CURRENT developments have indeed accelerated the need for companies to adopt technology in their operations.
But while there has been an emphasis on digitalisation and automation of operations, the uptake of technology in human resource (HR) functions has been rather slow.
And as the workforce is suddenly forced to work from home during the period of the Movement Control Order, smaller companies that have been putting off tech adoption may be finding it more challenging to cope with this disruption of workflow.
Swingvy co-founder and chief executive officer Jin Choeh says SMEs are finding the learning curve a lot steeper than anticipated.
“Most SMEs have not created crisis management teams that deal with business-critical functions and many are unable to forecast plans for future events like this. However this is a time for companies in Malaysia to navigate and evolve in the modern work environment to ensure their teams are properly distributed, ” he says.
Swingvy is an all-in-one human resource information system that enables employers to automate and remotely manage functions such as payroll, leave, claims and benefits.
The tech company works with some 8,000 SMEs across Malaysia, Singapore and Taiwan in various industries like IT, retail, F&B, education, manufacturing, advertising, consulting and financial services.
Choeh notes that while research shows that 44% of SMEs are using cloud computing, most of them have not adopted cloud software-as-a-service to drive software process improvements in the company.
“Human resource is an industry that has a slow tech adoption rate and most businesses are still doing things traditionally. Given the current situation with the need to monitor and track employees’ travel history and work-from-home statuses, doing this manually requires a lot of manpower. Not all businesses can afford this.
“With technology, more can be done with less. And it’s our job to show a clear value and reason why it’s worth adopting the new technology, ” he adds.
According to an SME Corp 2019 report, 56% of SMEs aren’t using any business cloud tools. This means that many of our SMEs are operating without technology, which translates to significant loss of efficiency among businesses.
In other words, half of the SMEs are behind the competition, says Choeh.
“The reason why adopting technology is critical is quite clear. SMEs can focus on their core capabilities by doing less repetitive administration tasks through technology.”
Understandably, SMEs are often hesitant about installing new technology due to a lack of financial resources and skills to manage the transition.
But the current circumstances drive home the need for SMEs to adopt technology, and to do it fast.
“Many have realised that traditional paper-based processes cause too much trouble and chaos in the payroll process which is why they are making their transition to tools that will automate the entire process for them.
“From Cloud HR to now HR automation, we have seen a significant leap in how HR leaders have transitioned from manual systems on the administrative side. With the new tools from Swingvy, for example, organisations can create, streamline, connect and deploy necessary services rapidly at a considerably lower cost.
“Things like reimbursement of business expenses, insurance costs and overpaid taxes are common examples of processes that can be digitised and automated, ” he says.
Choeh advises human resource managers to have a plan to drive digitisation and automation in administrative processes. This will help them manage the cost of installing new technology and carry out the transition in phases.
SMEs should also look into available tools such as tech solutions from various startups that may make the leap a lot smoother, easier and cheaper.
“Technology in the HR space is rapidly developing to allow greater freedom for employees while providing platforms for more expedient and cost-effective solutions for employers.
“SMEs make up a staggering 98.5% of all businesses in Malaysia, and most are unfamiliar with how the latest tools can save them time and money, allowing SME business leaders to focus on growing their business and establishing their brand presence.
“Looking at the next two to five years, adopting proper HR software will be one of the major solutions to manage people operations, replacing what are – in many companies – outdated and wasteful HR practices. Upon adoption, most businesses will see immediate benefits, including cost saving.
“Effectively and efficiently managing people and communicating with customers and suppliers has been tested to the limits with the Covid-19 crisis. In recent weeks, a lot of attention has been placed on remote working collaboration tools to ensure cooperation and communication between individuals, their clients and their employers, goes on smoothly.
“As it becomes increasingly the norm to work in different locations, and often across different time zones, the responsibility will be on employers to adopt and update solutions that move HR methods from offline to online, ” he says.
Choeh says Swingvy will also be offering SMEs its full HR suite for free during the work-from home period. Any company who signs up from now until end-April will get six months free access to its services.
Source : https://www.thestar.com.my/business/business-news/2020/04/18/tech-ing-up-human-resource