Digital Transformation and HR Management: What, Why and How

Published On
Jun 27, 2022
Read Time
5 Minutes
OnBlick Inc

The phrase digital transformation has been used a lot lately. Some digital transformation initiatives have brought great development opportunities to organizations around the globe. If this is not happening with your organization, then you are losing some great progress. HR digital transformation allows employees to work together more effectively and improve customer experiences.

This article aims to overview the HR digital transformation process and suggests how organizations can successfully implement it. Various factors you need to consider while adopting this change are also discussed.

What is digital HR?

The term digital HR refers to the numerous changes that are happening in the HR industry, inducing digital technology to aid the functions. Digital HR also includes artificial intelligence and machine learning to improve the organization’s efficiency.

Due to the growing number of digital HR initiatives, the HR department is expected to be impacted by these changes. The recruitment and hiring process, performance monitoring, and training can have a tremendous positive impact.

What is HR digital transformation?

• Digital transformation in HR is a process that enables organizations to improve their employee experience and make better decisions. It can also help them manage their data more efficiently.

• Digital tools help organizations save money and improve their communication. They can also help them attract and retain top talent and provide them with the necessary data to make informed decisions.

• HR managers can help organizational members become more engaged and motivated through digital transformation. They can also ensure that their decisions align with the organization’s culture and goals.

• One of the most critical factors that any HR transformation must consider is its ability to make the organization’s operations more profitable. Many companies have successfully adopted it and reaping great benefits now, which is why you should consider implementing it.

How will digital transformation affect HR Management?

The traditional HR process relies on various forms and documents, such as filing cabinets and face-to-face communications. In contrast, the HR digital transformation process involves moving processes and systems to a technology-based platform that gives better access and eases communication and data sharing. Research reveals that HR management will be more efficient once it turns digital. Turning digital will not only facilitate the HR processes and functions, but also provide the team ample time to focus on areas that require more involvement.

Benefits of HR digitalization

• HR digital transformation improves a business’s efficiency and effectiveness by providing tools and technologies that can help easily manage the business and workforce.

• Digital transformation is also about creating a culture that is inclusive of all employees.

• HR managers can create a more open and transparent environment for all employees through digital transformation.

• This transformation will be helpful for organizations to create a compelling and dynamic workforce.

• Digitizing HR functions relieves the department concerned from mundane administrative tasks.

How to get started with HR digital transformation?

The success of a digital transformation program depends on how clearly and seamlessly the transformation is implemented. It is very common to confuse the concepts of digitization and HR transformation. This is because the former involves the use of technology, and the latter involves the transformation of the workforce. There is no one-size-fits-all approach when it comes to HR digital transformation. Each organization has its own unique needs and goals.

However, there are some steps that all companies may follow as they involve in this transition.

  1. Managers should identify the goals and measure the success before the HR digital transformation.
  2. Identify where the company stands, find the areas it should improve, and then make the transition.
  3. Establish open communication with both the management and the employees before transitioning. This step will allow HR managers to ensure everyone is on the same page.
  4. Make sure that everyone is invested in the project. Providing an overview of goals and areas for improvement will ensure that company is aware of the changes.
  5. By creating a plan, managers will then be able to choose the right technology for the company.
  6. Gather feedback and ideas from both the leadership and the employees. The next step is to implement the plan. Managers should be wary in choosing appropriate tools and processes.
  7. One of the most critical factors managers should consider in the HR digital transformation is measuring its progress. Keeping track of the project’s progress ensures that the change meets the organization’s needs.
  8. Despite the progress made in the initial stages of the HR digital transformation project, managers must continue monitoring and analyzing the changes to verify that they are working correctly.

Strategies to turn digital

There are many strategies that businesses can use to digitalize their HR departments. Here are some that can benefit you the most.

1. Automation

One of the most effective strategies is automating the HR team’s tasks. This eliminates their need to perform tedious tasks, such as data entry and filling out forms. Instead, they can focus on more important matters by saving time through automation.

2. Online Onboarding

A crucial strategy business must adopt is switching to an online onboarding process. Several studies conducted after the COVID-19 pandemic highlight the benefits of virtual onboarding. HR managers must ensure that the process helps the new hires understand the company and its culture as much as the traditional onboarding does.

3. HR Chatbots

Instead of relying on an HR department employee to answer frequently asked questions, a chatbot can help them address these issues. Users can access the information as and when needed and get their questions answered in real-time.

4. AI-Based Recruitments

A major challenge that HR professionals face in talent recruitment is the time and effort required to review the hundreds of CVs and portfolios they receive thoroughly. With the help of AI-based recruitment techniques, they can now focus on other essential tasks.

Final Thoughts

While creating a digital transformation strategy, managers should be aware of prioritizing the major thrust areas. Plan for the company’s long-term goals and choose strategies that empower employees and foster collaboration. Always make sure to get the appropriate HR technology.

Complete, Update and Retain Your Form I-9s Digitally

Know More