Top 10 benefits of HR digital transformation in 2024

Fast and frequent changes in technology have forced almost every organisation to transform in some way, touching all parts of the business. For HR, this digital transformation is two-fold – transactional and transformational. Transactional includes processes like payroll, leave management, benefits management and time management, whereas transformational includes talent management (recruiting, learning, mobility, performance, business intelligence, workforce planning and the use of big data).

This means that transforming HR functions has a much larger impact than simply creating efficiencies. In fact, the benefits are felt by all stakeholders in the organisation; from employees, to managers, to the C-Suite and of course, the HR department.

HR digital transformation has been around for quite a while, but it is still as relevant for many organisations today as it was 5 years ago – particularly those who missed out during the first round or new, fast-growing start-ups who need technology to help them manage a growing and changing workforce.

Here are the top 10 benefits we see across our client base:

1. Higher talent retention with internal career mobility

One of the key reasons for people leaving an organisation is lack of progression opportunities. People strive to advance in their profession and when employers show they care about careers, employees are likely to stay longer – keeping great people in the business and reducing recruitment costs. In this area we have things like opportunity or talent marketplaces and skills mapping.

2. Stronger alignment between company strategy and people management

Business intelligence such as workforce planning and people data helps organisations better align to the business strategy. For example, if an organisation wants to branch out to a new set of services, data could identify those with the right skills or those that need to be upskilled, preparing the workforce to achieve this new goal.

3. Better decision-making with accurate data and information

The Covid-19 crisis has taught us the importance of data-driven decision making. The horsepower and analytical capabilities of technology gives HR all the information they need to make informed decisions to increase productivity, efficiencies, and effectiveness of their people.

4. Increased employee satisfaction with better talent management

Happy employees are more productive than unhappy ones, and there are countless studies that prove this. When organisations demonstrate the value of employees through optimised processes, they get that sense of achievement and purpose.

5. Lower HR costs

In the long-run, organisations that have invested in digitising HR make huge savings on time and resources as processes are streamlined and augmented. Also, having visibility across your workforce means you can increase internal mobility and reduce external recruitment costs. Check out how DHL Group are doing just that in this short video.

6. Automation of manual HR processes

Many admin tasks can be automated, meaning fewer occasions for human error and better management of critically important items such as compliance. The HR team can then focus on initiatives that are strategic and bring the most value to the business. This blog series on navigating the world of L&D Technologies and HR Data with confidence covers so many of the benefits of HR automation.

7. Improved visibility over the workforce

It can be tough having visibility of a workforce when they are dispersed across multiple locations. However, technology connects fragmented systems and enables you to have complete visibility of your people. Managers can also be given this visibility and home in on aspects likes skills and training needs of their teams.

8. Consolidated HR systems

Consolidating means a consistent interface and one source of truth. With one platform for all HR needs, employees are more likely to engage and complete tasks without switching from applications or getting confused on functionality.

9. Stronger employer branding and candidate attraction

Keeping your employees happy will reflect well on you as an employer. Review sites like Glassdoor can really influence great candidates to work for you.

10. Advanced analytics and improved reporting

HR analytics and reporting don’t just give insights, they can prove the impact of HR’s work and help the team be audit ready. Machine learning and AI can also further automate functions and do a lot of the heavy lifting – such as pushing learning to employees based on their interests or desired career paths.

Wowed by the benefits but think it feels like too much change or too bigger job? The Covid-19 crisis showed us that people and organisations can adapt, and it doesn’t have to take years. We have lots of great resources if you’re ready to take on your transformation project and not sure where to start or you can get in touch with a member of the team who can help you design a talent transformation journey as unique as you are.