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What Is HR Digital Transformation and Why Is It Important to All Modern Workplaces?

Now more than ever, the challenges of managing an ever-growing remote workforce highlight the need for businesses to embrace digital. And it’s happening! The digital revolution is making its way across industries, improving business processes, cultures and customer experiences alike.

For HR departments who took the digital leap it means they’re no longer relying on the dreaded Excel spreadsheet, but what about the ones yet to do it? What does a successful HR digital transformation look like, why is it necessary, and how should they go about it? Let’s take a look.

What Is the HR Digital Transformation?

HR digital transformation is the process of adopting digital HR tools and technologies to improve operational performance. Essentially, it’s using data to guide all areas of HR, with a multifold goal in mind: to automate processes, reduce time spent on repetitive tasks, make data-driven decisions, and free up time for strategizing. And it can take various forms, depending on each business’ needs.

For example, instead of reading every resume, an Applicant Tracking System (ATS) can automatically filter out bad candidates. Or instead of walking each new hire through onboarding paperwork, an onboarding software can automate the process. Or instead of promoting employees based on instinct, a succession planning system can evaluate data on employee performance to inform decisions.

What Are the Benefits of HR Digital Transformation for Your Business?

Digital HR tech can reduce costs, improve operations, and enhance employee experiences – all increasingly important as companies compete for talent. Here are the main benefits of HR digital transformation:

Boost HR Efficiency

If your HR department is inefficient, it's not necessarily their fault. HR often struggles with decentralization, manual processes, and a lack of automated tools. But with the right technology, people and mindset, HR can automate transactional processes, and take on higher-level strategizing.

Automate HR Processes

Digital HR streamlines workflows and enhances workplace efficiency, which positively impacts the bottom line. For example, onboarding software can help new employees learn the ropes faster, and start contributing sooner. Or self-service portals can simplify document completion and management, saving time for both HR and employees.

Centralize Employee Data

Maintaining all the employee data at one centralized secure location ensures it’s accessible at any time, and eliminates clutter and paper archives. Such an employee database provides the most effective way to find the information you need, when you need it. Once the HR team has everything in one accurate system, they can make strategic decisions easier and act quicker.

Save Time and Money

Automating repetitive processes brings enormous benefits. In addition to making better use of the value of human capital, major cost savings are achieved. When employees are given the right tools to work fast and smart, they have more time to spend on tasks that actually move the business forward.

Enhanced Employee Experience

With cloud-based apps, big data, process automation, smart integrations and bots, HR can create an integrated employee experience that supports their ongoing needs. And, when they feel seen and supported, employees are more loyal, productive, and focused on meaningful tasks – ones that generate ROI.

This article was originally published on on 16 February, 2022. Read it in full here:



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