Understanding the Essence of HR Digital Transformation


“Be Digital”, Not the Mundane “Do Digital” Approach

HR, at present, is undergoing a rapid and intense change. Viewed as a support function initially, HR now is employed as an essential tool for digital transformation in organizations across the board. HR leaders are implementing a digital culture in their organizations respectively, wherein digital tools and apps are used to drive digital transformation. 

Why the Buzz?

A multitude of reasons such as varying market demands, shifting workforces and technology are fueling the transformation of the HR world. 

Organizations, by and large, are driving new digital practices called “Digital DNA” to facilitate a new network-based organization. Moreover, they invest time and effort in designing an environment that fosters productivity & wellness, promotes engagement, and offers a sense of purpose. HR, which is a vital part has too set digital transformation in motion. 

For those, who consider HR digital transformation as a virgin theory should take a close look at the list of firms that have imbibed it to prosper at breakneck speed:

HR Digital Transformation, No More a Juvenile Concept

Bigshots like CISCO, Unilever, IBM etc. have taken steps to digitize their procedure of recruiting and drive new HR solutions. Here is a small sampling:

  1. Unilever has introduced digitization in their hiring process. It has also been experimenting with other significant avenues including, social media, AI, and online games. 
  2. Cisco has organized many hackathons to create HR products or solutions namely, YouBelong@Cisco app and Ask Alex. While the former product act as an aid to the hiring and onboarding procedure, the latter one is a voice command that fetches quick answers to myriad HR-related queries regarding holiday policy, expenses, to name a few. 
  3. IBM has indulged into experiments to initiate new digital HR solutions. It has also launched a digital learning platform that gives its employees a fully customized experience.

Challenges and Ways To Address It

Despite the fact that HR technology aimed at carrying out digital transformation is used extensively, there are a few challenges indeed. After thorough research, we have listed some of the principal challenges and possible ways to address them below:

  1. Maximum firms today are Organization-centric, not employee-centric, which serve as a major bottleneck for executing HR digital transformation. HR processes need to be human-centered and offer a customized employee experience. 
  2. Digital transformationOpens a new window occurs in different layers and in different pockets of innovation to spark and institutionalize disruption across the entire company structure. Also, processes such as recruiting, onboarding, and talent management should meet the employees’ expectations. However, adopting such an approach can cause resistance and lack of commitment within the organization. Hence, a change in the overall HR technical methods should be made, for which a refined, multiyear strategy is needed-that includes apps, analytics, cloud enterprise resource planning (ERP) platforms, and a wide range of tools for case management, AI, and significant other solutions.
  3. Digital disruption is regarded as one of the greatest challenges for driving HR digital transformation owing to reasons like velocity of change, quickly occurring updates in setting benchmarks and targets. For this, the HR team ought to rely on proper technology (real-time engagement, performance management, people analytics, wellness, talent acquisition, and AI ) and agile infrastructure that replaces the process-centric approach with an outcome-based mindset. 
  4. Outdated legacy systems cause major disruption in HR, making it slow, complicated, and inflexible. So, the need to substitute these age-old systems with integrated cloud platform can cater to a sound HR digital infrastructure. 
  5. Unavailability of a proper digital HR squad is a chief setback for companies across the borders. This calls for a dedicated team that is well-equipped in providing services, from service delivery to recruiting. 
  6. Stagnant HR strategy can be crashing for an organization. Innovation plays a central role here. New strategies in the field of recruiting and performance management should be adopted. 

Also Read: Power up: Steps to succeed with HR digital transformationOpens a new window

Now, that we have explained the essence of HR digital transformation along with the challenges and ways to address it in detail, paying attention to the benefits is essential. 

Benefits At a Glance

  • People first approach: New HR tech is designed first for the employee and then for the organization. This helps employees better manage their career. Also, it provides them with fresh opportunities and feedback that caters a sense of direction- as to how they wish to draw their career arc. 
  • Easier, Effective, Engaging Workplace Culture: The HR interactions in the organization becomes easier and productive for employees than ever before. Further, with hallmarks such as data-driven decision-making HR initiatives, modern HR techniques are more effective and focused.  
  • Splendid Employee Experience: The experience of new joiner or candidate is primary for any organization to flourish, whether small or big. HR technology assures a gratifying experience to the new employees, translating the firm into an “employee-friendly abode”. It increases the employee’s retention capacity through data analytics, simplifies the onboarding process, and attracts new employees. 
  • Competitive Edge: Imbibing cloud-based HR technology skillsets allows easy staff scheduling and improved time management that provides the organization with an edge. 

Also Read: Emerging Tech Trends that Will Upend the HR Practices Opens a new window