When it comes to the human resource function, digital transformation is a crucial tool that can assist in maximizing efficiencies and improving the way HR teams operate. This can have many advantages for an organization as a whole.
In fact, introducing digital technologies into your business can help reach financial goals by 22%.
In this guide, we’ll explore exactly what HR digital transformation is, what it can do, and how you can install this into your organization.
What Is HR Digital Transformation?
HR digital transformation is the process of using HR technology to automate manual tasks. Digital transformation can cover a wide range of HR processes, helping HR leaders to take a more data-driven approach to their roles.
Successful digital transformation means taking time-consuming manual tasks and using technology to streamline them. This makes HR operations more efficient, and it helps to enhance accuracy within the HR team by reducing the risk of human error.
Why Is HR Digital Transformation Important?
Implementing an HR digital transformation strategy can help HR teams to save time and reduce the amount of effort HR professionals spend on repetitive, manual tasks. Instead, they can focus on more critical tasks that drive business growth. You can achieve this through process automation.
It can also help to improve employees’ experiences through efficient and convenient digital solutions.
Considering that we live in a digital age, it is crucial to adapt to the environment and adopt technological trends to stay up to date with competitors and the industry.
HR Digital Transformation Examples
What do HR digital transformation efforts actually look like? You can automate most HR functions easily. Here are some of the main digital transformation strategies that can be applied to HR processes:
- Employee onboarding
- Candidate screening and talent acquisition
- Employee offboarding
- Tracking and validating employee timesheets
- Managing employee time off and leave requests
- Monitoring employee performance
- Payroll automation
- Automating training processes and documents
This means HR transformation and the right digital tools can help businesses from the recruitment process right through to employee offboarding. This frees up a lot more time and opportunities within a company’s HR strategy.
The 6 Stages of HR Digital Transformation
Adjusting to a new digital transformation process takes time. Here are the six stages that an organization goes through to achieve this:
1. Regular Operations
This refers to when the business operates as usual.
2. Experiments
The transformation team runs different experiments to see what will have the best impact.
3. Management Buy-In
The proposal is presented to management. They meet and accept based on the experiments conducted.
4. Strategy
A roadmap is created for the digital transformation strategy rollout for the whole organization.
5. Convergence
The new digital strategies and guidelines are introduced to the company.
6. The New Norm
The new digital processes get adopted as the new regular operations. This might involve further innovation and look into new technologies.
Getting Started With HR Digital Transformation
Digital HR transformation may be designed to make your business run a lot smoother, but it needs to be implemented the right way.
Here are a few strategies and best practices to help you get started on your digital transformation journey.
Define Your Goal
Before applying new AI and machine learning technology to automate processes, start by understanding what you aim to achieve. Establishing a clear goal for your digital transformation journey is essential.
Think about matters that might be causing HR departments issues, and look for repetitive tasks that need simplifying. Then, you can establish which areas you want to digitize.
Remember that your employees will be your end users in the digital transformation process. So, make sure that your goals align with a positive employee experience.
Keep It Simple
The best approach is to start with a simple digital solution, and gradually digitize more processes. Starting simply allows for easier implementation and training, and allows your employees to grasp the new process more easily, and avoid potential disruptions.
Prioritize Your Processes
There are a lot of aspects of the business and different HR processes that you can digitize or automate. An important part of change management is creating a list of all these processes, and prioritizing them.
Speak to your employees, HR business partners, and C-suite executives to help find the best places to introduce a digital solution first.
Ideally, you want to start implementing ideas that have a high impact and are low effort. Then, you can work your way down the list as your company gets more comfortable with the HR digital transformation.
Get Everyone Involved
If you want to spread a digital mindset across your organization, then you need to get everyone on board. This is the only way HR digital transformation will be effective.
Make sure that senior managers and business leaders adopt the new HR processes. And highlight the value of your digital solutions to everyone who needs to use them.
Performance Management
Continuous performance management is necessary to understand your digital HR business strategy’s success. This should measure KPIs based on your initial goal to track whether your new digital solutions are solving your HR problems.
You might find that some solutions cause new problems, or that they are not working as efficiently as you would have planned. Monitoring this gives you an opportunity to find ways to make improvements.
Conclusion
HR Digital transformation can greatly assist in streamlining business functions. For your HR team, there are many exciting opportunities for digitizing processes. And exploring new technologies.
With the right digital mindset and an effective tool, adopting new technology can help HR teams to achieve a lot more with less.
This is important for business growth, improving employees’ increasingly digital experiences. And also, staying on top of the rapidly evolving world.
