What is Digital Transformation (DX) for the Human Resource Department?

Digital transformation (also known as DX) for the human resources department is the process of bringing technology to all areas such as timekeeping, wage computation, and so on, in order to replace the old techniques that HR has previously employed (books, Excel, etc). DX assists personnels in completely changing the way they operate, increasing internal communication efficiency, optimizing performance, and providing convenience to employees, HR departments, and organizations.

3 advantages of digital transformation conversion for the HR department

To stay up with the digital transformation trend, HR services are becoming increasingly prevalent in Japan. This demonstrates that most organizations in this area are interested in HR DX conversion.

For Vietnam, where there are many rules on processes and paperwork, personnel and labor concerns develop frequently (for example, procedures for salary payment and social insurance). Furthermore, there is still a significant amount of work that employees conduct inefficiently, such as spending too much time gathering compensation information from each employee, which is a strain on the human resources department in general and payroll staff in particular. Furthermore, situations of uncertainty and avoidable mistakes while calculating income and bonus still occur throughout the manual data input procedure on Excel. When the information is recorded in books and papers, the practice of transferring over the job to other individuals is also fairly time-consuming when the person in charge has their own assignment.

Recognizing that traditional methods of human resource management still have many shortcomings, businesses have taken a fresh look at implementing digital transformation to save work time, but many people believe that DX does not provide any unique benefits to the organization. So, how will Vietnamese enterprises evolve as a result of digital transformation?

Improve job efficiency while significantly reducing time and effort

The first is the significant improvement in people’s labor efficiency that may be linked to digital transformation. Other procedures, including recruiting through termination, social insurance administration, training, and personnel evaluation, are optimized while mistakes and ambiguities are fully removed. The higher the size of the organization, the greater the value of DX. The implementation of digital transformation frees the HR department from administrative responsibilities and allows it to focus on more strategic objectives.

The previous manual stages in payroll work (gathering information, entering into Excel, calculating, and communicating calculation results with each employee through email) are handled fast by executing HR and labor DX. Businesses may save money by lowering the number of workers and overtime using this approach. This is also the greatest value of digitizing HR departments.

Restriction of local management and prevention of fraud

Because Vietnam has a higher percentage of “job hopping” than Japan, local management is also an issue. Taking over when the person in control resigns or leaves may be difficult since personal and salary information must be kept private. If the data in the predecessor’s Excel file is erroneous or absent, determining the cause will be difficult.

Furthermore, “fraud” is a major issue that firms must address with determination. Internal fraud, particularly wage theft, is unfortunately common in Vietnam. Wage theft, underpayment of wages, and other such occurrences are prevalent.

By conducting DX of staff and labor, data will be managed synchronously on the same system, as well as reducing the danger of data fragmentation. At the same time, the decentralized feature in HR software helps firms safeguard information while also allowing employees to have just enough access and work privileges.

Work from home assistance

Many businesses were compelled to use teleworking during the Covid-19 epidemic, meeting and allocating work online. During this time, digital transformation is seen as a “lifesaver” for businesses, an irreplaceable trend that will assist firms in adapting to and overcoming pandemic-related challenges. Following that, an increasing number of businesses are striving to boost productivity, recruit and retain human resources by using a remote working model. However, there will be numerous issues in this instance, such as not understanding the working process, not being able to verify the work efficiency of subordinates, and appropriately rating staff.

The situation of human resource’s digital transformation department in Vietnam

Because of the benefits of digital transformation, employing DX has been extensively encouraged in recent years, and tasks such as salary calculation and social insurance processes have been dramatically reduced. In particular, upgrading legal processes and rules, which frequently generate problems in Vietnam, has become simple. Outsourcing technology services is one kind of low-cost DX that is highly valued and commonly employed by Vietnamese businesses (SAAS).

What is the “terra” – cloud-based SaaS HR service developed by VPO?

The “terra” SaaS HR service is a cloud-based workforce and human resource management solution supplied by “VINA PAYROLL OUTSOURCING” (VPO for short). Vina Payroll Outsourcing Co., Ltd. (“VPO”) was founded by I-GLOCAL, a leading Japanese tax, accounting, and investment consulting firm that supports and advises over 1,000 Japanese companies operating in Vietnam. VPO developed the terra – human resource management system based on years of consulting experience with Japanese companies that require efficiency and precision. terra‘s cloud-based HR management service automates and transparently manages HR-related activities such as salary calculation and HR process management such as job interviews, employment procedures, attendance management, payroll calculation, social insurance procedures, training status, personnel evaluation, and retirement procedures.

3 reasons why Japanese firms in Vietnam prefer “terra”

Developed by HR experts

To begin, terra is not a software company’s product; rather, it was built by HR specialists with expert knowledge in this industry. In today’s market, firms developing systems often generate the majority of HR technology-related services. While most service firms do not have much IT expertise because they are not system specialists, they may not comprehend how to use many detailed features and hence cannot use them at work. As a result, there is a circumstance in which using DX just costs money and does not result in conversions. terra‘s team of human resources specialists have utilized their practical expertise to design and build software, developing a simple and user-friendly interface, after more than 20 years in the field of consulting-tax-accounting.

Receive assistance and guidance throughout the usage process

The second benefit of terra is that clients will be consulted and supported until the system is effectively implemented. Furthermore, terra‘s team of specialists will handle 1:1 advice and guidance on system and human issues (creating payroll process, payroll) to keep enterprises on the path of digital conversion.

Designed to be consistent with the human resources situation in Vietnam

Regulations are typically complicated and sensitive to frequent changes, necessitating continuous update. This makes keeping up with Japanese or foreign software challenging. terra, on the other hand, is designed exclusively for the Vietnamese market, satisfying the demands of updates and completely complying with the laws for enterprises that use the service.

With reasonable operating costs, and consulting, technology and services, the services provided to businesses will always be guaranteed 3 factors: Accuracy – Punctuality – Legality

Register today for free support and advice on services from the terra team here!