HR Digital Transformation

HR, Digital Transformation, and the Future of Work

The future of work will depend on organizations’ approach to HR, digital transformation, and digital adoption.

Today, the role of HR is changing.

Tomorrow, this department will play a crucial role in corporate strategy and worker management.

Below, we’ll look at:

  • HR’s emerging strategic role within the enterprise
  • Which HR functions are becoming most critical
  • How to begin transforming HR to meet the needs of tomorrow’s workforce

Let’s begin by looking at HR’s emerging strategic function.

The Future of Work: A Strategic, Integrated HR

Today, the digital skills gap threatens enterprises around the globe.

This skills gap has become more apparent with every passing year:

  • Lack of sufficient skills impedes innovation, raises people costs, and negatively impacts quality standards, according to a PwC survey
  • According to ManPowerGroup, talent shortage is at a 12-year high, with 45% of companies unable to find talent they need
  • On a macro-scale, the skills crisis impacts entire economies – one report suggests that the skills gap costs the British economy around 63 billion pounds per year in lost income

This skills gap identifies cracks in organizations’ ability to adapt in the digital age. 

After all, an organization’s ability to recruit and retain talent directly impacts:

  • Its ability to produce
  • The customer experience and product quality
  • The bottom line and its competitive position

Together, this data points to a trend that is changing the face of HR.

On the one hand, it makes talent management more critical than ever.

However, we’re also looking at an HR that is fueled by data and digital technology.

For most HR departments, this requires a change in the way that they think and operate.

In short: these trends introduce the need for HR digital transformation.

Beginning the HR Digital Transformation Journey

As mentioned, HR duties must focus more on talent management than before.

Let’s look at three of these core functions in close detail – plus a few ways to enhance these functions in the digital era:

Recruitment

Attracting the right talent is crucial, yet more challenging than ever.

When it comes to digital skills, for instance, university degrees have become less relevant. 

Instead, on-the-job training, experience, and continuous education offer more in the way of skills training than traditional education.

This makes it difficult to find talent that meets expectations and business needs … especially since those business needs change with every software implementation.

To attract the right talent, HR should:

  • Make use of online tools and platforms. Recruitment tools can include platforms such as LinkedIn, online job boards, social media, and search engines. These can help recruiters target those with the right talent and qualifications.
  • Analyze prospects’ history and use data to ensure they are a good fit. With the wealth of online information – as well as modern recruitment software – it is possible to analyze prospects based on personality traits, work history, and more.
  • Outsource and automate. Recruitment automation tools can trim the fat from your recruitment workflow, by automatically sifting through and selecting candidates.

Following these steps can make recruitment easier, as well as assist with the other aspects of talent management.

Development

Once employees are on the job, training is a must.

However, in this skills-deficient economy, training must go beyond mere orientation.

In a workplace filled with digital tools and complex workflows, on-the-job training is a requirement.

HR must do a few things:

  • Provide job training, mentorship opportunities, and digital skills training. These types of programs can greatly improve short-term productivity, as well as long-term employee engagement, and retention.
  • Offer career development opportunities. Lack of career development opportunities is the number one reason employees leave an organization – which means career development opportunities should top the HR priority list.
  • Keep their training programs modern and relevant to the organization. Organizational strategy comes first and foremost. So HR must balance between employee needs and the needs of the organization.

In today’s digital workplace, education and training programs rely more heavily on digital tools.

Digital transformation tools – such as digital adoption platforms (DAPs) – for instance, offer in-software training solutions. By automating and simplifying training, they improve engagement, productivity, and output.

Retention

The third piece of the talent management puzzle is employee retention.

Effective retention strategies include:

  • Effective onboarding and training, using techniques mentioned above. Individual employees are just as concerned with skills training as organizations. Retaining talent for the long-term means providing them with the skills they need to succeed.
  • Flex-time, remote working, and other workflow improvements. Make employees’ lives easier, and they will stay longer. Remote working, for example, has been proven not only to enhance employee engagement, it also saves costs for companies.
  • Wellness programs, retreats, social events, and other programs that improve the workplace. Consider other ways that the workplace, the culture, and the company can be improved. Do that, and employee metrics will improve across the board.

In short, HR must employ a variety of tactics to improve employee retention.

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