hr digital transformation case study

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HR Digital Transformation Explained: Strategies, Challenges & Case Studies

Human-technology partnership is vital in this fast-evolving landscape of modern workplaces. Shouldering this responsibility human resources or HR professionals are to optimize their HR process and go through a paradigm shift that begins with the advent of HR digital transformation.

This ground-breaking initiative aims to enhance the employee experience and drive organizational success. The key is to help organizations to “be digital” not “do digital”. And there's a big difference between the two— the focus is not on technology but on organizational change using technology. With digital transformation, HR leaders will explore new technologies and platforms to escalate their way of working.

This comprehensive guide will dive deeper into this phenomenon of HR digital transformation: what it is, why it is important, how you implement it, the challenges, and examples backed with case studies.

What Is HR Digital Transformation?

HR digital transformation is a strategic process of changing HR practices from traditional to advanced technology that results in enhanced HR operations, consequently improving the overall employee experience.

HR digital transformation involves adopting innovative and modern technologies and practices to make the HR process automated and data-driven . A recent article by Forbes stated that Digital Maturity Within The HR Function Is Key For Any Organization. The main goal is to optimize the efficiency and effectiveness of HR leaders by streamlining their functions and enabling data-driven decision-making. And this leads us to the next very vital question.

Why Is this Digitalization Important To HR Teams?

It may seem overly ambitious for an organization of any size to halt traditional methods and opt for an HR digital transformation , but it is the call of the times.

Though different perceptions of this buzzword exist around the corporate world, the gist mainly focuses on technological advancement. But first thing first. As a rule of thumb, any changes in the organization must have clear objectives and make business sense.

That being addressed, the real question arises– why is digital transformation important to HR teams? Here are a couple of generalized answers.

• With technological upgradation, multi-step processes like— arranging performance reports, data entry, and onboarding employees consume minimal time, enabling HR professionals to focus on improving the employer brand.
• Digitalization of HR practices will smoothly facilitate a remote work culture and make managing a distributed workforce a slice of the cake.
• HR teams often handle confidential documents, and with digital space, the security of vital documents is secured.
• Reduced paperwork and increased flexibility of work.
• Digital transformation will ease the work of HR teams through a high level of digital customization to examine and evaluate the performance of employees.

Examples of HR Digital Transformation

There are numerous examples of how the HR field is (slowly) transforming:

• Royal Bank of Canada, Deutsche Telekom, Ford, and others have digital design teams within the HR department that use the cloud as a “platform” and build on it for company-specific needs.
• Unilever is altering its hiring process and experimenting with digital tools, including AI, to further digitize its recruitment process.
• IBM is actively using AI tools to give leaders a regular pulse on the performance of their teams.
• Software vendor Unitive implements AI to write job descriptions that can even algorithmically identify gender, race, or generational bias, reducing unconscious bias in recruiting.

Know How to Implement A Digital Transformation In HR In 4 Steps

Implementing HR digital transformation in an organization is a bit complicated— or you may say, needs a comprehensive understanding of the requirements. Because it is impractical to think that an organization can go from non-digitized to fully digitalized. Since it is about redesigning an organization by implementing digital and technological advancements by critically valuing the business requirements, the transformation process will be time-consuming,

The Forbes article mentioned above, states that the digital transformation journey in HR professions begins with the first and crucial step of self-discovery— understanding what your company lacks and needs.

That being said, the four significant steps in implementing a digital transformation in HR are -

Self-discovery— understand your organization, analyze the pain points, inefficiencies, and areas that can benefit from digitalization, and formalize an idea.

Engage in active communications— all stakeholders, including HR staff and employees, need to partake in this digital transformation. Their shared views will help strategize the roadmap.

Strategize— with insights gathered, strategically roll out solutions. And ensure that they are scalable and compatible with your existing systems.

Culture— HR digitalization is an ongoing process. So, encourage a culture of adaptability and continuous learning to ease the transition.

The Main Challenges of Digital Transformation in HR

HR digital transformation is currently a hot topic in the corporate world. But, it is one thing to talk about digital HR transformation than to do it. In other words, this digital transformation in HR includes HR professionals and organizations as well. Meaning, that the digital transformation will encounter tough challenges upon implementation.

• A paradigm shift to a digital culture will enforce a behavioral change in the organization.
• Loopholes in the strategy will lead to management struggles.
• Insufficient expertise will result in challenges and confusion during the transformation process.
• Personalizing the experience and collaborating with the entire workforce will consume some time.

While these challenges are common during a culture shift, HR professionals must upskill and reskill themselves before partaking in the organizational change.

It is important to note that for every organization, keeping up with technology trends and implementing digital transformation is critical and won’t occur overnight. Addressing these challenges will be the prime requirement of HR professionals.

How To Start HR Digital Transformation?

After addressing the challenges of implementing digital transformation in HR, it is time you get started with HR digital transformation. But where to start from?

Digital transformations do not happen in the blink of an eye. It requires a proper roadmap for enactment and ample time for the entire workforce to adapt. Here’s how you can kickstart the transformational journey.

Let's understand these points thoroughly,

Do a proper assessment and establish a clear goal

Set a clear goal backed by a thorough assessment before starting the digital transformation process. As previously stated, any changes must have clear objectives and make business sense. So, start by identifying areas that will require improvement and align the transformation with your organizational goals.

The HR transformation process must focus on the employee as an end-user. Making it easy to guide the employees in showing where the organization will allow them to explore other factors such as digital leadership models, organizational network analysis, etc.

Bring everyone on board

The change is inclusive of every working individual in the organization. This means that all stakeholders, from employees to the C-suite, and everyone in between must be with you for a successful digital transformation. Bring everyone on board and effectively communicate with them.

Determine the right digital tool

Surplus software and technologies are available to help organizations streamline their work, improve experiences, and automate processes. But before opting for the upgrade, you need to evaluate the digital tools and technologies available by aligning them with your HR goals.

Keep in mind that committing to tools blindly may disrupt your transformation process and impact your long-term goals and crucial functions like onboarding and offboarding of employees, performance management, tracking and validating timesheets, etc.

Implement and measure

Start by gradually implementing the selected HR technology and aim for seamless integration with existing HR data and systems. Your goal is not to disrupt the existing system but to bring a gradual, easy-to-adapt change. Implementing the software is not the end of the process but the beginning of a new task— measuring and optimizing performance.

Monitor the process, keeping the performance and the employee experience into account.

Emphasizing the digital culture

Technology is not the only requisite of an HR transformation but the digital transformation of an entire organization. Hence, it is vital to prioritize employees' experience to ensure the plan addresses their needs and offers sufficient communication about the changes. Periodically gather feedback and understand the mindset of everyone involved. And build a healthy company culture.

Case studies

Anchor Trust

Enhanced candidate experience by utilizing chatbots.

The biggest not-for-profit housing association in the UK— Anchor Trust, created a better recruitment process alongside prioritizing candidate experience. They had a clear goal–– to engage with a pool of potential candidates.

To achieve this, Anchor Trust started using a purpose-built recruitment, Chatbot Integra, in Facebook Messenger. Designed to understand questions, this chatbot could initiate conversations on screen and engage with candidates directly.

However, the success of this initiative was not dependent on technology alone.

The company strategized the chatbot by creating targeted social media campaigns and leveraging Facebook's robust analytics tools. This way, the chatbot crafted messages tailored to resonate with their target audience.

The results of this transformation,

• The conversion rate soared and achieved an impressive rate exceeding 27%.
• By embracing the chatbot, Anchor Trust had slashed substantial costs by 65%, bringing the average cost of recruitment campaigns to £18 per applicant from the previous £51.
• With chatbots, monthly applicant numbers surged by an astonishing 82%.

Pioneering automated HR operations and empowered employees with AI

IBM, a global company housing a workforce of over 400,000, is at the forefront of the digital HR revolution. Using a series of innovative experiments, the company has driven the evolution of HR solutions to a new level.

The company has introduced a revolutionary feedback process— "Checkpoint," that has boosted engagement, alignment, and goal management within its performance management system. Not only that, IBM strives for continuous development, and in the pursuit of continuous learning, the company is committed to a dynamic digital learning platform. This powerful platform has empowered employees to share and access valuable content and get training recommendations and external online learning resources.

IBM's commitment to digital transformation is commendable. To enhance HR operations, IBM harnessed AI investment in Watson to pilot CHIP (Cognitive Human Interface Personality), an intelligent chatbot, to handle HR inquiries.

• Increased engagement, alignment, and enhanced goal management.
• Empowering employees in enabling content sharing, personalized training recommendations, and integration of external online learning resources.
• The proprietary career management system can now assist employees in finding new job opportunities and assignments by reading peer patterns.
• The AI-powered chatbot (CHIP), handles a wide range of HR-related inquiries— reducing call center time and becoming popular among employees.

For HR professionals eager to initiate digital transformation, ascertain that your roadmap is concise and functional. Implementing HR digital transformation is great, but doesn’t make sense if you don’t look at their results. With TMI , you can leverage HR functions to respond to the challenges of a more digitalized future and arm yourself for these new challenges.

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10 HR Digital Transformation Applications/Use Cases in 2024

Digital transformation is one of those buzzwords every executive frequently encounters. Though digital transformation is mostly recognized as replacing the existing technology stack of businesses with digital solutions, it is also about people in your business and how they adapt and work together to support organizational goals. The HR department has a role to support an organization’s most valuable resource, people, to succeed in a digital world.

We always talk about technology but HR’s role in digital transformation is two-fold. It both needs to digitally transform its processes and also support the overall digital transformation of the organization. Though these may seem like two different projects, they are intertwined. The faster HR transforms itself, the more it can serve as an example to the whole business.

What is digital transformation in HR?

In short, digital transformation is implementing digital technologies to business functions to improve organizations’ productivity while enhancing customer experience. Digital transformation is changing the way HR offices work from the way they hire and develop talent, to productivity improvements that come with automation.

Why is digital transformation important in HR processes?

According to PwC ’s Human Resources Technology Survey, the top concerns of HR teams are

• Attracting top talent and keeping them due to increasing competition
• Developing everyone to reach their potential
• Improving employee experience, primarily by automating tasks

Digital HR addresses these concerns partially with digital HR solutions. However, these tools need to be complemented with the right processes and initiatives by the HR team. Though we are excited about technology, it is only one of the ingredients of a company’s culture.

After the COVID-19 pandemic, digital transformation became even more crucial for the HR office since pandemic made businesses shift toward remote working practices, and building a collaborative remote working environment is the role of HR.

What are HR digital transformation use cases?

Lead search & identification.

Searching for, and identifying, suitable candidates for a job position is a process that could be automated. The benefit is that the software will take care of scraping the data en masse and rather quickly. Then based on predetermined rules, candidates that meet the given criteria will automatically be sent an email for further inquiries.

For recruitment processes

Recruitment automation: rpa & applicant tracking systems (ats).

Applicant tracking systems (ATS) are widely used to minimize the time spent on unqualified candidates. Software screens candidate resumes and eliminates unqualified candidates’ resumes from the list automatically by using keyword filtering. However, with advancements in machine learning and AI, these systems can be trained based on accepted candidates’ success data. Along with resume screening, ATSs are capable of job posting, pre-interview testing, interview planning, and interview evaluation features.

For more information on applicant tracking systems, you can check out our comprehensive article .

AI-powered job post writers

We’ve talked about automated content generation  before. HR professionals can use AI-powered job post writer tools to write better job postings. The image below is an illustration of how these tools improve job postings.

Onboarding software

From the moment the candidate signs an employment contract to the first day of the candidate, the HR professional deals with multiple manual tasks such as introduction to tools used, virtual office tours for orientation, and meeting the team. Onboarding tools are capable of personalizing onboarding journeys of new hires while automating manual tasks HR specialists are responsible for.

Recruiter chatbots

Recruiter chatbots are another AI-enabled HR trend that helps recruiters save recruiting time by screening and staging candidates throughout the hiring process. These bots engage with candidates and enhance the candidate experience.

For more information on how AI changes recruitment, we have an in-depth guide for you.

For improved productivity

Hr analytics.

Analytics projects have been great leverage for organizations to improve their processes and services. Businesses can use workforce analytics to better assess workforce performance. Workforce analytics uses employee and enterprise data to gain insights about employee and HR performance by using metrics such as time to fill, cost per hire, competency analytics, retention rate, and replacement rate.

If you want to learn why your business needs HR analytics tools, here are 6 reasons to set up HR analytics.

HR chatbots

One of the tasks the HR team is responsible for is answering questions of employees. Employees mostly encounter the same challenges and ask the same questions to HR professionals. Deploying a chatbot that answers the FAQs of employees can save recruiters time. For example, Leena AI is a chatbot that helps HR teams automate employee queries, enhance employee experience and ensure employee engagement. It provides automatic replies for all employee queries that are documented in the enterprise knowledge base.

Talent management systems

After a successful hire, HR teams focus on the orientation of the new employee. Similarly, after an executive leaves the company, the promoted employee needs to be trained on the new responsibilities. A talent management system is integrated software that contains performance management, learning and development, compensation management, and succession planning components.

Performance management

Anyone with some corporate experience has been in performance review meetings with unclear feedback or next steps. Many companies struggle to align compensation with performance beyond executive or sales roles.

Performance management tools aim to assist HR teams in collecting feedback and building performance management systems that reward results.

Learning management

Continuous growth is the most necessary ingredient to success however even large companies manage their learning via hard-to-manage spreadsheets. Learning management software helps companies keep track of candidate development, identify the skills of employees, and experiment with new learning approaches.

Compensation management

Effective compensation management is crucial to employee happiness. For example, it would be demotivating to see that your bonus is incorrectly calculated in the HR systems. Compensation management systems keep track of all aspects of compensation including stock options etc. and facilitate this important process.

Attrition prediction

Employees do similar things before they leave a company. They improve their Linkedin profile, make connections to colleagues and connect with interviewers. It is valuable to know that employees intend to leave before they do so companies can plan their replacement and handover. There are cultural approaches to this problem such as mindful transition which advocates ending 15 days notice and encouraging employees to be open about their future career plans without the risk of retaliation from the employer.

Another approach is to predict which employees are going to leave soon using machine learning. So as usual, when humans fail, machines fill the gaps. HiQ Labs, a company that provides such technology, got embroiled in a long legal fight with Linkedin over the right to use publicly available Linkedin data as an input to their model.

This is not a complete list. HR teams developing leading-edge solutions may want to work with custom AI model development companies to build machine learning models to address their specific challenges.

To further understand digital transformation trends and use cases post-COVID, we have also started a survey. If you want to support our research efforts and join our survey about post-COVID digital transformation trends , we would appreciate your participation and you will be the first to know about the results as soon as we publish them.

You can also read our article on HR technology trends .

What should HR do to support the company’s digital transformation?

What we have said so far was about digital transformation in the HR department. However, HR professionals are also an important enabler of organizational digital transformation. An innovative culture is essential for any digital transformation framework and its absence may cause digital transformation failures.  Roles for HR in digital transformation are:

• Hiring digital talent that has digital capabilities such as design thinking, agility and a data-oriented mindset
• Creating an innovative and agile culture. Such a culture is required to pursue opportunities that arise due to changes in technology.
• Digital transformation is a long-term, strategic project requiring collaboration. HR needs to support it with the right communication initiatives and ensure organizational alignment.
• Working closely with business analysts to adopt a digital transformation enabler technology, such as process mining.

Further Reading

For more on digital transformation:

30+ digital transformation case studies

Digitizing healthcare: Customer-centric health services

Top 6 Digital Transformation Applications in Insurance

If you need guidance in your digital transformation journey,  check our data-driven, sortable/filterable list of digital transformation consultant companies . If you still have questions about digital transformation in HR, we would like to help:

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month. Cem's work has been cited by leading global publications including Business Insider , Forbes, Washington Post , global firms like Deloitte , HPE, NGOs like World Economic Forum and supranational organizations like European Commission . You can see more reputable companies and media that referenced AIMultiple. Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization. He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider . Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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Nurturing Nikkei’s future talent

• Call for Change
• When Tech Meets Human Ingenuity
• A Valuable Difference
• Related Capabilities

Call for change

Transforming the newspaper business for tomorrow

After 145 years in the newspaper business, Nikkei Inc. is being impacted by intense competition, new media formats, and a generation of young people losing interest in newspapers. As a result, the company is revamping its products and business operations, while also changing Nikkei’s very structure and employee mindset. To support that new strategy, Nikkei created a company-wide Digital Transformation Committee made up of corporate, HR, and IT teams. The committee decided to focus on HR first, and introduce an advanced personnel system so managers can use data analytics to make talent decisions. Nikkei chose to implement new IT infrastructure to underpin that transformation.

"This is a watershed moment for Nikkei's continued growth. The reform of HR management, including the job-based personnel system, is a concrete step in the right direction." — Mr. Makoto Shudo , Assistant General Manager, HR/General Affairs – Nikkei Inc.

When tech meets human ingenuity

Driving HR with data

Nikkei’s HR department aimed to redefine the organization's mission, review manager positions, simplify the chain of command, and reform HR management. Central to this evolution was the introduction of an advanced HR system, initially for managers.

The solution would need to seamlessly integrate Nikkei’s various systems in order to efficiently collect and analyze HR data to improve management decision-making. Workday Human Capital Management (HCM) was chosen for the job, and Nikkei selected Accenture as its implementation partner because of our expertise in HR consulting, organizational management, and Workday implementations. Accenture’s team had already worked on Workday HCM implementations in Japan and could advise on local labor laws and the best ways to use the solution at Nikkei.

A valuable difference

Promoting company-wide penetration

Workday HCM, along with the HR component for managers, was implemented in April 2021 and Nikkei is already seeing the benefits.

HR now uses training data to match workers with the best programs to boost their skills or gain relevant new ones. The HCM software provides a forum for workers to share tips related to internal training—data that Nikkei will use to inform new offerings. Topics users have clicked on most frequently will be used to provide personalized recommendations.

Nikkei and Accenture plan to expand the solution’s functionality further, extending adoption to all employees and integrating skills and project data. Nikkei is now ready to develop a new generation of talent.

Related capabilities

Intelligent platform services, talent & organization.

HR Tutorial

• Digital HR Transformation: Best Practices and Case Studies

Indeed, the voyage towards Digital HR Transformation begins with a meticulous HR Transformation Strategy . This strategic blueprint should encompass a detailed HR Technology Implementation plan that aligns with the broader organizational goals. A critical aspect of this strategy entails HR Process Optimization , which significantly contributes to achieving operational efficiency.

For instance, automating routine HR tasks such as time tracking and payroll processing through robust HR Software can free up the HR professionals’ time, enabling them to focus on more strategic initiatives. The strategic foresight in choosing the right Digital HR Tools also plays a crucial role in this transformation journey.

The prowess of HR Automation is a cornerstone in the process of HR Digitalization . Organizations that have embraced automation in their HR processes have witnessed a notable reduction in administrative overhead, errors, and compliance risks. For instance, utilizing HR Software for automated benefits administration can ensure accurate and timely processing, reducing the chances of errors that could result in compliance issues. Similarly, employing Talent Management Software can automate the recruitment process, from posting job openings to screening applicants, thus accelerating the hiring cycle while ensuring the selection of the most fitting candidates.

In the spectrum of Digital HR Transformation , the embrace of Cloud-Based HR Systems is a significant stride towards modernization. These cloud solutions provide a centralized platform for HR Data Management , ensuring real-time access to critical HR information from anywhere, at any time. Besides, the cloud-based systems facilitate seamless HR System Integration , promoting a unified HR ecosystem that can interact with other business systems efficiently. For instance, integrating the HR system with the organization’s financial software can streamline the process of budgeting for workforce costs.

The realm of HR Analytics unveils an avenue for data-driven decision-making, marking a critical milestone in the Digital HR Transformation journey. By harnessing the power of analytics, HR professionals can glean actionable insights from the vast amount of HR data, aiding in informed decision-making. For example, predictive analytics can help in foreseeing and mitigating employee turnover, thus saving costs and ensuring continuity in operations. Furthermore, analytics in Workforce Planning Software enables organizations to optimize workforce allocation, ensuring the right number of staff with the requisite skills are deployed in the right places.

A significant aspect of ensuring a successful Digital HR Transformation is fostering a culture that encourages HR Technology Adoption among the employees. This facet is particularly pivotal during the phase of Digital Employee Onboarding . Utilizing intuitive and user-friendly digital onboarding platforms can significantly enhance the new hires’ experience, ensuring a smooth transition into the organization. Moreover, providing adequate training and support, especially during the initial stages of implementing new HR Technology Solutions , can significantly enhance user adoption and ensure the success of the digital transformation initiative.

As the HR Technology Trends evolve, Mobile HR Applications and AI in HR are emerging as pivotal players in fostering an enhanced Employee Experience . Mobile HR applications, for instance, provide employees with the flexibility to access HR services on-the-go, thereby promoting a culture of flexibility and responsiveness. On the other hand, AI can significantly enhance personalized employee experiences. For example, AI-powered chatbots can provide instant responses to employee queries, thus enhancing engagement and satisfaction.

Delving into Case Studies from various organizations that have embarked on the Digital HR Transformation journey provides a treasure trove of insights and best practices. These case studies often highlight the importance of a well-thought-out HR Transformation Roadmap that guides the transformation journey, ensuring alignment with the organization’s overarching goals. Moreover, they underscore the essence of Change Management in HR Transformation , particularly in addressing the challenges such as resistance to change, ensuring seamless Implementation , and promoting a culture of continuous improvement in the digital HR landscape.

Key Steps and Best Practices in Implementing Digital Transformation

Navigating through the intricacies of HR Technology Implementation requires a deep understanding of the organizational culture and the unique challenges that may arise. A structured HR Transformation Strategy should encompass a thorough analysis of the current HR processes, identifying areas ripe for HR Automation and digital enhancement. For instance, automating routine processes like leave management or expense claims through Digital HR Tools can drastically reduce administrative burden and allow for a more efficient workflow.

In the lens of HR Digitalization , a step often underscored is the significance of Data-Driven HR Decisions . Harnessing the power of HR Analytics can provide a rich tapestry of insights into employee performance, engagement levels, and organizational culture. For example, analytics can uncover patterns related to employee turnover, enabling HR professionals to take proactive measures to enhance retention. Furthermore, it provides a data-backed foundation to evaluate the impact of HR interventions, thus continually refining the HR Process Optimization strategies employed.

A paramount aspect of Digital HR Transformation is the Employee Experience . The digital tools employed should augment rather than disrupt the employee’s interaction with the HR function. Implementing an Employee Self-Service Portal can empower employees by providing them control over their personal information, benefits, and access to HR services at their fingertips. A good example could be an organization that successfully implemented a self-service portal, which not only improved employee satisfaction but also reduced the workload on the HR department.

Moreover, Digital Employee Onboarding is an arena that stands to benefit immensely from digital transformation. Employing digital platforms for onboarding ensures a seamless and engaging experience for new hires. For example, a well-designed onboarding app can provide new hires with all the necessary information, resources, and training modules even before they step into the office, ensuring they are well-prepared and comfortable from day one.

Cloud-Based HR Systems not only provide the advantage of accessibility but also offer robust HR Data Management solutions. By centralizing HR data in a secure cloud environment, organizations can ensure compliance with data protection regulations while enabling real-time data analysis. Moreover, cloud-based systems can seamlessly integrate with other enterprise applications, facilitating a unified data management strategy, which is crucial for deriving accurate insights and fostering data-driven decision making.

Change Management in HR Transformation is a discipline that cannot be overstated. It encompasses not only the technical aspect of the transformation but also the human element. For successful Implementation , a robust change management strategy should include continuous communication, training, and support to help employees transition smoothly to the new digital HR environment. A case in point could be an organization that structured its digital transformation around a comprehensive change management plan, which resulted in high HR Technology Adoption rates and a positive impact on the organizational culture.

The realm of Mobile HR Applications and AI in HR heralds a new era of HR Technology Trends . They not only provide a modern interface for interaction between employees and the HR function but also offer automation and analytics capabilities that can further streamline HR processes. For instance, AI can automate the resolution of common employee queries, freeing up HR professionals to focus on more strategic initiatives. Moreover, mobile applications enable employees to access HR services anytime, anywhere, which is especially pertinent in the era of remote working.

Workforce Planning Software is a keystone in aligning the workforce strategy with the organizational goals. Sophisticated software can assist in forecasting workforce needs, planning for succession, and ensuring a balanced and diverse workforce. For example, using software to analyze and predict workforce trends can help in making informed decisions regarding hiring, training, and succession planning, thus ensuring the organization is well-poised for the future.

Peering into Case Studies of organizations that have traversed the path of Digital HR Transformation provides a wealth of knowledge. The experiences, challenges overcome, and the strategies employed offer invaluable insights to other organizations embarking on a similar journey. For instance, a case study detailing the journey of a large enterprise could shed light on the strategies that worked, the challenges encountered in HR System Integration , and the impact of the transformation on the organizational efficiency and employee experience.

Lastly, carving a well-defined HR Transformation Roadmap is indispensable. This roadmap should outline the short-term and long-term goals, the technology solutions to be employed, the change management strategies, and the metrics for evaluating the success of the digital transformation initiative. A structured roadmap not only provides a clear path but also ensures that all stakeholders are aligned, which is crucial for the success of the Digital HR Transformation .

Impact on Organizational Efficiency and Employee Experience

The impact of digital HR transformation goes beyond mere operational efficiency; it is the foundation upon which companies can build and nurture a positive organisational culture. By facilitating open channels of communication through digital HR tools, such as intranet portals or social collaboration platforms, a sense of community and engagement is fostered among employees. For example, one company that implemented an intranet portal saw a significant increase in employee engagement and cross-departmental collaboration, demonstrating the transformative power of digital tools in improving the employee experience.

The underpinning of a successful Digital HR Transformation is invariably a robust HR Transformation Strategy . This entails a meticulous evaluation of existing processes, identifying bottlenecks, and delineating areas where digital interventions can wield the maximum impact. An organization, for instance, managed to drastically reduce the time spent on administrative tasks by automating routine HR processes like attendance tracking and benefits administration through HR Software . This reallocation of time empowers HR professionals to focus on more strategic, value-additive activities, thus significantly augmenting organizational efficiency.

The integration of AI in HR practices heralds a novel epoch in HR Technology Trends . From predictive analytics forecasting employee turnover to chatbots handling routine employee inquiries, AI stands as a pivotal cog in the digital HR machinery. For instance, a company employing AI-powered HR Analytics managed to predict and mitigate employee turnover by analyzing patterns and trends, thus saving substantial costs associated with hiring and training new employees.

Mobile HR Applications are yet another facet of HR Digitalization that enhances both organizational efficiency and the Employee Experience . Providing employees with the flexibility to access HR services on-the-go, whether it’s submitting time-off requests or accessing training materials, not only streamlines operations but also empowers employees with a sense of control and flexibility. A case study delineates a scenario where a company saw an increase in the completion rates of training programs post the implementation of a mobile-accessible learning management system.

A pivotal aspect of ensuring seamless HR Technology Adoption is a well-thought-out Change Management in HR Transformation strategy. The journey towards digital transformation is fraught with resistance to change, and thus having a structured change management plan is indispensable. It ensures that employees are not only comfortable with the new digital tools but are also adept at utilizing them to their full potential. In a notable case, an organization’s emphasis on continuous training and support during the digital transition phase resulted in a high adoption rate, ultimately leading to a successful HR Technology Implementation .

The utility of Cloud-Based HR Systems cannot be overstressed in the discussion of Digital HR Transformation . Such systems offer a scalable, secure, and flexible infrastructure enabling seamless HR Data Management and real-time analytics. A company transitioning to a cloud-based HR system experienced enhanced data accuracy and real-time decision-making capabilities, underlining the profound impact of cloud technology on organizational efficiency.

Lastly, the element of HR Process Optimization is a continuous endeavor in the digital transformation journey. By leveraging the insights gleaned from HR Analytics , organizations can perpetually refine their HR processes, ensuring they remain efficient, effective, and aligned with the overarching organizational objectives. For instance, through continuous analysis of recruitment data, a company managed to refine its hiring process, reducing the time-to-hire, and improving the quality of hires. This instance elucidates the compounding benefits of a data-driven approach in driving organizational efficiency and fostering a conducive Employee Experience .

Challenges and Solutions in Implementing Digital HR Transformation

Transitioning towards a Digital HR Transformation is a monumental task that necessitates a well-rounded understanding of both the technical and human-centered challenges that may arise. One of the primary hurdles is the inherent Resistance to Change among employees. This resistance can stem from a myriad of sources, including fear of obsolescence, a lack of understanding of the new technology, or just a general inertia against altering established routines. In one notable case, a large enterprise mitigated this challenge by crafting a detailed Change Management in HR Transformation strategy that encompassed extensive training programs, transparent communication regarding the changes, and the establishment of a support structure for employees needing assistance during the transition.

Data Privacy is another significant concern, especially with the increased reliance on Cloud-Based HR Systems that store sensitive employee information. The fears around data breaches or misuse of personal information can create apprehension among the workforce. Addressing these concerns head-on by implementing robust data encryption methods, adhering to compliance standards such as GDPR, and educating employees on data safety practices are critical steps. For instance, a company bolstered its data security measures by employing advanced encryption and regular audits, ensuring the sanctity of sensitive HR data.

HR System Integration is a complex endeavor, necessitating the seamless amalgamation of new digital tools with existing systems and processes. The integration should be conducted in a manner ensuring data consistency and process continuity. A particular organization excelled in this domain by developing a phased integration plan, which allowed for iterative testing and refinement, ensuring the final integration was seamless and error-free.

Addressing HR Technology Adoption rates is also paramount for the success of a digital transformation strategy. Sometimes, the best HR technologies can fail if they are not adopted by the employees. A success story in this realm highlights a company that devised a gamified onboarding process for its new Digital HR Tools , which not only made learning fun but also significantly improved the adoption rates.

Investing in continuous HR Process Optimization post the initial implementation is crucial to ensure that the organization keeps reaping the benefits of the digital transformation. Continuous monitoring and refining of processes, based on the analytics and feedback, are vital. A case reveals how a company embraced an agile approach to HR process optimization, fostering a culture of continuous improvement and adaptation.

A potential pitfall in the journey of HR Digitalization could be underestimating the importance of a strong foundational HR Technology Infrastructure . Organizations need to ensure that the underlying technology infrastructure is robust, scalable, and capable of supporting the new digital HR tools and applications. A case study exemplified a scenario where a company invested in strengthening its IT infrastructure, which paid dividends in supporting a smooth HR Technology Implementation .

Lastly, aligning the Digital HR Transformation with the broader organizational strategy and goals is crucial for its success. The transformation should not be an isolated initiative but should be intertwined with the organization’s long-term vision and objectives. This alignment ensures that the digital transformation endeavors are not only successful but also contribute substantively towards propelling the organization forward in its broader strategic pathway. For example, by aligning its HR Transformation Roadmap with the organizational strategy, a firm ensured that its digital HR initiatives were coherent with, and supportive of, the broader business objectives, thus guaranteeing long-term success and sustainability of the transformation efforts.

Leveraging Technology for HR Transformation

In the epoch of digital modernity, the confluence of HR Technology and progressive human resource strategies is seen as the cornerstone for achieving a robust Digital HR Transformation . The adoption of AI in HR , for instance, has pivoted the traditional HR functions into a realm of enhanced predictability and efficiency. Notably, AI-powered predictive analytics have enabled organizations to foresee workforce trends, thus aiding in proactive decision-making. Additionally, automation powered by AI has dramatically streamlined repetitive HR tasks, thereby liberating human resource professionals to focus on more strategic and human-centric activities. One profound instance is a multinational corporation that deployed AI for talent acquisition, which resulted in a 40% reduction in screening time and a significant improvement in the quality of candidates shortlisted.

As the demand for real-time and on-the-go access to HR services burgeons, the significance of Mobile HR Applications cannot be understated. These applications have become synonymous with promoting an environment of flexibility and responsiveness. For instance, the ability to request leaves, access pay slips, or even engage in learning and development activities on a mobile platform has not only enriched the Employee Experience but also fostered a culture of continuous engagement and learning. A case in point is a tech-savvy enterprise that introduced a mobile HR application, resulting in increased engagement rates and a notable uptick in the utilization of HR services by employees and managers alike.

HR Digitalization has also embraced the burgeoning trend of Cloud-Based HR Systems , which has transmuted the way organizations store, access, and manage their HR data. These systems offer the luxury of real-time data access, scalability, and cost-effectiveness, which are quintessential for modern HR operations. An instance worth mentioning is of a retail giant that transitioned to a cloud-based HR system to manage its dispersed workforce efficiently, subsequently leading to a streamlined operation, reduced operational costs, and enhanced data-driven decision-making.

The pursuit of Digital HR Transformation is also significantly underpinned by HR Analytics . This domain has empowered organizations with the capability to analyze vast swathes of HR data for actionable insights. From workforce performance analytics to employee engagement metrics, the spectrum of analytics has endowed HR professionals with a data-driven approach to decision-making. An exemplary case is that of an organization which, by leveraging HR analytics, was able to reduce its attrition rate by identifying the underlying causes and formulating retention strategies accordingly.

Furthermore, the avenue of HR Automation has ushered a new era of efficiency and accuracy in HR operations. Automated workflows, self-service portals, and bots for answering HR-related queries are just the tip of the iceberg. The Employee Self-Service Portal has particularly been a game-changer, allowing employees to manage their personal information, benefits, and other HR-related tasks autonomously. A success story that stands out is a company that deployed an employee self-service portal, leading to a significant reduction in HR administrative workload and a notable improvement in employee satisfaction.

Digital Employee Onboarding is another facet of Digital HR Transformation that has seen remarkable evolution. Digital onboarding platforms have made the onboarding journey more interactive, informative, and engaging for new hires. The emphasis on a digital-first onboarding experience resonates well with the tech-savvy workforce, making them feel at home from day one. A tech conglomerate, for instance, revamped its onboarding process with a digital platform, witnessing a significant improvement in the speed-to-productivity ratio for new hires.

The narrative of Digital HR Transformation is not just about technology; it’s about aligning the HR Transformation Strategy with the technological tools to foster a culture of continuous improvement and digital readiness. The HR Transformation Roadmap should encapsulate a visionary approach to leveraging technology for automating mundane tasks, deriving actionable insights from data, and ultimately, enhancing the employee experience. The cases and insights discussed herein underline the essence of approaching HR transformation with a balanced perspective on technology, people, and processes.

Insights from Case Studies on Digital HR Transformation

Embarking on a Digital HR Transformation journey is a hallmark of evolving organizations in today’s digital era. The narrative of transformation is often best understood through real-world instances that provide a pragmatic lens to gauge the challenges, strategies, and outcomes associated with such transformative initiatives. For instance, a case study revolving around a healthcare giant unveils the multifaceted advantages of migrating to a Cloud-Based HR System . This transition not only orchestrated a new era of efficiency in HR operations but significantly elevated the capabilities in HR Data Management and real-time analytics. The ripple effect of this transformation was seen in the augmentation of employee satisfaction levels, as the employees found a streamlined, accessible, and responsive HR system at their behest.

Similarly, the digital journey of a technology behemoth brings to the forefront the essence of HR Automation . The company, through the implementation of an Employee Self-Service Portal , managed to offload a substantial amount of administrative burden from the HR personnel. This not only brought down the response time for employee queries but also freed up the HR personnel to engage in more strategic and impactful initiatives. This shift is a testament to how automation can significantly refocus the HR function from transactional activities to strategic endeavors.

As we delve deeper into case studies, the theme of HR Technology Adoption stands out as a critical driver of successful digital transformation. Companies that have fostered a culture receptive to digital adoption have seen smoother transitions and better utilization of the Digital HR Tools implemented. For instance, a global retail chain, through a well-structured change management plan, managed to ensure a seamless adoption of the new HR technology platform which included modules for Digital Employee Onboarding , Talent Management , and Workforce Planning .

Moreover, the application of HR Analytics is another common thread among successful digital HR transformations. Organizations that have harnessed the power of data analytics have managed to garner deeper insights into employee behaviors, performance trends, and recruitment strategies. A case in point is a financial services firm that leveraged HR analytics to revamp its talent acquisition strategy, resulting in a 25% reduction in time-to-hire and a significant improvement in the quality of hires.

The implementation of Mobile HR Applications also echoes as a significant facet in contemporary HR transformation narratives. Companies that extended HR services to mobile platforms witnessed an uptick in engagement and a more flexible, accessible, and user-friendly HR service delivery model. For instance, a multinational corporation’s introduction of mobile HR applications saw a sharp rise in employee engagement levels, showcasing the relevance of mobile platforms in today’s HR landscape.

Furthermore, AI in HR has showcased its prowess through various case studies. Companies leveraging AI for predictive analytics, talent acquisition, and employee engagement have not only optimized their HR processes but also enriched the Employee Experience . One remarkable case is of a corporation that deployed AI for performance management which led to a more objective, data-driven performance appraisal process.

Lastly, drawing insights from various case studies, it’s clear that a well-laid HR Transformation Roadmap and a keen focus on Change Management in HR Transformation are indispensable for a successful digital transition. Organizations that invested in change management, training, and communication strategies were better poised to navigate the change, ensuring that the digital transformation objectives were met with robust employee adoption and minimal resistance. These comprehensive insights culled from real-world case studies serve as a rich repository of knowledge for organizations aspiring to embark or further their journey in digital HR transformation.

Other Digital HR Transformation Pages

• Introduction to Digital HR Transformation
• What is Digital HR Transformation
• Importance and Relevance in Today’s Business Landscape
• Evolution of HR: Traditional vs. Digital in terms of HR Transformation
• Core Technologies Driving Digital HR Transformation
• Artificial Intelligence in HR: Opportunities and Applications
• HR Automation: Streamlining Processes
• Cloud-based HR Systems: Advantages and Implementation
• Machine Learning in HR: Predictive Analysis and Decision-making
• Key Components of Digital HR Transformation
• Digital HR Strategy: Navigating the Future of Human Resources
• Digital HR Tools and Software: A Comprehensive Guide
• The Role of Data in HR: Analytics and Decision-making
• Digital Workforce and Talent Management
• Digital Employee Engagement Strategies
• Digital Employee Experience: Best Practices
• Digital Talent Acquisition and Onboarding
• Digital Recruitment Strategy: Navigating the New Age of Talent Acquisition
• Onboarding Process in the Digital Age
• Applicant Tracking Systems (ATS)
• Virtual Interviews and Candidate Experience
• Remote Onboarding Challenges and Solutions
• Mobile Recruiting
• Job Portals and Digital Platforms
• Digital Training and Development
• Digital Talent Management: Retention and Development
• Implementing Digital HR Transformation
• Future of Digital HR: Steps to a Successful Transformation
• Challenges and Considerations
• Training and Skill Development for HR Professionals

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Reimagine a digital HR ecosystem to enhance the workforce experience.

Workers’ expectations for consumer-grade experiences that are embedded seamlessly in the flow of work are evolving rapidly.

To respond and drive people transformation, HR needs to fully integrate the HR service experience with:

• The broader back-office services, such as Financial and IT
• The enterprise experience platforms, including social collab virtual meetings, service management
• Deep analytics, learning, and intelligent automation capabilities.

The result? A truly modern, experience-centric HR function designed to drive growth through improved engagement, increased productivity, and talent retention.

The digital service experience is the foundation for a successful digital HR transformation. Today’s competitive and dynamic organization requires today’s modern HR to be:

• Experience-driven: lead with a workforce-centric experience designed based on the moments that matter most
• Digitally delivered: leverage leading solutions to establish an integrated technology ecosystem
• Value-focused: deliver on the value proposition to provide improvements tuned to the strategic business imperatives.

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HR Digital Transformation: Key Strategies

Did you know? Nearly 87% of business leaders believe that developing the right workplace model is crucial for their organization’s success. Yet, there is a striking gap with only 24% of leaders feeling prepared to embrace this change. 

The right digital workplace solution can save up to 12% of HR administrators’ time. Learn more about the ROI of the HR digital transformation.

Imagine cutting down the time spent on manual processes and instead focusing on what truly matters: Building a thriving workplace culture. Digital transformation isn’t just about technology, it’s about developing a strategy with solutions built for workforce automation , engagement, and monitoring analytics.

In this article, we’ll explore how digital transformation in HR can improve workforce satisfaction and position your business as a leader.

What is HR Digital Transformation?

Digital transformation in HR is about updating the way companies handle their human resources tasks with simple digital tools to make things quicker, more efficient, and better for everyone at work. It is at the top of the HR trends driving the future of the workplace. 

Here are the usual elements of this transformation:

• Automation: Making routine tasks happen through software rather .
• People Analytics: Understanding staff needs and performance through easy-to-read data that can become actionable insights.
• Onboarding Software: Helping new employees start smoothly and quickly.
• AI-Driven Recruiting: Smart ways to find and hire the right people.
• On-Demand Training: Learning new skills whenever employees need them.

This means less paperwork and more efficient workplaces, better recruiting and hiring practices, and a digitally-supported HR department that has more bandwidth to focus on building a thriving workforce.

Digitization vs Digitalization vs Digital Transformation

There are a few different terms that are thrown around when talking about a company adopting more technology to support operations: digitization, digitalization, and digital transformation. But each is a step in how much a company leverages technology, from simply transferring data to a digital format to a complete overhaul to a digital business model.

Why Should You Start Digitalization For Your Business?

At its core, HR tech is meant to reduce costs, improve operations, and elevate employee experiences, all of which are becoming more important as companies compete for talent.

An HR digital transformation:

• Streamlines HR processes and reduces time on routine tasks
• Enables better strategies with comprehensive data analysis
• Improves recruitment, onboarding, and employee engagement
• Saves money by minimizing errors and reducing paper reliance
• Adapts easily to business growth and changing needs
• Keeps business ahead with the latest technological trends
• Ensures accuracy and adherence to labor laws
• Encourages a continuous cycle of improvement and new ideas

For example, people engagement platforms like Beekeeper can significantly benefit businesses looking to digitally transform their HR department. By providing tools for efficient communication , task management, and employee engagement , Beekeeper helps streamline operations and foster a more connected, productive workplace. 

And if you learn better with video, watch how Wireless Vision transformed workplace operations by digitizing  important materials that are instantly accessible right on the sales floor.

8 Steps to Take for HR Digital Transformation

The digital transformation human resources professionals want to achieve is well within reach by following some basic steps.

1. Assessment of Current HR Practices

This step allows you to take stock of where your HR function stands today and lay the groundwork for where you want to be tomorrow. Start by mapping out each step of your HR operations – from recruitment and onboarding to performance evaluations and exit procedures. Look for bottlenecks, inefficiencies and areas where employees or candidate experiences can be improved. This will help you with step 5, developing a road map for transformation.

In fact, part of your assessment should focus on the tools and software you currently employ. Are these solutions meeting your needs, or are they part of your problem. Identifying these gaps in your tech stack can help you realize which platforms you might need to integrate (more on selecting the right tools later!). 

2. Setting Clear Objectives

Clearly define the objectives and goals of the HR digital transformation initiative. Determine what the organization aims to achieve, such as improving efficiency, enhancing employee experience, or enabling better data-driven decision-making.

Specificity is key when setting these objectives. Vague goals lead to scattered efforts and diluted results. For example, instead of setting a broad objective like “improve recruitment,” aim for something more tangible like “reduce time-to-hire by 30% within the next year through automated screening and scheduling.” Then, track this objective over time to make sure you’re achieving goals.

Remember, setting objectives is not a one-time task. Regular reviews and adjustments can help your team respond to new challenges, technological changes and shifts in business strategy.

3.  Get Stakeholder Buy-In

Secure buy-in and support from key stakeholders, including top leadership, HR professionals, and other relevant departments. This is an important part of change management: when you secure support from stakeholders it leads to a seamless transformation and sets the stage for success.Start by understanding the perspectives, concerns and interests your stakeholders have regarding this shift in digital transformation.

For example, senior leaders will likely be focused on the return on investment and how the transformation aligns with broader business goals. At the same time, end-users may be concerned with usability and how the changes will affect their daily routine. If you’re introducing a new employee app to your frontline team, demonstrate how it will automate tasks and allow them to work more efficiently.

Involve stakeholders early and often. Soliciting their input during the planning stages can ensure that the final transformation plan reflects their needs and boosts their commitment to the project. 

4. Selecting the Right Tools and Technologies

When you research and evaluate HR technology solutions that align with your organization’s goals, you need to focus beyond automation to foster a connected, engaged and agile workforce. 

This may include integrated HR management systems, talent management software, employee engagement tools, and provide predictive insights and personalized experiences. And if you want a tool that offers all of these elements in one platform, consider Beekeeper .

Beekeeper is designed with employees in mind. It is simple to download and start using, ensuring high adoption rates from the start. For your HR team, an analytics dashboard allows them to track engagement in real time and adjust strategies that ensure every employee is active on Beekeeper.

Beekeeper’s reporting and analytics dashboard helps monitor everything on-the-go boosting your company’s shift to HR digital transformation

Beekeeper aligns with core aspects of your HR digital transformation through: 

• Instant messaging and group chats connecting desk and non-desk employees across locations.
• Employee engagement tools like surveys, polls and recognition features keep employees motivated.
• Assignment and task tracking for automated workflow management.
• Central repository for easy access to company documents, policies and resources.
• Analytics and reports into employee engagement levels for deep insights and data-driven decision-making.

Plus Beekeeper is mobile friendly (available on Apple store and Google Play ), so all features are accessible on the go and can reach every employee at the same time on any device.

5. Developing a Strategy and Roadmap

Create a detailed roadmap that outlines the implementation plan, milestones, and timelines. Like any other business strategy, having a plan helps guide the direction, target the stakeholders, and ensure success. Prioritize the order of implementation based on the criticality and impact of different HR processes. Break down the transformation into manageable phases for a smoother transition. Identify and track key performance indicators (KPIs) that will demonstrate success of the transformation.

6. Training and Change Management

Develop a robust change management plan that includes employee training and communication strategies for a smooth transition. Prepare employees for the changes, address any concerns, and provide training on new digital tools. Ensuring that employees are comfortable with the technology is crucial for successful adoption. This is especially true in frontline organizations that have long relied on manual processes and are introducing mobile-first tools to employees who have always had paper shift schedules and pay stubs.

Having a change management plan ensures business continuity. By training employees ahead of time, the transition will be smooth and will limit disruptions in productivity, which ultimately ensures the customer experience is not impacted.

7. Implementation and Integration

When you’re ready to begin the transformation process, you might wonder what to do with your legacy systems and software (like ADP) that handle all of your different HR data. The good news is Beekeeper offers a marketplace with a wide integration selection, including Microsoft Teams, Workday, OneDrive, Ceridian, Slack, ADP, and GoogleDocs The  single sign-on feature gives  users a one-click process to all of their centralized information. This makes the rollout easy and minimizes login fatigue.

Smoothly transition your HR digital transformation with Beekeeper’s integration marketplace

Integrations with Beekeeper’s marketplace means there’s no need for complex overhauls or time-consuming data migrations. Instead, Beekeeper integrates with your existing infrastructure, making the implementation of your HR digital transformation more accessible and manageable.

8. Monitoring and Continuous Improvement

Continuously monitor the performance of the digital HR solutions and evaluate their impact on HR processes and overall organizational objectives. Utilize your engagement platform like Beekeeper to survey users and gather employee feedback from users and stakeholders to identify areas for improvement. Make necessary optimizations to maximize the benefits of the digital transformation.

Well-Known HR Digital Transformation Examples

Now, you know all about the digital transformation in HR. But, what does it actually look like?

Below are some of the most well-known examples of the HR digital transformation in play.

The internet juggernaut has led the HR digital transformation journey since it introduced the world to people analytics. Back in 2008, Google used analytics pulled from employee surveys and feedback to establish successful manager behaviors. That same practice was used to uncover the top factors that create a positive team environment. Both have been used to create a team people from all over the world want to be a part of.

Royal Dutch Shell

Before the pandemic, Shell was beginning to realize a skills gap within its workforce. The industry was turning to AI, machine learning, and other digital tools, but Shell’s workforce wasn’t ready. So, the oil giant adopted a digital learning platform that gave employees the opportunity to learn the skills the business needed to stay ahead of the industry curve.

IBM has coined this new digital era of HR tech as HR 3.0. In HR 3.0, business leaders make data-driven decisions powered by AI capabilities that create a better employee experience. For example, IBM partnered with Burger King Brazil to introduce a virtual assistant to take over repetitive HR tasks. In no time, the virtual assistant took on 50% of employee requests, like paid time off requests, leaving more time for the HR team to focus on strategic priorities.

Examples of the HR Digital Transformation in Frontline Industries

You may think the HR digital transformation mainly applies to the corporate world, but it’s no stranger to frontline-majority businesses. In fact, our top 5 trends shaping the future of frontline work all point to a digital future.

Let’s look at some companies already embracing the digital transformation in HR.

Amsted Rail

Amsted Rail is a globally integrated manufacturer that was forced to rethink its paper-based HR process in 2020. Before adopting Beekeeper, the company posted job openings on a bulletin board, and interested employees wrote their names down. HR managers then had to track the process manually via multiple spreadsheets.

Fast-forward to today, and the team uses Beekeeper’s Forms to speed up the process. Employees can now easily fill out their information from their mobile devices. And, HR managers no longer have to keep up with clunky processes along the way.

Life Time Inc.

Health and wellness clubs across the world were hit hard by the global pandemic. For Life Time Inc. , the situation started as temporary location closures. But soon enough, the company was forced to furlough 90% of staff.

Communicating with furloughed employees usually comes with sticky HR and legal red tape. However, using Beekeeper, the Life Time team executed a new communications approach that could reach both active and furloughed team members.

Set up your Business for HR Digital Transformation and Trends

Automation, analytics, and accessibility. These are the top HR trends and they all support the HR digital transformation that companies need. With the current labor market and the demand for talent, it’s mission critical for businesses to adapt to a digital future for HR operations. 

With a solid digital HR strategy and the right tools, human resources teams are better equipped to recruit and retain talent, operate more efficiently, and stay competitive in a tight labor market.

With an HR solution like Beekeeper, companies can optimize HR operations and build an engaged workforce and create the data-driven future they’ll need. 

Use Beekeeper for your HR digital and reduce employee turnover by 40%. 

Frequently asked questions about hr digital transformation.

Why is digital transformation important in the HR process?

The challenging labor market is motivating organizations to evolve their human resources approach. Businesses need a digital HR strategy with solutions built for automation, engagement, and monitoring analytics. Digital transformation is crucial in the HR process for several reasons, as it brings about significant improvements in efficiency, effectiveness, and overall employee experience and builds a resilient workforce companies need for the future.

What is the HR Digital Transformation?

The process of adopting digital human resource tools and strategies to improve the employee experience and enhance operational performance through data-driven, automated practices. HR digital transformation is an ongoing and dynamic process that involves the integration of digital technologies into various aspects of human resources management to enhance efficiency, effectiveness, and overall employee experience. This transformation encompasses the adoption of digital tools, technologies, and data-driven approaches to optimize HR processes and meet the evolving demands of the modern workplace.

Ready to start building your HR digital strategy for your frontline? Download “ Proven Strategies to Supercharge Frontline Success ” today!

Most frequently asked questions.

The challenging labor market is motivating organizations to evolve their human resources approach. Businesses need a digital HR strategy with solutions built for automation, engagement, and monitoring analytics.

The process of adopting digital human resource tools and strategies to improve the employee experience and enhance operational performance through data-driven, automated practices.

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Reimagine Digital | Transform Now

Digital HR transformation of a local university

PwC helped a world-ranking university successfully achieve digital HR transformation. A well-planned transition programme with customised change management strategies was introduced to enable the university to easily adopt enterprise cloud HR solutions.

Client: Top university in Singapore

Our role: HR advisory, change enabler and system integrator

Industry: Higher education

Country: Singapore

Setting the scene

Our client is a world-renowned higher education institution and has nurtured generations of talent. The institution is amongst Asia’s best and is recognised for its influential research, innovative academic programmes and visionary enterprise.

As part of its culture of innovation and excellence, the university embarked on a large-scale Human Resource (HR) digital transformation journey with PwC. The goal was to progress to more modern, digital ways of working which enabled HR to focus on employee experience over bureaucratic process and policy. The client wanted to implement SAP SuccessFactors, a cloud HR solution with mobile and self-service facilities to improve convenience and service, streamline workflows and reduce paperwork thereby increasing responsiveness to faculty/staff without driving up operating costs.

Overhauling a two-decade old, heavily-customised legacy system, created to meet diverse stakeholders’ needs has its challenges:

• Inefficient HR workflows due to disparate ways of working and distinct business requirements across multiple faculties & departments and autonomous schools
• Consolidating requirements from numerous third-party systems into a single interface. The complex integrations needed to be optimised and aligned with the new data model
• Large volume of historical employee and payroll data due to the 2 decade old system that needed to be cleansed and transformed
• Securing the endorsement from multiple stakeholders, including union, when making changes to policies
• Shift employees away from current processes to adopt new and more efficient workflows

“Throughout the program, you (PwC) have supported us as our trusted advisor providing excellent advice not only with respect to technical systems implementation…(but we’ve) also been able to leverage PwC’s HR transformation and higher education expertise.” Vice President, HR and Programme Sponsor

How we helped

• Facilitated key conversations between key stakeholders through a visioning workshop, to co-create and align the vision, purpose and guiding principles to meet the needs of the stakeholders
• Ensured constant and sustained stakeholder engagement in the design of the new system through agile iterations to meet multiple business requirements
• Provided strong project management expertise to achieve streamlined workflows in a timely manner through the planning and implementation of SAP SuccessFactors, an integrated cloud HR solution comprising end-to-end HR modules in phases
• Drove effective decision-making through the establishment of clear governance and regular cadence
• Incorporated a scalable integration architecture design to handle large volumes of integration and data touchpoints
• Co-creation of content in the HR system through hackathons
• Conduct of personalised engagement sessions for stakeholders to address their needs
• Implementation of a fun and interactive gamified approach to increase awareness of system changes

Result and impact

Despite disruptions from COVID-19, the first phase covering HR goals and performance functions went live in seven months. The successful adoption of new processes in SAP SuccessFactors, including continuous performance management has reshaped the way performance is managed today.

Three additional modules dealing with core HR, payroll and compensation functions were launched within three months of phase one’s completion. There was a high initial adoption rate of over 85% across employee and senior management. Over 17,000 accurate payslips were generated, and staff rated SAP SuccessFactors four out of five stars in an experience survey.

The third phase of the transformation will cover the learning, recruiting and onboarding functions, and is slated to be live by November 2020.

“I just tried the Cloud HR System. User friendly and much better than many other systems I have dealt with… very well done; must have been a massive undertaking.” Professor of the university

Let us be part of your success story

Reach out to start a conversation

Charles Loh

Partner, Consulting, PwC Singapore

+65 9735 2372

+65 8125 7640

Martijn Schouten

Workforce Transformation Leader, South East Asia Consulting, PwC Singapore

+65 9667 4961

Phoebe Piyaporn

Director, Consulting, PwC Singapore

+65 8125 7692

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Exploring Human Resource Management Digital Transformation in the Digital Age

• Published: 07 March 2023

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• Jie Zhang 1 &
• Zhisheng Chen   ORCID: orcid.org/0000-0002-0854-2547 1  

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The purpose of this study is to explore how human resource management can be digitally transformed in the context of the digital economy. The drivers, directions, and impacts of human resource management digital transformation constitute the major study content. The study proposes that five factors—internal customer digital needs, industry digital innovation, competitor challenges, digital innovation governance, and digital era needs—drive human resource management digital transformation. It analyzes the essence of the human resource management digital transformation, such as digital workplace, digital human resource management processes, and digital employee services. Particularly, the study points out that digital human resource management processes refer to the implementation of selection, training and development, and assessment functions leveraging state-of-the-art digital technologies. It is emphasized that although digital transformation brings benefits for business development, its potential impacts cannot be ignored, including how the old and new human resource management systems are converted and the negative effects of the new system.

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Introduction

The current period is known as the “digital age,” and digital transformation has become a global consensus among enterprises. 5G, cloud computing, big data, artificial intelligence, IoT, blockchain, and other technologies have become the driving and enabling forces of work (Yu & JInajun, 2020 ). Enterprises need to change their business models to harness the exponential changes brought about by the full arrival of the digital era so that they can act faster and adapt more quickly to the rapidly changing environment.

Digital transformation has forced us to change the way organizations operate, to the extent that becoming a fundamental part of corporate strategy (Heavin & Power, 2018 ). The impact of digital transformation can be found to lead to changes in consumer behavior, evaluation of services and products, and expectations (Mosca, 2020 ). To cope with the change in market behavior, many enterprises realize the need to transform business models to gain a sustainable competitive advantage and maintain pace with the digital evolution of their industries.

Before and after the COVID-19 outbreak, there were changes in business claims or leader claims regarding digital transformation. Before the outbreak, it may have been more of a rush or a desire to grow quickly. But the outbreak made it clear that this digitalization or online and offline integration has become a necessary point for survival. If enterprises fail to do this, they may not survive (Yu & JInajun, 2020 ).

Digital transformation has not only had a profound impact on all aspects of our lives, but it has also had a significant impact on human resource management (HRM) processes and roles (Schmid & Pscherer, 2021 ). As new digital technologies continue to evolve, the way in which HR interacts with information and data has also shifted. Some HRM processes (Mosca, 2020 ), like employee recruitment, performance evaluation, and human resource development, have been deeply revised through using digital technologies, which improve service delivery to stakeholders.

Digital HRM saves time and increases the productivity of HRM functions (Mosca, 2020 ). As highlighted by Démeijer ( 2017 ), HRM processes have become easier and faster due to digital transformation. This enables HRM specialists to concentrate better on meaningful initiatives for their functional areas. Digital HRM approaches are playing a growing role and now hold the key to shaping HR strategy and the organization as a whole.

Some scholars, such as Parry and Strohmeier ( 2014 ), focus on the influence of changes arising from HRM digital transformation, highlighting some of the challenges facing HRM in the future. In the context of current digital technology developments, it is necessary to explain the concept, drivers, transformation directions, and the implications of digital HRM.

However, our research found that numerous literature discusses digital innovation in business, industry, sales, and overall organizational management, and rarely address digital HRM changes. On the one hand, it may be that HRM is only a partial function in organizational management, which is difficult to attract leaders’ attention, and on the other hand, it rarely involves cutting-edge business interests. We found after literature analysis that 22 studies about HRM digital transformation were really published, so there are many studies about HRM digital transformation that is worth exploring.

In this study, we have the following questions worth analyzing: What is digital transformation? What factors drive HRM digital transformation? What is the direction of HRM digital transformation? What are the transformation implications?

Several Concepts Related to “Digital” Are Distinguished

Digitalization, digital transformation, and the digital workforce.

In this part of the study, for the sake of the subsequent discussion, we believe that several concepts need to be distinguished: digitalization, digital transformation, digital innovation, and the digital workforce.

Digitalization is different from digital transformation, which is considered as “an ability to convert an available product and service to a digital variant that provides a greater advantage than a tangible product.” Murphy ( 2018 ) states that “digitization is defined as the conversion of an analog signal or information in any form into a digital format that a computer system or electronic devices into a digital format that can be comprehended.” Digitization is not only just about using digital tools within an organization, but it is also a tool for implementing these innovative business models and long-term corporate strategies. Verhoef et al. ( 2021 ) argue that digitalization describes how digital technology can be made to change existing business processes. This change requires the intervention of digital technology to shape the new organizational technology structure, which would not have been possible without the timely intervention of digital technology. In the digital domain, information technology may facilitate business process relationship management and is better suited to the organization (Leviäkangas, 2016 ), becoming key elements of HRM operations that drive innovation. Digitalization assists in making processes within organizations more efficient and increases the sense of customer experience (Pagani & Pardo, 2017 ). Thus, digital technologies not only contribute to cost savings, but also improve the customer experience process for internal services.

Digital transformation has been characterized to be a key organizational shift, powered, established, or sustained by digital technologies which alter the approach to business operations (Bilgeri et al., 2017 ; Heilig et al., 2017 ). Over time, it will apply digital initiatives to achieve important reforms in the way business is managed, resulting in significant changes in an organization or an overall industry. Digital transformation changes the way the whole organization operates, especially the business processes and tasks (Amit & Zott, 2001 ). Furthermore, this transformation can help organizations to better interact with external customers through innovative technologies (Singh & Hess, 2020 ). Thus, digital technologies can support organizations in leveraging existing core competencies or developing potential core competencies to gain a competitive advantage. Due to the implementation of digital technologies, digital transformation is intrinsically linked to strategic changes in business models (Sebastian et al., 2020 ). In summary, digital transformation is a widespread phenomenon within organizations where organizations’ business models are fundamentally transformed by innovative digital technologies. Therefore, in the pursuit of digital transformation, organizations need to balance their existing business models with new business models. As digital transformation progresses, the existing business model will encounter obsolescence (Teece, 2010 ). Organizations need to change their existing business from partial digital change and gradually transition to the new digital business.

Digitization, digital transformation, and digital innovation are closely related and interconnected in different ways. Firstly, these concepts are based on digital technologies. Next, the outcome of digital innovation can result in digitization through uptake in the spread phase of the digital innovation process (Fichman et al., 2014 ). Furthermore, we argue that digitization and digital innovation may lead to significant reforms in how business is undertaken (Osmundsen et al., 2018 ).

The term “digital workforce” represents a group of individuals that are influenced by new digital technologies affecting their attitudes, competencies, and actions. Professionals (e.g., HR practitioners) are required to make significant strategic and operational changes in the face of them.

Digital HRM, Transformation, and Strategy Definition

The focus of this section is on digital HRM, so based on the previous definitions around digital, it is needed to clarify the definition of digital HRM.

Digital HRM is described as “using computer systems, telecommunication networks, and interactive electronic media” to perform HRM functions (Vardarlier, 2020 ). Ketolainen ( 2018 ) supports the vision of digital transformation as a process. He refers to digital HRM transformation as “a process of change in which HRM transforms to digital in order to be data-driven and automated.” The use of digital technology allows HRM operations to change.

Digital HRM strategy can be defined as the HRM strategy developed and implemented to create value for the organization by harnessing the digital potential (Bharadwaj et al., 2013 ). It may be interpreted as the convergence of HRM and technological sources and also implies the development and implementation of HRM strategies that are directly grounded on digital potential and generate corporate advantages to create value for the organization (Strohmeier, 2020 ).

HRM Digital Transformation Drivers

Drivers are regarded as external or internal triggers for an organization to be involved in digital transformation. The factors that drive the uptake of digital technologies are essential prerequisites for a successful digital transformation of HRM. These factors in turn impact the ultimate result of HRM digital transformation (Mosca, 2020 ). In the digital age, HRM exists in an increasingly unstable external environment and has to better serve its internal customers (Schmidt et al., 2017 ). To better exploit the benefits of digital change, HRM digital transformation is necessary (Osmundsen et al., 2018 ). Here, we need to analyze the HRM digital transformation drivers.

Meeting Internal Customer Expectations

Customer-centric HRM refers to HRM that aims to meet customer expectations in a specific market segment. In particular, the customer refers to all employees in the organization (Schneider, 1994 ). To adapt to the impact of the digital age, individuals also need to set their expectations in various ways, such as convenient digital recruitment, training through artificial intelligence for individual needs, and better performance evaluation and feedback mechanisms based on digital platforms. To be satisfied with the needs of internal customers, HRM needs to undergo a digital transformation. The successful digital transformation can bring greater satisfaction to internal employees.

Digital HRM tends to focus on the digital needs within the internal business. This internal attention means that digital HRM transformations are considered effective when digital HRM practices raise internally determined standards of employee efficiency (Schneider, 1994 ). When using internal customers as a valid criterion for assessing the efficiency of digital HRM practices and processes, we need to bring employee feelings and senses into the context of the logic of client service quality.

In the same way that marketing or operations departments have come to accept that it is the critical key to business efficiency, digital HRM may fall into what has been called the “HRM trap” (Schneider, 1994 ). The trap is the idea that everything good (or bad) that happens to internal clients is an effect of HRM practices, procedures, and policies. As HRM digital transforms, employee-related functions such as recruiting, training, and evaluation are subject to change. Employees will have a deep sense of the changes caused by the HRM digital transformation. The ability to fully meet the needs of internal customers and reduce their loss, especially to avoid falling into HRM traps, is a factor in ensuring the success of the transformation (Huang, 2020 ).

Digital Transformation in Many Industries

Digital technology seems to have penetrated everywhere for a long time. Whether in the HRM field or business management in general, it seems that every aspect is being digitally innovated (Yu & JInajun, 2020 ). Digital technologies enable faster and easier execution of all HRM functions, from the recruitment procedure to training, from the job assessment and performance measurement to compensation, and from rewards to employment relations (Smirnova et al., 2019 ). Today, the field of HRM is in a state of rapid change, and it is not just about providing HR services as a support function. HRM needs to digitally transform and lead changing organizations on a global scale. As Boudreau and Strategy ( 2015 ) aptly point out, the HR industry is at a turning point, and in order to be able to add value, HR professionals need to reassess their digital capabilities and skills.

In the face of the current popularity of Industry 4.0, a prerequisite for a rapid transition to digital management is the need to explore the distinctive features of Industry 4.0 in the context of the evolutionary shaping of industrial societies (Smirnova et al., 2019 ). It is obvious that Industry 4.0 imposes deeper digital innovation requirements on HRM.

Digital technologies are playing a crucial part in the forthcoming 4th industrial revolution in three major ways: the growing Internet use, the spread of automated learning, and the adoption of artificial intelligence (Fregnan et al., 2020 ). This revolutionary technological change is changing the world of work and thus affecting managerial practices at various levels. The HRM role needs to be actively involved in addressing the spreading digital technology era, in the face of the “digital workforce,” “digital work,” and “digital workforce management” (Parry & Strohmeier, 2014 ). Therefore, it is important to conceptualize management functions, especially digital HRM, and to acquire new competencies and tools to change and adapt activities and strategies to these novel digital workforce characteristics (Manuti & De Palma, 2018 ).

Traditional HRM domains (recruiting, training, performance, and compensation management) have been profoundly impacted by the digital economy. The HRM domain needs to embrace digital transformation and place good digital practices at the heart of its HRM policies (Tripathi & Kushwaha, 2017 ).

Changing Competitive Landscape

HRM is faced with different challenges all over the world. To succeed in the modern world, it is important for business companies to try to expand into global markets. This is the most challenging opportunity for HRM departments trying to manage the complexity of change and transformation (Tripathi & Kushwaha, 2017 ).

In today’s rapidly changing and competitive business world, competent human resources are a strategic resource that gives companies a competitive edging (Smirnova et al., 2019 ). The impact of the digital revolution particularly concerns companies that aim to remain competitive in their business by being part of this new paradigm (Parry & Strohmeier, 2014 ). Today, both companies and individuals seem to succumb to peer pressure as competitors are starting to digitally innovate, so we must change appropriately (Yu & JInajun, 2020 ).

HRM professionals must respond to the increasing competition brought about by the global digital transformation and the rapid evolution of HRM technology. Future HRM practitioners will need digital knowledge, skills, and competencies. They need to be flexible to address the changes caused by the digital workplace and digital change (Tripathi & Kushwaha, 2017 ).

Governmental Digital Innovation Governance

Berghaus and Back ( 2017 ) suggested that some companies are facing changes in government-led digital innovation governance, which is forcing companies to rethink the method they do business and change their organizations and even the way HRM does business.

National digital innovation governance is defined as the effective organization, coordination, and guidance of coherent actions of all related entities in the national digital innovation system (or regional innovation system) with the help of relevant institutions, rules, and mechanisms to achieve the goals of promoting scientific and technological progress and improving innovation capabilities (Yuezhou, 2020 ). In the face of increasing complexity and uncertainty in the digital economy, the national governance system can be adapted.

With the increasing abundance of data elements, and the continuous improvement of big data processing and analysis technologies, innovations in data-driven governance models are emerging in different areas of the economy and society (Yuezhou, 2020 ). For example, Jesemann, ( 2020 ) proposes targeted strategies for supporting entrepreneurial enterprises to better accommodate the requirements of the digital economy, taking into account the impact and digital transformation challenges on the economic structure and combining several typical cases of success and failure in the Rust Belt of the USA and the Ruhr region of Germany. He argues that traditional industrial regions should be fully aware of the innovation trends of the digital age and prepare for them in advance. Tou et al. ( 2019 ) combine the successful experiences of Finland and Singapore and propose to integrate digital innovation resources into the national production system to form a new open innovation mechanism under the conditions of a digital economy.

Digital innovation programs led by governments around the world have brought about digital changes in HRM. One of the main directions of the successful implementation of innovation programs is “digital economy talent” (Smirnova et al., 2019 ). HRM is one of the main parameters of ensuring the competitiveness of companies in the digital age. The formation of the “digital economy talent” means, first of all, the improvement of the training system, which should supply the required competencies for the digital economy in the Industry 4.0 environment; it also includes the rapid reorganization of the traditional talent needs to ensure the availability of modern digital competencies and a system of employee incentives to acquire the necessary competencies and personnel to participate in the digital economy development. It is clear that HRM needs to adopt digital changes in line with the governmental digital innovation governance plan.

VUCA Era Needs

Economic and social development has entered the VUCA era characterized by volatility, uncertainty, complexity, and ambiguity (Media, 2021 ). The new round of technological revolution and industrial change is accelerating. While giving rise to various new models and modes of the digital economy, it also strengthens the VUCA characteristics of economic and social operation. As we are in the era of VUCA, we already feel that HRM is facing great challenges.

In the HRM field, volatility refers to the increased frequency of talent mobility. In the digital economy, many companies are experiencing a very high turnover of talent. By 2020, the majority of the workforce will be millennials, who have a different mindset. Unlike previous generations, millennials are looking for employers who will give them purpose, job satisfaction, and career growth (Media, 2021 ). The “war for talent” is becoming increasingly challenging for organizations.

Uncertainty refers to the high degree of uncertainty in acquiring talent. High uncertainty involves changes in digital talent standards, business needs, and the environment. Uncertainty includes what talent is really needed and what talent is really defined by us.

Complexity refers to the fact that the talent management environment has become particularly complex. Talent management in today’s environment is influenced by politics, economics, technology, culture, and values.

Ambiguity refers to the ambiguity of recruiting digital talent. Digital transformation cannot be successful without digital technology translating into intelligent efficiency and results that permeate every person and business at work.

Therefore, in the VUCA era, the challenge of HRM work is to recruit and train digital talent, help employees with digital transformation, and help CEOs reshape their view of employment and values in the VUCA environment.

HRM Digital Transformation Directions

The digital HRM function is an organizational activity (Thite, 2020 ). It includes all employee-related activities such as the employee working environment, HRM processes, and employee services. The following section will explain the digital processes of the basic HRM functions.

Digital Workplace Application

Different scholars have suggested that HRM plays an important role in workplace innovation and employee well-being (e.g., suitable office space and efficient work style) (Bamber et al., 2017 ; Kowalski & Loretto, 2017 ). Digital transformation of the workplace, which helps to improve employee performance and increase organizational effectiveness, is also an important task of digital transformation of HRM.

Digital transformation in the workplace is about embedding digital technologies like ICT, especially web technologies in the work process. There are at least two relevant results for the digital management of the organization (Fabbri et al., 2019 ). First, it makes workplace collaboration increasingly powerful. Second, it makes work always “visible” with the progressive adoption of digital technologies in the enterprise: as work processes become increasingly digital, work behavior generates digital trace assets that provide unprecedented access to information.

Digitization has entered our workplace, bringing new applications for internal communication (Thite, 2020 ). While the popularity of these channels differs in different companies, the significance of internal communication will grow as the concepts of digital and social workplace become more prevalent in organizations (Vardarlier, 2020 ).

Organizations shall locate their internal digital communication strategies (Vardarlier, 2020 ). To make it easier for employees to gain access to management, organizations should establish communication channels, such as the use of social media. This process should not only be embraced by management but should also be popularized at all levels of the corporate culture. Therefore, organizations should recognize the importance of digital conversion across levels.

The digital workplace facilitates an online work environment that enhances transparency, improves synergy, boosts employee engagement, and increases team productivity. However, the expectations encouraged by digital technology have also created significant pressure for change in the workplace (Betchoo, 2016 ). Many companies are faced with the challenge of retaining and motivating their most talented young employees who have become accustomed to the more mixed work-life balancing that digital technology brings. Today’s millennials have grown up in the world with digital technology. They use social media, search, collaboration, and other digital technologies as an integral element of their lives and work, and their expectations are shaped by their life experiences.

Digital HRM Processes

Modern organizations need to reposition the value of HRM operations and create end-to-end, closed-loop HRM processes with the help of digital technology and digital operations thinking. Digital transformation brings about a positive influence on HRM and will produce visible changes in selection, training & development, performance, and service quality (Betchoo, 2016 ).

Talent Selection

Recruitment and staffing have become the main focus of digital technology adoption in HRM organizations. DiRomualdo et al. ( 2018 ) noted that the application of digital HRM practices has reduced the intensity of work in selecting candidates, analyzing the skill requirements needed to fill vacant positions, and selecting whom to be recruited.

As the Internet has become widely used, the HRM recruitment process in companies has also changed (Vardarlier, 2020 ). Prior to the discovery of the Internet, talent recruitment was mainly conducted through traditional methods such as job postings and newspapers. Recently, recruitment initiatives of professional networking and employment websites have evolved in the online environment.

Social media platforms allow access to qualified talents in a short period and at a low cost. Compared to traditional forms of recruitment, recruiting and selection through social networking sites are more cost-effective. With the help of digital technology, many companies utilize social media platforms such as Facebook, Glassdoor, and LinkedIn as recruiting tools, and it has been an essential mechanism for employers and job seekers in the recruitment process (Tripathi & Kushwaha, 2017 ). Through these social media strategies, recruiters are able to reach out to more potential candidates, thus increasing the likelihood of identifying suitable candidates.

Artificial intelligence is also being used to some extent in the recruitment field. Real big data and smart technologies are the most widely used in selection recruitment, using intelligent algorithms to identify, as well as accurate profiling. Predictive models for job suitability and adaptation to the organization are also becoming more and more refined (Yu & JInajun, 2020 ). We can even take online interviews, video interviews, and voice interviews, through the application of various algorithms. Adaptability prediction can be done through expression algorithms and voice algorithms.

Training and Development

The Internet advent and the quick growth of personalized training became commonplace in the 1990s, and by the 2000s, companies began to discover the momentum of digital education. Technological advances in the global workplace now have a deep influence on the role of human resource development (HRD) specialists (Betchoo, 2016 ). Previously, HRD technologies were used mainly in educational settings to support training (Benson et al., 2002 ). The advent of current digital technologies allows for greater flexibility and integration. Digital technologies are fundamentally redefining the future of training and development functions.

The development of digital systems has highlighted the idea of e-learning. The more applied e-learning nowadays is primarily through the use of electronic media and especially the use of computers for learning (Vardarlier, 2020 ). And the main trend in the future of digital learning is adaptive learning using artificial intelligence (AI). The salient feature of AI learning is personalized training, which uses individual learning trajectories and introduces individual development programs to create a development environment that does not disrupt creativity and offers a high-achieving (Evseeva et al., 2019 ).

Corporate digital training activities are a collection of systems (Vardarlier, 2020 ). Through the system to be established within the company, it is possible to create a training pool where diversity is a priority. Employees will be able to decide their own training, they will be able to allocate training time at any given time, and they will be able to access training materials and training identified from their location. HRM professionals will be able to train new staff in a more effective way (Nawaz, 2017 ). By having remote access to company information and training programs, trainers would not need to work directly with new employees in all training programs.

Evaluative Functions

Regarding talent inventory, assessment, and motivation, they are collectively referred to as evaluative functions. Today, these evaluations are becoming more and more accurate as employee behavior is increasingly left on data platforms. It means that employees’ behavior and performance are increasingly being fully data-driven and recorded (Yu & JInajun, 2020 ). All information has to be generated and executed on the basis of data. It is much easier to integrate the obtained operational information into the digital context (Vardarlier, 2020 ). Data related to employees will form a personal data account, including behavior on the job, attendance, attitude inventory, and competency evaluation. (Yu & JInajun, 2020 ).

Companies can develop a database where they can access data on employee performance levels, employee turnover, absenteeism, organizational financial opportunities, etc. (Vardarlier, 2020 ).

The concept of “big data” in which we live has significant opportunities for HRM (Vardarlier, 2020 ). Big data transforms information into meaningful and workable formats. When integrating digitally, there is a need to clarify what kind of information will be available for big data objectives and to determine the appropriate information gathering and analysis instruments. Capturing and tabulating information by comparing the daily growing volume of data with past information is particularly useful for achieving outcomes that will be valuable in the policymaking process of the HRM function.

Around the world, HRM professionals and company CEOs are increasingly focused on analyzing and gathering data about their workers. The application of big data and data mining in the domain of HRM and transforming human resource data into profitable operational solutions allows us to leverage facts-based information, forecast analysis, and obtain a greater return on HR investment (Evseeva et al., 2019 ).

Digital Employee Services

The main goal of HRM would be to make sure that employees are working for the business’s success by taking HRM outside of administrative functions (Thite, 2020 ). In an era of digital innovation, HRM around the world is using digital apps, artificial intelligence, and bots to create “employee experience platforms” that support ongoing employee needs.

The effective use of digital across all HRM functions. In this way, they meet the needs of employees by offering speed, quality, and cost advantages (Ladkin & Buhalis, 2016 ) Digital service centers provide efficient, high-quality, and diverse employee services to realize the goals of cost reduction and high-efficiency, better employee experience, and increase their commitment.

Through digital technology, we provide a full lifecycle and comprehensive employee service content. It may build an intelligent digital service system covering the entire career cycle of employees from accepting an offer to leaving the company. It will not only automate HRM activities but also input and output data faster and more accurately than employees (Yu & JInajun, 2020 ). As the boundary between work and life is getting blurred, in pursuit of high employee experience and high engagement, advanced companies have started to provide employee services that extend from regular personnel services to the life aspects of employees (e.g., travel, housing, marriage).

Through digital technology, omnichannel and intelligent service methods access the ultimate digital experience. With full consideration of employee service scenarios, increased companies are providing Web portals, mobile apps, WeChat public numbers, self-service terminals, and call lines to make employee services available anytime and anywhere. The use of technologies such as smart robots and semantic analysis allows employees to benefit from intelligent services for the extreme digital service.

HRM Digital Transformation Implications

After analyzing the drivers and directions of HRM digital transformation, HRM faces different transformation implications. HRM digital transformation requires more than improving operation with digital technology. It needs to rethink the new digital HRM business logic, the digital transformation challenges, the impact on performance, and digital ethics (Osmundsen et al., 2018 ; Piccinini et al., 2015 ).

Parallel and Transition Between Old and New HRM Systems

Hunt ( 2014 ) states that transforming HRM requires digital innovation, but we have to consider the interface and transition between the old HRM operating rules and the emerging digital transformed HRM. There are usually three approaches: grafting, bridging, and decoupling (Tumbas et al., 2018 ).

Grafting involves combining the existing HRM logic with the emerging digital action logic. HRM teams with hybrid capabilities act toward a common goal. Grafting involves a longer-term vision, which can cause completely different working models when the organization coordinates different action logics.

Bridging includes creating links between current functional units to enable novel digital initiatives. It is also about bridging digital change based on the existing HRM operational processes. This facilitates the discovery of reorganizations of existing executive roles and the formation of new digital work patterns.

Decoupling explains how novel digital initiatives can be separated from current functional units to enable novel digital initiatives. In doing so, it is easy to execute digital changes quickly and to reach goals. However, it lacks interface with the existing HRM processes and can easily fall into a “siloed” state. This can prove difficult to sustain in the long term, especially when digital capabilities require infusion into legacy organizational units.

It is unrealistic to parallel the old and new HRM systems and expect the digital transformation to be a one-time success. It is a great digital change management process that requires a risk-taking approach by the organization and its employees.

Challenges of the New HRM Model

New roles are set up (DiRomualdo et al., 2018 ). With HRM delivery becoming increasingly digital, many current roles are expected to be more specialized and even new roles will emerge. HRM must begin to plan for the role changes to meet the needs of the digital transformation of the enterprise and utilize these chances to enhance HRM abilities, service delivery, and job performance. Much of the work done by HR will be automated. With the reduction of administrative positions, where possible, adequate training and transition support will be provided to affected employees to fulfill the newly created role of the HRM department. For example, the Workforce Data Project Leader would be accountable for all end-to-end data analytics projects and data operations consolidation and calculations.

The response of the original personnel (Sotnikova et al., 2020 ). As a result of digital changes in work processes, there is a risk of layoffs at the lower and middle-skill levels. However, due to the process automation of layoffs, companies can give their employees retraining and realize the most interesting activities in their own field. Possible problems in the implementation of this program are the resistance of employees, especially the older generation, to digital transformation and the lack of motivation of employees to master the digital economy competencies and participate in the digital development of the organization (Vakulenko et al., 2016 ).

Developing digital system capabilities (Sotnikova et al., 2020 ). Usage and continuous design iterations also underpin these efforts. To succeed in the new model, HRM teams may need to work with IT to adapt design thinking, use integration analysis, and carefully analyze software vendor decisions. It is a whole different world for HRM technology and project teams which would create new career chances and change the influence of HRM on the business.

Data security issues (Sotnikova et al., 2020 ). Any change will come with the high losses of mistakes. Sadly, no system is free from mistakes, and perhaps, the innovative technologies also could fail. A small mistake in constructing an algorithm can lead not only to the loss of financial resources but also to the loss of important information and data. In addition, when digitally transforming HRM processes, special attention should be given to digital security issues, as information presented in cyberspace is often subject to various cyberattacks and data breaches.

Impact on Performance

Digitally transformed HRM is ripe for better use of digital technologies to improve business performance. Digitally integrated HRM business processes add performance gains from information systems functions, improve transparency, and monitor cost reductions (Osmundsen et al., 2018 ). It can nurture digital HRM strategies that result in process refinement and modularity and can bring in novel practices and creative initiatives.

The benefits of digital HRM include improved productivity via organizational efficiency, less bureaucracy, lower costs, and the creation of additional value (Vardarlier, 2020 ). It reduces the routinized and tedious operational processes of HRM, enhances its productivity, and gives it permission to shift toward strategic domains that are of value to the organization. The fact that digital HRM systems are easy and quick, enabling employees to upgrade their abilities to improve their skills and enhance their performance, makes the system the preferred and broadly available for the organization and its management (Öğe, 2004 ).

Bondarouk and Brewster ( 2016 ) highlight the challenges of conceptualizing digital HRM and the need to adopt a longer-term view when dealing with the outcomes of digital transformation. It is argued that “good digital HRM includes actions and policies that are conducive to the long-term success and survival of a company, not just generating shorter-term returns for shareholders.” The performance outcomes of HRM digital transformation need to be assessed from the perspective of long-term benefits.

Digital Ethics

As organizations progressively move forward with their digital HRM transformation, there is a need to focus on the ethical issues raised by digital technology. Lobschat et al. ( 2021 ) have developed the concept of Corporate Digital Responsibility (CDR), described as a group of accepted principles and values that direct a company’s major information technology and data procedures. These processes are related to the creation of technology and access to data, operations and decision-making, inspection and impact assessment, and the refinement of technology and data. The new concept of CDR highlights its importance based on the different stakeholder perspectives. Operational guidelines on common CDR norms and values can be developed. The operational guidelines may be followed and implemented jointly by stakeholders in the digital HRM transformation process.

Future Research Directions

It is suggested that the following areas could be explored in depth with regard to future research directions on digital HRM change. Digital hiring involves the use of advanced technologies (e.g., AI chatbot, blockchain) for job posting, candidate profile screening, interviewing, and hiring. Artificial intelligence technology can save costs and use historical data to quickly and accurately screen potential candidates’ profiles. Blockchain technology allows for peer-to-peer sharing of job information and ensures privacy. How these similarly advanced technologies can be applied in digital hiring and the related issues (e.g., discrimination, fairness, confidentiality of information) allows for further research in the future; digital training, including knowledge base building, development of training needs, training execution, and feedback on results through advanced technologies (e.g., artificial intelligence, metaverse). AI technology can intelligently retrieve the knowledge required by an organization or individual and build the appropriate knowledge base. In the future, researchers may consider how AI technology can gather knowledge and organize personalized training. Using 3D technology, with the help of the Metaverse construct, people can learn the required knowledge in virtual worlds in the form of avatars. It is suggested that researchers could explore how metaverse technology could be applied to digital training in the future, how training in virtual worlds could ensure the privacy of personal information, and the harm of excessive indulgence in digital worlds (e.g., learning in metaverse with game modules).

Contributions and Conclusions

This research provides the following recommendations for HRM practitioners as well as theoretical researchers. (1) The study analyzes the drivers of HRM digital transformation for organizational managers and HRM practitioners and helps them to understand the underlying reasons for HRM digital transformation. As a result, people need to reconsider the possibility or the urgency of HRM digital transformation in the context of the internal and external organizational environment. As a business partner, HRM needs to face internal customer requirements (e.g., to deliver digital HRM processes) as well as external factors such as competition, industry developments, and government regulation. In order to meet these internal and external demands, there is a need to carry out HRM digital transformation and upgrades, without which it cannot face competitive pressures and gain a business advantage. (2) In addition to the drivers for transformation, HRM needs to consider the direction of transformation, that is, what HRM business area to transform in. This helps to direct attention to the key of digital HRM transformation so as not to stray from the core digital HRM business area. The study analyzes the elements of digital HRM transformation from the HRM perspective, including shaping the digital workplace, providing internal digital services and digital HRM business processes (e.g., selection, training, and assessment). (3) Our study also considers some of the consequences of the digital transformation of HRM. Managers need to consider and assess these consequences in advance. Possible implications include how to transition between the two HRM systems, the negative impact of the new digital HRM system, the impact of digital HRM on work outcomes, and digital ethics. The study reminds managers of the need to consider the possible implications of the new digital system. After assessing these impacts, organizations need to decide whether to adopt minor digital HRM changes to transition or a large-scale approach.

This study aims to explore how human resource management can be digitally transformed in the context of the digital economy. Firstly, several concepts related to “digital” are distinguished. Then, after searching and analyzing the literature, we propose that the drivers of HRM digital transformation include meeting internal customer expectations, the digital transformation of the industry, influence of competition, digital innovation of the government, and the needs of the VUCA era. HRM digital transformation directions involve the digital workplace, digital HRM processes, and digital employee services. Among them, the digital HRM process mainly focuses on talent selection, training and development, and evaluative functions. HRM digital transformation will bring certain implications, including how to parallel and transit between the old and new HRM systems, what are the challenges of the new digital HRM, the impact on performance, and digital ethics. In the digital era, there is not enough research in the field of HRM digital transformation, which also gives us researchers more opportunities to explore.

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How to Make a Winning HR Digital Transformation Roadmap [With Examples]

24 th Aug 2022

8 mins read

Tarulika Jain

The role of the human resources (HR) function is rapidly shifting away from solely providing routine employee-centric services. One of the consequences of this paradigm shift is the increasing focus on digital and artificial intelligence (AI) capabilities finding applications in recasting the way HR functions. 

As your enterprise embarks on the HR role in digital transformation journey, it is essential to have an in-depth understanding of its meaning, strategies, challenges, and benefits.

What is hr digital transformation, hr digital transformation strategy, hr digital transformation examples, benefits of hr digital transformation, hr digital transformation case study.

Digital transformation is often confused with digitization or digitalization. 

Digitization refers to converting physical data or documents into digital form. It focuses on technological advancement.

Digitalization goes one step further and automates business processes using digital workflows. It focuses on process improvement. 

Digital transformation is a broader concept that encompasses digitization and digitalization and extends beyond them. It focuses on the people aspect of an organization . It involves creating a shift in leadership mindset and an organizational culture that leverages digital efficiencies on an ongoing basis. 

Challenges in HR Digital Transformation

Contrary to common understanding, most challenges faced in digital transformation journeys are unrelated to HR tech. 

I. Low Stakeholder Buy-in

Transformational changes are successful only if driven from the top down. Top management buy-in provides the necessary budgets, approvals, and internal branding that HR transformation initiatives need to succeed.

II. Lack of Clear Objectives

Organizations must define the transformation goals clearly, and measurably in alignment with their strategic objectives. For example, if the aim is to improve employer branding to attract talent, a 20% reduction in new-hire onboarding time is a well-defined relevant goal.

III. Low Adoption

Low user adoption could result from ineffective change management, insufficient training, improper platform selection, or lack of top-management push.

Make Your Digital Transformation Game Stronger

Download List of Courses You MUST Complete

The goal of digital transformation is to create an agile HR function that is digitized end-to-end. However, it requires a structured approach to achieve this end. 

HR Digital Transformation Roadmap

Following are the key milestones to be completed for each HR transformation initiative-

I. Assess the Current State of Maturity 

According to the Gartner 2021 HR Leaders Agenda Poll survey , 48% of HR leaders stated that their existing HR digital tools hinder, rather than enhance, employee experience (EX). 

The first step is to evaluate how aligned the AS-IS HR processes and performance metrics are to industry-best practices. You also need to assess if legacy enterprise systems are suitable for integration with HR automation solutions. Current state assessment may reveal process bottlenecks, for example, delays in salaries getting credited to employees.

II. Define Strategic Vision 

Enterprises need to set relevant and measurable goals for the TO-BE state of their HR functions. All relevant stakeholders and the top management must collectively set these goals. For example, one aim can be to reduce the payroll processing time by 15%. Setting goals will help identify the gaps that need focus as part of the digital transformation HR strategy.

III. Identify Gaps and Define Business Requirements

Based on the identified gaps, you need to list the processes and components that need digital transformation. These would form the basis of the scope of the business requirements. For example, for the above goal, you must automate the payroll calculations through data integration with attendance, leave management, and accounting systems.

PwC Digital HR Transformation Survey 2022 reveals that 96% of HR leaders envision their teams as employee experience designers, change agents, and talent developers.

IV. Select Products and Vendors

Based on the business requirements, you can explore the HR automation products that offer the relevant features. It is advantageous to choose ready-to-deploy on cloud products rather than building in-house platforms from scratch. Cloud-based HR digital tools provide ease of use, scalability, and security without high upfront costs. Selecting third-party system implementation vendors brings the necessary skill sets and ensures a faster go-live. Most service providers offer live demos for a first-hand experience of the product. You can request proposals from multiple vendors before zeroing in on the most suitable one in terms of costs, timelines, and deliverables. 

V. Experiment with POCs

Proof-of-concept implementations of small functional modules allow enterprises to generate stakeholder buy-in and prepare the HR department members for upcoming process changes. It also builds a rapport with the implementation partners and improves communication with the IT teams.

VI. Implement and Roll out Solutions

You must also prepare a phase-wise deployment plan, especially if your enterprise spreads across geographies. The processes, IT systems, and teams impacted in each phase should list in the roll-out plan. It should also include training plans, internal communication strategies, and change management initiatives. 

VII. Measure and Improve

Post-implementation and roll-out, it is necessary to track the improvement in the key performance indicators (KPIs) per the goals set out in the beginning. Continuous incremental improvements based on performance data and analytics are the hallmark of an agile HR function.

Stages of HR Transformation

A research report by Altimeter , an independent strategy consulting company, identifies six stages of any digital transformation process. These are equally applicable in the case of the HR function also. 

Following are some key digital HR transformation use cases,

I. AI-based resume screening

HR executives need not spend time sifting through resumes as automated algorithms based on machine learning (ML) and natural language processing (NLP) automatically filter the most relevant profiles. They can sort the shortlisted profiles by education, experience, or other parameters and send auto-notifications for further rounds with a single click.

II. Internal communication portals and chatbots

As per Mckinsey’s research , an average employee spends one day of a workweek looking for internal information or tracking colleagues who can help with specific queries. This time can come down by 35% by deploying internal social media that provide easy search, effective collaboration, and employee engagement . 

III. Self-service portals 

Employees, specifically field personnel, benefit from self-service options available on their mobile devices. Modern HR self-service portals offer options to fill attendance and timesheets, access payroll data, view HR policies, track service requests, and enroll in learning and development programs. 

IV. Onboarding automation

A smooth new-hire onboarding process ensures long-term retention. Digital workflows can manage documentation, introductory training, asset management , identity, and access management. It also helps create automated workforce plans, ensuring prompt project assignments and low bench time.  

HR digitalization is an ongoing transformation exercise that generates ROI by leveraging digital efficiencies.

I. Improved employee experience

The key benefit of seamless, digital HR workflows is an enhanced EX. EX is crucial to the overall employer value proposition (EVP) alongside salaries, benefits, and training. A superior EX results in positive employer branding that helps attract and retain top talent. Thus, digital transformation improves employee experience

II. Increased productivity

HR teams spend less time on tedious data entry, recalculations, ad-hoc phone calls, and emails. Digital workflows ensure they complete within preset turnaround times (TATs). It saves time for HR personnel, which they can utilize interacting with and supporting new hires and employees. Employees get access to self-service options and automated escalation mechanisms that save the time they spend following up with HR personnel. 

III. Advanced HR analytics

A centralized database, high-quality validated data, advanced visualization techniques, and artificial intelligence (AI) based algorithms provide deep insights into HR functions. Data-driven applications include resume screening, workforce planning , predicting employee churn, and optimizing variable payouts.

IV. Agility and scalability

 HR digital transformation helps enterprises imbibe agile processes that enable continuous incremental enhancements through digital technology. Cloud-based HR applications are easy to scale regarding the number of users and additional functionalities and integrations .    

Deloitte’s research findings say that IBM, the global behemoth with over 400,000 employees, spearheaded digital talent management transformation. IBM replaced its legacy training management system with a new online platform. It enabled employees to publish relevant content, recommended role-based courses, and integrated external pieces of training across the internet. IBM also leveraged its AI investments to build an intelligent chatbot – (Cognitive Human Interface Personality) CHIP – that handles a variety of HR queries, thus reducing calls and emails to be governed by the HR teams.

Closing Thoughts

Most enterprises today are in the initial stages of their HR transformation journeys. There are immense challenges along the way, most of them stemming from the people’s aspects. Enterprises must embrace agile work models and make requisite changes in their day-to-day HR operations to make the most of HR digitalization endeavors. The success of early adopter companies in the digital world shows that the benefits are worth the efforts.

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Hi.. I am Tarulika Jain. I work as a content writer in HROne. I am an Electrical Engineer by degree, and a pragmatic writer by profession. I bring you insights about Human Resource Management and how digitalisation can make your workplaces happier. When I’m not writing, researching and reading, I walk around the woods, sip my coffee and listen to Indie Music.

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Winning Secrets: How Singtel’s HR digital transformation has delivered positive impact to the EX journey

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"A key element of our success was ensuring that every employee was brought on this transformation journey," said Tan Lee Choo, VP, People Operations, Singtel.

At the Employee Experience Awards 2021, Singapore , Singtel received the gold award for Best HR Digital Transformation Strategy.

In this interview, Tan Lee Choo, VP, People Operations, Singtel shares the secrets behind this win - how the firm leverages technology to enhance its workflow and business strategies across all departments, and to better understand and support its employees - providing an employee experience that's one to remember.

Q Congratulations on bagging this award! What is your award-winning employee experience strategy that led to this win?

In Singtel, we are guided by the 'Amazing People, Awesome Impact' approach to shape employee experiences. Technology is a great enabler, and, in 2018, we set out to digitally transform the way our employees work, collaborate, and acquire future-ready digital skills.

We integrated technology seamlessly with our existing workflows to deliver our HR initiatives, such as harnessing data analytics to make the right people decisions and using a mix of digital learning and classroom sessions to equip employees with new skills. This way, we empower our staff to perform their jobs more efficiently and effectively so that they can focus on people relationships and other higher-value activities.

We also recognised that with constantly changing employee needs and expectations, the traditional annual employee engagement survey alone would not be sufficient to equip us with the insights needed to deliver a world-class employee experience.

As speed and responsiveness are key, we needed to rethink and redesign the way we captured and acted on feedback to better support our teams in this new environment.

Thus, in late 2019, we launched EXperience, a new internal employee experience programme with the aim of having an integrated feedback platform that can generate real-time insights to deliver outstanding experiences for our teams.

Q  How did you and your team conceptualise and adapt this strategy to suit evolving workforce needs in the past year?

When the pandemic hit, we had already done quite a bit of work on EXperience and were well-placed to accelerate initiatives that enabled us to constantly listen, understand, and act on the changing needs of our teams.

First, we shifted from a static listening approach (a once-a-year employee engagement survey) to launching frequent pulse check surveys of no more than five questions to quickly understand our employee experience at a point in time. We also introduced continuous listening at key moments of the employee lifecycle, such as workplace anniversaries, onboarding, exit, and integrated feedback from third-party sites like GlassDoor in the platform.

With the insights we had gleaned, we were able to quickly act on the feedback to launch new services that resulted in positive improvements to our employee experiences. This was also made possible with the in-house data and digitalisation capabilities that we had developed over the years with our Future of Work initiatives.

Some examples of digital transformation in our processes include empowering leaders to understand how to best support their teams through data-driven insights on employee needs and well-being from regular surveys and data analytics and enhancing efficiency and simplifying processes by using digital technologies to make HR transactions frictionless for employees.

We are also engaging our remote workforce through collaboration tools and defining new ways of working to give them greater flexibility to balance their work and personal commitments.

Recently, we improved the onboarding experience for new hires by streamlining and automating processes, and providing greater support so that they can get off to a good start, and even launched an app just for onboarding!

Q What challenges did you face along the way, and how did you overcome them?

With the COVID-19 pandemic and the rise of remote working, most organisations would have to rethink and redesign employee experience. We were able to quickly make the transition as robust digital platforms were already in place, coupled with a willingness to embrace greater agility within the HR function.

A key element of our success was ensuring that every employee was brought on this transformation journey. This was done by communicating insights to people managers, providing them with the resources to address feedback immediately, and sharing results with our workforce so everyone knew their voice had been heard.

For example, results from our first pulse engagement during the pandemic revealed that employees working remotely were facing many IT-related challenges. As soon as the HR team and management heard their feedback, actions were taken immediately to address their needs.

Later, pulse surveys told us our employees wanted to learn more about how to stay healthy, active, and positive. This led us to introduce health and wellness programmes such as fitness classes and mindfulness talks.

The transformation we have undertaken ensures Singtel can overcome the next big challenge facing HR teams and people leaders – building return-to-work strategies post-pandemic. The capabilities and skills that we have gained will help us to make data-driven decisions with confidence.

Q How did the strategy add to the overall employee experience in your organisation, in terms of ROI? Any achievements you’d like to show off?

Singtel’s HR digital transformation helped us to record our highest levels of employee engagement since we started measuring in 1998.

Positive results were achieved across the board, from an uplift in employee experience, reduced employee churn, and greater manager effectiveness scores.

It is an even more impressive result viewed in the context of a very challenging 2020 for everyone, and the fact we had just adopted an entirely new employee listening approach.

Q What is the most exciting and valuable thing about being part of (and winning at!) the debut Employee Experience Awards?

While a lot of the change and disruption that the COVID-19 pandemic caused has fallen on the shoulders of HR teams to manage, we have stepped up to deliver meaningful business value to our company. Our win is a testament to the positive impact that we delivered in the employee experience journey.

There will be more changes, challenges, and opportunities ahead as we press ahead with our employee experience strategy post-pandemic, and this awards event helps provide a forum for us all to share learnings and best practices.

Q Looking ahead, what else do you have planned as you continue to enhance the overall employee experience?

Singtel’s EXperience platform will continue to play a critical role as we design and improve our Future of Work initiatives. One key focus will be using employee insights to ensure our workplace policies in a post-pandemic world address our teams’ needs and expectations – from where and when they work through to our company culture.

Finding ways to improve employee mental health and well-being is another priority. Over the last year, creating a culture of belonging has risen to become the top driver of employee engagement based on our 2021 employee experience survey, and also greatly influences employee wellbeing and how long they remain at the organisation, so it is important we provide the right support and services.

As we hire new employees over the next year, we are also committed to delivering a great recruitment experience to everyone involved – from candidates through to hiring managers.

Q Do share some tips to inspire your peers who are working on their EX strategies and would love to participate in the awards next year.

For fellow HR practitioners rethinking how they approach employee listening to create positive employee experiences, we would suggest prioritising these four critical areas:

• Ensure all feedback is acknowledged to reinforce that you are constantly listening to employees’ needs.
• Be transparent and share results with employees, from leaders to frontline workers, to emphasise that their voices are heard.
• Keep engagements short, simple, and visually appealing to encourage participation and better quality responses.
• Involve all levels of employees in your transformation to drive meaningful and lasting change.

Q Lastly, to end on a fun note – if you could describe the employee experience at your organisation in one sentence, what would that be?

We have embarked on an exciting new chapter with effect from July 2021, and are now known as Group People and Sustainability (instead of Group Human Resources). We hope to work with our employees to RE-invent their experiences and REset for growth in this new normal.

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Read more interviews on why organisations have won trophies for their HR practices - head over to our  Winning Secrets' section !

Follow us on  Telegram  and on  Instagram  @humanresourcesonline for all the latest HR and manpower news from around the region!

Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!

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Case Study: RHI Magnesita - Digital HR Transformation with SAP SuccessFactors Modules from Alight

About rhi magnesita.

• Business: Refractory industry
• Workforce: 15,500 employees globally
• Headquarters: Vienna, Austria

RHI , a global leader in refractories, faced growing challenges with the maintenance and digitalization of their employee database after merging with Magnesita back in 2017.

Despite an increased employee headcount, multiple systems and manual Excel files were still being used to manage all HR-related processes. This caused data inconsistencies and heavy manual workloads.

By partnering with Alight Solutions, RHI Magnesita built a digitalized foundation for organizational learning and was able to administer all aspects of talent data more efficiently and accurately. 

Key takeaways

• SAP SuccessFactors helps oversee and reorganize the management of employee and talent data.
• Digital transformation is necessary to get a centralized and shared view on L&OD, recruitment, onboarding, goal setting, compensation, and organizational charts.
• Data consistency within core HR offers a competitive advantage.
• The integration of various SAP SuccessFactors modules facilitates the management of company-wide compensation campaigns.

By implementing SuccessFactors we saw a huge increase in efficiency, standardization, data availability/accuracy and stakeholder accountability — putting leaders in the driver seat of our HR processes. The road was not easy, but Alight helped us with all our considerations, putting change management and customer centricity front and center.

Putting an end to back-office inefficiencies

In 2019, RHI Magnesita selected SAP SuccessFactors as the solution to transform and oversee the management of its employee data and HR processes.

While the Human Resources area of RHI Magnesita leveraged a global mini master data on SAP Human Capital Management (HCM). First attempts at integration showed the limits of the approach. The on-premise system for housing data could not run HR processes, employee self-service functions or live updates.

Additionally, manual intervention was still required on separate systems. This compromised data accuracy and prohibited process standardization within the organization.

Combined, these limitations prompted a new vision. RHI Magnesita set out to deploy a digitalized employee database that would allow for a single, global HR platform. This would be integrated to support employee self-service, recruitment, compensation management, learning, performance and goal setting, and succession planning.

Digital transformation and a new HR network

As a first step towards digital transformation, RHI Magnesita ran a technical assessment on how to better integrate SuccessFactors with its various local payroll systems and conducted various workshops for process optimization.

Following initial integration challenges and some hard work on change management – especially when it came to manager self-service – RHI Magnesita conducted a successful go-live of their Employee Central and Recruitment modules using SAP SuccessFactors from Alight.

Other modules came over the following years to consolidate the success and the value of the project. These included; Compensation, Onboarding, Performance and Goals, Succession and Development, and ultimately Learning – a project that not only included the module implementation but also a full review of RHIM’s learning database and its learning principles.

Included was a review of the process and guidelines for the creation of training content and learning management, which were added with help from Alight. This resulted in more than 1,600 employees entering the system, internally called RHIM Academy, within the initial days.

A support structure that included a chatbot, a ticketing tool, and a group of agents to field help tickets came in 2023 to consolidate the success of the tool.

What’s next

RHI Magnesita’s collaboration with Alight did not end with the completion of the internal HR network. With a new support structure in place, the focus in the year ahead is furthering the system and process knowledge of key users and the continuation of process streamlining.

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Delivering global transformation through people technology

Digital Transformation in Healthcare

Silver Cloud HR was approached by CoreHR to assist with the digital transformation of a leading healthcare provider’s HR processes.

Having worked alongside CoreHR in the past and as HR technology specialists, Silver Cloud HR was the natural choice as preferred partner and was tasked with the tall order of replacing the client’s three disparate HR systems with a single system capable of fulfilling their very specific needs…

SECTOR: Healthcare

VENDOR: CoreHR

HR CHALLENGE: Digital Transformation

The Challenge

With approx 10,000 employees across 120 locations - ranging from small residential units to secure wards with 500 beds - there were many issues to consider.

The organisation employs a broad range of healthcare professionals who are categorised within 23 different paid groups of employees working various shift patterns. People management was carried out using three different HR systems with varying degrees of digital capability.

With an urgent need to have real-time insight into staffing expenditure, cloud based CoreHR’s people management module, which had been pre-selected prior to Silver Cloud HR’s involvement in the project, needed to be implemented, and fast.

The Process

The first stage of the project was a challenge. Silver Cloud HR were tasked with introducing the single HR system complete with employee self-service, within three months.

The landscape was typical of a company that had grown through acquisition. Each of the 120 locations had their own way of using the existing HR systems.

Data migration had already taken place from the legacy systems to CoreHR. Silver Cloud HR’s role was to work closely with CoreHR and the client to implement and test the new HR system against ambitious delivery timescales.

This involved quickly getting to know the complex structure of the organisation so that key test scenarios could be defined to ensure the system would be fit for purpose.

During the test phase, Silver Cloud HR developed and delivered training to 120 site administrators across the UK. The three-hour training sessions walked attendees through the key scenarios in the system and allowed them to access and practice using the system. To complement the training, Silver Cloud HR also created a user guide and training videos and supported a shared mailbox so that administrator queries were easily resolved.

The Results

In January 2019, the company went live with CorePersonnel. The new functionality means that all HR processes are online, reducing the cost and environmental impact of paper-based processes. It is putting more power in employees’ hands, streamlining HR tasks and improving engagement.

The biggest advantage to the workforce is the ability to book annual leave remotely. This shifts the responsibility away from the managers and saves administrators a considerable amount of time each month.

Better still, it has provided a platform forongoing digital transformation.

The Next Steps

Impressed with Silver Cloud HR’s expertise and support, the team was asked to assist with the next stage of the programme; rostering, time management and payroll.

To drive business efficiencies, the organisation needs greater control over its staffing expenditure; both internal and agency. With CorePersonnel now live, Silver Cloud HR is supporting CoreHR and the client with the implementation of CoreTime and CoreRoster.

A biometric clocking-in system is being introduced across all locations that will link to the CoreTime module. To enable this, Silver Cloud HR is working diligently, alongside CoreHR, to establish rules that account for the specific work and shift patterns at each locality.

Currently, this includes close consultation with business managers to identify shift types to create a series of work buttons within CoreTime.

Why choose Silver Cloud HR to implement your HR or payroll system?

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