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Digital Ecosystems

Human Resources 4.0 boosts efficiency

Staff shortages are the Achilles’ heel of many industrial companies. According to a study from US management consulting firm Bain, digitalizing human resources can make a company significantly more efficient – and also more attractive to sought-after skilled workers.

25 Jan. 2019
Human Resources 4.0 boosts efficiency (picture: Photo by Alejandro Escamilla on Unsplash)

The consultants at Bain believe that the targeted use of artificial intelligence, machine learning, and advanced analytics could increase the productivity of human resources (HR) by up to 30%, since these elements are key factors when it comes to the digitalization of companies: Skilled workers and digital natives in particular pay close attention to how a company presents itself during the application process. Digital HR management also boosts acceptance of new technologies within the company, and thereby the willingness to change.

Bain’s study, in which 500 HR managers in Germany, Great Britain, and the US were surveyed, shows nonetheless that the vast majority of companies are still lagging behind when it comes to HR 4.0. In up to one third of HR departments, tasks are still predominately handled manually, processed in Excel, or paper-based. The consultants state that ensuring successful digitalization demands that companies address personal, organizational, and technical risks in good time. As well, employees need comprehensive training and support.

Service provider Pentos even sees HR departments as the “key players in the digital transformation of an enterprise”. It believes HR departments are responsible for developing a common digital corporate culture that has a positive internal and external impact. One of the things this requires, however, is a development plan for digital skills, reports Pentos in a whitepaper on the topic.