What is digital transformation and its impact on China’s job market?

By Robert Half on 29 April 2024

Digital transformation refers to the integration of modern digital technologies (including AI, automation, hybrid cloud, and other digital technologies) into all areas of the business, including areas of operations, procedures, data, personnel, and technology.

 With the continuous development and maturity of digital technology represented by big data, the Internet of Things, cloud computing and artificial intelligence, digital transformation has become an inevitable choice for organizations to build competitiveness, and a powerful tool to take the lead in the future commercial market. 

Recruitment, as a vital part in the chain of enterprise human resource management, is an important channel for companies in China to obtain key technical talents and market competitiveness and is crucial to the success and development of organizations. In the traditional recruitment process, organizations often face challenges in expanding their talent pool, accurately identifying talents, and quickly advancing the recruitment process. 

The deep integration of digital technology and business procedures can help organizations solve these pain points and provide value to organizations from the perspectives of improving recruitment efficiency, reducing recruitment costs, and enriching recruitment patterns, to obtain more competitive human capital for organizations. 

Digital technology facilitates recruitment 

Digital tools and technologies are revolutionizing the recruitment procedure for organizations. This article explores the impact of digital transformation on recruitment efficiency and quality from the following aspects. 

First, digital transformation has brought broader channels and more efficient talent pools for enterprise recruitment. The traditional recruitment methods mainly rely on channels such as newspaper advertisements and job fairs, but these methods are limited in coverage by time and space constraints. Digital transformation enables organizations to use technologies such as artificial intelligence and big data analysis to quickly screen many resumes, automatically identify, analyze, and evaluate key information in resumes, predict the performance of candidates, and quickly identify and mine potential candidates from the Internet. Not only does it save a lot of time and energy for enterprise recruiters, but it also improves the efficiency and accuracy of recruitment. 

Second, digital transformation has changed the way recruitment interviews are performed. Remote video interview software technology breaks the spatial limitations, allowing recruiters to intuitively interview candidates in remote or global recruitment scenarios, and understand and evaluate candidates' skills, communication abilities, and cultural fit through video interviews. 

Third, digital transformation effectively promotes strong employer brands through new media platforms to attract high-end passive job seekers. The employer brand is the perception and feeling that an enterprise develops in the minds of potential employees, which can enhance the attractiveness of the employer and improve recruitment effectiveness. Utilizing social media, short videos, and other new media, which are the main channels for professionals to obtain information today, to disseminate employer brand content and targeted advertising can improve the attraction of passive talents and achieve a wide coverage and fast dissemination effect. Job search websites only cover 15% to 20% of active job seekers, and most of the top talents in general industries are passive talents. The best way to contact them is with long-term communication through multimedia platforms.

Examining the future trends of recruitment in the context of digital transformation 

With the prevalence of digitalization, enterprise recruitment has also been deeply affected. Let's look at how digital transformation will lead the future recruitment trend. 

Digital transformation brings new changes in talent demand. Against the backdrop of digital transformation in various industries, there is a growing demand for digital employees with expertise in data analytics, digital marketing, and technical capabilities. The 14th Five-Year Plan for Digital Economy Development (1) stated that the digital economy's core industries will account for 10% of GDP by 2025. According to the Industrial Digital Talent Research and Development Report (2023) (2), the current overall digital talent gap is about 25 million to 30 million, and the gap is continuing to expand. 

Digital transformation drives the digital recruitment process. With a new generation entering the job market, the job-hunting group has become more knowledgeable, which leads to a shift in talent attraction towards socialization, strong interaction, and diversification. Digital recruitment channels such as social recruitment and social networking-based internal referrals are becoming increasingly valuable. Digital recruitment can meet the demands of the new generation of job seekers for high efficiency and convenience. Through efficient algorithms and big data analysis, efficient matching between job seekers and recruiters can be achieved. 

Digital transformation has new requirements for flexibility and adaptability. Many organizations have adopted digital technologies to transform their businesses, and the process is certainly complex and challenging, requiring employees with the flexibility to learn and grow in a rapidly changing market environment to successfully help meet the challenges posed by digital transformation.

Digital transformation and hiring talent in China 

1. It is necessary to embrace the whole-process digital management of human resources 

In the whole-process digital management of human resources, various digital tools can be used to connect the single modules in the process into a closed loop, quickly achieving agile, intelligent, compliant, and efficient digital recruitment that reduces costs.

2. There is a need to build employer brands using digital platforms 

Building a strong employer brand is critical in today's competitive job market. Social media platforms or a company's career website can be used to showcase the employer brand, ensuring that the company's culture, values, employee experience and organizational achievements are promoted. Companies can actively engage with potential candidates and maintain the reputation of the employer brand outside the organization, which helps attract and retain top talent. 

3. Data can be used to empower recruitment decisions 

Recruitment data analysis tools can help remove human bias in the recruitment process and determine whether a candidate is suitable by focusing on key factors such as personality, skills, experience, and qualifications. It maximizes efficiency and results and helps HR managers quickly identify the skills and abilities needed by the enterprise from the large number of resumes. 

At present, China's digital economy has entered a new stage of rapid development, and the development of digital technology has moved from the era of the Internet and big data to the era of artificial intelligence. More and more human resource managers are using digital technologies such as artificial intelligence, data analysis and cloud-based systems to optimize the recruitment procedure. 

If you want to know the latest digital recruitment trends or need to hire high-end digital talents quickly and efficiently, let us know your requirements and our consultants will provide you with recruitment service strategies.



(1) 14th Five-Year Plan for digital economy development 

(2) Industry digital talent research and development report 2023

More From the Blog...