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HR Digital Transformation.

The HR function is not a stranger to the words Digital & Transformation. On the digital side, for the last two decades, the function has worked on HRMS, workflow-based processes, etc. and on the transformation, the side has supported multiple initiatives in the organization – culture, process, continuous improvement to name a few.

However, when these words combine to create the phrase HR Digital Transformation, the challenge morphs to a different dimension. The question often asked is post-implementation of a modern HRMS, perfecting workflows for critical HR processes like hiring, performance management, payroll, learning, and exit management aren’t we digital enough, and if this is not transformation what is?

The answer lies in exploring two trends:

  1. The entry of the millennial workforce in the organization and their increasing proportion over a period of time. Companies are hiring young, digitally savvy workers who are comfortable doing things themselves and sharing information in a transparent way. They want an integrated, digital experience at work—one designed around teams, productivity, and empowerment—and HR is expected to deliver it.

  2. Improvements in consumer digital experience which has significantly transformed and increased our level of engagement as consumers and completely changed our methods of shopping. What if HR offered the same user-friendly, digital user experience to employees? What if employees were engaged to contribute in the same way consumers are engaged to buy?

But as we know from our experience- all customers are not comfortable with digital shopping and thus are deprived of the choice and convenience it offers. Hence HR Digital transformation also requires an organization’s culture to go digital i.e., become more intelligent, modern, and transparent.

If we step back and look at HR function’s digital evolution over the past decade, the focus on automation was on repeatable, often simple HR transactions, with “self-service” that was faster but fragmented and disconnected. Digital transformation is more than process and workflow automation. Digital transformation creates an all-in workforce approach with improved agility and comprehensive and effective use of intelligent services to upskill the workforce.

Just how imperative HR digital transformation is for business success and sustained growth can be seen by the responses to a global survey conducted by Deloitte:

  • 56 percent of companies surveyed are redesigning their HR programs and processes to leverage digital and mobile tools.

  • 33 percent of surveyed HR teams are using some form of artificial intelligence (AI) technology to deliver HR solutions

  • 41 percent of surveyed HR teams are actively building mobile apps to deliver HR services.

  • 87% of respondents from India rated the trend of HR digital transformation as very important or important – the highest in the world

HR digital transformation nudges organizations to:

  • Redesign talent practices (recruiting, leadership development, performance management, measuring engagement to name a few)

  • Experimenting with digital workflow – embedded apps

  • Implementing analytics and organizational network analysis

  • Focus on an organizational culture built on the pillars of diversity, culture, learning, career development & wellness.

Organizations can leverage digital transformation to monitor real-time metrics on employee engagement, recruiting, attrition, deploy AI tools for regular pulse checks, and driving learning thus enabling faster business decisions.

HR digital transformation benefits large and growing organizations and is an interface of IT and HR expertise. The COVID -19 pandemic has already forced the hand of many organizations to go digital – whether it is working from home or conducting performance management discussions through teleconference.

This is an opportune time for large, growing, and agile organizations to capitalize on this digital mindset and explore how they can leverage AideExpert Advisory to start their HR digital transformation journey.

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