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What is HR digital transformation?

Glossary definition

What is HR digital transformation?

Digital transformation in HR means using technology to automate routine admin and processing.

It means marshalling employee and workplace data in one database to create a single source of HR truth, then using powerful analytics tools to reveal insights and trends that can help shape the future workforce experience.

This transition is part of an overall move in many organisations from HR to People, in People Companies that know the critical importance of investing in their people and attracting and retaining the best, to drive business growth and success.

People Companies and their People Marketing teams have moved from working on manual policies and processes that deliver little strategic value to an insight-led, digitally enabled team that generates strong strategic value.

Survey data shows that 94% of HR leaders intend to complete this transition in the next three to five years.

The key characteristics of a digitally transformed HR or People function include:

Having a single system of record and fully automated HR processes

Many organisations have invested in leading HRMS technology to provide this capability.

Using analytics, these organisations are able to make data-driven People decisions.

They’re able to access data and insights whenever they need them, to respond to continually changing business, workforce and market conditions.

Harnessing sophisticated digital analytics to drive HR decision-making

It’s not just about collecting data and reporting it. It means analysing it and finding solutions from it by modelling future scenarios and testing them.

Inviting and acting on employee feedback

In Transformational HR, the ability to continually gather and monitor performance data and employee opinions using digital tools is key.

Pulse surveys, delivered on mobile devices, help People Companies to stay in touch with employee sentiment and reactions to initiatives and to understand how they can further improve employee experiences.

Enabling self-service

Make it easy for employees to manage their own records, preferences and admin. Provide information on demand through digital apps.

Automate onboarding and induction so new employees feel included and valued, and can hit the ground running.

This helps attract and retain talented employees and enables them to contribute their skills fully and creatively.