Revolutionizing HR Functions: The Power of e-HR in Embracing Digital Transformation

The fundamental responsibility of HR positions lies in the effective management of an organization’s human capital, encompassing employee administration and welfare. With the onset of the digital transformation era, the nature of HR responsibilities is undergoing a shift. A notable emphasis among HR professionals now rests on corporate education. This discussion will examine distinct HR functions, including Human Resource Management (HRM), Human Resource Development (HRD), and Employee Relations (ER), alongside the growing adoption of electronic HR (e-HR) practices. Furthermore, it will highlight the digital transformation trends affecting HR tasks.

What is HR?

HR, short for ‘Human Resources,’ encompasses tasks related to all personnel within an organization, meaning all employees. HR functions support employees to maximize their performance and strive to secure and retain talents for the company.

Within the field of management support, HR responsibilities include diverse tasks ranging from recruitment and salary processing to employee management, compensation, and welfare management, as well as implementing disciplinary actions. Managing all human resources effectively, from recruiting to retirement, is one of the crucial responsibilities in an organization, aligning with its strategies and business goals.

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Types of HR Roles

HR roles, including HRM, HRD, ER, play a comprehensive role in managing human resources, covering tasks from recruitment to resignation. Depending on the characteristics of the business, ER may be separated from HR roles. Let's explore HRM, HRD, and ER.

HRM(Human Resource Management)

HRM, an abbreviation for Human Resource Management, handles tasks related to personnel management, including recruitment, placement, evaluation, and compensation. HRM extracts, secures, and nurtures the essential competencies required by the organization and establishes systems and policies for talent evaluation and compensation management.

HRD(Human Resource Development)

HRD, short for Human Resource Development, focuses on enhancing the capabilities of organizational members through education, training, competency development, and career management. HRD plans nurturing programs to classify key talents and elevate the competencies of members. It also analyzes the outcomes of training programs and identifies improvements to maximize the effectiveness of education.

ER(Employee Relations)

ER, an abbreviation for Employee Relations, plays a role in improving labor-management relations. ER evaluates compliance with labor laws, such as employment contracts and regulations, to prevent violations. It listens to and promptly addresses employee grievances.

What is e-HR? The DX Trend in HR Roles

The term e-HR refers to a system utilizing internet and IT technologies, unlike traditional paper-based HR (p-HR), providing HR services to all members of an organization through bidirectional communication. An e-HR system assists in the smooth development of human resources within an organization, managing personnel information, compensation, education, and attendance through websites or applications. The management facilitated by these systems represents a digital transformation, allowing flexible execution of HR tasks.

As various businesses undergo digital transformations (DX), digital technologies such as e-HR systems are actively utilized in HR tasks. Recently, AI technology is integrated into e-HR systems to streamline and automate HR processes. Examples include AI reducing costs and automating processes in recruitment and talent management within e-HR systems.

In the significant HR function of recruitment, AI competency tests and interviews are employed. In employee management and evaluation, AI assesses job aptitude, performance, and promotion suitability to evaluate department fit and educational needs. AI is also utilized in identifying reasons for job changes and resignations. Media research firm Nielsen, which planned HR management using insights derived from AI, reported an increase of around 48% in talent retention.

Digital transformation is reshaping not only development and data-centric roles but also the realm of Human Resources, ushering in enhanced efficiency and faster outcomes in task execution. At Elice, our commitment extends beyond providing digital transformation (DX) education; we also introduce a versatile testing solution tailored for the recruitment process. This solution offers customizable test difficulty, question selection, grading criteria, and time restrictions, empowering managers to overcome challenges associated with test design effectively. We encourage organizations involved in recruitment or promotion evaluations to consider the benefits of Elice’s testing solutions. For any inquiries or further information, our team is ready to assist.

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