Digital Transformation in HR: What You Need to Know in 2024?

Digital transformation in HR is a hot topic in the recruitment market today. Although many recruiters have realized the significance of digital innovations in streamlining HR processes, some recruiters still rely on outdated HR tools and methods.

Whether you use digital technology in your company or not, this blog is for you! Here, we will dive deep into the meaning of HR digital transformation, its importance, how to adopt it, and more. So, read on!

What do we mean by digital transformation in HR?

When recruiters change their outdated HR tools with automation, we can say that they have transformed their HR processes and made them data-driven. According to a report , HR digital transformation is a dual challenge for organizations, as first, they have to transform their HR tools, and second, they have to change how the workforce carries out different tasks.

It means that the transformation is not just about HR but ultimately changes how the organization works. Or at least it should if it needs to be successful.?

One thing to remember here is that no matter whether you are transforming your HR process digitally or not, you must have your goals clear. In other words, the transformation should make business sense and benefit the overall business's operations somehow.

Many companies undergo this transformation due to peer pressure and fear of missing out. They think that only because their competitors have gone all digital, they should do the same to give them tough competition.

However, such companies fail to realize that digital transformation in HR processes will not reap benefits if you only do it for the sake of it. That is because it might lead to unnecessary investment in modern tools you do not even need in your hiring tech stack.

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What are some examples of HR digital transformations?

Although there are many examples of digital transformation in HR, here are some common examples:

IBM

You can see digital transformation in HR in IBM, a famous American company popular for its digital human resource management experiments. The firm launched an online learning platform to give its workforce a fully customized experience.

Unilever

If you compare Unilever's current hiring process with the past one, you will notice that the company has radically changed it. They are experimenting and are using social media, online games, and artificial intelligence (AI) to digitalize their recruiting operations.

Cisco

Cisco organizes hackathons to build new HR solutions and help new hires and their employers during onboarding. They also use a voice command app to quickly give answers to many HR questions. These questions might be related to anything like holiday policy, health insurance, expenses, etc.

What are the stages of HR transformation?

Now that you know the meaning and examples of digital transformation in HR, let us get to the serious part. You cannot make your hardly digital organization fully digital in one night. That is because these changes take time and cannot happen overnight.?

Therefore, you should know these six stages in the HR digital transformation:

• Business: It is the goal setting of what you want to achieve through the digitalization process.
• Present and active: Many experiments in the company to promote digital literacy and creativity among employees.
• Formalized: It is the process where business relevance helps. If the digital transformation does no good for the business, employees will not support it, and vice versa.
• Strategic: Employees know the power of teamwork and collaboration. They will communicate and collaborate to make mutual decisions and create new digital roadmaps.
• Converged: It is the stage where the team finally decides to make digital HR transformations and develop strategies that will align with the company's goals.
• Innovative and adaptive: Digital transformation finally becomes possible, and the company established a new digital ecosystem.

When you reach the sixth and final stage of digital transformation in HR, your organization's mindset will shift and become digital. However, it does not mean all your employees will embrace digital tools and follow digital HR practices.

It means they will be aware of them and will accept the change. And why not? We live in the 21st century, where everyone should change with time. Or they will lose the opportunity to become successful.

How can you get started with digital transformation in HR?

Digital transformation in HR might sound cool in theory. But taking the first step towards this is pretty challenging. However, here are some tips to help you do so effectively:

Make clear goals

You must establish clear goals in order to adopt digital HR solutions. Therefore, your first step on this journey should be establishing a goal that aligns perfectly with your business's needs.

And do not forget that you should prioritize your employees while defining these goals. In other words, let your employees test the new technology before adopting it for your business.

Get everyone on board

With this, we do not only mean internal employees, but we also mean the stakeholders. The reason? Digital transformation in HR can affect the entire company. So, you cannot make this big decision alone without asking important stakeholders for their opinions.

Moreover, the support of all employees is necessary for this transformation to become successful.

Keep things simple

As discussed in the blog above, you should not complicate things in your company only because leading businesses are doing so. Instead, start simple and small. Consider your weaknesses in HR operations and evaluate which areas digital innovations can solve.

For this, you can also get help from your employees by asking them about HR processes where the company is lagging.

Think of new ideas

This process might result in a long list of ideas from all your employees. But you must know how to prioritize these ideas based on their relevance. In this case, think of the ideas that will benefit the HR processes the most and do not require much investment.

In short, prioritize the ideas that will result in high impact and require low effort. It will help you go all digital quickly and effectively.

Assess performance

There is no point in trying and adopting digital technologies when you do not measure the results. Hence, you need to know what works best for your company and what does not.

After all, investment in a cloud-based applicant tracking system is only worth it when it is helping you solve different HR problems.

Culture is important

Remember, digital transformation in HR alone cannot help your entire company unless all your employees are involved. Not only this, but you should ensure that employees adapt themselves to the new changes and work according to that.

It means you have to change the mindset of your new and existing employees. Only then can you make the digital transformation successful.

Conclusion

Ultimately, we can only say that digital transformation in HR is not an option but a necessity in today's tech-driven business world. Consumers, including your employees, do everything virtually and expect the same from businesses.

Therefore, the sooner you adopt digital HR tools and software for your business, the better it will be for you. But the question is, do you know the best HR software in the market today?

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