Digitization of business processes is a huge topic nowadays. Companies are looking to improve productivity in various departments ranging from sales and marketing to human resources. Optimization of day to day operations leads to gains in speed and efficiency. When it comes to the HR department, modernization of old processes and systems is necessary in order to create and sustain a healthy and conducive workplace environment. The question “Why HR needs digital transformation?” can be answered in so many ways as will be highlighted below.
Different types of companies face different types of challenges when it comes to employee engagement, retention and recruitment. HR as we know has had to reinvent itself in order to keep up with the digitization of other departments in the workplace. Consumer habits are constantly changing.
Employees have no option but to change their practices and systems in order to meet the ever-changing expectations of their customers and clients. Since time immemorial, the main work of HR has been to take care of employee administration. HR professionals have conventionally been tasked with responsibilities such as recruiting new employees, dismissing or firing existing employees, processing wages, onboarding, training and handling legal issues affecting company employees.
The life of an average employee in any company has always been managed and to some extent controlled by HR. Because of this, HR has adopted a bad reputation over the years. HR is viewed by many employees as a foe instead of a friend. In the past, HR has been to thoroughly screen candidates for new job position and also keep a close eye on existing employees to make sure that they adhering to company protocols and principles. This ‘big brother’ role is one of the defining characteristics of the Human Resource department as we know it.
How Does Digitization Affect HR?
Numerous people have predicted that the total digitization of employee administration will lead to the death of HR. They claim that HR functions will seize to be profitable when digital systems are put in place. There is also the option of outsourcing HR functions to third parties that deal with automated payroll management and employee administration. Many companies in Europe and North America are already outsourcing their day to day HR duties to companies that specialize in human resources management.
But, HR as a department may not be so easy to get rid off or scrap altogether. Employee legal issues and compliance is getting broader and more sophisticated by the day. Employee administration is therefore becoming more complex and this means HR will still be a key department in most workplace environment. HR is therefore here to stay but the department has to evolve in order to keep up with ever-changing world of business. Today, there are thousands of specially made HR software that offer a wide range of employee administration solutions. These software have contributed immensely to the digitization of HR processes in both small and large corporations.
An example of a software that has gained huge popularity among HR professionals is Clustree. This software enables HR professionals to make use of artificial intelligence in HR data processing. Other software that play a key role in digitization of employee administration are Workday with its automated payroll solution, Talentsoft with its wide range of talent and employee management tools, Assessfirst with its predictive recruitment tools and many others.
Why HR Needs Digital Transformation
HR definitely needs digital transformation if its going to remain relevant and productive in the workplace environment. Companies do not necessarily need to look for independent or separate employee administration solutions. The transition from using old and manual HR processes to digital and automated processes is the best way to ensure HR relevant in the ever-changing workplace. Employees can be easily managed directly by the companies or business that they work for through use of IT systems and other emerging technologies.
Global Talent War
One of the main reasons why HR needs to embrace digital transformation is the prevailing talent war taking place in almost all corners of the globe. It is now possible for companies to hire people from all over the world. The search for talented employees is not limited to certain geographical jurisdictions.
HR departments are nowadays undertaking talent searches in very far places. This means that they are not only competing with HR departments in their area. The prevailing global talent war is enough reason for companies to seek more innovative and efficient ways to recruit and retain employees.
Changing Employee Expectations
Majority of the global corporate workforce is made up of millenials. Millennials in the workplace have very different expectations from their older counterparts. They simply expect the workplace to be different. They value issues such as personal development, search for meaning, flexible working hours, remote work, mobility and many others. Most of these issues can be implemented or advanced through digitization of employee administration and other HR functions.
The digital transformation initiative is currently being implemented in different enterprises in all niche industries. Digitization deeply transforms how companies operate. Digitization of HR specifically helps to improve the overall experience of employees in any workplace. The human component of any business is at the core of its success. If employees are not satisfied or happy with the experience they have at work, they will not be as productive as they should be. You now know why HR needs digital transformation.
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