Shulou(Shulou.com)11/24 Report--

"at that time, the underlying system was not uniformly planned and built, and each module was implemented by different service providers. Only in terms of program language, there were Java, PHP, Python, and so on. The presentation of the database was also varied and fragmented." Fu Xuefa, who has more than 20 years of experience in software development and project management, joined the human resources service company Renrui Talent (06919.HK) in 2016 to uniformly plan and implement the system research and development for the transformation of Renrui talents from informationization to digitalization. Currently, as the vice president of Renrui talents, he told the China Business Daily about the "chaos" of the IT system when he first came into contact with the human resources service industry.

Renrui talents were founded in 2010, at a time when the supply and demand structure of China's labor force was changing, and the competition on traditional recruitment websites based on "information matchmaking mode" was becoming increasingly fierce. Renrui talents took the lead in exploring and establishing a new human resources service model of "pay for results". In December 2019, Renrui Talent was listed on the Hong Kong Stock Exchange, and its main business is flexible employment. According to the financial report, Renrui Talent Integrated flexible Employment Service income of 2.051 billion yuan in the first half of 2023, accounting for more than 99% of the total revenue.

Minsheng Securities Research News pointed out that the global human resources giants are mainly concentrated in Europe, Japan, and the United States. From the perspective of the top 100 enterprises in the world in terms of market capitalization, the number of enterprises engaged in flexible employment is the largest; in terms of income, of the six enterprises with revenues exceeding 100 billion yuan, 4 are flexible employment enterprises. At present, China's macro environment meets the conditions for the rapid growth of flexible employment, and the domestic market is expected to usher in rapid development in the future. Based on this, our reporter went to Renrui Talent headquarters in Shanghai in recent days to gain an in-depth understanding of its digital transformation process, hoping to take this as a sample to get a glimpse of the digital path of China's human resources services. and combined with the new trend of the international human resources service industry to explore the growth space of the domestic market.

From informationization to digitalization

At the beginning of joining Renrui talents, as mentioned earlier, the biggest problem that Fu Xuefa and its technical team faced was that the system "went its own way", the data was scattered in various departments or sectors, and the business was difficult to coordinate. Fu Xuefa recalls: "even basic services such as organizational structure accounts are divided into several accounts, and there are different passwords under each account, which are often confused or forgotten."

Fu Xuefa also mentioned that as a flexible employment service provider, Renrui talents manage a large number of outsourced employees. At first, the personnel contracts of outsourced employees were mainly offline, and their storage, access and access were heavily dependent on labor. The contract loss rate of outsourced employees was once as high as 60%. When an enterprise is in a scale of hundreds or thousands of employees, the manual way can barely be maintained, but with the multiple growth of the size of employees, still using manual management will inevitably lead to efficiency "disaster".

In this case, from 2016 to 2017, he and the technical department reorganized the underlying logic of the Renrui technology system based on business requirements, overthrew and rebuilt the underlying architecture, and chose a unified database operating system, a unified development language, and so on, and the basic data was also unified. The significance of unifying data lies in that, as a new factor of production, data has become an indispensable strategic asset for an enterprise. The quality and scale of data mastered by an enterprise, and its ability to collect, organize, analyze and mine data, determines the core competitiveness of the enterprise. Unify the underlying architecture, unified data, but also laid the foundation for the following business process data.

"when many enterprises do digital transformation, they will fall into a misunderstanding-what the offline process looks like and reproduce it into the system intact. The first step of digital transformation is to simplify the process, improve the ability of business management, and eliminate all the intermediate links, opaque nodes and unreasonable places." Fu Xuefa pointed out that "on-line" is actually the task of the previous stage, that is, the information age. Informatization emphasizes system construction and application, which belongs to the stage of productivity improvement, while digitization is the upgrade of informatization, emphasizing the integrated development of technology and business, and paying attention to the promotion of the overall production relations of the enterprise. Fu Xuefa led the team to reconstruct dozens of existing application systems of Renrui talents, and finally formed an integrated business management platform which now includes customer contract management system, recruitment business management system, business outsourcing management system and other core plates.

Business value embodiment

Li Bonan, senior vice president of Renrui talents and president of the second business group, demonstrated the integrated business management platform of Renrui talents in detail to the reporter. As the person in charge of the business end, he is obviously the "first user" of this system.

For Li Bonan, the greatest value of digital transformation to the business is the realization of two closed loops, one is the closed-loop management of customers from the front-end requirements, project establishment, contract signing, delivery structure, billing and payback, and so on. First, the whole internal business management is formed a closed loop based on the system platform.

In the system display page, Li Bonan can clearly and comprehensively manage the key data of all aspects of the business, such as the information of on-duty personnel, the number of new personnel, the number of losses, the performance of various business groups, target completion rates, revenue contributions and changes, profit margins, and so on, as well as the trend of strong demand for talents in which areas. The richness of data dimensions and the comprehensive and real-time update of indicators enable business managers to find and solve problems in real time.

He Jing, Commercial Director of the second Business Group of Renrui talents, is currently mainly responsible for R & D personnel recruitment and outsourcing project business negotiations, especially for customers in the automotive industry. Based on service experience and data analysis, she pointed out that the automobile industry is not only a hot area of market-oriented competition in the past five years, but also a relatively cutting-edge industry in digital transformation. By August this year, Renrui talents had more than 800 people on the job of digital outsourcing in the automotive industry. Automobile enterprises have a huge demand and gap for digital talents. when automobile customers are dealing with the shortage of talents and fierce competition, the employment strategy is also constantly adjusted, and the structure of talent demand is constantly evolving. For example, in a fresh case, some positions previously owned by a well-known automobile company, such as systems engineer, software engineer and hardware-related positions, are gradually becoming outsourcing.

Digital transformation not only improves the efficiency of customer relationship management and internal organization management, but also brings new breakthroughs in business model to Renrui talents. In 2021, Renrui talents put forward the slogan of "second entrepreneurship", focusing on digital talent business to create a "second growth curve". In the first half of 2023, revenue from digital technology and cloud services became the biggest highlight in Renrui's interim performance report, up 560.5% year-on-year to 736 million yuan, accounting for nearly 36% of total revenue. The number of comprehensive flexible employees increased from 28873 in the first half of 2022 to 33864 in the first half of 2023, of which 7830 were digital talents. These data show that the "second entrepreneurship" of Renrui talents has achieved preliminary results.

The Frontier trend of Industry Digitalization

The digital transformation of Renrui talents is obviously a typical representative of domestic human resources service providers in the digital tide. Zhang Jianguo, founder and CEO of Renrui talents, told reporters that compared with Europe and the United States and other foreign markets, the domestic flexible labor market is still in an early stage of development, and the overall labor force proportion is still relatively small, but in the long run, the future development trend of diversified employment model and flexible employment model is clear, and will develop faster and faster.

Tang Qiuyong, executive director of HRflag and a senior expert in the field of human resources, pointed out that there is still a lot of room for digital development in the field of human resources. For example, in recent years, with the development of big data, artificial intelligence, cloud computing and other technologies, some large technology enterprises or related organizations at home and abroad have been exploring the use of data models to judge employees' turnover intention. After reaching a certain threshold, the system will assist in the decision to dismiss employees. In addition, in terms of vocational training and guidance, some enterprises introduce games such as VR (virtual reality) and MR (mixed reality).

Since the beginning of this year, the popularity of AI big model and generative AI has also attracted attention in the field of human resources services. Workday, a human resources cloud service provider in US stocks, has increased its investment in AI. Through its Workday AI model, it can help customers solve common tasks such as job descriptions, knowledge bases, employee manuals and growth plans, and make it easy for developers to develop applications.

Renrui talents said that they are concerned about the new technologies and trends that serve human resources. At the same time, Fu Xuefa also stressed that the principle of talent in Renrui is not to give priority to technology, but a high degree of integration of technology and business. "We do not pursue fashionable new technology, let alone use it as a gimmick. what we pursue is to truly empower the business through technical means to solve the pain points of the actual business."

Minsheng Securities Research News pointed out that flexible employment originated in foreign economic downturn and has been gradually recognized as an effective means to solve the employment rate. At present, China's human resources service industry is characterized by broad scale, low concentration and a large number of players. the pace of industry integration is accelerating in recent years, and there is still great potential for integration in the future. According to the overseas penetration rates of 2% and 3%, such as Europe, the United States, and Japan, the downstream size of the domestic psychic market is expected to reach trillions of yuan, and the market size of psychic service providers can reach 100 billion yuan. (article source: qu Zhongfang, China Business Daily)

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