Jul 04, 2022

HR’s Role in Digital Transformation

  • By Luvenia,
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According to Forbes, nearly three-fourths of the digital transformations fall flat, typically due to companies believing that merely implementing new technology is sufficient.

Digital transformation is frequently thought to be the domain of a small group of IT experts. Similarly, not many HR workers understand their fundamental role in the digital era. Furthermore, according to studies, some employees find the digital transition difficult and IT off-putting.

However, experts think that digital transformation provides HR with a critical role and a chance to reaffirm the function’s vital position. Humans determine how innovation is to be utilized, and it is the human resource team’s job to build an atmosphere that encourages its employees to do so.

What is Digital Transformation?

Digital Transformation is a change-oriented strategy that uses new, fast-changing digital technology to enhance how business is done at a top level.

This approach is being adopted by businesses worldwide. Two-thirds of executives have already adopted some or all these tools into their company operations in 2019.

Three essential breakthroughs are at the vanguard of this paradigm change.

Artificial Intelligence

AI is the first. AI is a term that refers to a group of systems that either automate ordinary algorithmic processes or crunch substantial data sets for commercial predictions.

Anything as a Service (XaaS)

Anything as a Service or XaaS refers to transferring software applications to other servers and systems. IT teams have shifted approximately 25% of all company information to cloud storage in recent times. Companies may pivot and implement new technologies more rapidly and with much less risk by storing data and applications elsewhere.

Robotic Process Automation (RPA)

The third category is Robotic Process Automation or RPM. RPM refers to almost any physical job that can be automated using physical machines. As technology replaces people in basic positions, RPM has become an important determinant to train and develop employees.

What are the Top Priorities of HR leaders in Digital Transformation?

HR executives play a vital role in digital transformation. These are the priorities for human resource executives in digital transformation:

Ensuring Capabilities

Ensure that the employee group has the necessary skill sets. As digitalization and automation are proving challenging to keep up with, 46 percent of human resource professionals believe that staff lack the essential skills needed.

Developing Effective Leadership

Forty-five percent of HR leaders find it challenging to produce successful middle-level managers. Similarly, more than a third find it challenging to develop appropriate senior managers. Thus, molding leaders and developing leadership abilities to take on changing roles is a problem for HR professionals.

Designing Appropriate Organization Structure

The organizational structure has a role in eliminating the obstacles that prevent workers from completing their jobs more efficiently. According to Gartner, 57 percent of the workforce face substantial challenges at work, primarily due to the changes they’ve previously experienced.

Establishing a Clear Digital Transformation Plan

It is vital to have a digital transformation plan that is reliable and direct. More than 43 percent of human resource professionals say that a clear digital transformational goal isn’t in place in their organization. Furthermore, 35 percent of HR executives feel that their companies lack the expertise to accomplish digital change.

Improving Employee Experience

According to a Gartner report, 46 percent of workers remain primarily unsatisfied with their work. Employee experience is inextricably linked to the consumer experience, and it continues to be a top personnel issue for HR executives. As a result, the return on investment in employee experience must rise.

Key Roles of HR in Digital Transformation

Below are some roles that HR executives should perform in Digital Transformation, depending on their firm’s requirements and goals:

Act as an Innovator

Every organization is headed toward a borderless future in which they must know how to handle a workforce that operates in unconventional ways. While many firms are discovering how to manage this scenario, forward-thinking HR teams are uniquely qualified to propose how to harness the personnel for the Technology Era.

To do this, innovative HR leaders should concentrate on three primary functions:

  • Employing staff with digital skills
  • Fostering a culture that encourages employees to create.
  • Training and rewarding employees for departing from traditional techniques and demonstrating creativity in their methodology.

Act Like a Business Driver

Until recently, HR was limited to support activities across departments. Nevertheless, when business drives change in the Internet Age, HR plays an integral part as a business enabler to advance the firm ahead.

In summary, the human resource function must evolve from an employee function to one that is crucial to organizational success.

Act as an Agent of Change

Even if a specialized “Digital Team” spearheads projects, they will fail if human resources do not put their muscle behind them. In reality, the top HR executives in today’s business world don’t merely respond to change; instead, they act as an agent of change and guide the company’s people on a good path.

Act as a Collaborator

Technology has altered the way businesses and their workforces operate. A particular process cannot carry out a transformation as significant as digitalization. It is now widely accepted that digital transformation begins with the executives and cannot take place in isolation.

While the whole senior management team is working in this change process, numerous firms have appointed Chief Digital Officers to drive this shift. However, there is a risk of conflict when innumerable teams are involved. HR must be the pulling force that binds an organization together through a single thread of goal in this case.

Summing Up

Digital transformation is like any other company change and therefore should be treated as such.

An organization must first comprehend what results they want to accomplish premised on their industry and reinvention priorities. Only then should they select which HR tools and techniques are required to make it a reality.

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