Digital transformation has the potential to transform HR as we know it. In fact, several startups are already transitioning towards an automatic, virtual, and software-based workplace. For the most part, this change has been made to combat the Great Resignation and talent shortages.
Why Digital Transformation is Important for Human Resources
Traditional human resources processes rely on face-to-face communication and paper files, but that can get chaotic very quickly. It also limits their ability to create a remote or hybrid office.
HR digital transformation involves moving those processes to a technology-based system, but this phenomenon doesn’t just include the adoption of new technology. It’s also used to improve your culture, support your business goals, and enable flexibility within your HR department.
The benefits of digital transformation include increased employee engagement, data-driven decision-making, simplified payroll procedures, and a streamlined recruitment process.
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7 Examples of Digital Transformation in Human Resources
Digital transformation as a concept makes a lot of sense on paper, but what does it look like in practice?
Here are 7 ways digital tools and software are revolutionizing HR processes.
1. Remote Friendly Software
From text-based communication channels to signing event contracts with e-signatures, remote-friendly software keeps hybrid teams engaged.
2. Digital Onboarding
A great onboarding process can improve employee retention, but a digital onboarding system can help HR departments train staff in and out of the office.
3. Self-Service Portals
A self-service portal allows employees to request time off, call in sick, get a copy of their tax documents, read from a knowledge base, and much more.
4. People Analytics
Employee-based analytics software can vastly improve productivity, engagement, and performance and helps HR attract and retain quality talent.
5. Applicant Tracking Systems
AI-powered ATS software matches employers with the right employees using skill, experience, industry, and education-based keywords.
6. Automatic Chatbots
A well-thought-out chatbot script can provide potential and current employees with the answers they need without having to speak to a human.
7. Digital Adoption Platforms
A digital adoption platform helps employees get up to speed with new technology using walkthroughs, videos, and interactive elements.
Although these tech examples can make your employees more efficient, it’s a bad idea to adopt all needed technology in a short period. Most of us are resistant to change, especially when it involves automation, as we’re afraid of being replaced or learning an (often difficult) new skill.
How Digital Transformation Will Reshape Your Value
Anytime an industry, employer, or employee changes how they approach a business or work topic, it reshapes their value in the marketplace. For example, an adaptable industry will sell to more customers because they’re able to stay relevant with their current customer base.
Digital transformation is one of the many ways employers can keep up with a constantly shifting consumer market. Studies show that companies with a higher digital transformation maturity report a 45% increase in revenue growth. But, a refined process won’t just lead to more money.
Adopting workplace or industry change makes you more resilient to change as a whole. Instead of being reactive, you’ll become proactive, reducing stress and improving project outcomes.
To gain all the benefits of digital transformation, HR has to shift its mindset. Business as usual is easy, but change is often worth the effort. These benefits go beyond your organization, as individuals will also be able to make strides towards their personal and professional growth.
Action-oriented leaders will want to invest in digital transformation to increase efficiency, productivity, and market relevance. However, you need to adopt all software and tools slowly to get your HR staff onboard and see long-lasting changes in your HR systems and processes.
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