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HR Digital Transformation: What Does This Mean For Human Resources?

HR manager working with digital transformation

We usually talk about digital transformation and how it can generate revenue, offer stability, and future-proof a business. We focus on how it opens up channels for collaboration within and among businesses and improves customer experiences. However, HR digital transformation is taking place alongside all this, and the possibilities are wide and exciting.

This article will shine a light on a somewhat sidelined topic—we’ll talk about what the digital transformation of HR really means, and how it differs from digitalization. You will also learn a little about the ways in which we can see HR digital transformation manifest in everyday HR activities and processes and how this benefits the organization down the road.

What Exactly Is HR Digital Transformation?

In the simplest of terms, digital transformation of human resources entails the adoption of digital human resource tools, practices, and strategies to boost employee experiences and optimize operational performance using data-driven, automated practices. There are two sides to the digital transformation of HR: on one side they switch up HR operations using technology, and in the process transform the workforce and how things are done in the workplace.

Successful digital transformation of human resources won’t just optimize HR processes. If done right, it should have a holistic effect and improve the organization as a whole. When looked at this way, in order for an all-encompassing digital transformation strategy, you need to get HR on the playing field.

However, it is easy to confuse this with things like digitization or the digitalization of HR. This will make it easier to remember what makes them all different:

Digital TransformationDigitizationDigitalization
Using digital tools to implement a digitalization strategy that aims to improve employee, customer, and user experiences.Converting manual paper-based processes into digital ones: instead of a manual log, you use a digital app.Digitalization uses technology to change a business model and create new revenue opportunities.

What Are Some Examples of Human Resources Digital Transformation?

Different businesses have different strategies to transform their HR teams. However, these are the typical solutions used by companies:

  • Automation: This mitigates the need for HR employees to perform repetitive tasks, like filling forms, data entry, and so on. Instead, they can work on more pressing matters and utilize critical thinking and creative ideas, resulting in more resourceful and motivating work.
  • Online Onboarding: This allows new employees and visitors to take their time getting acquainted with the workplace, and reduces the workload on HR.
  • HR Chatbots: Instead of relying on an HR team member to sit around answering common queries and FAQs, a chatbot can help address everyday issues. It is also more accessible to employees, in case a particular HR staff isn’t available at the moment.
  • AI-Based Recruitment: It can be draining and difficult to vet hundreds of CVs and portfolios. However, nowadays most organizations use some sort of AI-related recruitment techniques to ‘read’ resumes and discard ones with incorrect formats, wrong information, and similar things. This reduces the workload on HR, who can then perform secondary vetting.

What Does This Mean for Businesses?

The best news about the digital transformation of HR is that it expands what human resources can do for the business, and vice versa. Technologies and tools designed to revolutionize human resource operations can offer things like interactive training programs online, self-service-based applications for all the employees. It offers agility for HR and all the staff involved and helps provide stability for everyone during times of disruption.

In addition, digital transformation is all about people and experiences. This is where HR becomes indispensable as it plays a major role in shaping company culture. HR can be utilized to help create a more open-minded and transparent culture in the workplace, enabling all the employees to get on board with other digital transformation strategies and collaboration. To make a long story short, human resources will be your number one ally when it comes to creating an intelligent, open, and dynamic workforce.

Upwards and Onwards

When crafting an HR digital transformation strategy, it is important to prioritize the focus area. If you want to concentrate on your business’s long-term future, strategies that empower your workforce and foster agility and collaboration are the keys. If talent acquisition is your goal, you will need a different set of objectives. Meanwhile, if you want to create a highly skilled team, your strategy should involve training programs, courses, and an environment geared towards learning. Whatever your end-game is, you can be sure that a digitally transformed HR will make the journey a lot easier!

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