Your company has been putting it off and putting it off, but it’s a pesky fact: human resources is due for a digital transformation. But other than a general idea, you aren’t even sure what the term means — let alone what the best strategy is for pulling it off.
Read on for a deeper understanding of HR digital transformations.
What is Digital Transformation?
Digital transformation is basically the integration of digital technology into, in this case, human resources departments, ultimately altering the entire organization’s operations and even its culture, as the transformation usually requires learning new skills, and other changes, over time.
Of late, the pandemic has underscored the urgency of the need for such transformation in the way HR functions in areas including benefits, payroll, hiring, learning and development, and performance management.
Are All Processes Digitized?
Not always every single one. In fact, it’s bad idea to just willy-nilly digitize every task just because your cross-town rivals began digitization last month. If your organization doesn’t think this whole thing through – every aspect — it could end up a huge time and cash suck. Sure, you may gain some pricey and edgy technology, but if certain elements don’t really meet your needs, what’s the point?
What Are the Stages of Digital Transformation?
If you thought the transformation would be gradual, you thought right. For sure, you can’t just install a few buttons and go from being scarcely digital to fully digital in one fell swoop.
HR digital transformation must be phased in, hopefully with the help of effective HR consultants, in these stages:
- What usually happens here, in the first stage, prior to becoming fully digitized is that companies begin having experiments and trial runs. This promotes innovation as it relates to digitization as well as digital literacy. It also starts getting employees used to the idea.
- In this stage, a preliminary plan starts to come together – IF such digitization is deemed important to business.
- Here, people start to collaborate, brainstorm, and produce a roadmap toward full digitization.
- Finally, digitization is complete and up and running.
Who’s On Board with Digitization?
Well, a Deloitte survey found that digital transformation budgets will rise by 25% next year. So yes: digitization is a thing. And frankly, what with the increased use of technology such as machine learning, AI, blockchain, and the like, HR departments that still hew to the old ways of collecting and parsing data should have a fire under them to get up to speed, and fast.
What Does Digitization Accomplish?
In addition to automating processes and slashing the time consumed by repetitive duties, digitization maximizes the employee experience – the cumulative effect of an employee’s interactions with their employer over the course of their tenure.
Another goal is to use the free time the company now has due to newly digitized processes to make more moves that could favorably impact the bottom line.
What is the Role of HR During Transformation?
HR teams during digital transformation are charged with handling their department’s evolution, using data-backed processes.
Also, human resources will work with the IT department to take the lead on transformation and buttress the ongoing changes. This means bringing employees along in a timely manner to boost productivity and instill a new culture along the way.
With all the technology available, there’s really no reason to not join everyone else and take advantage of the freed-up time that digitization affords to increase profits. Understanding HR digital transformation means knowing that while there’s no one-size-fits-all approach when it comes to digitization, if you have patience, and get help from credible HR consultants, you can come up with a plan that works for all.