You’d be hard-pressed to find a better example of HR digital transformation efforts in the past 2-3 years than Covid-19 and the movement of staff from the office to work-from-home (WFH) status. This shift in workforce management completely altered how digital business adoption impacts employees’ time completing tasks and communicating with colleagues.
But what impact have these changes had on HR operations today? We will explore this question through many perspectives as we ask what HR transformation is and why it is essential, as well as look at a guide to getting started with HR transformation, its six stages, and examples. But first, let’s look at a definition.
Business leaders must be aware of the importance of HR in digital transformation, and these combine to influence the future of work.
What Is HR Digital Transformation?
HR digital transformation is using digital human resource tools to improve employee experience and business performance by using technology to provide data to help HR departments make data-driven decisions and streamline workflows. This process creates more value for the business by ensuring operations run smoothly and positively impact employees and clients.
Now that we understand digital transformation in HR let’s consider why it’s crucial.
Why Is HR Digital Transformation Important?
The HR digital transformation revolution is quickly changing how businesses interact with their employees as part of their digital transformation efforts. But why does this matter in today’s world?
The HR team is the driving force behind a positive company image for new candidates. By using digital HR technology, companies can reduce costs, enhance operations and create a more positive employee and customer experience. In a world of social media and employer review sites, this is essential when vying to attract talent, as your company’s reputation has never been so widely advertised and discussed.
But maintaining this positive image has never been easier, as reaping the rewards of the HR digital transformation process now offers a wealth of benefits such as:
- Unlocking a world of employee productivity and efficiency by streamlining everyday tasks through automation.
- Delivering a tailored employee experience ensures your staff is fully supported and productive.
- Increasing workplace productivity to maximize profits.
- Leveraging user data and analytics to maximize the potential.
It is essential to be aware of the reasons for your HR transformation to motivate yourself to optimize your transformation strategy. Let’s look at its six stages to help you systematically approach HR transformation.
The Six Stages of HR Digital Transformation
Follow the six stages of HR transformation efforts to ensure consistent results for HR processes that will endure in the long term. The first of these stages is the baseline.
1. Business As Usual (Baseline)
The first stage is to establish your baseline before implementing your HR transformation. What technologies do you use, and what are their functions? What are your performance metrics, and are you achieving goals? When answering these questions, you can refer to these metrics when you complete your transformation.
2. Be Present and Active
Transformation helps you form ideas for experiments to help people learn about digital processes and promote innovation. Being present and active allows people to create new ideas that challenge the status quo, and that’s precisely what HR transformation is all about.
The formalized stage helps you see how your HR transformation matters to your business. If it’s not relevant or essential to the goals of your business, the leaders shouldn’t support it. But be mindful that leaders sometimes support irrelevant ideas, so try to create methods to ensure you make decisions using the same processes each time to ensure they are always relevant to company goals.
Individuals in your company must realize the power of collaboration to succeed in any HR transformation. Shared efforts and insights will always lead to new strategic roadmaps for the best ROI.
The convergence is where you establish your dedicated HR digital transformation team to guide the company strategy and operations for the best results.
6. Adaptivity and innovation
In the adaptivity and innovation stage, digital transformation has become the new ‘business as usual,’ and you have established a unique ecosystem that serves the needs
Now that we have looked at the six stages of HR digital transformation, let’s examine some examples of how organizations have successfully implemented changes in the past.
Examples Of HR Digital Transformation
It is always best to find inspiration and motivation for your HR digital transformation efforts by looking at past examples. Here are three of the most successful examples of HR transformation from three of the largest enterprises the world has seen. So read on to be inspired to succeed like IBM, Google, and Royal Dutch Shell.
IBM has a new term for the digital era of HR technology called HR 3.0, focusing on the employee experience. IBM partnered with Burger King Brazil to introduce a virtual assistant that can handle 50% of typical team requests, like vacation days. This way, the HR department has more time for other tasks and goals.
Since 2008, Google has been changing how it manages its employees using digital tools. They do this by collecting employee surveys and feedback. Doing so helped them identify which manager behaviors help people succeed and what elements make the team productive. With these insights, companies worldwide have created groups using Google’s data.
Royal Dutch Shell
Even before the pandemic, Shell realized that its workforce did not have the skills needed to succeed in an increasingly digitalized industry. To bridge this gap, Shell employed a cutting-edge learning platform that would enable its staff members to quickly obtain the unique talents their company required for long-term success.
These examples show the success of past HR transformations, but let’s move on to the digital transformation and technology trends we are likely to see in HR in 2023.
Digital Transformation and Technology Trends for HR in 2023
Due to the changing nature of the business world, we must always look to the future to adapt our digital HR strategy essential to transformation efforts. Doing so allows us to maintain a clear goal for which brave new technology trends in HR we need to invest next.
By streamlining essential HR responsibilities, the entire Human Resources department can improve from a functional and administrational perspective to one that provides proactive strategic leadership. This transformation makes an agile business model able to succeed in any competitive environment.
There are three ways you can implement hyperautomation with your HR department:
- Payroll: Save time, reduce errors and create reports more efficiently than before.
- Talent acquisition: Hyperautomation tools can pre-screen candidates, text-mine CVs, schedule interviews, and analyze for the best match.
- Performance management: Schedule workflows and automate consolidated reporting by gathering performance assessments on all organizational tiers.
Implementing a strategic HR business plan using people analytics will be essential to HR digital transformations to ensure talent and objectives align while avoiding functional silos. Setting measurable outcomes in the form of KPIs and ROI from people analytics initiatives allows for accountability, transparency, and further optimization.
It’s necessary to have an effective action plan backed by accurate data to maximize success. Using people analytics processes will allow businesses of the future to implement a data-driven approach in HR to ensure reliable ROI outcomes for all decisions.
HR is the perfect place to build the foundation for excellent DEI (diversity, equality, and inclusion) practices. HR staff can use digital tools as part of their digital transformation to get an overview of staff data and ‘zoom in’ to get a more detailed view of specific employees to ensure fair treatment using the following methods:
- Reducing unconscious prejudice during recruitment and hiring using recruitment tools for blind recruiting. This process helps staff prioritize skills over other attributes like race or gender.
- Utilizing analytics to measure Diversity, Equity, and Inclusion progress monthly.
- Offering promising chances for career growth and professional development to historically underserved employees.
These are the ways that companies in the future will incorporate DEI into their HR digital transformations.
HR Digital transformation efforts begin with the HR team
The HR department of every organization is entering a new era to adapt to the ever-changing workforce, and all HR professionals must embrace digital transformation innovations to stay competitive and relevant.
As companies strive to remain agile and efficient in their labor practices, HR leaders must empower, engage and support their teams to prepare for change. After all, successful HR transformation initiatives start with the team and will only succeed if team members have the motivation and training to utilize HR technology.