HR digitisation in SMEs – A real competitive advantage

Tuesday 25 January 2022
Which challenges will HR face in 2022? Why are HR processes becoming increasingly important in SMEs? What does it mean to centralise processes and HR data? Rapid and unprecedented changes in the workplace are driving the adoption of digital HR solutions as companies look for ways to ensure profitability and growth.

In the past, the most important thing for mid-sized companies during periods of growth and increasing business complexity was to maintain productivity. Today, there is a different focus: it is about aligning business operations with the “new normal” – remote working, changing business models and finding new employees.


The biggest challenge for HR is the well-being of its own employees, the employee experience and the ever-increasing “battle” for talent. It is therefore no surprise that the digitalisation and automation of HR processes are moving up the list of priorities.


HR as a business driver


Let’s put forward a bold thesis: HR is the most important core function in the company!


For a long time, HR work was limited to administrative activities, and the HR department was considered a pure cost factor. In the meantime, however, this thinking has changed, and not only at bigger enterprises


The role of the HR business partner is changing from a pure “partner” to that of a business driver who, on the one hand, acts as a sparring partner and advisor to the executives, but at the same time recruits quickly and in a targeted manner, keeps the onboarding processes lean, promotes the talents with specific training offers and can provide fast and meaningful reports.


HR does not just react but drives and acts.


Administration, recruitment, personnel development, training


In the sign of the changing world of work, it is an important factor to adapt the core processes in HR to the realities of the “New Work”.


Personnel administration is no longer just the task of the HR manager, but also the task of the employee himself. Through a digital self-service portal, employees can manage their profile themselves and make important adjustments directly in their profile, no matter where they are working from. This not only saves time, but also increases data quality.


Finding the right talent at the right time and at a good price requires a transparent, fast and consistent application process, from job advertisement to onboarding. Today’s job market is a clear candidate market, for SMEs it means being fast and creative to convince and retain the talent or experts already in the application process. A digital solution delivers a clear competitive advantage, in the recruitment process itself and in the candidate experience.


Employees need to be retained and promoted, and here the demands on the HR department have changed, too. With the digitalisation of personnel development and further training offers, managers and employees can create further training plans themselves and plan further career steps transparently and comprehensibly. Furthermore, regular feedback meetings are an important instrument for retaining employees and regularly and transparently recording the performance of employees and supervisors.


Digitalisation means automation and therefore the HR teams can use the saved time to optimize recruiting and HR processes or to develop new development programmes.


The HR digitisation experts at ARAGO Consulting have taken on this topic and configured an HR solution specially tailored to SMEs. The basis of this solution is SAP SuccessFactors, but here 4 complementary modules were configured in such a way that they reflect the requirements of SMEs and are available quickly and easily.


Furthermore, the user interface was adapted and best practices from the HR perspective are built in.


ARAGO Ready for HR is a plug & play HR solution for SMEs that covers the core processes and is implemented quickly and cost-effectively.