Digital transformation is one of those buzzwords every organization frequently encounters. Though digital transformation is mostly recognized as replacing existing technology stack of businesses with digital solutions, it is also about people in your business and how they adapt and work together to support organizational goals. The HR department has a role to support an organization’s most valuable resource, people, to succeed in a digital world.
We always talk about technology but HR’s role in digital transformation is two-fold. It both needs to digitally transform its processes and also support the overall digital transformation of the organization. Though these may seem like two different projects, they are intertwined. The faster HR transforms itself, the more it can serve as an example to the whole business.
In short, digital transformation is implementing digital technologies to business functions to improve organizations’ productivity while enhancing customer experience. Digital transformation is changing the way HR offices work from the way they hire and develop talent, to productivity improvements that come with automation.
Why is digital transformation is important in HR processes?
According to PwC’s Human Resources Technology Survey in 2019, top concerns of HR teams are
Attracting top talent and keeping them due to increasing competition
Developing everyone to reach their potential
Improving employee experience, primarily by automating tasks
After the COVID-19 pandemic, digital transformation became even more crucial for the HR office since pandemic made businesses shift toward remote working practices and building a collaborative remote working environment is the role of HR.
What are HR digital transformation use cases?
Instead of reading every single resume from job seekers who apply to your company, an applicant tracking system (ATS) can automatically filter out the best fit candidates using keywords and data from your high-performing employees.
Instead of manually walking every new hire through a bunch of onboarding paperwork, onboarding software completely automates and digitizes the process.
Instead of promoting employees based on instinct, succession planning systems can marry data on employee performance, personal career goals, and organizational skills gaps to give teams more information to inform their promotion decisions.
What should HR do to support the company’s digital transformation?
What we have said so far was about digital transformation in the HR department. However, HR professionals are also an important enabler of organizational digital transformation. An innovative culture is essential for any digital transformation framework and its absence may cause digital transformation failures. Roles for HR in digital transformation are:
Hiring digital talent that has digital capabilities such as design thinking, agility and a data-oriented mindset.
Creating an innovative and agile culture. Such a culture is required to pursue opportunities that arise due to changes in technology.
Digital transformation is a long-term, strategic project requiring collaboration. HR needs to support it with the right communication initiatives and ensure organizational alignment.
What’s Next?
Embracing digital transformation is table stakes in today’s competitive business world. Regardless of your industry or the size of your company, your culture and your people will lead the way to successful digital initiatives and overall business adaptability. If you want both -and you do-there’s a clear case for HR to be leading that charge.
Has your company invested in digital transformation initiatives? What role does HR play today? Do you see that changing in the future? I’d love to hear your thoughts.
We would like to listen to your voice and direct your strategy with the experience we have gained in the sector. Let's, as hrmade, integrate new generation digital tools into your processes together.
