The Digital HR Revolution

The human resource (HR) landscape is undergoing a seismic shift. To keep pace with rapidly changing business environment, digitisation is no longer a futuristic vision for the HR function; it is very much part of the present reality. From recruitment to retirement, digitisation and AI is transforming employee lifecycle management. Digital tools have stopped being in the periphery, they have rightfully claimed their spotlight seamlessly navigating an efficient and responsive path in every facet of the employee’s journey. 

But first let us understand what Digital Transformation in HR is--

The usage of technology to modernise a wide range of HR process and operations including (but not limited to) recruitment, performance management, compensation and benefits, employee engagement, compliance, labour laws et all within an organisation. A company with an efficient HR team in place devises an HR digital strategy integrating digital tools, software and platforms to help optimise HR operations. Broadly the aim of digitising HR processes includes streamlining them to offer a better user experience for employees and employers. 

Some examples of digital HR tools are - applicant tracking systems (ATS), performance management software, employee engagement platforms, HR information systems and benefits administration systems.

Here are some of the key benefits of adopting Digital HR

Recruitment & Onboarding

Digitisation has overhauled the way companies hire and retain talent. AI powered application tracking systems, help HR teams sift through resumes to identify top candidates and based on historical data predict their success. In the era of post pandemic remote work, virtual onboarding, e-learning upskilling modules, video conferencing and digital documentation are all part of a seamless onboarding process.  

Empowering Through Efficiency

Imagine a world where tedious paperwork and administrative hurdles are a thing of the past. Digitisation and automation streamline HR processes, from onboarding to performance management. This translates to faster turnaround times, reduced frustration, and more time for employees to focus on what truly matters – their core work and professional development. They can spend it better by focusing on critical analysis, reasoning, and evaluation. Algorithms and AI have helps in weeding out applicants to do not match the basic qualifications for a given role, freeing up time where HR can focus on the right candidates.

Data-Driven Decisions, Brighter Futures

Data is now considered the new oil, and HR is no exception. By leveraging HR analytics, organisations can gain insights into employee sentiment, identify skill gaps and predict future talent needs. This empowers employees by ensuring their skills are continuously developed and aligned with the company's evolving strategy.

Businesses daily produce vast amounts of data - organisationally and personally. These data can be used in their decision-making processes involving employees and productivity rather than depending on gut feeling or personal observation. Employees these days access multiple tools to complete their work which can expose their data. Digital transformation offers enhanced data security protecting sensitive employee data.

Employee Wellbeing

Integrating employee wellness to enhance employee experience is a strategic decision most organisations are taking to retain employees. Mental health platforms, well-being apps and a plethora of options are available to employees to better manage stress, develop a healthy work-life balance and enhance resilience. Digital tools can also help HR in tracking potential burnouts and employee dissatisfaction. 

Succession Planning

With the help of AI-driven talent analytics it is now easy to identify high-potential employees and create a targeted development plan for them. The access to abilities and competencies can help create a robust leadership pipeline. Digital tools provide insights and effectiveness of talent development initiatives of an organisation.  

Competitive Advantage in Terms of a Personalised Journey

Gone are the days of one-size-fits-all HR approaches. Digital tools empower HR to personalise the employee experience. Learning platforms can tailor training programmes to individual needs, while internal communication channels become interactive, fostering a sense of community, and belonging. Employee experience is enhanced with the help of feedback mechanisms and learning opportunities. All these cumulatively leads to an improvement in retention rate.  Companies streamline their recruitment process normally attract top talent. When it comes to GenZ and millennials who are used to technology, companies can use technology to source, preselect and close roles which demand a young population.  

Amplifying Employee Voices

Digitisation opens new avenues for employee feedback. Pulse surveys, anonymous suggestion boxes, and online forums create a safe space for employees to voice their concerns and ideas. This two-way communication fosters a culture of trust and transparency, ultimately leading to a more engaged and productive workforce.

Like with everything in life there are always challenges. You need to keep that in mind while approaching a digital overhaul. Prior to digitising your HR functions take a formal approval of leadership and key stakeholders, secure their support, choose the right vendor, look at cost-benefit analysis and provide comprehensive training to employees so that they can leverage the technology available to them and reassure employees and management by keeping them in the loop throughout the process as digital tools replaces existing legacy systems.

How to begin your journey with digital HR

Digitisation of HR impact businesses. There is time, money and effort needed to digitise the concepts. It is thus imperative to take suggestions from employees, colleagues, and long-term key stakeholders on areas which HR should focus first. Once you have a good understanding of needs, establish specific, measurable, achievable, relevant and time-bound (SMART) goals for your digital HR transformation. This will help you track progress and ensure your efforts are focused. You must not try to overhaul everything at once. Begin with a pilot programme focusing on a single, well-defined area - like onboarding or performance reviews. This allows you to test the waters, identify any potential issues, and refine your approach before scaling up. Lastly, digital HR is constantly evolving. Be prepared to learn new technologies, stay up-to-date on industry trends, and adapt your approach as needed. This ensures your digital HR strategy remains relevant and effective.

HR transformation using digital human resource technology (HRT) can significantly improve business outcome of companies when undertaken and mediated by HR that plays multiple roles in the organisation, that of a strategic partner, employee champion, change agent and administrative expert – basically the David Ulrich HR model.

The Future of Work

As technology continues to evolve, so will the HR landscape. As technology continues to evolve, so will the HR landscape. In this new scenario, organisations that embrace digital technologies are well-positioned to create future workspaces that are not only efficient but also foster greater transparency. This in turn will empower each of their employees to reach their full potential. I strongly believe that organisations should make  the human element the core of their HR function. The path to this is by implementing a seamless digital employee lifecycle management system. This will enable organisations to empower their employees, cultivate a sense of ownership and create an environment where they can thrive. The outcome is a positive workspace that fosters a more engaged, productive and ultimately, successful workforce.

The author is Ajay Bhasin, Group Chief Human Resources Officer, STEER World.