Digital Transformation : A Pathway to an Impactful HR Department

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Digital Transformation : A Pathway to an Impactful HR Department

Use of automation and new technologies in HR departments not only eases day-to-day work processes, but also are key to achieve organizational objectives.  


With everything around the world going digital, many organizations are already adopting software solutions for works of marketing and finance departments. In today’s highly competitive business environment, it has become essential for the departments of any institution to have automated software to ensure smooth day-to-day operations. Similarly, it makes definitive sense for the HRs to lean towards adopting technologies to help them in their work. A 2017 report titled “Fixing the Talent Management Disconnect: Employer Perception vs. Employee Reality in the U.S Midsized Market” published by the US-based ADP Research Institute shows that just using traditional HR methods can lead to serious disconnect between employee and employer perceptions of a business.  

The fact that HR departments are intrinsic in handling human capital which is the most valuable and complex part of any organizational management is yet to be understood by institutions in Nepal. Each member of the human capital has a very individualistic vision, goal, feelings and way in terms of getting the work done. Understanding all these minute factors and constructing strategies and tactics in synchronizing efforts of all employees to work in cohesion towards achieving the common organizational objective is what eases the complexities in organizational management.

 “Take our 20 best people away, and I will tell you that Microsoft would become an unimportant company.”  (Bill Gates, co-founder and the then CEO of Microsoft Corporation in Fortune, November 25, 1996)

 With such high stakes involved, HR departments need to be empowered accordingly without restricting them to just facilitate administrative processes. 

I am sure that many of you have felt sometimes during your professional careers that time just passes by doing repetitive yet essential HR tasks and dealing with legal issues. A major chunk of your productive hours is spent on completing administrative tasks like record keeping of attendances and leaves, manual adjustment of payrolls, sorting out a large number of papers to find meaningful data and many other daily updates, leaving you with very little time to work on crucial HR policies and strategies.

The Global Leadership Forecast 2018, jointly published by three international institutions, namely Development Dimensions International, The Conference Board and Ernst & Young, states that digital leadership skills are becoming increasingly critical at modern day workplaces. The study finds that companies with most digitally-capable leaders financially outperform the average by 50 percent. 

Here are a few advantages of using HR technology which not only benefits the HR department but also can be important to achieve the overall organizational objectives. 

Reporting to Management
The ultimate advantage of using an automated HR system is that the efforts in day-to-day reporting to managers are reduced to digital records. The system is not only easy to access but also can be implemented in a more consistent manner. 

Improving Operations
Technology helps HR executives and managers to look into their key functions like performance appraisal more efficiently. It also helps them to find answers to some important questions like ‘Where do we spend our time and effort?’ Meanwhile, data analysis can aid in identifying areas for improvement and ways to optimize work processes.

Strategize HR Management Plans and Policies
With abundant data, analysis, reports and insights, HR managers can devise strategies to develop a work culture in line with the organizational vision. Only with such information will you be able to identify the gap between the vision and the current status. For instance, if developing future leadership in the organization is one of your key responsibilities, it is mandatory for you to get an in-depth understanding of the existing leadership qualities so as to train people to achieve the target. 

Engaging Human Capital
With the adoption of social HR, intra-office chat and gamification learning modules, new HR techniques these days have also helped in increasing employee engagement. Effective implementation of modern day HR features translates to better employee satisfaction, increased productivity, strengthening of employees’ connection with their organizations and increase in staff retention rates. 

Effective decision-making
It is impossible for you to be a data geek all the time. Statistics itself is not enough when it comes to decision-making process in terms of people management. HR managers need to go beyond spreadsheets and solve problems in inclusion and individuality of staffs. Apart from the regular quantitative data, using digital insights of the people comes in very handy in decision making processes. 

The old debate of whether HR managers need technology to manage and develop human capital has become totally obsolete. The discussion must rather be directed towards the use of different technologies like analytics and insight tools, artificial intelligence (AI), talent management solutions, advanced ways to automate and protect data privacy, among others, to increase effectiveness and efficiency of HR departments. If you are not familiar with any of the tools, it is highly likely that you and your organization is seriously lagging behind to reap  the benefits of better employee motivation and workforce engagement which highlights the immediate need to implement new HR techniques. 

The author is Marketing Manager at Braindigit IT Solution (P) Ltd.

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