How HR Technology Could Save Indian Corporations Millions

customer service woman smiling

Being a manager at a large company can be an exhausting experience, especially if one has to deal with employee and customer issues daily. The average workplace manager spends up to 40% of their time dealing with conflicts, whether that’s with customers or employees.

Handling these issues alone can create a frustrating work environment and even cost companies money in the long term as productivity is reduced.

According to studies done with corporations in India, it is estimated that Indian companies spend nearly $500 million towards managing full-time employees. These costs do not include the managing of part-time employees or any other open talent worker management.

These costs are projected to grow, said PeopleStrong, an HR outsourcing company, to journalist organization LiveMint. But they also believe that the influence of HR technologies to handle both employees and customers could be incredibly beneficial to the industry. PeopleStrong stated:

“With the movement of more people from unorganized to organized segment, the number of employees working in organized setup would double by 2021 and the cost of managing employees would rise to about $2 billion. By 2021, HR Technology can help companies save at least 30% of $2 billion annually, which would amount to $600 million approximately.”

Many industry veterans are in agreement that HR technologies could help companies cut management costs in the coming years, and IT industry veteran T.V. Mohandas Pai believes the annual cost reduction could be as much as 25% to 30%.

“Clearly there is a movement amongst startups,” he says. “Big enterprises are slower but there is movement. Startups have a clean slate…with no legacy, and look for the latest and cheapest technology on subscription basis.”

However, one of the biggest hurdles about HR technology has always been its adoption. HR technology is not new to the area, having been around as early as 1990.

At the moment, functions like talent acquisition, learning and development, and performance measurements are being done using HR technology. Research done by PeopleStrong shows that many traditional jobs in HR that focus around data collation, approvals, and other similar work have been replaced by technology.

It is believed that new HR jobs which focus on analytics, program management, vendor and productivity management, as well as employee experience, will replace existing roles.

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