HR digital transformation is a popular buzzword for many HR experts. This is understandable, given that digital technology can transform HR. Yet, talking about digital HR transformation is one thing, and implementing it is quite another!
In today’s blog, we’ll delve deeper into the subject of HR digital transformation. We’ll learn more about what it is, why it’s important, and how to implement it.
What Is HR Transformation?
The process of automating and data-driven HR procedures is known as HR transformation.
‘It’s about HR teams taking on the dual task of reforming HR operations on the one hand, and altering the workforce and the way people work on the other,’ according to Deloitte’s 2017 Human Capital Trends report.
As a result, rather than being solely about HR, HR digital transformation is a transformation that impacts the entire organisation.
Why Is HR Transformation A Game-Changer?
It’s worth emphasizing why HR digitization is a key element to consider in the coming years. HR transformation and a transition to digital processes can help you better assess applicants, onboard skilled recruits, and retain the right people.
Digital technologies will help you simplify your work in unique ways, whether it’s analytics, performance management, or filling vacant roles. As a result, you can anticipate several significant benefits from implementing digital HR processes in the future, including:
- Simplification and standardization of existing processes.
- Better development and retention of employees.
- Easier management of employees and departments.
- More prospects for HR data analysis and application.
Stages Of Successful HR Transformation
HR transformation is not a switch that you’ll flip through.
Instead, it’s a never-ending process of removing legacy HR solutions and replacing them with modern systems and processes.
These legacy processes have existed for many years. It will take time to replace them, as well as the frame of mind that supports them. There is, however, a way to bring HR into the digital age. This approach is based on the six stages of HR digital transformation.
Stage 1: Business As Usual
Also referred to as the stage ‘we always did it this way.’
HR processes, technology, and people in this stage are still sticking to old-fashioned HR solutions. Because they perceive no value in transformation, the leadership is uninterested in it.
You must first overcome these roadblocks — and the ingrained misconceptions of HR professionals who are backing them up — before you can even consider your HR transformation path.
Stage 2: Present & Active
Welcome to the HR digital transformation’s ‘let’s see how it goes’ stage.
Finally, the top management realizes the advantages of HR digital transformation. In addition, areas of innovation are growing. Employees in HR are teaming up to establish small-scale test initiatives and successfully implement technological changes.
Stage 3: Formalized
The HR digital revolution is well underway at this point.
The scope of a project expands. You’re now testing more systematically to solve specific business difficulties.
However, since you’re now spending a lot, there’s some opposition from the higher-ups. Delivering results becomes critical, especially because transitioning to the next phase of the HR digital transformation would require even more cooperation (and a larger budget).
Stage 4: Strategic
Multidisciplinary teams leading the HR transformation are given a seat at the top management table at this level of the change.
You’re not wasting your time attempting to persuade others of the advantages of digital transformation in HRM. That portion of the heavy lifting has been completed.
The next step is to create an HR transformation strategy that will span several years. This entails devising a plan that links HR to all aspects of the organisation.
Stage 5: Converged
At this point in your HR transformation journey, you’re concentrating on forming a strong interdisciplinary approach to support the new strategy as it supports business and customer-centric objectives.
A dedicated digital transformation team is developed to manage the company’s management and operations at this stage.
Stage 6: Innovative & Adaptive
Your digital transformation team’s responsibility at this point is to invent and explore new ideas.
Implement test initiatives in collaboration with other departments… even if the concepts seem odd. Your HR digital transformation is an important business factor. Experimentation (and even failure) aids in maintaining the required pace.
By the time we reach the sixth stage of HR transformation, the organization’s – or rather, its employees’ – perspective has entirely changed.
A new ecosystem has emerged as a result of digital transformation becoming the new “business as usual.”
It’s almost as if it’s evolved into a strategic mindset. This, however, includes more than just people adopting various online platforms and technologies. It means they understand – and embrace – that change is constant in our twenty-first-century environment, and that a company’s success depends on its ability to adapt to it.
A Final Note
To avoid ending on a heavy note, HR transformation is unavoidable. HR and managers simply cannot stay behind in a world that is rapidly modernizing, without transforming outdated technologies and adapting to a digital world.