Digital transformation in HR

Posted by Fed Finance in Our employment advice
Posted at 29/03/2023
Digital transformation in HR

We are during the so-called digital transformation era. New technologies have completely changed our lives and innovative tools have given life to new processes within companies all over the world.

Digital transformation is gaining strength within organizations, in their various sectors, changing the dynamics at various levels.

What is Digital Transformation?

Digital transformation is the use of technological advances and new digital technologies at the service of existing businesses and driving the emergence of new businesses.This phenomenon has inevitably forced a new repositioning, constant adaptations, and several restructurings of the already existing businesses in their various departments, even in the most traditional ones, such as: sales, marketing, customer service or human resources departments.

Although many companies and organizations may have been resistant to follow these increasingly transversal changes in the world we live in, the truth is that it is very difficult for an organization to resist these updates. In fact, this evolution can bring many benefits to organizations, even though, mainly in the beginning, they require the overcoming of some obstacles. On the other hand, the emergence of new digital tools and resources, has allowed the emergence of new emerging businesses and new professions.

Digital transformation in HR

As the human resources sector is considered one of the most strategic sectors within organizations, it becomes important to optimize its management through the resources offered by new technologies. As in other sectors, Digital Transformation has brought a set of tools that allow a better management of the entire human resources consulting process throughout all its phases, providing a series of advantages for the company. We can say that Digital Transformation in HR has brought indisputable gains for organizations. But to what extent?

  • It improves employee productivity by automating some tasks that are no longer necessary. Filling in time sheets is a clear example. By eliminating this type of task, employees have more time to perform other more relevant tasks.
  • Increases motivation. The performance of less routine tasks, using new software, enables the development of other types of functions by the employees, normally more motivating and captivating for them.
  • Help in recruitment and selection processes. With the use of new tools, these processes become faster and more effective. Recruiters can, for example, screen CVs using keywords relevant to the functions to be hired or have access to other innovative functions.
  • Improves internal communication which becomes more direct and faster.
  • Helps in the evaluation processes and career development programs since the evaluation processes become more dynamic. New vacancies can be promoted to employees in a faster way.
  • Makes work more autonomous using new software.
  • Reduction of error possibility, because many tasks are replaced by digital programs and the possibility of human error is thus reduced to a minimum.
  • Remote working. This is another advantage for many companies and workers, only made possible by new technologies.

But if there are many advantages brought by all these digital transformations, there are also some barriers and inconveniences that companies must overcome. These are the obstacles or adaptations that organizations will face in order to make use of all the advantages offered by the new digital resources:

Digital Transformation in Businesses - obstacles:

  • Need for training in the face of new technology programs
  • Training employees
  • Need to update over time
  • Need for investment