The goal of HR digital transformation is to transform operational HR processes into data-driven, automated systems. On the one hand, HR teams are tasked with transforming HR operations, and on the other hand, they are tasked with transforming the workforce and the way work is done. In other words, HR digital transformation is not just about HR, but it's a metamorphosis involving organizations as a whole. In order for it to be successful, a primary resource is an HR management dashboard.
Digitization and digitalization are both parts of digital transformation. It involves automating processes and creating a culture of automation. In addition, it goes even further and asks whether processes are actually needed, eliminating the rote tasks that once served a purpose when processes were manual but now don't belong in an organization that is digital.
Here are the 9 steps for a successful HR digital transformation1. Establish a clear goal
To establish value creation from transforming HR, ask yourself the following questions to define the goal of digital transformation:
- Will it make things easier for everyone involved or affected by the process?
- Is this goal measurable?
- Will it have a positive financial impact on the business?
It is important to link the transformation goal to the business goal. Business value is what determines the success of a digital transformation project. For example, the goal could be to reduce the cost per hire and thus reduce overall business expenditure.
2. Identify major players
The responsibility for this transformation lies with managers and HR professionals. Employees report directly to managers, and any change in HR practices directly impacts them. There is a high likelihood that these managers are most excited about the transformation and can relate to key areas where HR processes need to be improved.
3. Organize your resources
In order to perform a specific job, you will need the right tool. In addition, you may need to hire someone to execute the task. So you will have to make sure you have acquired or accounted for all the resources you may need before moving to the next step of the process.
4. Determine the time frame
Each process must be given a certain amount of time to demonstrate its value to the organization. For instance, a three-month window to implement a new candidate-screening tool is enough to tell you whether it is capable of offering you a quality candidate database. This will help you gauge the overall length of the HR digital transformation project and the time needed to measure its effectiveness.
5. Categorize processes
Implementing a recruitment/screening software may eliminate the need to look through job boards and LinkedIn. You may also need to reorganize the management structure and create a less hierarchical structure when you identify processes that need to be replaced. So you must categorize your process beased on how they will be impacted by the digital transformation
- Removed
- Heavily changed
- Slightly changed
- Unchanged
This will help set realistic expectations for the team and help the transition move along smoothly.
6. Pitch for investment
There is always a challenge in presenting a business case to the C-suite. Despite businesses' willingness to increase their investment in digital transformation, it is often difficult to entrust that responsibility to an entire department with minimal risk of failure. When you answer the first five questions in-depth, you can create a business case that is based on thorough research, giving your leaders good reasons to invest in the software you need. Having an analytics software will be useful to demonstrate not just why you need the change but later compare the positive results brought on by digitall transformation to further drive home the point for its extended need.
7. Prepare for change
All stakeholders involved in HR processes should be prepared for this change in HR processes. It is wise, however, to start small. Leaders in human resources are concerned that organizations watching how digital transformation unfolds will be left behind. It is still better to start small (if you must) rather than trying to implement an entire system change and abandoning any digital transformation efforts altogether. Rather than making huge errors in a large-scale rollout, pilot project feedback and learnings can be applied to a company-wide project much easier.
One way to do this, is by creating “edge teams” for smooth digital transformation – teams that start with fresh processes and don’t disrupt everything that already exists to go digital. An HR team could, for example, shift to automated candidate screening for associate-to-midlevel positions, but follow an older process for identifying the best-fit candidates for managerial positions. In this way, you haven't disrupted any traditional processes. Instead, you are experimenting with a new one. As a result, the impact of failure is reduced.
8. Create a culture of digitalization
Creating a culture of digitization is essential to HR's digital transformation. Automated solutions shouldn't just be used for their own sake but instead, be used to enhance human abilities. In order to achieve a smooth digital transformation, organizations must put their employees first, rather than technology. In this way, users can adopt new technology versus the other way around, which makes the adoption process smoother. When it comes to introducing technology across the world, the grassroots approach is particularly effective. It resembles the consumer world and reflects the way services are consumed today.
9. Evaluate
In most cases, companies do not get it right on their first try. Organizations that succeed in their transformation projects are those that are open-minded and willing to take risks. The combination of these factors can make or break the digital transformation of the organization. You need a team that is capable of learning, unlearning, and relearning new processes.
To understand why you may have missed your digital transformation goals:
- Identify where the glitches are.
- Coach your team to open their minds to digitization.
- Re-evaluate your digital solution of choice.
Following these 9 steps will ensure that you can create HR digital transformation while having the analytics to ensure that you don't lose sight of your goals or astray from the plan that you have put in place.
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