Your organization has been procrastinating on this front for quite a while: human resources digitization. Now, though, you realize it’s high time to transform the department but you’re unsure where to start. In fact, you’re a bit fuzzy about what it all means. With that in mind, here’s what you should know about implementing an HR digital transformation.
What is Digital Transformation?
Essentially, it’s the organization-wide process of automating HR operational processes to become organizationally data-driven. Such automation touches all areas of HR, including performance management, payroll, benefits, learning and development, rewards, and hiring.
The objectives of such transformation usually include at least one of the following:
- To gain more time for the core business
- To enhance the employee experience
- To use automated processes, and the commensurate decrease in time spent on repetitive tasks, to heighten efficiency
Why is Digital Transformation Significant?
Such transformation is important because it places technology at the heart of business strategy. Such an approach can not only lower operating costs, but it can increase efficiency and possibly alter the course of your business. It’s easier to reach organizational goals with a unified model that traverses business and technology.
Let’s list some of the benefits of digital transformation:
- Better data collection. You can use the data to drive your company forward.
- More formidable resource management. Digital transformation pulls together resources and data and turns them into a suite of business tools.
- Data-driven client insights. You can use the data to deliver content that is more pertinent, agile, and personalized.
- Improved customer experiences. Digital transformation can deliver a more snag-free, intuitive experience for your clients.
- Promotes a digital culture. The new tools foster collaboration, which helps to shift the whole organization forward digitally.
- More profits. Eighty percent of organizations that have finished digitization report increased profits, according to the SAP Center for Business Insights and Oxford Economics.
- More agility. Digital transformation renders companies more agile, which is sorely needed in this still-evolving business environment.
- More productivity. Through technical tools that work together, workflow is streamlined, and productivity increases.
Steps to HR Transformation
When it comes to workforce transformation, first establish your reasons for totally overhauling the department. Once you have that in mind, you can begin with implementation.
- Establish value creation. Ask yourself who benefits from the transformation, whether goals are quantifiable, and whether the transformation is in line with business objectives.
- Identify implementation leaders. Because they know their area better than anyone, transformation is typically led by HR practitioners and line managers.
- Seek help. To optimize the transformation, we recommend enlisting the help of the leading consultant Mercer.
- Establish an endpoint. You want to know when a specific tool can be declared a success. Give each process a certain time to determine its organizational value.
- Determine which processes are no longer needed. The deployment of new, novel software will lead to the demise of certain processes.
- Get buy-in from top leadership. You must get top execs on your side. While pulling off such a task can be daunting, it shouldn’t be hard if you’ve done your homework.
- Get your people ready. While all stakeholders must be prepped for the change, it’s probably best to begin on a smaller scale to work out bugs early. Perhaps you should start with a pilot project before rolling out the whole thing.
- Employees before the transformation. It’s important that you promulgate a culture of digitalization. The idea is to get users to adopt the new technology, not the other way around.
Ultimately, implementing a digital transformation is as much a cultural shift as a technological metamorphosis. Do yourself a favor and put a team in place that can help you get this right. We recommend the leading global HR consultant Mercer.