How HR is riding the Digitisation Wave

Software-as-a-service (SaaS) is at the core of talent management solutions, providing rich functionalities, which will have a high impact in the market in the next five years. What furthers the popularity of talent management and the SaaS within is how it facilitates working from home while giving a wider access to the office system, working much better than on-premise solutions. So while it makes hiring a lot efficient, it also makes things easier for the employees.

This is especially important as managing the employees, or talents, is a big task for the managers and HR. To train, guide, and keep watch over the productivity of the employees is the next big thing, which is what the new ‘cloud HR’ is all about.

SaaS and big data come together to manage and keep track of the performance of the employees. Based on that, the managers make decisions for the career and compensation management for the employees.

The trend of getting insights via data analytics is a disruptive technology, but it might not have a huge impact on the conventional technologies just yet. The fact that small and medium enterprises (SMEs) are just starting to adopt the talent solutions are a proof of the situation.

Where to invest

As the talent solutions technology is still evolving and integrating functionalities, there are still loads of places to invest. On a scale of 1 to 5, the ‘learning and development’ facet of the talent management modules get top scores. Understandably so, as talent management is also about the growth and productivity of the employees. ‘Performance management’ follows closely while ‘career management’ is least important according to the module.

The Bug

However, with such great features come the great cost of installing and adapting it.

Users are willing to look at it optimistically, calling it more cost-effective than on-premise software as payment might follow ‘as used’ basis, making it flexible. But it mostly depends on the users on how they use the service for maximum benefit.

Yet again, this system puts a lot of faith in data. Of course face-to-face interview and assignments are no fun for the recruiters to tick off the day’s to-do list. But such encounters gives a humane touch to the entire experience. The recruiter can rely on the old gut-feeling to see if they are right or not.

Besides that, in a world full of data, what about those candidates who keep strictly off it? How will this system work out in their favor when what they are can’t be read in bytes and data analytics?

These questions might definitely be a topic of debate in the future. At present, however, analytics driven evaluation are slowly warming up to big corporations.


Sachi Mulmi is a researcher with Frost & Sullivan. She can be reached at sachi.mulmi@frost.com


Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at sapan.agarwal@frost.com | +603 6204 5830

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