HR digital transformation is a hot topic for many HR professionals, and it should be, since digital technology has the potential and ability to transform HR as we know it.
One of the key themes for many organizations in the next 10 years will be digital transformation. Digital adoption and transformation is a key development for most organizations in their strategic goals. But just talking about digital HR transformation is entirely different thing than doing it.
What is HR digital transformation?
HR digital transformation is the process of changing operational HR processes to become automated and data driven.
According to Deloitte’s 2017 Human Capital Trends report: ‘It’s about HR teams taking up the dual challenge of transforming HR operations on the one hand, and transforming the workforce and the way work is done on the other.’
So, rather than HR digital transformation being just about HR, it’s a metamorphosis that involves organizations as a whole.
Digital HR transformation is the process of incorporating digital technology to improve how the HR department functions. This digital technology includes cloud-based HRIS, digital recruitment solutions, internal communication platforms, workforce engagement software, people analytics tools, and much more.
When integrating these digital technologies, you need to consider HR digital transformation strategies on how new apps, tools, and programs will transform the workforce and how work is performed and completed. The HR professionals have to create a whole roadmap for successful implementation of HR digital transformation.
The goal of digital transformation in HR are:
1. Reduce the amount of time spent on repetitive tasks by automating processes.
2. Increase employee satisfaction.
3. Freeing up time for strategy and ultimately benefit the business.
HR digital transformation involves using data to guide every aspect of human resources, from payroll to benefits to performance management, to learning and development, to rewards and recognition.
Importance of Digital Transformation in HR
It may not seem obvious to those who have been using paper and spreadsheets for a long time, but if you’re IT savvy and eager to be kept up-to-date on the latest developments, these examples will be clear to you.
Save time and money
Administrative tasks should be reduced so that manual work can be eliminated. Productive and creative employees use their time efficiently. A payroll report is ready instantly by using HR and Payroll Software. Moreover, indirect cost reductions can be realized by generating quarterly reports or resolving carry-forward activities.
Automate the HR process
Keeping your business compliant and competitive can be achieved by optimizing your processes. The use of digital HR streamlines management workflows for human resource professionals.
Providing HR insights
The employees will be able to formulate strategic plans rapidly if all information is combined into one accurate system.
Organize employee’s data
It would be easy to locate employee data. Will be able to deliver employee information effectively by using employee databases. It’s very easy to organize employees’ data by using Employee Management Tools.
Improve HR efficiency
Managers of teams are notified automatically and can validate immediately. It simplifies internal processes and enhances communication. Predict future employee behaviors from past employee behavior.
Set of principles
A digital HR strategy should, therefore, not be viewed as a rigid plan but should be regarded as a set of principles on key digital drivers, like
- Improve operational flexibility
- Employee experience optimization
- Improve knowledge sharing
- Experimental innovation
This helps in understanding what the organization is trying to achieve with the digital HR strategy.
How to get started with HR digital transformation
Though it sounds good in theory, it can seem pretty daunting when it comes to making that first step towards an HR digital transformation.
The stages to digital HR transformation
Starting with the various stages of a digital HR transformation. Because an organization doesn’t go from being barely digital to being fully digital overnight. These kinds of changes, true transformations actually take time.
So here are a few ingredients for a successful start:
1. Establish a clear goal that you want to achieve
2. Determine who will be responsible for implementing the transformation
3. Don’t overcomplicate things
4. Plan and prioritize ideas
5. Assess performance and evaluate results
6. Digitalize the culture
Establish a clear goal that you want to achieve
Make sure you have a clearly defined business goal before embarking on a large transformational HR initiative. There is a good chance that this goal will be a solution to an employee issue. It is critical to focus on outcomes rather than outputs. The goal of transformation has to be connected to the company’s goals. The success of your digital transformation project will be measured by the value you add to your business.
Determine who will be responsible for implementing the transformation
This means all stakeholders, from employees to executives and everyone in between. For a successful digital HR transformation which will affect the entire organization you need all the support.
Don’t overcomplicate things
Always start simple and small. Look at the areas of your HR processes that could do with a digital makeover, talk about this with your employees and the executives. Ask them what they think should be a priority.
Plan and prioritize ideas
When you discuss, result is, a long list of ideas. Prioritize the ideas based on impact and effort. Start with the ideas that are high impact and low effort. They will help you build the business case for digital HR and get you going quickly.
Assess performance and evaluate results:
Trying and implementing digital technologies is great, but doesn’t make much business sense if we don’t look at their results. Hence we need to critically assess what works and what doesn’t. Digital technologies are helpful, but if we do not evaluate their results, it makes hardly any business sense. That is why we have to critically evaluate what works.
When HR processes change, all participants are prepared for the change. It is wise to start small. It is much easier to apply feedback and lessons learned from a pilot project to a company-wide implementation than to make errors in a large-scale rollout.
Digitalize the culture
Culture is important. An HR transformation cannot be achieved solely with digital technology let alone an entire organization. Even a complete digital transformation of the organization is difficult. It has to do just as much if not more with everyone’s mindset. This is a direct result of your company culture.
From the new people you hire, via your current workforce all the way up to the top executives a digital mindset is essential for a successful transformation.
What if you fail to reach your goal?
In some cases, transitioning to a newly developed technology, training your team on it, and then discovering that it does not work as expected may occur. This is not uncommon. Not everything works right from the start.
To determine why your digital transformation goals may have been missed:
- Find out where the glitches are.
- Open the minds of your team to the digitization.
- Consider reevaluating your digital solution.
FINAL NOTE
Whether you like it or not, an HR digital transformation isn’t optional. In a world that’s digitalizing at a fast pace, with consumer (employees) who wants everything in their life to be digital, HR and employers simply can’t stay behind.
“Every industry and every organization will have to transform itself in the next few years. What is coming at us is bigger than the original internet and you need to understand it, get on board with it and figure out how to transform your business.”
– Tim O’Reilly, Founder, and CEO, O’Reilly Me