2/19/24

Digital HR Transformation & AI driven Analytics –

Towards a contemporary HCM Strategy

Dr. Suryanarayan G. Iyer

Visiting Faculty, XLRI

Session 1 & 2 – Digital HR Transformation Basics

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What is changing around us?

A changing workforce

The multi- Changing career The rise of the Work/life

generation patterns blended balance
workforce The average job tenure is now
workforce Technology-enabled flexible
just 4.2 years, creating working is fast becoming a
Retirement age is rising and challenges for employers who Employers are increasingly basic employee expectation
digital natives are entering the want to retain talent long term. relying on temporary workers to and will be the main option for
workforce. fill short-term roles and spikes in most employers by 2020.
Modern technologies and flexible demand, creating a gig
Employers could have five working opportunities are among economy. This brings a positive impact
generations working together, the biggest reasons to join a in health and wellbeing.
each with different technology company. In some countries contingent Illness-related absence is
skills and preferences. workers are expected to account reduced and productivity,
Employers need to be smarter for 40% of the workforce by efficiency and job satisfaction
Technology solutions will need about using technology to attract 2020. increase.
to be flexible, intuitive and talent and retain high
simple enough to work for performers. Businesses will need systems Employers who offer flexible
everyone. that ensure high quality workers working will reap the benefits
Employers that don’t invest risk can be found, on-boarded and of attracting and retaining the
losing talent to the competition. integrated rapidly. best talent – and delivering
more agile and responsive
services to customers.
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Changes in technology

Towards March of the Into the cloud Securing the

connected machines Worldwide spending on public data-driven
everything Artificial intelligence (AI), the
cloud services is forecast to
reach $195bn by 2020 (IDC).
enterprise
Internet of Things (IoT) and
We’re moving towards a single machine learning are The cloud has helped to break Giving employees control of
technology ecosystem where revolutionizing how down knowledge and information their digital experiences is
20bn devices will be connected organizations collect, analyze silos. Today, cloud-based tools good for productivity – but
by 2020. and use data, creating new help employees communicate, not necessarily security.
opportunities and changing how collaborate and access essential
This connectivity is changing employees and customers information and apps from Empowering employees to
working patterns. Manual engage with them. anywhere, at any time, through work anywhere requires
systems can now be managed any device. centrally managed data and
remotely, opening up flexible and Automation is replacing entire device security, retaining the
remote working opportunities. functions or being used to Cloud-based services have best talent and delivering
complete routine tasks. For enabled smaller businesses to more agile and responsive
Organizations can gather and example, tools like Virtual acquire powerful, innovation- services.
analyze data then use the Private Assistants (VPAs) deliver driving tools and solutions that
insights to drive innovative new personalized assistance with were previously only within the
services, employee wellbeing routine admin. grasp of the largest enterprises.
and optimized business
operations.

The Basics
Digital – Electronic Technology that generates, stores, processes data in 2 states +ve / -ve, also referred to as Bits/Bytes
Analog – Prior to digital technology, electronic transmission was conveyed as signals of frequency/amplitude – added to carrier waves
DIGITIZATION DIGITALIZATION DIGITAL TRANSFORMATION
The Conversion The Process The Effect
Physical Form | Process Not to be confused with “DIGITIZATION” This is an “Enterprise Wide
Phenomenon”
Physical Form Perspective 1 : Systems of Insights Google Definition
- A digital representation of physical form of Enabling, transforming business operations by Digital Transformation (DT) is the profound
information leveraging digital technologies through and accelerating transformation of
- Documents / videos / photographs / assess - Digitized Data Business
(physical) - Actionable Knowledge - Activities
- Processes
Process
What do these terms
- Automate Business Processes Perspectivemean to you? – The HR context
2 : Digital Workplace - Competencies
- Build Workflows to connect digital process / Use digital tools to - Models to fully leverage the changes &
documents - Work differently Automate Business Processes opportunities of digital technologies &
- Engage differently Busin
their impact across society in a strategic
Digitization & prioritized way
- MANUAL : AUTOMATE
- Collaborate differently
“Mobile”, “Social Collaboration”, “Unified Digital Transformation
ess
- PAPER : DIGITAL DATA
Communication Platforms” Model
Compet
s
Definition
- Digitization is the automation of existing
Perspective 3 : Digital Business encies
manual & paper based processes, enabled by
Road to moving towards “Digital Business” Processes,
- New revenue streams
the digitization of information – from an
analog to a digital format
- New offerings Activities

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The Basics
Digital – Electronic Technology that generates, stores, processes data in 2 states +ve / -ve, also referred to as Bits/Bytes
Analog – Prior to digital technology, electronic transmission was conveyed as signals of frequency/amplitude – added to carrier waves
DIGITIZATION DIGITALIZATION DIGITAL TRANSFORMATION
The Conversion The Process The Effect
Physical Form | Process Not to be confused with “DIGITIZATION” This is an “Enterprise Wide
Phenomenon”
Physical Form Perspective 1 : Systems of Insights Google Definition
- A digital representation of physical form of Enabling, transforming business operations by Digital Transformation (DT) is the profound
information leveraging digital technologies through and accelerating transformation of
- Documents / videos / photographs / assess - Digitized Data Business
(physical) - Actionable Knowledge - Activities
Process - Processes
Perspective 2 : Digital Workplace - Competencies
- Automate Business Processes
- Build Workflows to connect digital process / Use digital tools to - Models to fully leverage the changes &
documents - Work differently Automate Business Processes opportunities of digital technologies &
- Engage differently their impact across society in a strategic
Digitization & prioritized way
- Collaborate differently
- MANUAL : AUTOMATE
“Mobile”, “Social Collaboration”, “Unified Digital Transformation
- PAPER : DIGITAL DATA Business
Communication Platforms” Models

Definition
Perspective 3 : Digital Business Competencies
- Digitization is the automation of existing
Road to moving towards “Digital Business”
manual & paper based processes, enabled by
- New revenue streams
the digitization of information – from an Processes, Activities
- New offerings
analog to a digital format

System Development Life cycle & Design Basics

1. eHRM Fundamentals

2. System Development Life cycle & Design Basics

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Digital HR (eHRM) - The Confluence of IT and HRM

Transformational
eHRM nt
s e Tale
Relational ri nt
e rp m e
eHRM Ent anage
M
ice
S er v •HR role change – from
fo rce administrative to strategic
Operational r k
Wo livery •Increased focus on
eHRM De
building competencies to
m& t •Increase employee support organization
Syste emen
strategy
b al ag satisfaction and boost
l e G l o e M an productivity •Connect Intellectual
g c
Sin rkfor capital and social capital
Wo •Web 2.0 collaboration
capabilities – wikis, blogs, to facilitate Knowledge
•Automate processes, Cut discussion boards – exchange
costs, and gain insight Employee Voice Ulrich (1997), Lawler &
•Reduction of manual and Lepak & Snell (1988), Mohrman (2003),
Non-value adding activities Martin, Redingtion, Lengnick-Hall & Moritz
Groe, Pyle & Jamrog (1996) Kneafsey (2009) (2003)

eHRM Definition
• e-HRM is a way of designing and implementing HRM strategies, policies
and practices in organizations through a conscious and directed support
of, and/or with the full use of, web-technology based channels.

• The word designing and implementing in this context has a broad

meaning, such as making something work, putting something into
practice or having something realised. e-HRM , therefore, is a concept –
a way of “doing” HRM
(Ruel & Bondarouk , 2004)

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eHRM – Similar Concepts

• HRIS – Automation of the HR function using information technology where
paper work is replaced by electronic input / output (Tannenbaum, 1990,
DeSanctis, 1996, McCormick, 2002, Lengnick-Hall & Moritz, 2003)

• Virtual HR – technological mediated networks of different internal and

external actors providing the firm with HR services needed without the further
existence of a conventional HR department (Lepak & Snell, 1998)

• Web based HR – extending HR through internet technologies (Ruel et. al, 2004)

• Business–to-Employee (B2E) – concept of internal actor categories and

interactions (Line managers & HR managers with employees (Huang & Yang,
2004))
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eHRM Definition (contd…)

• e-HRM is therefore an umbrella term covering all possible

integration mechanisms and contents between HRM and IT
aiming at creating value within and across organizations for
targeted employees and management

(Bondarouk & Ruel , 2009)

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Operational eHRM

Goals Scope Outcomes

Employee Records Streamlining of HR
processes
Cost Reduction Employee Lifecycle
management Reduction of HR
HR Department’s
middlemen
Payroll
Productivity Speed
Benefits
Reduction of errors
Time Management
Better control &
Leave Management
tracking of HR actions
Reduction of
Administrative Burden

(Groe, Pyle & Jamrog, 1996, Lepak & Snell, 1998, Wright & Dyer, 2000, Lengnick-Hall & Moritz,
2003, Hawking et. al., 2004, Ruel et. al, 2004, Ruta, 2005)

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Relational eHRM

Goals Scope Outcomes

Increasing Service Employee / Manager Employee Productivity

Responsiveness Self-service
towards Employees Employee Satisfaction
eRecruiting including
Social Recruiting Positive applicant
perceptions thereby
eLearning better applicant
attraction rates.
Social Networks
Lower Training cost
Social Collaboration and higher reach
Platform
Employee “voice” and
“openness”
(Snell, et. al., 1995, O’Connel, 1996, Brockbank, 1997, Wilcox, 1997, Rozelle & Landis, 2002,
Coppola & Myre, 2002, MacPherson et. al., 2004, Lengnick-Hall & Moritz, 2003, Braddy et. al,
2003, Cober et. al, 2003, Sinar et. al, 2003, Van Rooy et. al, 2003, Hawking et. al., 2004, Ruel et.
al, 2004, Dineen et. al., 2004, Ruta, 2005, Jacobs, 2009, Martin et. al., 2009, Meister & Willyerd,
2010, London & Hall, 2011)
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Transformational eHRM

Goals Scope Outcomes

Improving HR’s Competency Creation of change-

strategic orientation Management ready Workforce
Talent Development Trust and Shared
Values
Knowledge
Management Knowledge Exchange
Open and collaborative
learning (shared
learning)

(Lepak & Snell, 1998, Wright & Dyer, 2000, Lengnick-Hall & Moritz, 2003, Lawler & Mohrman,
2003, Martin et. al, 2009, Abel & Leblanc, 2009, Kirchner et. al., 2009, Kussamal & Jack, 2009,
Benson & Avery, 2009)
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Design Considerations

Physical Design Logical Design Visual Design

Infrastructure Process Flow Wireframes

Platform Data Flow UX

Networking Functional Design UI

Technical Design

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Physical Design
N-tier Architecture

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Physical Design | IaaS, PaaS, SaaS

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Design Considerations – Logical Design

Data Perspective Process Perspective

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Talent Staffing Process Architecture 1 2 3 4 5 6 7

Broadcast Sourcing Evaluation Selection Verification Onboarding Hiring

1
Data flow Broadcast Job Career Social
• Position Info. Agency Referral
Boards Sections Sourcing
• Business Structure.
Start • Location Structure
• Requisition Creation
• Requisition Approval
• Org. Structure • Multiple Posting
• Internal Candidate Data 2
Platforms
• Employment Branding -TCC Sourcing
5
4 Selection 3 Evaluation
Verification
Offer
Background
Offer Acceptance / Creation(New Assessments Interviews Pre-screening
Check Offer Extension
Rejection hire comp
fitment)

Medical
Check
• Personal • Job Band
6 Onboarding Data • Prior Work
• Job Data Experience
• Position • Qualification 7 Hire
Gamification Onboarding
Joining Forms
Portal Curriculum -WFA
-Employee Video
Assessment
Joining
Partners Interview

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End

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Design Considerations (Data Perspective)

Level 0 DFD

Data Perspective

Entity Applicant, Interviewer, HR

department…

Logical Design
Data Flow
Data Flow diagram
(DFD) Create, Job Requisition, Receive
Process Applications, Select candidates, etc.

Data Store Applicant database, Job Descriptions,

Employee files, etc.

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System Design Components – Functional Design

1. Masters
2. Inputs / Transactions
3. Approval Workflows
4. Validations
5. Outputs / Reports
6. Interfaces

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So….. What is the opportunity for HR Function !!!

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View Transact Converse – A complete Journey

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The HR Opportunity – Connecting People, Machine, Data

People:

Employees, Managers, Leaders, Suppliers, Customers,

Partners…
People to People to
M/c People Machine (M/c):
People
Applications (ERP based, Oracle, etc.), Networks, Mobile
Devices, Digital Equipment, Sensors, Intelligent Home
appliances, etc.
HR
Process M/c to Data:
es M/c
Machin Data
e (M/c) Internal: Employee records, Lifecycle transactions,
rewards, payroll, talent, performance, Learning, Vibes,
business performance, mails, CVs, images, videos, etc.

External: Social Media, Competitive benchmarks,

Customer, Suppliers, Partners, etc.

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The HR Opportunity – Connecting People, Machine, Data

The HR Digital HR
Description Scope of Digital HR
Opportunity Goals / Impact

This pertains to - Employee Portal HR process

Connecting connecting People to - Employee / Manager Self- efficiencies
People to Applications and Data. Service
Machine (P2M) Involves the process of - Workforce Administration Rich digital
Digitalization of the HR - Recruiting & Onboarding experience
function – its processes, - Learning
policies and programs - Integrated Talent Employee
and connecting People to Management, etc. Engagement
the same using “Self-
Services”.

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The HR Opportunity – Connecting People, Machine, Data

The HR Digital HR
Description Scope of Digital HR
Opportunity Goals / Impact

Connecting This pertains to use of - “Appification” of Employee Individual Productivity

People to People Smart Workplace Services
(P2P) technologies to connect - Collaboration & Team Productivity
People with each other. communication
- Communities of interest / Innovation &
Groups, Knowledge Exchange
- Managing individual / team
work scheduling, Employee
- Anytime, anywhere Engagement
connectivity to workplace and
- Data sharing.

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The HR Opportunity – Connecting People, Machine, Data

The HR Digital HR
Description Scope of Digital HR
Opportunity Goals / Impact
Connecting
Machine to This pertains to - HR Big Data warehouse Real time Insights for
Machine (M2M) storage, retrieval and - HR Operational Reporting Strategic Decision
tagging multiple - COE Dashboards making
sources of data (both - Predictive Analytics
structured as well as
unstructured to provide
Insights for decision
making

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The HR Digital HR
Description Scope of Digital HR
Opportunity Goals / Impact
- Process BOTS (Repetitive HR processes that
Connecting This pertains to we can train machines to perform) e.g. Payroll, - HR process
Machine to using Artificial Creation of Employee records, Creation of Job efficiency
People (M2P) Intelligence (AI) & Requisitions, etc.)
Machine Learning - HR Service
(ML) tools to train - Chat BOTS (FAQ based service desk that we Responsiveness
the Machines to can train the machines to answer basic
emulate People. questions to employees. e.g. Leave Eligibility, - Helps HR to
Benefit Policy information, etc.) triangulate and
reduce cognitive
- Cognitive machines (Using a rich BIG data biases
repository of past decisions made / transactions
to train the machine to make decisions

|candidate shortlisting |identifying top talent |

prescribe contextual learning |predict employee
engagement | Mood assessment of candidate
based on facial recognition, etc.)

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What is HR Analytics?

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What is HR Analytics?

‘application of a methodology and integrated process to

improve the quality of people-related decision for the
purpose of improving individual and/or organizational
performance (Bassi et al., 2010)

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Sufficiency
Connectedness
Accuracy
DATA Process Digitized
Timely
Adopted
Preparation
VISUALIZATION
PRIVACY
Statistical
AI / ML
? Methods
Metrics
Drill downs

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Typical HR Analytics journey

Visualization

Prescriptive
Strategic

e.g. Workforce Planning,

Predictions
Predicted Attrition, Performance
and Patterns
WHAT IF

Factors / Correlations / Regression:

Causal Analysis e.g. What impacts Performance
Hypotheses building
COE
Dashboards Demographics, Trends – New hire, attrition,
(Descriptive) Top Talent %, Diversity %, etc
Transactional

WHAT
Operational
Reporting e.g. Headcount, Payroll register, PMS status, etc.

Data Dumps

HR Data Warehouse HR Information

Data Lake (Unstructured)
Maturity

Slide Courtesy: Dr. Suryanarayan Iyer

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GARTNER DELOITTE

CEB PWC

Slide Courtsy: Dr. Suryanarayan

Iyer
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Identify: What type of Analytics?

•What is the profile of candidates who are likely to accept the job offer?
•Probability of who is likely to leave?
•What are the attributes of high performing employees?
•Who are the most productive salespeople, employee?
•Who have the right skills for the next key product line?
•Which employees have the strongest customer relationships?
•Which managers have the highest retention rates? What do they do?
•Which hires work out the best?
•What is our retention rate? Why do people leave?
•What is the cost of turnover?
•Why do people join the organization?

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Now, for some Technical discussion…

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BIG DATA – Volume, Variety, Velocity

ETL
Operational Data Store
Data Ware house
Data Lake
Data Marts
Dimensions / Levers
Metrics

Digital HR - Group HR 38

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E
T
L

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E
T
L

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E
T
L

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E
T
L

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E
T
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Data Lake representation

Copyright © 2021, Oracle and/or its affiliates | Confidential: Restricted 44

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A Model: Data Driven Decision Making

1. Define the What to focus on & Why?
problem to address --- Problem statement
Connect the problem to --- HR analytics maturity levels
the finding
6. Decision /
2. Design/approach
Recommendation
with Hypotheses
through data
Visualization Statements

What is the process?

HR Analytics
-- Dimensions, Questions, Metrics
Architecture and
-- Hypotheses
Make sense of the Infrastructure
---Fit between problem-data-analysis
findings

5. Interpretation 3. Data collection &

Preparation

Preparing the data

Running the analysis -- data collection & integration
-- testing hypotheses 4. Analysis
--- data cleaning
--- using statistics
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The Basics

Machine learning is a method of data analysis. Machine

learning is a machine-centered approach.

In machine learning, there are algorithms we can use to make

machine learn through data iteratively and make it able to find
hidden insights from the data.
MACHINE LEARNING
So that, machine can itself take decisions without being
explicitly programmed what to do in each case.
Supervised Un Supervised

1. What is the probability that the next customer who visits the counter will open an Account?

2. Given the height of this person – what will be his predicted weight?

3. Will there be a storm today?

4. What are the reasons employees quit?

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So where is the Opportunity….

AI Video

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Sample AI use cases in HR

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Recruitment Components I AI in Candidate Experience, Interviews,

Assessments, Offer

Help candidates become more

CE Assesment Interview Offer
self-sufficient: The entire
interviewing process is in their
control, from rescheduling or
Smart Interview canceling to sending reminders,
Tracking Extend Benefit
Leadership Schedule sharing notes, and
Candidate optimizer
.
Hiring Management recommending resources for
Behavior
review. •
Intelligent Candidate joining
Adjacent Jobs Cognitive
Interview Panel Prediction
and Skills Skills Assist hiring managers:
Selection . - AI reminds them of upcoming
interviews and provides
AI Based Video details on candidates.
Interviewing - AI help overcome subjectivity
by gathering data from
previous employees in similar
Shortlist your
roles and preparing targeted
ur Candidate Se
y o te Assess your l
Ca ect questions for hiring
w
o ida nd y o
Candidate managers.
K n a nd id ur
at - Provides greater focus on the
C e
candidate’s skill set, more
context on the nature of the
job, and measures against
similar roles in other
organizations.
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Emerging Technologies - AI and Blockchain in Background Check

Checkr is on the forefront of a new and

potentially problematic kind of hiring, one
Criminal that’s powered by still-emerging
Records
technology. Those hoping to quickly get
extra work complain that Checkr and
Social Media others using AI to do background checks
Learning Public aren’t addressing error and mistakes on
Information
Criminal record reports.

BGC
IDverity performs level 1 employee
background verification completely in real
Employment time, forensically evaluating an applicant’s
Credit & identity via authenticity validation of the
Performance government ID and comparing the same to
the candidates’ photograph from their
Academic mobile device.

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AI in Sourcing to Selection

Recommended Recommende Intelligent Recommended

Candidates d Jobs Match Skills

Sourcing Selection

• Recommends
• Profile Match the Best
• Assessments
• Interview
feedback
• AI Collaborates with
Recruiter, Hiring Using AI to improve sourcing can greatly enhance an
Managers, Candidates organization’s ability to find the right talent at just the
right time.

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Suggested Actions

• Enroll for web-based

training
• Resources
automatically suggested
based on knowing who
you are, and others like
you – continuous
learning keeps
suggestions up-to-date.

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Employee’s AI enabled Career Development in the Organization

Job Profile Employee Profile

• Industry Competency • Social Skills

benchmarking • Learnings
• Company Benchmarks • Accomplishments and
• Grade Profiling Degrees
AI and ML
Profile Creation
Basis Social Skills
and Skills added to
Accomplishments Employee selects Developmental Automatic Profile
in the System a career Path Plan Updation

System suggested Recommended – Recommended Profile

Career Paths– next role and Learnings and recommended
horizontal and skills gap Constant Nudging for succession
vertical Planning

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• Challenge: Ensuring the right compensation for the right

positions to avoid paying too little or too much.

• Need: Wider range of data to create a strategy that works for

their people and matches differences in expectations, roles,
AI in and skill sets.

Compensation • AI helps in compensation to:

• Provide market insights: AI provides a nuanced and strategic
Management view into how roles should be banded by analyzing a wealth of
salary data points relative to the local market and available
competitor data.
• Increase wage efficacy: By matching a specific offer with
individual job, market and employee histories to calculate the
odds to ensure acceptance.
• Pay parity & equity : Reduce unconscious bias, stereotyping,
gender and racial inequality in compensation is difficult to
detect.

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Embedded Generative AI
Candidate Goal
Customers have access to capabilities reflective Qualification Creation Employee Profile
of all design patterns targeted for G-AI in Cloud Summarization Authoring Authoring
HCM

Benefit
Demonstrable delivery of content useable by customers
now embracing a different approach for AI and Machine Job Requisition & Survey Performance Review
Language Description Questions Summary
Authoring Suggestions Summarization

Value of Benefit
Employee productivity, consistency of data, better
information upon which to make recommendations,
decisions or to even perform root-cause analyses Self Service
Employee Competency Knowledgebase
Recognition Development Tips Article
Authoring Suggestions Authoring
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Judgement Matters | Biases, Objectivity and Fairness

Historical Bias
Many AI systems are trained on historical biases, Fairness and
leading to legitimization of societal biases and Equity
prejudices.

Algorithmic Bias
Algorithm
Algorithm's design or decision-making process Explainability
inadvertently favours certain groups or outcomes. transparency
Feedback Loop Bias
Recommendation algorithms may show users
content that aligns with their existing beliefs Consent

Algorithm’s continued cognitive capability

Potential for humans to crack the code and game the
learning to their benefit
Objectivity in AI is achievable through
transparency, fairness considerations,
explain-ability, and ongoing vigilance in
identifying and rectifying biases
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