The Ultimate Guide to HR Digital Transformation

We are used to the speed of life and the quality of services provided: calling a cab takes 3 minutes, opening a deposit takes 2 minutes, and grocery delivery takes 15 minutes. We can no longer live any other way. This speed also applies to company work processes. Are your HR processes just as fast and technological? Or is there a technological lag from the usual world?

If you are a business owner or CEO, ask your HRD what these acronyms mean: RPA, WFM, ATS, LMS, BI. Have all the questions been answered?

If you are an HRD, ask yourself similar questions. If you know about these technologies, ask yourself: why haven’t I implemented this in the company so far?

The simplest example of HR digitalization

Why do companies need digital HR transformation? What is its business value? The answer is simple: they save payroll funds and time and get things done faster, directly impacting business efficiency.

By implementing HR Electronic Document Management (EDM) and digitally signing HR documents, you can reduce the number of HR staff. Without EDM, the number of employees per 1 HR specialist is usually 300-400 people. With the implementation of EDM, 1 department specialist can administer 700-800 people.

You probably see the savings in terms of payroll funds. However, if you calculate the entire project economics, including clerical, postal, and logistic costs for document delivery, we are talking about several hundreds of thousands per year.

Improving business efficiency should become one of the HR department’s focuses. American professor, lecturer, and author of HR books Dave Ulrich has formulated 4 questions that you will have to answer in order to realize the digital transformation of HR:

1. Why do we need a digital transformation of HR? The world is changing – HR is no exception. Take a close look at your competitors. HR’s digital transformation strategy cannot go against the company’s digital transformation, and vice versa. For example, if a company implements digital transformation, it is necessary to use a digital signature and sign HR documents via SMS or other specialized services.
2. What does the digital transformation of HR mean? Digitalization is the result of the activity. We must understand the final product or service we will provide to our employees and the value created for the company by accelerating mass recruitment and automating the adaptation system.
3. How will the digital transformation of HR be accomplished? You should have a digital transformation strategy that clearly defines how you will transform certain HR functions and in what timeframe.
4. Who will implement the digital transformation of HR? There is a big deficit of HR specialists with competencies in business process automation on the market. This deficit will grow rapidly due to the total digitalization of all sectors of the economy, including the digitalization of the public sector. Before starting work on the digital transformation process, examining whether your team has enough knowledge and skills to implement digitalization and automation of HR business processes is important. It is also important to understand whether they have the necessary soft and hard skills to develop products and manage such projects.

By the way, the HR digitalization process is similar to digital transformation in healthcare.

How to create an HR digital transformation strategy in 4 steps?

Here are 4 main steps to take to create a digital transformation strategy for HR:

1. DEX research. Over the past few years, HR has become familiar with the term Employee Journey Map (EJM)—an employee’s life journey within a company. It has now been replaced by another term—digital employee experience (DEX). It shows how effectively people interact with IT tools in the workplace, enabling them to be engaged and productive. It needs to be researched, described, and improved internally.
2. Visualize the architecture of all your HR systems. You should understand how many systems are inside HR and whether they are “friends” with each other.
3. Diagnose the maturity level of automation and digitalization of HR processes. Evaluate the integration of automation tools and digital platforms within HR operations, identifying areas for improvement and optimization. Analyze the efficiency and effectiveness of digital HR systems in streamlining tasks, enhancing employee experiences, and supporting organizational objectives.
4. Describe the HR digital transformation strategy for each HR function and the tactical steps for its implementation. Your strategy must cover recruitment, onboarding, performance management, training and development, and employee relations.

To change the traditional HR route to the new digital HR, you need a vision, knowledge, and strategy for your company’s new trajectory. You can start with small innovations because even small deviations from the usual route can lead to big changes. Look for a reliable IT partner? We can help you digitize your HR processes!

Key technologies in HR digital transformation

Here are 5 key technologies that play significant roles in HR digital transformation:

1. HR Management Systems (HRMS). HRMS platforms are comprehensive software solutions that integrate various HR functions such as payroll, recruitment, onboarding, performance management, and employee data management into a single system. These systems automate routine administrative tasks, streamline processes, and provide valuable insights through analytics.
2. Artificial Intelligence (AI) and Machine Learning (ML). AI and ML technologies are increasingly being used in HR for tasks like resume screening, candidate sourcing, predicting employee turnover, and analyzing employee sentiment. AI-driven chatbots are also utilized to handle employee queries and provide support, enhancing HR service delivery.
3. Data Analytics and Predictive Analytics. Data analytics tools enable HR departments to derive actionable insights from large volumes of employee data. Predictive analytics models can forecast employee turnover, performance, and satisfaction trends, helping HR professionals make informed decisions and develop proactive strategies.
4. Employee Self-Service Portals and Mobile Apps. Employee self-service portals and mobile apps empower employees to access HR services and information independently. These platforms allow employees to manage their personal information, request time off, enroll in benefits, view pay stubs, and communicate with HR representatives conveniently, thereby improving efficiency and employee satisfaction.
5. Virtual Reality (VR) and Augmented Reality (AR). VR and AR technologies are revolutionizing various aspects of HR, especially in training and development. VR simulations can provide immersive learning experiences for employees, enabling them to practice skills in realistic scenarios. AR applications can also be used for on-the-job training, remote assistance, and enhancing employee engagement.

These technologies collectively enable HR departments to become more strategic, agile, and data-driven, ultimately driving digital transformation within organizations.

Digital HR example: chatbot for personnel assessment

A chatbot is a universal tool that can be used at all stages of employee evaluation. Many companies systematically integrate chatbots into their existing HR infrastructure. A chatbot can be multi-platform or implemented on one of the channels of your choice: Telegram, Viber, Slack, Facebook Messenger, etc. It can create surveys of different complexity and select a group of employees for them. Survey results are displayed in the form of visual statistics.

Technological advantages of such a chatbot:

• Quick access to information. Chatbot technology allows you to keep the necessary information always near you and quickly use it at the right moment.
• Evaluation time control. The chatbot allows the employee to take the assessment in a comfortable time frame, which greatly affects the test’s objectivity.
• Automatic data analysis. All data received during testing via chatbot are automatically structured and formed into a report or dashboard.
• Action chains. Chatbot allows you to build more flexible testing chains. Depending on the subordinate’s answer, it can send one or another type of test to his/her superior.

Think about how to adapt your company’s operations to use various forms of digital technology.

SoloWay Tech – reliable IT partner for your HR digitalization

Having worked for the past 15 years in the international IT market of the USA, Central and Eastern European countries, and Turkey, we have gained extraordinary expertise. Our SoloWay Tech team understands HR transformation from the perspective of the implementing company and the customer. Look for a reliable digital transformation partner? Contact our SoloWay Tech team!