Human resources (HR) technology has come a long way over the past few years. Now is a great time to take advantage of this by developing a digital HR strategy.

This article will guide you through the digital transformation process. You’ll learn:

  • What is the digital transformation of HR?
  • Why digital HR strategy matters
  • How to develop a digital HR strategy for your business

What Is the Digital Transformation of HR?

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The digital transformation of human resources involves changing the way HR functions so that technology is at the center of every process. It’s about using technology and data to create organizational change that supports the overall goals of the company.

Most HR departments are behind the times when it comes to technology, with many HR workers still managing their data with Excel spreadsheets. Hanging on to old-school methods of managing payroll, recruitment, employee performance, and more puts HR at a disadvantage.

With a digital HR transformation, human resources can reap the many benefits technology provides. These include:

  • Discovering fresh insights from reports and analytics
  • Increasing productivity and reducing errors by automating repetitive tasks
  • Improving the hiring process and employee experience

Why Is a Digital HR Strategy Important?

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The workforce is changing rapidly. We were already on the path toward remote and hybrid work models, but the pandemic sped this up dramatically.

Now, employees have the opportunity to work for companies all over the world. This means the competition for top talent is fierce, and you need every available resource to ensure you can attract and retain the right people.

Adopting new HR technologies is a step in the right direction, but this adoption must be supported by a strategy. Without a digital HR strategy to guide them, your human resources professionals will be floundering in the dark as they adjust to new technologies and workflows and your company will suffer in the meantime.

There is huge potential in HR software, but it’s important to be strategic with your choices. Don’t be swayed into impulse decisions simply because the new software looks promising with all its bells and whistles. Any investment in new technology should be tied to specific company goals and have a detailed deployment plan.

How to Create a Digital HR Strategy

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Creating a digital HR strategy is a vital step in the digital transformation of human resources. Use the following tips to help you develop a solid plan for your HR department.

Identify Your Goals for HR Technology and Talk to Your Team

The first step in creating a digital HR strategy is to identify why you want to take HR digital:

  1. Are you hoping to improve the employee experience?
  2. Do you want to move from role-based hiring to skill-based hiring?
  3. Is your company losing money because of high turnover?

Knowing your ultimate goals for the new software will guide your strategy and help you choose the right technology. Your team has invaluable insight about what obstacles they face as well as ideas for how HR processes can change for the better. In addition to collecting feedback that can inform your technology choices, this is also a great opportunity to make it clear that a digital transformation is coming.

Be sure to let employees know that this change is about supporting their work, creating a better environment for employees, and improving the business overall. With a firm understanding of the needs of your HR team and your business, you can select the right digital tools to transform your HR functions.

Train Your Team and Transition to the New HR Software

Your digital HR strategy should include training on the new technology and a transition process. Your team may be overwhelmed with this transition to digital, but you can alleviate some of the stress with education. No matter how intuitive the software is, be sure your employees receive thorough training on how to do each aspect of their jobs within the new system.

Allow some time between when employees receive the new technology and the official transition away from the old HR systems. During this limbo period, your employees can learn and explore their new digital tools confidently without pressure. The digital transformation should be finalized once the team has a comprehensive understanding of all the features now available to them.

Evaluate the Digital HR Transformation

There’s only value in a digital transformation if it helps your business. Most HR software today offers robust analytics. Use this data along with feedback from your HR team to determine whether the goals you set are being met.

If the goals aren’t being met, you’ll need to identify why. The initial reaction is often that you need different or more technology, but that isn’t always the case. If you vetted the provider you chose carefully and looked for the features that would support your goals, it’s likely the problem lies in the deployment of the technology.

Has your team adopted this digital transformation fully? Sometimes when new technology is introduced, employees will develop a sort of hybrid work process that includes aspects of both the old and the new methods. This usually happens if workers feel that something about the new software is more challenging to use than their traditional way, and it can be addressed with additional training.

Embrace the New Normal Without Becoming Complacent

Once you’ve set your goals, trained your team, and evaluated the effectiveness of the new technology, your human resources department should be working seamlessly with digital tools. It’s easy to let your team function on autopilot, especially now that your software has made so much automation possible.

To avoid stagnating, be sure to include a yearly or biannual review in your digital HR strategy. During this time, you’ll reevaluate how the digital HR processes are performing against the goals you set, check in with your team to gauge their level of confidence and satisfaction with the technology and determine if any changes need to be made to increase efficiency.

This is also a great time to ensure your software is current with any new updates that the provider has rolled out. Including a regular department review in your digital HR strategy will ensure that your company continues to benefit from the technology investment.

Conclusion

The process of transforming HR to a technology-based approach is complex. With the information provided here, you can begin planning your digital HR transformation. Once successfully implemented, your company will be more competitive and better equipped to handle the future changes in the world of work.

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