Modernising HR processes in an AI-driven world

The landscape of human resource management (HRM) is undergoing transformation, driven by rapid technological advancements. These changes are not just incremental but revolutionary, reshaping how HR departments operate and deliver value.

AI is fast becoming a major consideration in many corporate HR departments. It can automate routine tasks such as resume screening and scheduling interviews and provide sophisticated analytics for talent management and employee engagement.

Evolving HR technology with people needs in the workplace

This technological evolution allows HR professionals to shift their focus from administrative duties to strategic initiatives that drive organisational growth and employee satisfaction. Many HR experts are already envisioning an AI-powered HR department.

However, any technological evolution requires a fundamental understanding of the organisation’s processes. In the case of HR departments, aligning people’s needs with business objectives before beginning a journey of digital transformation is paramount.

At Inchcape, the transformation journey was not without its share of challenges, but through lessons learnt, we understood the critical success factors better and worked towards improving our journey forward.

Striking a balance between current and future needs

Here’s a question: “How important is it to integrate human resource information systems (HRIS) into the organisation?”

Fundamentally, it enhances employee data accuracy and consistency, especially for payroll and accounting reports. It also improves decision-making from data and insights into workforce trends. HRIS reduces administrative burden and allows employees to access information and services all in one place.

Integrating HRIS can be a complex process. It should always start with a clear understanding of the end-to-end business processes and selecting compatible technologies. Next, an integration plan that addresses data migration and management should be developed.

Finally, the amount of change management throughout the whole organisation is not to be underestimated. Resolving work frictions and confusion during the initial phases of any implementation requires a great deal of trust and goodwill among teams. Thus, it is vital to ensure that the right level of communication, leadership support, and employee involvement are key parts of the HR digital transformation plan.

Inchcape’s strategic technology integration

In 2021, Inchcape’s HR function—renamed the People Team—embarked on a journey of digital transformation. Guided by the need to deliver on our business growth agenda, we invested in technology we believed would lay a strong foundation to streamline processes while improving the overall employee experience.

We further implemented advanced technologies such as data analytics, performance management, talent management, and learning solutions, and conducted regular reviews of the impact of our HR technologies against business objectives.

At the heart of our digital transformation is our new Accelerate Plus strategy, a long-term growth plan that leverages strengthening partnerships, entering new markets, and enabling our people. By identifying and demonstrating how each technology contributes to key business outcomes, we ensured that our chosen technologies meet cross-functional needs.

Leadership and caring for employee morale and wellbeing during periods of change

Digital transformation cannot be achieved without the support of good leadership committed to digital transformation and promoting a culture of growth within the organisation. Having a robust talent pipeline to develop more leaders who can sustain this transformation can ensure business continuity and innovation.

“Digital transformation cannot be achieved without the support of good leadership committed to digital transformation and promoting a culture of growth within the organisation.” – Wendy Foong, CHRO and Regional People Director for Asia-Pacific at Inchcape Motors

When we introduced new HR technologies or processes, the involvement and support of Inchcape’s leaders in change management were crucial. Their support ensured minimal disruption and maximum adoption. Inchcape’s leaders also provide executive sponsorship and act as champions for change with our employees.

Organisations must evolve to thrive in the ever-shifting market landscape. However, it is crucial for organisations to recognise the ripple effect of change on employee morale and wellbeing. During periods of intense activity, team members will need to put in extra effort, and we need to care for them as they travel through the low valleys of their individual change journeys.

READ MORE: How digital transformation is evolving leadership

At Inchcape, we recognise and address these through transparent communication, recognition of employee contributions, providing skills training and support, monitoring and providing resources for mental wellbeing, and fostering a diverse and inclusive culture.

HR tech is here to stay, AI-powered solutions will be part of future HR strategies

The integration of technology into HR systems is not just a trend but a necessity for modern organisations. Even with the advent of AI-driven solutions, HR departments should always look inward, finding the right tools to streamline operations, enhance decision-making, and create a more engaging and efficient workplace.

That is why, in the next two years, HR teams will seriously investigate AI solutions, such as generative AI, to complement existing processes, as AI tools are designed to enhance human capabilities and can be useful in delegating tasks. Technology will be pervasive in most employees’ activities. This does not necessarily mean that AI will replace people but will assist in making processes more efficient, thus helping HR teams meet goals by performing activities better, faster, and more cost-effectively.

The future of HR is here, and it is powered by technology and by people. As we say it at Inchcape regarding growth strategy, let us work in “Transforming Tomorrow, Together.”

About the Author: Wendy Foong is CHRO and Regional People Director for Asia-Pacific at Inchcape Motors.