VIRTUAL HUMAN RESOURCES

How the digital age is transforming HRM – Sanjeewaka Kulathunga explains

In today’s fast-paced and interconnected world, the digital age has revolutionised every aspect of business – including human resource management (HRM). The adoption of digital technologies has transformed how organisations manage their global workforce, leading to the emergence of virtual and digital HR management practices.

It’s essential to explore the key trends, challenges and opportunities associated with global HRM in the digital age.

Virtual HR represents the future of HRM. As companies increasingly embrace digital transformation, HR departments are leveraging technology to streamline processes, enhance efficiency and improve employee experiences.

This tech encompasses a range of digital tools and platforms that enable remote work, collaboration, talent acquisition, performance management, learning and development, and employee engagement.

As a result, organisations can overcome geographical barriers, tap into the global talent pool, and create a more agile and flexible workforce.

Several factors are shaping the landscape of digital HRM in the global arena. They include internal customers’ digital needs, digital innovation in industry and governance, competitor challenges and digital era requirements.

Organisations are recognising the importance of aligning HR practices with the digital needs of employees. For example, companies such as Adobe have implemented self-service HR portals, which enable employees to access and manage their HR related tasks independently.

Various industries are undergoing digital transformations, and HR departments are being called upon to adapt and evolve.

For example, companies such as Amazon leverage their digital recruitment strategies by using AI powered algorithms to screen resumes and conduct online interviews. This approach enables businesses to reach a wider pool of talent, make more informed hiring decisions and remain competitive in the digital era.

Meanwhile, global competition compels enterprises to innovate and leverage digital technologies to gain competitive edges.

Airbnb and Google are cases in point. They have implemented digital learning platforms to provide employees with continuous learning and development opportunities. These platforms provide online courses, webinars and certifications, and enable workers to enhance their skills and stay relevant in the digital age.

As companies embrace digital technologies, establishing governance frameworks becomes essential.

Corporates such as IBM collaborate with their IT and legal teams, to develop policies and procedures that protect employee privacy, and ensure compliance with data protection regulations. This ensures the ethical and responsible applica­tion of data and technology in HR practices.

The digital age demands a new set of skills and competencies. HR departments must identify the skills required for success in this era, and develop strategies to attract, develop and retain relevant talent.

Terminology and typology surrounding digital HR management have evolved over time, reflecting its transformation and increasing importance in organisations. From e-HR to HR 2.0 and now digital HR, each concept represents a different stage in the integration of technology and human resource practices.

Digital HR goes beyond automation; it focusses on leveraging data analytics, AI, machine learning and other emerging technologies, to drive strategic decision making and enhance employee experiences.

HR departments are becoming strategic partners in a firm’s digital transformation journey. They are at the forefront of exploring new technologies, identifying opportunities for process optimisation and driving organisational change.

Companies such as Salesforce and Adobe have implemented employee engagement and wellness apps that leverage gamification and digital platforms.

By embracing digital HR practices, companies can enhance employee engagement, improve productivity and gain competitive advantages in the digital age.

Virtual and digital HR management practices enable businesses to overcome geographical barriers, attract top talent and adapt to the changing demands of the digital age. AI driven recruitment tools can help identify the best candidates from a global talent pool while cloud based HR systems will ensure seamless operations across different regions.

Additionally, employee engagement platforms can foster better communication and collaboration between remote teams.

As technology continues to evolve, HR must stay abreast of the latest trends, challenges and opportunities in global HRM to remain competitive in the digital age. This involves not only adopting new techno­logies but also developing strategies to address issues such as data privacy and cybersecurity.