Creating Sustainable Business with HR 5.0 Talent Management
Since the Industrial Revolution 4.0 (IR 4.0) has begun to transform the industries with various technological advancements, the employment market is expected to undergo a humongous change too.
Nonetheless, we should bear in mind that these marvellous technologies were invented by, and still have to be managed by people in one way or another. Therefore, talent management will always remain as the top priority for any business that aims to operate sustainably.
To manage talents successfully, we need to adopt the ideas that are promoted by human resources specialists around the world, and now increasingly known collectively as HR 5.0.
The case for HR 5.0
HR practitioners play a vital role in ensuring the sustainability and competitiveness of business entities. Thanks to technological advancements such as Artificial Intelligence, Machine Learning, Data Analytics and many more that are now applied in everyday business operations, HR practitioners nowadays will have to secure the best talents that can contribute to business transformation, and retain them by offering an employment experience that matches or even exceeds their expectation.
To prepare for this massive task, HR specialists must be prepared to spearhead the revolution in the field of talent management, which is why HR 5.0 has become the talk of town lately. Specifically, they shall spend less time handling their traditional tasks that can be automated, such as staff attendance, payroll, claims processing, leave management etc, and focus more on greater missions such as strategic planning, talent acquisition and organisational improvement instead.
The benefit of embracing HR 5.0
By perfecting the art of HR 5.0, enterprises stand to gain enormous benefits, which come in various forms that will keep the business model relevant, for instance:
1. Optimised business process
2. Automation of manual work & minimised human error
3. Lowering cost of labour and materials
4. Better analytics for more precise decision-making
5. Improved strategic planning in talent management
6. Greater success at recruitment and retention of talents
7. Increased productivity
8. Possible innovation and reinvention
Put simply, these are the factors that will decide whether a company will survive in the sink or swim situation during the post-pandemic recovery. By adopting HR 5.0 and gaining access to the above-mentioned qualities, an enterprise will most probably outshine the rest and enjoy a greater chance of success in its quest for business sustainability.
Mastering the core competencies
In the era of HR 5.0, HR specialists need to equip themselves with various core competencies to carry out their duties efficiently. According to the research done by the various experts, the HR fraternity generally feel that these core competencies needed can be mainly categorised into 3 groups, each consisting of certain important skills:
1. Professional behaviour and leadership
- Leadership and credibility
- Organisational capacity
- Solution creation
- Interpersonal communication
2. Service orientation and execution
- Talent management
- HR governance
- Analytics and measurement
- HR services delivery
3. Business intelligence
- Strategic contribution
- Business knowledge management
- HR technology
- Business acumen
Once the HR practitioners master these core competencies, they will emerge as the frontrunners in driving and developing the essential practices necessary to transform the whole business organisation, and ensure the sustainability of the business in the future global market.
Smooth transition to HR 5.0
In the National Human Capital Conference & Exhibition 2022 (NHCCE) organised by the Human Resource Development Corporation Malaysia (HRD Corp) in November 2022, experts passionately discussed the six catalysts for a smooth transition to HR 5.0:
1. The Future of Work,
2. Innovation at the Workplace,
3. Diversity & Generational Workforce Change,
4. Embracing Transformative Learning and Development Models,
5. The Role of Workplace Leadership, and
6. Impact of Human Capital on the National Economy.
Obviously, the HR fraternity needs a paradigm shift, besides equipping its members with a wide range of knowledge, including new techniques, tools and standard practices. While the HR practitioners in many companies might not have a good command of these currently, they can always seek help from qualified solution providers which comply with the world’s best practices to get the necessary support.
Digital enabler coming to the rescue
Fortunately, the HR fraternity will be delighted to know that they can secure the help they urgently need in the form of digital transformation. The more mundane, repetitive part of their work, which has consumed most of their time and energy previously, can actually be taken care of by digitalisation and automation. This will free up their time and allow them to focus more on the tasks related to talent management.
While there have been various solutions in the market to meet the various HR needs, some handle the leave management, some digitalise the payroll, having too many different platforms for separate functions (and too many passwords to remember) will more often than not be confusing for the employees. The good news is, businesses can always opt for those all-in-one super apps instead, and the most convenient among them is certainly the homegrown cloud-based HRX solution developed by IFCA.
Ensuring sustainability with HR 5.0
HRX is truly a versatile software that can do wonders. For a start, its Time Attendance module captures the clock-in and clock-out times of every employee.
The info is then fed to the Payroll module of HRX, to calculate the right amount of salary and overtime payment based on the latest requirements of the Employment Act automatically.
And then there is the Leave Management module, which lists down the leave entitlement of every staff based on company policies. It also allows employees to submit overtime applications, shift change requests, time-off applications via mobile devices, and is capable of cascading them to the respective supervisors instantly.
The same goes to the Claim Management module of HRX, which utilises Robotic Process Automation (RPA) to extract details from the receipts snapped by employees. With tasks automated, HR personnel will have more time to focus on the talent management in line with the HR 5.0 paradigm.
Mapping your talent roadmap digitally
Within HRX, the crown jewel for a successful HR 5.0 roll-out is certainly the Talent Management module. It facilitates enterprises in building their recruitment, training, appraisal, as well as development & succession strategy with a range of solutions.
Its Recruitment System is capable of identifying and tracking down candidates with impressive competency and skills that match the organisation’s goals.
The Training System compares the Current Competency Level (CCL) of talents against their Required Competency Level (RCL), thus highlighting the training that should be assigned accordingly.
On the other hand, the Appraisal System of the Talent Management module helps managers to comprehensively evaluate employee performance against organisational goals and predetermined KPIs.
Whereas the Development and Succession System enables employers to conduct capacity building and propels the staff career progression, besides providing real-time insights for long-term strategic planning.
Implementation of HR 5.0 itself is not the goal, but the essential process to secure the best talents, ultimately giving the organisation a competitive edge in overcoming the new challenges. With the help of digital solutions such as HRX, it is hoped that businesses can embark on the journey of HR 5.0 successfully by harnessing the advantages of the latest technologies. Want to see your company rise to the top through excellent talent management? Secure your free demo HRX demo today!