How Can Your Organization Reap the Benefits of HR Digital Transformation?

How Can Your Organization Reap the Benefits of HR Digital Transformation? | Digital Transformation | Emeritus

A cursory glance at the PwC’s Hopes and Fears Report from 2022 highlights the significance of HR digital transformation. The report says that most employees expect flexibility in terms of remote work, which is only possible through HR digital transformation.

In addition, the report reveals that Indian employees want their company to invest in technology fastidiously. However, the results of the survey indicate that employers are not keeping up with the pace of investment.

According to a 2021 research paper published by Ashutosh Jani,  Ashutosh Muduli, and Kaushal Kishore found that HR digitalization improves the business outcomes of Indian companies significantly. The study, furthermore, predicted that HR digital transformation could lead to an increase of up to 30% in business outcomes.Let’s delve into the benefits of HR digital transformation and understand why it is important to have a robust HR digital strategy in 2023.

In this blog, we shall be covering the following:

  • What Exactly is HR Digital Transformation, and How Does it Differ From Traditional HR Practices?
  • What are the Key Benefits of Implementing HR Digital Transformation in India?
  • How Can Businesses in India Overcome Challenges and Barriers When Implementing HR Digital Transformation?

What is HR Digital Transformation? How Does it Differ From Traditional HR Practices?

Data ScrapingHR digital transformation involves the use of technology to modernize various HR processes within an organization. A company devises an HR digital strategy that integrates digital tools, software, and platforms to optimize HR operations. Here are some key differences between traditional HR operations and an HR digital strategy:

1. Ensures Process Efficiency and Automation

Most traditional workplaces rely on manual processes to carry out tasks such as employee record-keeping and payroll processing. On the other hand, HR digital tools help automate tasks like payroll, leave requests, etc., thus streamlining processes, preventing errors, and saving time.

2. Emphasizes on Data-Driven Decisions

Several decisions are based on anecdotal evidence or limited data, leading to potential inaccuracies under a traditional HR practice. However, HR digital transformation leverages data analytics to make informed decisions. For instance, it considers measures like workforce metrics, employee performance data, and engagement insights to shape HR strategies.

3. Resolves Employee Queries Swiftly

If your organization doesn’t take advantage of the latest HR tools, your HR team ends up becoming an intermediary for employee inquiries. Evidently, the process is a lot smoother when you rely on HR digital capabilities.

4. Streamlines Recruitment

Another key difference is that traditional HR practices use paper-based resumes, face-to-face interviews, and manual onboarding processes. Again, HR digital tools optimize a company’s recruitment process with the help of online recruitment platforms, video interviews, online tests, etc.

5. Promotes Learning and Development

A company often organizes in-person workshops under a traditional HR practice but a company that has initiated HR technology transformation taps digital learning platforms to conduct webinars.

ALSO READ: How HR Consultants Can Be Effective in Organizational Change

What are the Key Benefits of Implementing HR Digital Transformation in India?

1. Increases Data Security

It is crucial to remember that businesses face a lot of threats in the ever-changing digital landscape. Employees access multiple tools to complete their work, exposing their data. Fortunately, HR digital transformation offers enhanced security, helping protect sensitive employee data.

2. Drives Cost Savings

The need for manual paperwork and administrative tasks is eliminated with the help of HR digital capabilities. Consequently, a company can save a lot of money in terms of time and resources. It saves money by enabling remote work with the help of digital tools.

3. Simplifies Regulatory Compliance

Moreover, HR digital transformation also helps maintain compliance with company policies and governance. These digital tools can be used to identify violations and rectify them in real-time.

4. Ensures Data Accuracy

A company that knows how to leverage HR digital transformation can minimize its workloads. This helps in reducing mistakes. Subsequently, it frees up the focus of the HR department to focus on more high-value tasks.

5. Offers Competitive Advantage

HR digital transformation enhances the experience of employees with the help of feedback mechanisms and learning opportunities. As a result, it leads to an improvement in retention rate.  Companies with digital HR capabilities are able to attract top talent since they streamline their recruitment process.

ALSO READ: 5 Things That the Human Resource Management Team Does to Drive Growth

How Can Indian Businesses Overcome Challenges When Implementing HR Digital Transformation?

1. Securing Support From Senior Management

A common barrier faced by HR professionals in drafting an HR digital strategy is the lack of support from top leadership. They resist change for a variety of reasons, including a traditional mindset. The solution involves engaging senior leaders early, emphasizing the strategic importance of HR digital transformation with a roadmap.

2. Picking the Right Vendor

It can be difficult to identify the right technology vendors for a successful implementation, especially if you don’t have someone with the necessary technical know-how. IT experts and consultants are of great help in the implementation process. However, this needs to be done after a thorough evaluation. For example, consider factors such as reputation, features, support, and scalability before finalizing the vendor.

3. Overcoming Cost and Budget Constraints

It is likely that a company may not invest in an HR digital strategy due to limited resources. Again, cost-benefit analysis can go a long way in illustrating the potential Return On Investment (ROI) in HR technology transformation.

4. Developing Skills Among Employees

It is often found that employees lack the skills to leverage HR digital tools. This can be fixed by providing comprehensive training programs to upskill employees and enhance their digital literacy. With such upskilling programs, employees can help replace existing legacy systems.

5. Placating Concerns From Employees

An organization looking to implement an HR digital strategy faces resistance from senior leadership and its employees. For instance, they are likely to be unsure due to unfamiliarity or perceived job insecurity. It is best to include employees in the planning process, address their concerns, and present the benefits of digital HR tools in a lucid manner.

ALSO WATCH: Advanced Programme in Human Resource Management | IIM Lucknow

Learn With Emeritus

In conclusion, it is clear that HR digital transformation is the key to building a successful organization, and this requires upskilling. Pursuing an HR course can help you understand the concepts to create a successful HR digital strategy, in addition to recruitment, performance management, etc.  If you are looking to foster the right set of skills necessary for the growth of your company, check out Emeritus’ human resource courses.

By Mitaksh Jain

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About the Author

Senior Content Contributor, Emeritus Blog
Iha is the grammar guru turned content wizard who's mastered the delicate dance of correcting bad grammar and teaching people how to correctly pronounce her name. With a filmmaker's flair for marketing and digital media, she's the project ninja, flawlessly coordinating remote and in-person teams for 6+ years. When not conjuring captivating copy, she's delightfully torn between diving into 5 books or diving into endless series—decisions, decisions. Beware of her mischievous dog, who is always ready for a great escape!
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