Why HR Digital Transformation is Crucial in Modern Businesses

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L'équipe Talkspirit
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Temps de lecture : 6 minutes

In the age of Big Data and an ever-growing hybrid and remote workforce, modern businesses have to embrace digital transformation to survive. The digital revolution has reshaped business processes and cultures across multiple industries. Human resources (HR) is no exception. In fact, the sector has been identified as one of those that will hugely benefit from embarking on this journey.

Digital processes and technologies are essential for HR teams to achieve a range of goals. From leveraging AI tools to conduct unbiased recruitment processes, to enabling hybrid and flexible work through communication and collaboration platforms, the possibilities seem almost endless.

This article explains what HR digital transformation is, how best to embark on a successful transformation journey, and why it’s so crucial to modern businesses. 

What is HR digital transformation?

Digital transformation in human resources means adopting digital HR tools and technologies to improve how a company manages its employees. 

Where traditionally HR relied on manual, paper-based processes and paper-based tasks, a digitized HR department operates differently. By automating repetitive tasks and processes, they free up time for more valuable strategizing. The digital approach also informs data-driven decision making. 

Stages of HR digital transformation

You may have heard the words digitization, digitalization, and digital transformation used interchangeably. The truth is that they are not the same — in fact, they are steps, one leading to the next. 

Digitization is the first step. This is the shift from manual to digital processes. For example, converting from paper to electronic forms. 

Next is digitalization: transforming an organization into one which embraces digital tools and a tech-driven culture. For example, beginning to use AI to enhance human resources operations. 

Finally, the ultimate goal is digital transformation. It comes about as a result of digitization and digitalization, and requires an organization-wide shift in mindset. For HR, this involves:

  1. Engaging the entire frontline via digital channels
  2. Abandoning time-consuming paper processes in favor of their digital counterparts
  3. Establishing a clear automation strategy 
  4. Optimizing all organizational processes using data-driven insights
A team discussing an HR digital transformation

Based on 2023 HR trends, modern businesses will continue to reshape the employee experience through digital overhauls. 

Not sure if you should join them? Here are some reasons why you should. 

Benefits of HR digital transformation

Increased efficiency 

Traditional HR departments often struggle with efficiency. This is not a matter of the staff being disorganized. It’s just that they don’t have the right tools to do their best work. With automated tools and a central system for accessing information, you might be surprised at how efficient your team can be. 

Streamlined processes

Automating these processes simplifies workflows, and ensures that everything runs more smoothly. This isn’t only great for morale, it also impacts your bottom line. And because most digital tools are implemented and managed by your IT department (or an external IT partner), you also want to make sure that they leverage the best solutions for your HR team’s needs.

For example, if your IT department adopts PHP function named arguments, they’ll be able to streamline workflows on HR software. Named arguments specify parameters by name, making it easier for teams to read, order, and utilize code. Enhanced code readability and flexibility empower HR teams to navigate systems more effectively, which drives productivity and satisfaction among employees. 

Accessible data

Keeping all employee data in one secure online location is crucial for modern businesses because it eliminates clutter. Moving away from extensive paper filing systems, a centralized employee database allows easy access to the information you need — no more delays or deadends. For example, you can use Talkspirit’s drive to store and organize all your important documents, and make sure your data stays safe.

Data storage on Talkspirit’s drive

Saved time and money

Implementing digital solutions allows employees to work faster and smarter, devoting more time to tasks that help achieve business goals. By better allocating tasks to make the most of human capital, you save time and money

A recent survey by PWC found that 82% of businesses saved money and 86% experienced improved employee productivity after moving HR applications to the cloud. This proves that for the majority, digital solutions optimize processes and help you extract more value from your resources.

Enhanced employee experience 

Digital HR systems can create integrated employee systems to meet the needs of all team members, and enhance the employee experience. With the right support in place, and clear channels of communication, employees are then more likely to remain loyal and productive at work

Also read: [Expert Opinion] How To Make Your Workplace More Attractive To Top Talent

Examples of HR software that can boost digital transformation 

Applicant tracking systems 

3 cartoon resumes on an ATS

The recruitment process can be drastically improved with digital transformations. 

An applicant tracking system (ATS) software allows HR to process hundreds of applicants quickly, eliminating under qualified candidates without allowing human bias to intervene. ATS keeps track of every aspect of the process, such as job postings, screening resumes, planning interviews, and comparing data during the final decision. 

Digital onboarding software

Onboarding new employees is another task which can be improved via digital solutions.  

An inconsistent and disorganized onboarding process inevitably leads to employee dissatisfaction. You need to make sure new recruits get a positive first impression of the company. 

Use digital onboarding software to ensure each employee’s transition into their new role is as smooth as possible. This means having all necessary paperwork organized before their arrival, and making new recruits feel well-supported and welcome.

With the correct documents handled, training modules delivered, and resources allocated, new employees will be able to learn the ropes quickly. 

HR chatbots 

Chatbots are computer programmes which simulate and process human conversation online. But they are not just a novelty — they can be useful communication tools in HR. 

Firstly, there are recruiter chatbots which engage with candidates, saving time by screening applicants so only the best prospective hires are put forward. They can help recruiters save time in other ways, such as scheduling interviews or collecting automated screening answers. 

Beyond recruitment, HR chatbots are useful for existing employees. Rather than dropping by the human resources office every time they have a question, today’s workers enjoy the accessibility of HR chatbots. Using tools like the Talkspirit FAQ chatbot, HR teams can create automated responses to frequently asked questions, ensuring consistency and signposting employees to appropriate resources. 

Asking questions to Talkspirit's FAQ chatbot, a tool that can help accelerate HR digital transformation
Asking questions to Talkspirit’s FAQ chatbot

Employee self-service portals 

Think of the huge array and variety of questions employees might come to HR with. Even the simplest queries can end up sending an employee down a rabbit hole, distracting them from their own work, and diverting HR teams away from other matters. 

According to a McKinsey study, employees spend nearly an entire day looking for company information each week. It doesn’t have to be this way. As part of your HR digital transformation, you can create an employee self-service portal where crucial information can be easily accessed. 

Make sure that the interface prioritizes usability. For example, this can be done using Talkspirit’s ready-to-use home portal. Or even a CMS (content management system) tool that you can personalize, such as WordPress, Wix, or the more flexible and scalable headless Drupal

Communication tools 

As part of your digital transformation, it is also worth using a communication and collaboration tool like Talkspirit. By simplifying project work, promoting knowledge sharing, and boosting productivity, Talkspirit can make your HR department more efficient than ever before. 

Information sharing on Talkspirit’s news feed

These tools are crucial to modern businesses as not only do they optimize collaboration, they also keep documents and communications in one place for easy access. The benefits of a unified communication tool are endless — this could be exactly the solution you need to make the leap to an efficient, paper-free HR department. 

Final thoughts 

In this current era, embracing digital transformation is no longer optional but essential for business survival. By embracing digitization and digitalization, you can pave the way for digital transformations, resulting in a tech-savvy and forward-thinking human resources department. 

Replacing traditional manual processes with automated, data-driven solutions leads to increased efficiency, accessible data, saved time and money, streamlined operations, and an enhanced employee experience. 

Whether it’s ATS, digital onboarding software, chatbots, self-service portals, or communication tools — leveraging technology reduces administrative burdens and allows you to better support employees. HR digital transformation is not a trend but a necessity, crucial to modern businesses. 

Are you looking for a tool that will help you accelerate digital transformation within your HR department? Schedule a call with one of our experts to talk about it:

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