Is it possible to implement a digital transformation in HR?

Posted by Fed Finance in Our employment advice
Posted at 19/05/2023
Is it possible to implement a digital transformation in HR?

Technology has proven to be a great ally in collecting, storing, and analyzing important information about employees and their needs. In addition, digitizing processes can reduce errors, increase efficiency, and save time and resources.

To speak about a possible digital transformation in HR is to speak about resources such as People Analytics, clearly linked to digital transformation in the corporate environment. Through People Analytics companies can make data-driven decisions to improve talent retention, increase the organization’s productivity and efficiency, and even to enhance the employee experience. Thus, People Analytics is one of the key applications of digital transformation in HR. It provides important insights into employee performance, employee experience, and other relevant information for people management. The adoption of digital technologies enables companies to collect and process this information in a much easier, faster, and more efficient way. 

Actions that can be taken to promote digital transformation in HR

  • Use people management software to store and manage important information about employees in an organized and secure way.
  • Invest in internal communication tools to keep employees informed about the company, its organizational culture, its policies, and procedures, creating a better organizational climate and promoting a more dynamic work environment.
  • Implement artificial intelligence in recruitment and selection processes to make them more efficient and assertive, increasing the diversity of the workforce
  • Use data analysis technologies and Big Data to collect and analyze relevant information about the work environment and the needs of employees, enabling more sustained decision- making and the creation of more effective strategies for people management.

These and other actions can transform Human Resources into a more strategic area with greater ability to meet the needs of employees and the company. 

BENEFITS OF DIGITAL TRANSFORMATION IN HR

  1. Greater operational efficiency: by using appropriate technologies, HR teams can optimize routine and repetitive tasks, thus getting more time for strategic issues.
  2. Better employee experience: digital transformation in HR can help improve employee satisfaction by making it easier to access information related to their personal data, documents, and requests.
  3. Decision based on data: technological devices can collect data on employee behavior and performance, enabling more effective and objective decision making.
  4. Talent recruitment and retention: with a more effective and intelligent candidate selection process, the company can attract and retain the most competent employees for its business. 

CHALLENGES IN THE IMPLEMENTATION OF DIGITAL TRANSFORMATION IN HR:

  1. Resistance to change: many employees may feel resistant to adopting new technology at work.
  2. RGPD issues: maintaining the security of employee data is critical to the transparency and trust placed in a company.
  3. Need for new skills and training: introducing new technology may require employees to learn new routines and knowledge. 

HOW TO IMPLEMENT DIGITAL TRANSFORMATION IN HR

  1. Adopt a strategic vision: thinking about a clear structuring perspective can help both the gradual adaptation of the team as well as the clarity of the process, goals and objectives achieved.
  2. Enablement and development of digital skills: promoting a safe and competitive environment with technology mastery is crucial for the motivation of work teams.
  3. Integration of new technologies: the application of testing and improvement of new devices and platforms is crucial throughout the process.
  4. Focus on the employee experience: the mindset for successfully introducing technologies should be focused on employee well-being, in addition to improving operational efficiency and effectiveness in processes. 

SUCCESS STORIES IN THE DIGITAL TRANSFORMATION IN HR

Numerous companies have undergone this digital transformation and many of them already serve as a reference for their good results. We leave some examples of success cases.

  • LG has changed its traditional recruitment strategy to a fully digital approach, where candidates can send their CV online in just one click. 
  • IBM has developed a data analytics platform called HR Pulse. The aim of the platform is to aggregate information about employees in real time, such as demographic data and performance history. With access to this information, trends and opportunities are thus more easily identified on behalf of employees. 
  • GE (General Electric) has implemented a digital platform system that centralizes all documentation of policies, processes and other materials relating to Human Resources. Those in this company now have access to information more simply and immediately. 

In conclusion, a digital transformation in HR and people management is possible and even desirable. The result will be greater efficiency in management processes and a better experience for work teams and for the company. It is important not to forget that, in this whole process, the focus should always be the employee. Digitalization should therefore not be seen as a way of reducing work teams, but rather as a means of providing employees with a more positive and productive experience in their working environment. 

As Recruitment and Selection specialists Fed Finance is always on the lookout for news and trends in the field. Check out our employment tips and advice.