Theory: HR Digitalisation

Privacy Breach – The increased danger of privacy violations is one of the main drawbacks of automating HR activities. (Faber, 2017) The privacy of employees in a company’s database is protected by numerous laws and other regulations. But, if hackers or a third party gain access to the database, it might seriously reveal the personal information of your employees. A password by itself cannot ensure the security of their data because technically skilled people can quickly get around it. To protect the data, the database should be protected both internally and externally.  

Wrong Employee Assessment – Employee evaluations can benefit greatly and effectively from automated HR operations. The automated systems rely on a variety of data, such as performance ratings, abilities and skills. Yet, this automation takes the human element out of the evaluation. (Faber, 2017) An automated system may record high marks for marketing efforts, sales and new accounts but fails to record an employee’s tendency to treat customers in an unfavourable manner.  

Loss of subjectivity – Managers may be tempted to promote employees based on the unbiased data the system provides because HR management systems do such an excellent job of showcasing employee accomplishments, certifications and degrees. (Johnston, 2019) This can deter managers from spending the time to assess each employee’s potential contribution to the business by getting to know them personally. The fact is that a computer can only provide you quantifiable information that isn’t necessarily accurate. In actuality, using automated employee assessments alone might result in impersonal performance appraisals that ​fail​​     ​ to recognise an employee’s positive attitude and collaborative style, which are essential components of a successful work environment.  (Johnston, 2019) 

Difficulty of analysis – The system may have so much data that it is challenging to analyse. (Johnston, 2019) To simply sort the data into understandable chunks, you might require a different analysis system. For instance, if the system is not complex enough and you need to analyse employee turnover in connection ​to the level​​     ​ of remuneration, you can have trouble producing reports that show patterns. ​​This would require​ the​ help of cutting-edge tools not included in your HR management system, which would incur additional costs.