How to balance work - life for employees? Digital transformation and technology application are the key to this problem.

Software can reduce manual operation time, helping employees save significant effort on somewhat boring tasks. Instead of working until 8 pm, they can arrange their work more effectively during 8 office hours. For example, with HR, there is software to support the synthesis of salaries and wages, reducing effort by 50% and increasing accuracy significantly. Declare personal income tax and social insurance more quickly when documents are digitized.

Besides, technology allows employees to have a more convenient experience at work, without being overwhelmed by complicated procedures. In fact, many probationary employees leave after just 1 week because they don't like the complicated and ineffective process. They want to enjoy technological conveniences right in small experiences in the office such as Face ID timekeeping, viewing payroll right on the phone, and participating in the internal news network.

Not just an "office revolution", digital transformation is an important way to manage human resources as work networks and working forms become increasingly diverse. Businesses that open more branches, stores, and employees operating online in many different locations, even from abroad... definitely need technology support to optimize human resource management. If you only work in one location and manage human resources rigidly, your business may miss out on many high-quality resources and inhibit its development.


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3. Delays on the digital transformation journey can cause businesses to stay in the safe zone and be unable to move forward.

Many leaders believe that human resources is the core of the organization and express their desire to transform the number of human resources departments to improve work efficiency and retain talent. However, reality shows that the digital transformation of human resource management has not been drastic.

According to a survey by the Department of Enterprise Development, Ministry of Planning and Investment in 2022, among the businesses surveyed, only 16.7% use human resource management software at a high level. Also according to this survey, businesses are prioritizing the application of digital technology in a number of operations that directly affect revenue such as: distribution channel system, marketing, sales and customer care...

In addition, the digital transformation work at these enterprises takes place asynchronously, separating each operation, with no connection between business, accounting, human resources and many other areas.

4. Consider human resources as the core resource that determines success in the marketplace.

HR managers and HR specialists will play the role of advising and supporting the CEO in making decisions about converting the number of human resources departments, because they have a deep understanding of the profession and are also the beneficiaries of many benefits when applying technology to human resource management.

Especially for digital transformation to be implemented more quickly, businesses must let employees feel the difference before and after applying technology. More specifically, an employee life cycle will be a satisfying, happy experience, from the time of applying, to becoming an official employee, and even ending the contract. As the workplace experience gets better, no employee will hesitate to go digital.

In the next 3-5 years, digital transformation in human resource management will no longer be a movement but will become an indispensable task in every organization. According to observations of Faro Recruitment when working with thousands of businesses, the mindset and spirit of digital transformation are changing positively. And we are always ready to accompany and support businesses in the journey of digital transformation of human resource management, removing remaining difficulties in both costs and professional requirements.


Contact Faro Vietnam today for HR solution


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  • Tel: + 84 24 3974 3091
  • Add: Unit 701A, Tower A, Handi Resco Towers, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam

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  • Tel: + 84 28 3821 4654
  • Add: 6th Floor, Saigon Finance Center Tower, 9 Dinh Tien Hoang Street, Dakao Ward, District 1, Ho Chi Minh City, Vietnam

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