Sofia Graniello
September 11, 2023
min read
Metrics & Performance

Digital Transformation of HR Departments

With a new working culture that is constantly shifting, and while many organizations are going digital for an agile approach – HR departments are too making a significant shift from manual work to digital. But the question is, why is it imperative for the HR departments to change the process? A question we try to answer in this article. 

In this article, we will look into several important points in regards to HR and its digitalization:

  1. Why should HR turn digital and not just “do” digital?
  2. How can your HR department start with its transformation– tips and tricks 
  3. Where do you start with HR digitization?

As we know it, many organizations are making the shift to turn most of its documentation paperwork – digital. With so many applications, tools and platforms to sustain and support digital work labor, HR departments are also making the big splash into digital. According to Deloitte, “Today, HR’s focus has shifted toward building the organization of the future. Companies are hiring young, digitally savvy workers who are comfortable doing things themselves and sharing information in a transparent way.” And what is the end scope for such a shift in recruiting? The article states: “ They want an integrated, digital experience at work—one designed around teams, productivity, and empowerment—and HR is expected to deliver it.”

Why should HR turn digital and not just “do” digital?

In a study done in 2017, companies realized that if they wanted to become more agile, switching to a digitized path was the answer – as it enhanced collaboration, team work, and cooperation throughout the organization. 

HR departments are now looking to redesign and rebuild its entire process without removing their core priorities. Currently, their end scope is to promote and rebuild and better employee experience, recruiting great talent and employee retention for the future workforce. With so many apps, platforms and tools at our disposal, self-management has become a must, especially if you wish your organization to thrive in a post-pandemic world. HR departments (and smart CEOs) have understood that an agile approach and creating a working environment that oozes diversity, different cultures and more – is the correct way to navigate today’s working environment. 

🔥 Article pick: Workplace Diversity: Solving The Deficit Is A Matter Of Company Culture

And why should we consider turning HR into digital? Is it really worth it – or is it just a waste of time? Studies done in 2016-2017 show that 52% of European companies believe that HR going digital is vital for the working environment; 22% said that it is critical to the company’s economic performance; and 63% are looking to invest in apps and technology to boost their transformation within a two-year period.

Digital HR map

HR’s digitalization is based on technology, experimentation and constant innovation. The shift has happened quickly, as many companies are looking to start their transformation and go all digital. Deloitte Insights states in a study that “56% of companies are redesigning their HR programs to leverage digital and mobile tools. 51% of companies are currently in the process of redesigning their organizations for digital business models. 33% of surveyed HR teams are using some form of artificial intelligence (AI) technology to deliver HR solutions, and 41%  are actively building mobile apps to deliver HR services.”

But with a rapid change and growth into changing the process and how the workforce has changed and is changing, HR is said to be now focusing more on people, work and platforms.

HR departments evolution

So, how can you start if you wish your organization to switch into digital?

According to Mind K, there are 4 current trends your organization could partake in to boost its transformation and its digitalization with much more effectiveness. 

👉 #1 Automation

Substitute all paperwork with an efficient digital process with automatic tasks that will free your employees’ time and will give room for less human errors, adding transparency with an improved HR process. 

HR automation

👉 #2 Continuous performance management 

An agile approach to bring transparency between employees and management, CPM is designed to be reviewed in three main stages:

  1. Clear expectations 
  2. OKRs, feedback 
  3. ‘Remuneration review’

Thanks to such a strategy, prominent companies such as Google, Netflix and Apple have said to be 40% more productive with such steps than your average company. Build your OKRs with Holaspirit and always keep your teams and organization’s purpose aligned. 

🔥 Article pick: How to Implement OKRs Into Your Organization and How to Use Them

OKRs with Holaspirit

👉 #3 Focus on acquiring good talent 

With so many platforms for recruitment online such as: Linkedin, Facebook, Twitter, and other forums to hunt for talent – being open to network and looking for the right person is vital if you wish to have a successful organization in the long run. A study done by 2021 Future of Recruiting Study: “92% of employers use social and professional networks to find candidates. At the same time 86% of job seekers go to social media to look for relevant opportunities, apply for jobs directly from social media platforms, get in touch with job-related content, and much more.”

👉 #4 Employee training and growth commitment 

Understanding your employees’ strengths and weaknesses is crucial to enhance work performance and seeing them flourish in what they do best within the company. Mogul companies such as Amazon and AT&T have invested up to $1 billion in training programs to redirect their employees for the future workforce. Create an atmosphere that will help your employees with onboarding, and ease into their roles. 

Where do you start with HR digitization?

A research done by Brian Solis for Cognizant and Altimeter, stated that there are six stages to HR and its digital transformation

  1. Business as usual
  2. Present and active 
  3. Formalized 
  4. Strategic 
  5. Converged 
  6. Innovative and adaptive 
Six stages of HR digital transformation

 As an HR leader, start by prioritizing your tasks and initiatives for greater impact. According to McKinsey, a virtual conference done back in May 2020, HR leaders stated that in the next following years, they wished to prioritize ‘initiatives and strengthen agility and identity.’ 27% said they would focus on agility and 25% who wished to prioritize ‘driving leadership, culture and employee experience.’

HR leaders priorities

HR digitization is not an option, especially looking at how the post-pandemic world has changed our working culture, values, expectations and so on. Having an HR department operating digital, not only is far more efficient, but it gives room for the organization to thrive. 


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