Management of Human Resources in the Context of the New Digital Economy

Talented HR managers are essential for successful businesses in the contemporary era of the developing digital economy. To achieve this goal, businesses need to exert tight supervision over all managerial functions, make adequate preparations for the improvement of their employees' business skills, and boost productivity across the board.

Human resource management is evolving quickly to accommodate a global freelance workforce that prefers digital and virtual modes of engagement to in-person meetings. In this setting, automation and analytics are rapidly becoming the standard.

HR managers need to be familiar with the methods of working in the digital economy with the rise of digital firms offering freelance jobs and contractual employment, such as Uber, AirBnB, Task Rabbit, and Upwork. Some companies may still occasionally hold meetings in which workers physically interact, but these methods pale in comparison to working from home or via video chat.

The HR division can boost output by making use of automation tools to streamline mundane, repetitive duties. Waste is reduced, and operations are simplified thanks to this. Transparency and data-driven decision-making can both benefit from this.

Some businesses are struggling with HR administration in the age of the new digital economy. Some businesses, for instance, don't have an all-encompassing HR system, so they can't completely implement many control measures, and their HR management level is below par.

In addition, some businesses allocate their human resources inefficiently, which negatively impacts productivity and wastes valuable employees' time and skills. This results in higher costs for businesses and significant economic losses.

As a result, businesses must raise the bar for human resource management and make HR administration more efficient. The first stage is to improve human resource management by using cutting-edge IT for its implementation, monitoring, and reporting.

Secondly, managers' professional management skills should be honed so that they can carry out HRM-required management and supervision of people and payroll. This has the potential to reduce the frequency of costly management blunders and increase the proficiency with which businesses handle their human resources.

The area of artificial intelligence (AI) is expanding rapidly and has the potential to disrupt many different markets. Predictions indicate that as many as 85 million employees will be lost to automation by the year 2025.

With the help of AI, HR professionals can spend less time on mundane duties and more time on strategic initiatives. Chatbots can also be used to provide support for workers at all hours of the day and night, with answers to their questions about benefits, questions about training, and requests for new hires.

An increasing number of businesses are beginning to explore the use of AI in HR processes. This has led to an explosion in need for experts in artificial intelligence.

The use of artificial intelligence (AI) through machine learning is becoming increasingly widespread in HRM. It's useful for a wide range of HR tasks, such as predictive analytics, hiring top candidates, motivating and evaluating workers, and measuring organizational effectiveness.

For example, machine learning algorithms can be used by a company's HR information system to sort through resumes and select the most qualified applicants for open positions. This reduces administrative burdens and frees up HR departments to concentrate on making hires.

Machine learning also facilitates the automation of repetitive HR processes like scheduling interviews and reviewing applications. As a result, HR departments are better able to allocate their resources toward long-term goals like increasing efficiency and reducing human error.

Machine learning has found application in numerous areas, from the forecasting of consumer behavior to the design of an operating system for autonomous vehicles. It can also be used in the fields of medicine, transit, retail, and even farming.