HR digitization in terms of HR and payroll processes

Nowadays, companies operate in dynamic conditions. New needs and trends are emerging as the ever changing business environment, namely ways of communication, setting priorities, goals, activities and security, are becoming even more so demanding. Maintaining the efficiency of employees, constant flow of information or access to data can all be considered a real challenge.

Changing conditions and needs of environment force adaptability, including constant improvement of the established strategy of organization as well as of systems and tools. As a consequence, the automation of processes and solutions is required.

What is HR digitization in terms of HR and payroll processes?

It is the elimination of paper documents and transition to the circulation of their digital counterparts. It also relates to storing and using data of the entire employment cycle. Based on these, managers can make the right decisions when it comes to employee management and process optimization. It is worth noting that IT systems supporting HR and payroll processes are as good as the data they store and information as well as indicators concerning salaries, turnover, absences, vacation reserves or employment costs can be analysed, reported and monitored on an on-going basis.

Both technological and organizational innovative solutions help counteract issues of the organization and HR Departments by, for example, handing over selected HR processes to external providers. Needless to say that this refers to the outsourcing services. Such a model of cooperation favours time optimization and boosts efficiency of internal HR teams. External providers take over a certain range of activities and are responsible for an on-going support and updates of systems and software, bringing them up to date with current legislation policies and ensuring the teams are provided with content-based and expert knowledge.

Advantages of digitization

It is worth noting that HR digitization and the launch of workflow processes translate into cost optimization. Paper, printers and toners are used to a limited extent, thus organizations are becoming more environment-friendly. Using systems and applications improves work quality of managers and employees, for example, through implementation of the electronic circulation of information and e-applications. The latter can relate to absences, working hours or changes to personal data. At present, platforms provide employees with access to data and information regarding remuneration or annual PIT returns. Such an approach enables managers to access information on working hours, employment conditions, absences, OHS trainings or medical examinations of their team members more easily – this being especially noteworthy in companies of a dispersed structure. Automation of processes and implementation of new functions is not only time-saving, but also reduces financial efforts of the company in a given period and allows access to data and information of an improved quality.

Software providers also offer solutions enabling participation in HR processes through a digital execution of documents, which are automatically stored in electronic employee files. This solution is fully compliant with law. Furthermore, digitization creates opportunity for a remote work or in a hybrid model which guarantees continuity in HR and payroll processes, regulations and deadlines being safeguarded. Digitization of this area makes the flow of information much more efficient. Indeed, experts have a possibility to import data from Excel spreadsheets to HR system both automatically and in bulk. The above-mentioned functionalities of the software, especially during the pandemics, proved extremely effective.

Stages of transformation 

Once a comprehensive approach that improves efficiency, automation and accessibility to data relevant to HR and the whole organization is assumed, there are several consecutive stages of transformation that can be singled out. The most important stage of digitization in terms of HR and payroll processes is the analysis of needs, expectations and opportunities. This is followed by a verification of the current state, identification of the target course and the model of HR processes as well as creation of an estimated activities schedule. The next stage relies on implementation, functionality trainings, testing and moving the accepted solution to production. Analytical work is a key factor for the success of the entire mechanism of HR processes’ digitization. Therefore, among the most crucial benefits of digitization of HR and payroll processes we can include: improved flow of information, faster access to data with the possibility of analysing and monitoring them, security of processed data, more agile execution of tasks as well as improved communication and document logistics.

It is worth investing in modern solutions of automation and transformation. Digitization of HR processes is not just a popular trend, it is the future. Professional outsourcing companies operating in the market should respond to the above-mentioned needs and business requirements by introducing modern systems and software, all adapted to current legislations and expertise.