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What Is the Role of Technology in Human Resource Management?

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  • Written By: Osmand Vitez
  • Edited By: PJP Schroeder
  • Last Modified Date: 21 November 2016
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Technology in Human Resource (HR) management is another application of companies using hardware and software to aid human activities. Companies use all types of technology in human resource management. A few different roles for the technology can be hiring and selecting employees for interviews, managing employee paperwork or benefits, and securing sensitive employee files. Many different types of hardware or software are available for this purpose. Companies can either use an external software package or create their own, depending on their needs.

Many companies now use Internet-based employee applications or other technology in human resource management for finding new employees. A significant benefit for online applications is the existence of knockout questions. These questions prevent unqualified individuals from making it too far through the employee application process. For example, if a company desires a certain level of education, an answer about earned college degrees may appear on employee applications. Those who answer “no” to the question will not be included on the list of potential interviews for a company’s open job position.

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Employee paperwork for new and existing hires is often a time-consuming process. Technology in human resource management allows a company to find new ways of handling paperwork relating to employee hires and benefits. For example, all new hires may need to fill out paperwork for medical, dental, retirement, or other benefits. The use of an online enrollment system is common and beneficial. A company can create an intranet that all employees can access in order to fill out documents, review current benefits, or handle other tasks related to specific benefits.

Companies must have secure environments for storing employee documents. While all companies typically have specific storage rooms devoted to this purpose, technology in human resource management can also be beneficial. Here, encrypted spreadsheets or other software packages allow companies to restrict access to payroll or other sensitive documents. The use of outside payroll services may result in a company using an external website for transferring sensitive documents. Technology often helps a company prevent theft from payroll documents through comprised transfer methods.

Technology in human resource methods is not without its drawbacks. Moving traditional activities from a manual to technological process can be time-consuming and expensive. Additionally, the potential for hardware or software to fail is also a problem that a company may need to consider. Being prepared for all technological issues is a must as failure to properly handle employee data can result in heavy fines or penalties.

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