The advent of computer technology has revolutionised all areas of business and Human Resources (HR) is not an exception. Computer technology, social media, and data analytics have been playing a key role in streamlining HR practices in all industries including Non-Banking Financial Companies (NBFCs) which are currently leveraging innovative HR tools for acquiring new talents and retaining existing ones. Here are six ways how technological advancement is affecting HR practices in NBFCs.
Recruitment: The biggest challenge for NBFCs is to find the right employees. Machine learning (Ml) is the next big thing in HR that helps NFBCs hire faster and with more efficiency. Besides utilising available data for analysing the profile of potential candidates, Ml utilises big data for predicting and evaluating success patterns prior to hiring a candidate.
Moreover, the trend of social hiring is also gaining grounds as NBFCs are widely embracing social media for hiring and retaining employees.
learning & Development: Since NBFCs are increasingly data-driven, they have come to realise the advantages of big data in employee learning. Big data helps trainers identify effective training methods to benefit the employees' learning. It also eliminates infructuous training procedures and provides real-time analytics to highlight the training programs that bear positive results.
Employee performance management: HR professionals now make use of Big Data for gauging the performance of employees. Computer technology also helps HR professionals obtain valuable feedback from the employees which is then utilised for improving the workculture of the organisation. Social media too plays a significant role here.
Employee communication: In the bygone days, employers used to communicate with their employees at meetings or through interoffice mails and memos. Social media has made things easier by eliminating the need of organising regular meetings or the HR professional to travel to different locations for announcing restructures or strategy.
Digitising employer branding strategy: Employer branding signifies the perception held by the prospective employees about your organisation. The millennial talent is well-aware of their professional expertise and prefers choosing employers just like they are chosen by employers.To provide this talent pool with an outstanding hiring experience, NBFCs are digitalising their employer brand strategy by utilizing mobile technologies. Simultaneously, NBFCs are increasingly counting on social media to prove the uniqueness of their brand as social platforms are crucial tools for targeting the deserving talents residing in any corner of the globe.
Employee retention: Retention of employees is the most crucial tool for employer branding. To retain talents having high potential, the HR department of NBFCs are making use of big data to derive a lucid idea about those who are quitting and identify if there is any pattern among employees looking for employment opportunities in another company.
The writer is Jindra Hachova, Chief HR Officer,
Home Credit India