What is HR Digital Transformation?

The pandemic has thrown a wrench of ginormous proportions into the way we work. In fact, it’s accelerating change. Even pre-COVID-19, the term “digital transformation” was showing up in headlines. Nowadays, it’s imperative that HR undergoes such a change to keep pace with the increasingly technological world around us. Witness, for example, the rising numbers who employees who work remotely. But none of these changes occur in a vacuum. In other words, people are at the heart. And the more focused your enterprise is on the employee experience, the more it will flourish.

But exactly what is HR digital transformation? Let us look.

The Digital Age

At its essence, digital transformation is a company’s adoption of digital technology. Note that transformation is not the process of digitization, but the result.

If you’re still using Excel sheets for data collection and interpretation, at a time of incredible technological disruption, you’re going to find yourself falling behind. After all, a Deloitte survey showed that transformation budgets rose by 25% last year. 

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This is a big issue and it’s only going to get worse over time. Employers will continue to hire more independent contractors, freelancers, and other non-traditional workforce members. They’ll also continue to cut costs in any way they can, which could include cutting back on benefits such as health insurance and 401k contributions. But there are ways to mitigate this problem. For example, PayStubCreator will give you the ability to create your own pay stubs online which can save you both time and money. It will also allow you to generate your own paycheck stubs for payroll purposes. You need to be in compliance with the digital age and you need to make sure that your employees are in compliance, too.

HR Digital Transformation

Likewise, the digital transformation of HR affects all areas including payroll, performance management, benefits, rewards, learning and development, and hiring.  The aim is usually one or more of the following:

• To improve efficiency through automated processes and a drop in the time spent doing repetitive tasks.
• To improve the employee experience.
• To have more time to spend on the core business to positively affect performance.

Steps to HR Transformation

Above all, ask yourself why you’re completely overhauling the department. It’s not enough to do it to be in with the proverbial “in” crowd. Once you answer that, you can commence with implementation. Here are some steps:

• Establish value creation. Ask whether transformation ultimately benefits the end user, and whether the goal is quantifiable. Is the transformation aligned with business goals?
• Determine implementation leaders. Usually, HR practitioners and line managers are the ones in charge of transformation since they know their area best.
• Get help with HR digital transformation. Sometimes, it’s best to have a consultant such as Mercer to assist you with data collection and interpretation, and the overall metamorphosis. That way, you’ll improve your business strategies.
• Establish an end point. You’ll need to know when you can fairly label a specific tool a success. Certain amounts of time should be given to each process to determine its organizational value.
• Figure out which processes are moribund. The deployment of new software will lead to the scrapping of certain processes.
• Get buy-in from the top. It can be daunting pitching to top execs. However, if you have your ducks lined up, have done all the prep work, then you should feel comfortable making your case. Excited, even.
• Get everybody ready. While all stakeholders need to be prepared for the major change, it’s likely best to begin small, say, with a pilot project, before the large-scale roll out. This way, you can work the bugs out early.
• Put your employees before transformation. It’s vital that you promote a culture of digitalization. In fact, that’s kind of the point. You want the users to adopt the new technology, not vice versa.

What is HR digital transformation? Now you know, with some steps for how to get there. Just remember HR’s role in the business-wide digital transformation, and that is to lead. That makes sense because digitalization, even with all the technology, is still all about people. HR is at the very heart of digital transformation, in more ways than one.

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