The need for HR digital transformation is perhaps more apparent today than it has ever been. HR professionals are facing a myriad of challenges that call for modern solutions, with increased competition to attract top talent, challenges transitioning to a hybrid or remote based work model, and, above all, the need to keep workers safe during a pandemic.
In addition, the events of 2020 and 2021 have prompted many organizations to reevaluate the role of HR, which has not only increased in importance, but also shifted to more strategic. The result is that more organizations are looking to invest in an HR transformation if they have not done so already.
However, the HR transformation process can be intimidating, especially for HR leaders without a technical background. What do you need to consider when developing your transformation strategy? What factors will set your organization up for success?
To help demystify the HR transformation journey, we have come up with a few tips to consider when developing your game plan.
Developing your HR Transformation Process
Define your goals for HR transformation. What are you really looking to achieve with your technology investment? What does success look like to key stakeholders? For some, it is about simply speeding up HR delivery and reducing busy work. For others, the goal may be better transparency or access to more detailed analytics data. According to the “Current State of the HR Function” Survey report by APQC, these are the five most common objectives of HR technology:
- Improve the human resource team’s customer satisfaction
- Make HR delivery faster
- Leverage Artificial Intelligence technology
- Automate more HR processes
- Improve HR data security
Define what your team is looking to get out of a transformation and communicate these objectives to stakeholders so that everyone is on the same page.
Create a strategic vision. As with any major organizational change, it pays to have the end in mind. Create a strategic vision of how you want your HR function to ideally operate, taking into account existing and future needs, which technologies you want to adopt, etc. The HR transformation process typically takes years to execute, so having a long-term plan is essential. We recommend a vision that looks at least 3-5 years ahead.
Consider current trends. With changes in compliance requirements, industry trends, and workforce expectations being commonplace, organizations need to be cognizant of current trends and factor them into their plans. This has been especially true since the onset of the COVID-19 pandemic, which has radically changed the work landscape. Today, HR professionals are looking to promote internal mobility, deliver a better employee experience, and more effectively communicate their employer value proposition in order to attract and retain top talent in a competitive talent marketplace.
Examine areas to improve your HR service delivery model. This would include things like leveraging an employee portal, ticketing system, or tiered models of support. Consider how you could deliver a better employee experience and streamline HR operations so that more senior HR roles can focus more on addressing and solving strategic issues.
Identify needs for process improvement/ transformation. Look at the entire employee lifecycle (i.e., recruiting, onboarding, employee development, etc.) and consider what can be improved. Identify areas where efficiency can be gained, experiences can be improved, manual steps eliminated and/or automated, and finally where HR and talent processes can be truly integrated.
Align with Finance and IT. Both finance and IT departments will be deeply involved with the HR transformation, so make sure to include them early in planning conversations. Also, if the organization is transforming beyond just HR, then it is important to understand how that will impact HR.
Evaluate HR cloud platforms. Determine whether or not you need to update your HR systems to support and enable your transformation goals. Can a new system support and enable your overall transformation goals and provide the functionality? What system will grow with you and consistently evolve to meet changing needs?
Understand the current state of your data. Is your data relatively clean or will it need to be scrubbed before migrating it to a new system? Moreover, is your data providing all the insights you need, or are there datapoints that you would like to be tracking?
Determine if you want a single source of truth or a “best in breed” system. If simplifying your HR technology stack and reducing the number of tools and integrations you are using is your goal, then you will likely want to use a single system. If you are looking to combine the best tools available, then you may need multiple solutions integrated into one another.
Factor in global considerations. Consolidating disparate data, processes, and systems from across the globe can result in far greater transparency and a more standardized HR practice. However, organizations need to consider what all the different cultural and compliance requirements are and factor those into their overall strategy.
Consider your mergers, acquisitions, and divestitures strategy. Are mergers and acquisitions a key part of your organization’s growth strategy? And what about divestitures – do you plan on selling or spinning off business units in the future? What are those processes going to look like and what are the technological roadblocks that you are going to need to overcome?
Develop an HR transformation roadmap. Transformation is going to take time and you will need to outline the steps in a logical, transparent manner that sets the proper expectations. Having a HR roadmap helps organize the work and gain alignment across the organization while also being flexible to changes as you move through it.
To learn more about what factors your organization should consider when starting the digital HR transformation process, read our whitepaper, “Digital Transformation: More Than Just Customer Experience” or contact us today.
Popular Posts About HR Transformation