Human Resources: A Gateway to Development and Potential for Businesses

The Global Landscape of Digital Human Resources

Businesses constantly face the dual pressure of meeting the growing demands of the market and optimizing production processes to enhance profitability and efficiency. Embracing digital transformation and building a team of digital human resources can offer a solution for businesses to achieve these goals by optimizing labor productivity and production processes. According to a report by McKinsey, the global market share of digital human resources is already over 20%, projected to reach 30% by 2030. These figures indicate a significant increase in the market share of digital human resources, with even faster growth anticipated in the future. Businesses are investing in digital skills and technologies to gain a competitive edge and streamline their operations.

However, the global digital human resources market still faces challenges in terms of skill levels and digital literacy, as well as disparities between countries and regions. Some countries like the United States, Japan, and Germany aim to attract top digital experts to foster new capabilities. Meanwhile, many other nations are in the early stages of adapting to the Industry 4.0 and digital transformation processes.

Potential and Development Opportunities for Businesses from Digital Human Resources

Optimizing Operations and Costs

Undoubtedly, the primary purpose of recruiting and training digital human resources is to apply digital technologies in business operations and production processes. Implementing new technologies can reduce labor requirements, decrease production time and costs, and enhance product quality. Technologies such as machine learning, artificial intelligence, the Internet of Things (IoT), and Robotic Process Automation (RPA) have demonstrated significant efficiency improvements in boosting labor productivity.

For some businesses, remote work arrangements enable them to employ individuals from anywhere globally without the need for a fixed office space. This helps cut costs related to office rent, office supplies, and physical infrastructure.

Enhancing Revenue and Profits

Digital human resources offer strong advantages in optimizing production processes and increasing work efficiency. Leveraging technology to minimize production time, reduce errors and risks, and enhance product quality can lead to reduced production costs and increased productivity. Additionally, building a team of digital human resources gradually enhances employee performance. Training employees to improve skills and performance, reduce errors and risks, boost productivity, and enhance product quality can result in increased profitability through improved productivity and reduced costs.

Moreover, digital human resources often come with new skills, some of which can be directed towards enhancing customer experience. Businesses can utilize digital human resources to create better customer experiences, improve customer service, and enhance customer interaction. This can increase customer satisfaction and drive revenue from existing and potential customers.

Furthermore, implementing digital HR technologies for employee information management, reducing paperwork costs, optimizing recruitment and training processes, can lead to reduced HR management costs and increased profits.

Exploring New Business Directions

Thanks to the diverse digital information landscape, digital human resources open up new avenues in business production, new tasks, and rapid access to emerging technologies. Furthermore, digital human resources increase market access capabilities. By using digital human resources to swiftly and effectively seize market opportunities, businesses can utilize digital tools to search for and analyze market data, providing essential information for business decisions. This aids in increasing business revenue and profits.

Challenges of Digital Human Resources

However, the global digital human resources market still faces several challenges. One of the major challenges is the variation in skill levels and capabilities among employees across different countries and regions. Some countries have opportunities to develop and attract digital experts, while others are still adapting to the Industry 4.0 revolution.

The digital human resources landscape also indicates an imbalance among different age groups. Statistics show that 71% of young workers aged 16 to 24 are trained in digital skills, compared to only 29% among those aged 54 to 75. This poses a risk for older age groups struggling to keep up with the demands of the digital age and compete with younger workers. Therefore, finding ways to promote basic digital skills across generations is a shared challenge for countries to ensure long-term societal stability.

The digital human resources market also faces competition between businesses and different nations. Businesses need to invest in recruiting, training, and retaining talented employees to gain a competitive advantage. Simultaneously, countries need to improve the quality of education and training and provide a favorable business environment to attract business investments.

Conclusion

In the past, digital human resources were primarily associated with career opportunities and development in technology companies. However, with the explosion of Digital Transformation, every business now requires its own team of digital human resources. This opens up opportunities while creating substantial competition between businesses and nations. Businesses that effectively harness new human resource capabilities in the digital age will gain a distinctive competitive advantage and thrive in the digital era. This is the challenge that business managers need to address in the near future.

Source: Compiled from various sources.

Collected by the author  DTSVN team - Digital transformation solutions for the Finance - Banking

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