Harpreet Kapoor
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August 2, 2022
Organisations are evolving faster than ever, and employment models are constantly transforming. In such a scenario, digital enablement plays a key role in organisational success. Regardless of the scale or size of an organisation, digitising Human Resources directly impacts the performance and productivity of the employees.
Digital HR transformation can disrupt how we work– from the organisation structure to employee growth plan, employee expectations, recruitment, hiring and onboarding, all of which motivate employees to perform better.
Digital HR transformation can be a game-changer for organisations. Here’s how you can get your organisation digital HR transformation ready!
Most organisations follow cultures that have been passed down for several years. However, to succeed and remain relevant in today’s age and time, constantly evolving to keep up with the trends is important.
But, is a trend a good enough reason for organisations to rework their processes and practices? For example, is the ongoing trend of going ‘digital’ sufficient to initiate digital HR transformation in your organisation? Maybe not!
If you are contemplating why your organisation needs digital HR transformation, here are some compelling reasons:
With better access to resources, ease of tracking individual KPIs, staff allocation and enabling employees to track their workload, digital HR transformation helps them improve productivity and avoid corporate process bottlenecks.
A 2022 report also stated that some of the best-in-class companies had boosted productivity in the HR value chain by over 20%. Additionally, with agile processes and lower failure rates, business productivity is also guaranteed.
When employees are clear about their role and scope of work, they begin to understand the importance of collaboration and shared efforts. Digitising HR systems provide employees with the required visibility, stimulates better collaboration, and generates insights for strategic roadmaps that help teams and the business.
Digital HR transformation is a people-oriented evolutionary process that is waiting to happen. Since HR revolves around people and values, digitising the function enables efficient workforce planning, recruitment and hiring, and better employee engagement. Digitisation also allows more substantial alignment between business strategy and employee management, giving them clear, achievable goals.
Digital transformation leverages technology to innovate and enable adaptation to internal and external changes and create value for all stakeholders.
Hiring in the pandemic era has taken a massive digital turn. Lakhs of employees have been hired virtually since the beginning of the pandemic. Employee hiring and onboarding is a labour and cost-intensive process. A structured and strategic digital onboarding can save effort, workforce, and the number of hours spent in the process, giving the recruiter and candidates a pleasant experience. Digital HR transformation also enables platforms designed especially for onboarding, improving the overall employee experience.
Keeping all employees on the same page in organisations with multiple locations may get difficult with incoherent and fragmented systems. Digitally upgrading HR processes and systems gives all employees the necessary visibility regarding skill training, salary, grades, and career growth, all in one place.
According to a 2021 report, 72% of senior leaders reported that their organisational culture enables successful change initiatives. The same report also states that 96% of HR leaders who participated in the Digital HR Transformation Survey 2022 said that they saw the role of HR evolving from being a service provider to steering the organisation’s digital transformation way beyond just HR transformation.
While digital transformation in HR was already happening, the covid-19 pandemic gave the required impetus. However, just 30% of organisations globally are able to navigate a digital transformation successfully. Reason? Adopting a new way of working in times of uncertainty can be challenging for most organisations. So, just knowing how to navigate a digital HR transformation is not sufficient today. Also, statistics say that nearly 70% of corporate transformations fail when the workforce is unprepared for digital transformation.
After understanding the need for HR digital transformation and the importance of future HR readiness, here are nine effective ways to make your organisation’s digital HR transformation ready:
Along with defining clear goals for your digital HR transformation, it is imperative to have a multiyear strategy to keep up with the advancing HR technology, including Enterprise Resource Platforms (ERPs), analytics, applications, AI tools and other similar solutions. You must also update your business model in sync with your strategy.
Digital HR transformation is a unified team effort from every stakeholder in an organisation. While you may have a phase-wise strategy for implementing the transformation, there must be a commitment from leaders and senior management, who can then help their teams embrace the change. This top-down approach helps build trust in employees and managers and ensures a successful digital transformation.
Transformation cannot be achieved without having an agile mindset. Organisations that are able to implement various processes successfully are known to have agility as their inherent company culture.
To introduce digital transformation in your organisation, having a sound digital infrastructure that fits your culture is essential. From replacing legacy systems to upgrading tools and software for various functions like learning, performance management, hiring and recruitment, and onboarding, your technology must be in place and readily accessible to your employees.
The successful implementation of digital HR transformation requires dedicated teams that are able to explore vendor solutions and build others. Organisations successfully implementing digital HR transformation have a dedicated digital HR team.
Since digital transformation is an evolving process, constantly measuring and monitoring results is necessary as they act as a guide to help you understand what you have achieved so far and how you can work on your larger goals. A simple example of measuring your transformation is employee engagement before and after the digital HR transformation.
Few other ways that can help your organisation determine its HR transformation readiness and begin the process include:
Employees are the core of any HR initiative and should be throughout your digital transformation exercise. Always be ready to refine and redefine your HR transformational plans based on what is working and what isn’t.
Key Takeaway
The purpose of digital HR transformation goes beyond digitising the HR function. In fact, it has the potential to instil a digital mindset and rocket the organisation’s digital transformation. If you are ready for digital transformation in your organisation, the HR function can act as a strategic partner by preparing the workforce, creating experiences with a human touch and changing the focus of digital transformation from technology to people. It is important to understand the ‘digital HR transformation’ is an ongoing and evolving process. However, to succeed, every organisation must show HR transformation readiness.
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