The digital HR transformation is here: Discover its benefits and learn how to take action

Find out all you have to know about the digital HR transformation that will change your workplace. Establish your goals, choose reliable HR software, and become responsive, efficient, and happy. Digital transformation is here, and its part of your life whether you like or not. Discover its benefits and use technology to your advantage.


This article covers the following topics:


Introduction

Are you still working with piles of papers in a dusty and unfriendly environment? Do you need several days to respond to a leave request, find an employee's file, or put together employment papers? If you answered Yes or No (but secretly thought Yes), it's time for a digital HR transformation. Don't worry; it sounds more challenging than it is.

There is a reluctance to modernize. That’s natural as changing is hard, but there’s no alternative. Traditional HR methods are failing.

Brian Kropp - Group Vice President, Gartner Research & Advisory

The key benefits of digital HR transformation are:


Boost HR efficiency

It takes 5 seconds to apply for leave in LeaveBoard. Team managers are automatically notified and can instantly validate. Simplify your internal processes and boost communication. Track past employee activities to predict future outcomes.

Absence management


Access to HR insights

Once your team adds all the information in one accurate system, they can promptly take action and make strategic decisions.

HR Dashboards


Automate HR processes

By optimizing processes within your business, you can stay competitive and compliant. Digital HR facilitates human resource professionals' work by streamlining management workflows.

Cloud HR system


Centralize employee data

Find employee data with ease. Eliminate clutter and paper archives. Employee databases offer a more effective way to deliver the information that you need when you need it. Data-driven strategies will become an essential point of competitive differentiation in every business.

Employee directory


Save time and money

It's time to get rid of manual work and reduce the stress associated with administrative tasks. When your people use time efficiently, they are more productive and creative. Your payroll report will be ready in seconds. Moreover, indirect cost reductions are associated with these solutions, i.e., generating quarterly reports or dealing with carry-forward activities.

People management software

HR reports


Gain better employee experience

By offering access to innovation to your people, you're increasing efficiency, agility, and productivity. Moreover, your staff will be more loyal, competitive, engaged and happy. They will focus on meaningful work and free up valuable time dedicated to ROI generating activities. Thanks to cloud-based apps, big data, process automation, smart integrations, and bots, the HR department can create an integrated employee experience to support their ongoing needs.

Employee portals

Slack Vacation bot



These six benefits of digital HR are straightforward and can be easily measured, and provide real value-added to any organization. The advantages of digital transformation can be experienced not only by managers but trough all the organization by the employees.


The digital transformation of the HR Department

The digital transformation changes the way the HR team works and interacts with the employees. It also changes how employees interact and reduces work friction. Back in 2019, among Gartner's top 3 priorities for HR leaders was the need to improve the employee experience. Furthermore, in the Gartner Digital Enterprise 2020 Survey, 67% of business leaders agreed that it would no longer be competitive if their company did not become significantly more digitalized by 2020. During the pandemic, the need to implement remote work, adapt to change very fast, and support employees on their career path became evident and urgent.

In 2021, 52% of HR leaders participating in Gartner's study said that the workforce expects a shift from designing work for efficiency to designing work for flexibility. The pandemic revealed that many employees couldn't adapt to change, experience change fatigue, and lack responsiveness and resilience. The change in workforce behavior increases costs and reduces customer satisfaction.

The digital transformation supports the employee's transformation. Through employee self-service, your people will develop self-management skills, adaptability, and responsibility. People portals provide tools for better planning. Besides, the digital transformation increases employee acknowledgment and supports equity and transparency.

At the same time, it changes the core of the HR team. You'll need new skills to match the digital revolution, move recruitment in the digital era too, and continuously adapt to technology and innovation. According to a study conducted by Deloitte in 2021, maintaining the company's culture for a hybrid workforce was the primary concern of 32% of the respondents. HR leaders must rethink work models and combine good communication and collaboration models with adaptability and transparency. 

The change may require hiring new people in the HR department or training the current staff. One of the biggest challenges is leading digital projects, understanding their features, and avoiding their drawbacks. If the budget is low, you'll need to manage the limitations of free HR software.

However, digital transformation is just the first step towards a digital way of life in the HR Department. Once you understand and implement it, you can benefit from all its advantages, and new perspectives open up for you.

The change may require hiring new people in the HR Department or training the current staff. One of the biggest challenges is leading digital projects, understanding their features, and avoiding their drawbacks. If the budget is low, you'll need to manage the limitations of free HR software.

However, digital transformation is just the first step towards a digital way of life in the HR managers. Once you understand and implement it, you can benefit from all its advantages and new perspectives open up for you.

Learn more about our solutions for HR digital transformation, and advance your digital strategy.

Continue reading about Digital HR.

HR digital transformation trends in 2021

The subject of human resources is constantly changing. It doesn't matter in what part of the world your company is located when a crisis like the Corona outbreak happens. You need to be prepared. The best teams are the ones that can adapt fast to the needs of a demanding organization, covering everything from talent acquisition to tools and training. We believe the following trends are exciting and relevant to companies like yours and demonstrate that the future is digital:

  • Increase the digitalization of the workforce, workplace, and human resource management;
  • Provide cloud-based HR tools to assist and empower employees;
  • Keep an eye on innovative tools for HR processes.

Automate HR processes

Instead of spending all your time with basic repetitive tasks and producing delays in your company’s workflow, choose to automate HR processes using employee dashboards. Grant access to relevant data to employees and managers and release the HR department of answering endless requests. Provide transparency and accurate information without compromising data security. Employee dashboards allow employees to manage their time off and managers to see their team’s leave balance and make informed decisions.

HR dashboard


Streamline vacation tracking using chatbots

Choose a vacation tracking app that integrates with the collaborative tool you use and you’ll have instant and secure access to time-off management from anywhere in the world. Remote workers will thank you for this improvement. Tracking vacations with a collaborative tool such as Slack increases productivity, provides valuable insights for task planning, and helps the teams avoid leave clashes. Furthermore, vacation tracking apps allow you to configure types of leave, grant permission levels and have access to an up-to-date holiday calendar.

Vacation tracking bot

The future is digital
It applies to everything from the workplace to managing the existing workforce, hiring and onboarding new people, and building its culture. Not only that the HR department should keep up with the changes, but it should help the company switch to digital as well. Start with cloud-based applications and dedicated HR software.


Access employee data from anywhere.
In 2021, the significant trends in digital HR transformation refer to mobile apps and tailored software. Cloud-computing and Artificial intelligence (AI) has its place in the HR department too. Big data and AI-based algorithms compute personnel patterns; analyze recruitment models; increase turnover and performance. In 2021, more than ever, everything has to be done fast, remotely, and efficiently.

HR web-app

Provide better work experience
It’s all about employees’ work experience and how to improve their drive and work satisfaction. Digital tools are used to empower the employees and give them access to their documents and situations. People need transparent and responsive systems. They want to grow and learn fair evaluation systems, and motivating rewards. This requires a smooth and agile process and an expert HR team. Digital transformation changes the core structure of the HR team: HR experts and seniors are much needed.


Discover the software that will change your perspective

For an efficient and transparent digital HR transformation, you need to choose reliable HR software. You have plenty of products to choose from. Some are free; some aren't. Some systems are dedicated to a specific business or geographical region; others are more general and can be used worldwide. Make an informed decision. Consider your budget, digital experience, IT resources, number of employees, company’s culture, and business profile. Check out with your peers and see what software they prefer. Don't forget you need to comply with labor legislation in your area and that the HR software may help you with this too.


“Transformation is underpinned by a digital mindset that is a unique interplay of technology, people, and process, and technology can also be used to vastly improve HR processes for employees and managers, resulting in a snowball effect of positivity and paving the way for even greater digital transformation within a business.”

Ingrid Jenkins - HR Director, Microsoft Australia


Introducing LeaveBoard

LeaveBoard is one of the best HR software for small businesses. It's free up to nine employees, and they can use the HR solution anywhere in the world. LeaveBoard is a cloud-based application you can access from anywhere and doesn't need installation or storage space. It's perfect to begin your digital HR transformation.

In a single app, LeaveBoard provides employee directory and records, workforce management, employee self-service, absence tracking, HR dashboards, headcount analytics, and HR reports. You can customize it according to your business profile, and you'll receive tailored reports. Employee managing within small and medium businesses will no longer be a struggle. LeaveBoard gives you time for complex and exciting tasks.



Seven steps towards digital transformation in HR within your business

It's easy to understand the importance of digital transformation in your company. However, how should you apply it from a human resource management point of view?

Your company's HR digital transformation strategy will lead to a more agile, dynamic, and well-prepared workforce, ready to adapt to any change in the environment. People's mindset will be changed entirely, and what once was 'new' will become 'business as usual.' The transformation is essential, but it can be scary, poorly implemented, or chaotic as any change. Therefore, we've put together seven straightforward and easy-to-implement steps to help you switch to digital in a well-structured and successful manner.

The HR digital transformation process:
  1. Set goals. Define clear, achievable goals and realistic expectations for transitioning towards a digital workplace. 
  2. Get your team's insights. Involve the entire HR team in planning, researching, and brainstorming; Ensure you get everyone on board and start the transition with good energy and enthusiastic people.
  3. Get your executives' approval. Submit a budget and a schedule for your superiors' approval. 
  4. Assess solutions. Research thoroughly and choose the best HR software for your department. Prioritize features and choose customizable and reliable software that needs minimum maintenance and offers customer support. You may try free software or trial versions before purchasing to see if the programs match your expectations, receive the team's approval, or have technical issues.
  5. Implement the digital solution and train your staff accordingly; Check if the software provider offers free courses, in-place training, or reading materials.
  6. Start using novel experiences. Present the digital solution to employees. Keep it simple, fun, and engaging by showing them only the employee self-service part, focusing on benefits, and answering questions. To change your organization model, you must change people's mindsets.
  7. Don't settle with your current solution. Keep an eye on technology and update your digital solutions regularly. Things change rapidly, and innovation should be part of your long-term strategy and the company's culture.

HR Digital Transformation Goals

Using technology is no longer a personal decision; it’s a business requirement. Your company can’t survive without technology. Clients and employees may require digital contracts, electronic signature, online payments, or remote access to their documents. You may need to provide digital documents to your local authorities or reduce plastic and use it to comply with environmental legislation.

A digital HR transformation is the first step towards a digital business. Define clear goals and involve the entire department. Moreover, involve employees too. Employee self-service gives them control over their leave balance, access to their personal data, and awareness of their paid time-off and task planning. Employee self-service empowers employees and frees the HR team of repetitive tasks.

Keep in mind that a quick and easy transition needs the right software. Try free HR software until you know what suits your company’s needs. Then make an informed decision, train your team well, and have fun in the process.


Conclusions

Technology is here to help you. Whether you want a digital HR transformation by choice or forced by the business environment, remember that digitalization doesn’t have to be a rough process. Establish your goals and follow them step by step. Engage the entire team and transform the process into a connecting and growing experience. HR software can relieve you from stress, messy tasks, and dusting your office. Try one that's free and easy to use, like LeaveBoard, and discover the power and beauty of technology.

Frequently Asked Questions

What is HR digital transformation?

The HR digital transformation is the methodology of updating the human resources processes using automation, data and cloud technology to improve people operations.

A digital transformation means that many (if not all) of the things you were doing manually will be taken over by a computer and smart software. In other words, you’ll use technology to your advantage and allow automatic processes to release you from boring and repetitive tasks. Moreover, you’ll avoid human errors, reduce costs, and create an environmental-friendly HR department.


Why is digital transformation important in HR processes?

The digital transformation allows HR experts to focus on creative and complicated tasks instead of wasting their time and energy with basic repetitive requests. Furthermore, it provides tools for gathering and storing valuable employee data and for using them to analyze employee turnover, trends, and work satisfaction levels. For the HR department, the digital transformation means fewer human errors, lower costs, and less physical storage space.

At the same time, digital transformation is a big step in changing employees’ mindsets and offering them a better and safer workplace. It empowers employees with access to their data, allows them to manage their leave, and increases responsibility and responsiveness. The digital transformation creates a friendly work environment, provides transparency, supports remote work, and improves communication. It’s important to have happy employees therefore it’s important to invest in the right tools at the right moment.

Accelerate the digital transformation within your organization and succeed in the remote world.

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