The results were taken from the own website
 https://future-insights.com/

Every organization, company, your boss, colleagues and the media are talking about Artificial Intelligence or Big Data technologies and its potentials and risks. We all hear, read and think about how it changes the way we work, communicate, process information and share knowledge with others. It influences all aspects of our private and working lives – whether we want it or not. In this process, HR departments are not an exception, but a central part of the transformation.

HR is at the forefront for two reasons: first, central tasks of HR like recruiting, onboarding, talent management, and career planning are directly influenced by digitalization and complemented by chatbots, workforce analytics, or real-time digital learning platforms. In this sense, the digitalization enables HR to focus more on the strategic and human side, while parts of the manual and repetitive can be automated by emerging technologies. Second, HR is responsible for designing a workplace characterized by open collaboration, knowledge sharing as well as ongoing and personalized up- and reskilling possibilities. Due to increasing technological permeation and changing employee expectations, HR is in charge of creating an effective symbiosis between humans and machines with an emphasis on meaningful work and transparent decision-making.

So, is HR ready for this transformation? We have gathered and analyzed more than 120,000 HR-specific job postings from nine countries to examine whether HR has adapted to a changing business environment.

A first surprising observation is the decline in the demand for IT skills in Germany by 4 percent between 2017 and 2018. This does not align with the necessity to invest in emerging technologies to develop an effective digital strategy. In fact, advanced IT skills are a core prerequisite for optimizing and connecting business processes, forecasting skill shortages, building an effective data architecture, and integrating robotics into the workflows.

Figure1: Skill demand growth off differrent skills clusters (only Germany 2017-2018)

Nevertheless, and very surprisingly, HR departments in Germany do not seem to follow this trend. One of the possible reasons for this divergence is that companies operating in Germany may have anticipated the technological advancement in HR quickly and reacted sufficiently in previous years not covered by the data. The other more likely explanation is that many HR departments in Germany merely have not yet realized the potentials of big data, predictive analytics, and AI and may mostly perform administrative tasks rather than progressing as strategic business partners providing data-based decision-making.

Our data indicates that HR departments in Germany may lack behind the expectations and do not seem to be properly prepared for the upcoming challenges. This is even more striking as the demand for IT skills is actually increasing in many other countries. Figure 2 delineates results for all nine focus countries which offers a completely different picture; the demand for IT skills in all advertised HR positions combined is clearly on the rise.

Nevertheless, and very surprisingly, HR departments in Germany do not seem to follow this trend. One of the possible reasons for this divergence is that companies operating in Germany may have anticipated the technological advancement in HR quickly and reacted sufficiently in previous years not covered by the data. The other more likely explanation is that many HR departments in Germany merely have not yet realized the potentials of big data, predictive analytics, and AI and may mostly perform administrative tasks rather than progressing as strategic business partners providing data-based decision-making.

Figure2: Skill demand growth off differrent skills clusters (all countries included, 2017-2018)

In order to support companies to jump aboard the digital bandwagon, we identified some key areas in which technological progress offers most potential for HR.

1. Big Data

The collection, processing and usage of Big data is the starting point for identifying patterns, social networks, behaviours, labour shortages, trends, and economic developments. In order to gather and analyze a huge amount of real-time data, it is important to develop a holistic data strategy and use advanced cloud technologies.

2. Predictive analytics

Predictive analytics pave the way for precise, evidence-based decision-making independent of possibly biased feelings and intuitive approaches. The goal is not only to recognize the current state, but to forecast future scenarios most likely to occur.  However, issues about data security, transparency and privacy have to be addressed carefully to collectively decide on guidelines, policies, and limits of data processing.

3. Robotics

Robotic systems are able to recognize faces, identify moods and feelings, decode video interviews, evaluate and select candidates, and identify employees’ career options.   Hence, robotics can boost productivity by automating repetitive tasks, augmenting employees, and accelerating innovations.

4. Internet-of-Things (IoT)

IOT is a digital “nervous system” which connects all trending technologies and different gadgets to perform new actions. HR benefits from IoT by creating a holistic employee experience platform by incorporating digital apps, bots, AI, and case management to support, scale, and empower their employees.

5. Virtual reality (VR)

Prevention is better than cure: through virtual reality different situations can be simulated to be experienced by the user without real-world consequences. VR can facilitate the hiring process by simulating different hands-on working experiences which candidates have to pass through and cope with. VR can also support onboarding by introducing the work environment to new employees in a safe and controlled setup with high fault tolerance. Moreover, VR improves training and development while making it more accessible to employees across divisions, countries, and subsidiaries.

Finally, advanced technologies have a vast impact on  roles, functions and tasks. Despite the necessity for developing advanced IT skills to  drive the digital change, some countries such as Germany seem to lack behind in the adaptation process. The digitalization of HR bears the potential to incorporate technologies such as analytics, AI, or VR in order to implement new management practices and design a working environment that enables productivity, deliver solutions and establish an organizational culture based on innovation, collaboration, and sharing. The digital shift is occurring rapidly, and HR should see it as an opportunity to climb up the organizational ladder and help lead the digital transformation.

About the authors

Christian Vetter is one of the founders of the German HR tech startup HRForecast. Due to his interdisciplinary experience in industry and consulting, he has gained a broad expertise in both, strategic human resource management as well as innovative data technologies. He is dedicated to data-driven decision making, disruptive technologies and next-generation workforce management.

Florian Fleischmann is dedicated to the development of cybernetic decision-making processes. In the past, he was working as a financial manager at Nokia Siemens and Siemens and also founded a company with a focus on the analysis of marketing data. In cooperation with large German companies, also from the telecommunications branch, he developed a data-driven HR management approach, which was the baseline for the foundation of HRForecast. At HRForecast, he is responsible for project management and for the implementation of data-driven decision-making tools.

Prof. Dr. Marion Festing holds the Chair of Human Resource Management and Intercultural Leadership at the ESCP Europe Berlin Business School and is founder of the ESCP Europe Talent Management Institute. She researches and teaches on matters of human resource management, leadership and intercultural management in master programs and in executive education and is the author of numerous scientific publications and the internationally leading textbook on International Human Resource Management. In various functions (e.g. as Rector of the Berlin Campus 2012-2017) she has played a major role in the development of the ESCP Europe.

Maximilian Tallgauer is a research associate and Ph.D. student at the Chair of Human Resource Management and Intercultural Leadership at the ESCP Europe Berlin Business School. He studied international economics at the University of Paderborn, the Tohoku University in Sendai (Japan) and the ISG Business School in Paris. His doctoral thesis deals with the effects of digitization on the nature of work and the premises for effective implementation of big data analytics.