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HUMAN RESOURCE MANAGEMENT ARTIFICIAL INTELLIGENCE IN KYRGYZ REPUBLIC A R T Y K OV A S K A R S T U D. N O 3 7 2 4 2
WHAT IS AND WHY DO WE NEED HRM SYSTEMS HRM-systems are designed for personnel management, but their functionality is wider than that of systems for automation of personnel operations. Products of this class allow working not only with quantitative, but also with qualitative indicators of personnel. Their main task is to attract and retain valuable for the company specialists.
WHAT IS AND WHY DO WE NEED HRM SYSTEMS HRM-system is understood as an automated complex system of personnel management. Compared to traditional systems of automation of personnel records and payroll, HRM- systems have extended functionality. In addition to accounting (personnel records, staff schedule, document management, time and vacation records, pension and military records, etc.) and calculation (salary, tax payments, allowances and deductions, etc.) circuits that process quantitative data, such systems also include as such an HR circuit designed to work with qualitative indicators of personnel.
When HRM systems are necessary •HRM systems are one of the most important corporate applications used in companies of all sizes and in all industries. The need for HRM systems implementation is determined by such critical needs for successful business development as:
WHEN HRM SYSTEMS ARE NECESSARY Enhancing the value of human capital. Despite the economic crisis, few will argue about the value of human capital as a corporate asset. Companies with a strong HR function will emphasize the "quality" growth of employees by developing incentive programs and motivation schemes.
WHEN HRM SYSTEMS ARE NECESSARY Cost Management: Labor costs are one of the largest cost items. According to Forrester Research (HRMS Q4 2008), they account for an average of 36.4% of total spending in the US. HRM systems are used to plan and optimize costs .
WHEN HRM SYSTEMS ARE NECESSARY Effective management of business processes. HRM systems support many business HR processes: making personnel decisions, keeping employee records up to date, calculating salaries, developing motivation schemes, etc. Increased efficiency in performing these tasks is due to providing direct access to employees (Employee self-service) and managers (Manager self-service) to the information they need.
WHEN HRM SYSTEMS ARE NECESSARY •Compliance with all legal norms regulating relations between an employee and an employer. The use of HRM-systems allows to solve complex issues competently, to implement flexible schemes of payroll calculation and HR document flow.
"QUALITY" FUNCTIONALITY •HR-CIRCUIT PROVIDES AUTOMATION OF SUCH FUNCTIONS AS STAFF MOTIVATION, MAINTENANCE OF "EMPLOYEE COMPETENCE PROFILES", "CAREER MANAGEMENT", STAFF EVALUATION, TRAINING MANAGEMENT (PROFESSIONAL DEVELOPMENT), REMOTE TRAINING, STAFF PERFORMANCE ANALYSIS, ANALYSIS OF EMPLOYEE'S COMPLIANCE WITH THE POSITION, PLANNING OF STAFF NEEDS AND STAFF MOVEMENT, FORMATION OF THE PERSONNEL RESERVE. ALSO, IT PROVIDES "PERSONNEL SELF-SERVICE" (REMOTE ACCESS OF EMPLOYEES, INCLUDING VIA INTERNET, TO ACCOUNTING DATA ABOUT THEM WITH POSSIBILITY OF CORRECTING SOME OF THEM), AS WELL AS SUPPORT OF HR-PORTAL IN INTERNET, WITH PUBLICATION AND OPERATIVE UPDATE OF DATA ON VACANCIES, COMPANY NEWS, REGISTRATION OF RESUMES FILLED IN ONLINE, AUTOMATED ANALYSIS OF THESE RESUMES AND SELECTION OF POTENTIAL CANDIDATES FOR A POSITION, ETC.
"QUALITY" FUNCTIONALITY •THE LION'S SHARE OF LABOR MANAGEMENT FUNCTIONS CAME FROM WESTERN PRACTICE, BUT, FOR EXAMPLE, ADVANCED TRAINING IS NOT EXOTIC TO THE DOMESTIC TRADITION OF PERSONNEL MANAGEMENT, AND THE FORMATION OF A PERSONNEL RESERVE IS GENERALLY BORROWED FROM THE SOVIET METHODOLOGY. NEVERTHELESS, THESE FUNCTIONS ARE STILL NOT FULLY USED OR ARE NOT IN DEMAND AT ALL AT THE MAJORITY OF DOMESTIC ENTERPRISES, ALTHOUGH INTEREST IN THEM IS CONSTANTLY GROWING.
DISTRIBUTION OF HRM IN KYRGYZ REPUBLIC •HRM specialists and full-fledged HRM systems appear in the first place at Kyrgyz representative offices of foreign companies, followed by large domestic companies that use Western management techniques, as well as companies with high staff turnover, while companies that are managed "the old way", less often resort to methods of human resource management.
DISTRIBUTION OF HRM IN KYRGYZ REPUBLIC •In addition, there is a gradation of the degree of use of HR-functions and depending on the industry specialization of enterprises. According to our data, human resource management is least popular in the manufacturing sector of the economy and most popular in the service sector. Accordingly, the closer the main activity of an organization to the service sector, the more demand for extended human resource management.
DISTRIBUTION OF HRM IN KYRGYZ REPUBLIC •As noted by CNews Analytics, Kyrgyz IT market trends are similar to Western, so the prospects for the domestic segment of HRM solutions can be predicted today, looking at global trends. According to Western analysts, the key trends in the development of HRM systems include: •popularization of solutions provided by the SaaS model •increasing demand for simpler and more affordable solutions with an optimal price/quality ratio •ousting "weak" HRM solutions from the market.
MAIN TASKS OF HRM-SYSTEMS •HRM-systems allow to solve two main problems: •streamline all accounting and accounting processes related to personnel; •reduce losses associated with employee departures.
MAIN TASKS OF HRM-SYSTEMS The effect of the first problem is quite obvious and lies in the elimination of double data entry, bringing it into a single database with the ability to fully analyze and generate reports, the exclusion of "dead souls", timely and correct calculation and accrual of wages, tax deductions, etc. But it can also be achieved by means of common systems of personnel accounting and payroll accounting automation. The importance of solving the second problem is not always adequately estimated by Kyrgyz top managers.
MAIN TASKS OF HRM-SYSTEMS Analysts of Molga highlight the following tasks HRM-system: •Attract, retain and motivate the best staff; •achieve the realization of the strategic goals of the company, decomposing them to the level of each employee; •Implement the development and training of human resources in accordance with the goals of the company and its divisions; •Strategic planning for organizational change and budgeting; •make timely, effective decisions based on accurate and comprehensive information analysis; •at low cost and optimally perform accounting functions in the field of personnel management.
MAIN TASKS OF HRM-SYSTEMS •Given that, according to the American Management Association, losses associated with replacing a lost employee by the company can range from 30% to 150% of his annual salary, depending on the level of his knowledge and skills, employee turnover is a serious problem, which can significantly worsen the overall performance of the organization. •Thus, HRM-systems can, in a sense, can be called "reverse CRM-systems", which attract and retain not customers, but companies' own employees. Of course, the methods used here are completely different, but the general approaches are similar.
CLASSIFICATION OF HRM-SYSTEMS AND DESCRIPTION OF THEIR STANDARD FUNCTIONS •HRM-systems are divided into "accounting", "accounting" and labor management systems according to the levels of automation of personnel management, which correspond to the stages of development of applied software solutions for personnel services. Full-featured HRM-systems, respectively, include the "accounting loop", "calculation loop", "HR loop", as well as functions of reporting generation.
HRM SYSTEM FUNCTIONS •The functional content of modern HRM-systems in Russia, as a rule, includes: •Accounting circuit •Calculation contour •HR loop •Reporting functions (distributed across the system)
WHEN IS IT NECESSARY TO IMPLEMENT AN HRM SYSTEM? "USER PORTRAIT" •Working HRM-system allows to seriously reduce the number of manual operations to work with documents, reduce the number and increase the accuracy in the calculation of wages, taxes and other deductions, to implement a complete management of human resources and not allow to lose them. Enterprises, for which this is important, should implement appropriate software solutions.
KEY TECHNOLOGIES ON THE GLOBAL HRM-SYSTEMS MARKET •According to experts, all modern world-class HRM/HCM systems have "user" and "operational" level functionality (including "information self-service", staff schedule support, personnel records, timekeeping, payroll calculation, additional payments and deductions). Key directions of HRM-systems technological development now are the automation of hiring, talent management and personnel efficiency, as well as employee training management. In addition, the SaaS model based on Web services is very promising for HRM solutions.
TRENDS AND FORECASTS FOR THE GLOBAL HRM MARKET •Despite the relative maturity of the global HRM systems market, many Western companies are still committed to "patchwork" automation, and the integrated solutions offered by vendors often contain gaps in functionality. Transition of foreign companies to strategic management of labor resources stimulated the development of cooperation between vendors of integrated HRM-systems and developers of best-of-breed solutions, and also takeover of the latter by the former. The application of the software-as-a-service model is actively developing and the role of the SMB sector is growing.
"ROADMAP FOR HRM-SYSTEMS IN KYRGYZSTAN "Roadmap for HRM-systems in Kyrgyzstan •Analysis of the functionality implemented in HRM-systems allowed us to divide them into classes that correspond to the level of technological development of the product and its developer. Four classes were identified: A, B, C and D. Suppliers of the best foreign solutions in their classes are SAP, Oracle, and UCMS. The best functional Russian HRM- systems are developed by BOSS. HR systems", "Galaktika Corporation" and "Inek".
INDUSTRY STRUCTURE OF THE KYRGYZSTAN HRM-SYSTEMS MARKET •The demand for HRM systems varies from industry to industry. Its volume and structure are influenced both by the specifics of enterprises and their economic development indicators. Mechanical engineering and food industry are leading in the number of projects, and transport and telecommunications are leading in the volume of data processed by the systems. The data available on implementations are estimates, but they can be used to understand the current situation.
HRM INDUSTRY LEADERS •According to the data on the number of open projects of HRM-systems implementation in certain industries TAdviser specialists identified the leading companies in this or that market segment. Four industries are the most representative: machine building and instrument making, food industry, transport, oil and gas industry. The first two industries have the maximum number of projects, the second two - the maximum number of records, processed by HRM-systems.
AI IN HUMAN RESOURCE MANAGEMENT Progress in artificial intelligence (AI) technology has remade the human resources (HR) department, enabling HR professionals to leverage machine learning and algorithms to streamline their work processes, reduce their biases, and enhance their analysis and decision-making.
HOW IS AI USED IN HUMAN RESOURCES MANAGEMENT? Because AI tech is available 24/7 and able to eliminate human errors from everyday processes, it can create a better HR experience for employees and managers. For instance, you can automate your PTO request procedure so employees don't have to check in directly with HR to plan out their time off.
WHAT IS AN EXAMPLE OF AI IN HUMAN RESOURCE MANAGEMENT? Another great application of AI in HR is assessing employee referrals. The system can identify the type of referrals employees provide. It gives insights into who provides the most successful referrals. AI systems analyze data from previous referrals.
HOW AI IS WORKING IN KYRGYZSTAN’S HR? AI helping HR professionals to analyze large amounts of data, extract meaning and provide insights more efficiently. Many HR software vendors are now using AI to help automate processes like onboarding and time-off request approval.
