Digital Transformation in HR: A Look at the Benefits and Critical Aspects

In today’s rapidly changing world of new opportunities, the HR department is expected to ensure that the company has the right skills working in optimal conditions to enjoy the advantages of a digital era fully. Digital transformation in HR is essential to the success of a company in the modern digital age. Digital transformation is an optimization process that requires changing of HR processes to be automated, technologically sophisticated and data-driven by taking advantage of social, mobile, cloud and analytics technologies. The transformation is seeing HR departments stop playing a supporting role to being a visionary department tasked with leading the company to a broader digital transformation agenda.

What are the benefits of digital transformation in HR?

In adapting to the changing world, the focus of HR departments has shifted to optimizing employee engagement, productivity, career opportunities and teamwork. The fundamental role of a digital HR is to get the work done in ways that are more effective and productive. The department seeks to create an integrated employee experience by taking advantage of available apps, AI, case management and bots that are designed to help support employees ongoing needs. Implementing digitization enables the HR department to gain easy access to data about employees, understand employee performance with analytics-based insights, recruit the best talent using digital recruiting technology, improve scheduling and access all employee services from a single platform. The optimization of the process brings many benefits to the organization that includes:

Creating a workforce for future needs With the drastically changing digital era, there is a need to adopt new approaches that allow companies to build a workforce that meets the digital needs. When the HR processes are fully digitalized, the company can shrink skilled talent and move demographics to ensure the company purpose is attained. For a company to succeed today, it must ensure that the employees’ goals are fully aligned with company goals as the performance of a business depends on employees drive.

Increase accuracy in dashboards and analytics data – HR digital transformation powers business to success. As a key stakeholder, HR transformation makes sure the business relies on accurate, latest data to make informed decisions enabling the company to double productivity, profitability and enhance employee engagement.

Develop better employee experience – A digitalized HR department can develop a personalized, engaging experience that seeks to attain the needs of employees. Digital transformation in HR seeks to create a people-first approach that caters for the needs of employees first and then the organization. The aim is to help employees better manage their careers while offering them fresh opportunities and feedback that addresses the sense of direction they would wish to draw their career arc.

Better management of the workforce – In order to be successful, organizations are required to manage their employees better, including part-time, extended and full-time employees. As employees increase, there is a need to manage the workforce as it will have an impact on business outcomes, organizational culture and workplace experience. Digital transformation offers complete visibility and total control over the workforce management for all skills.

Improve efficiency and agility towards evolving business needs – Adopting digital transformation allows businesses to respond to changes quickly while at the same time ensuring excellent performance and superb user experience. By taking advantage of the HR suite applications, companies can encourage innovation and extend their capability in decision making.

Things that should be given preference in Digital HR

Real-time analytics: The department should strive to get real-time data and information that can be used by management to solve today’s business challenges. Collecting actual real-time information is necessary for enabling executives to make the right decisions. It will also help the department to work on cross-company business planning, ensuring easy workforce integration.

Intelligent solutions: The department should use digital technologies to create new ways of managing the HR processes and engaging the workforce to unlock the full potential of smart business. HR should use artificial intelligence and other available digital technologies to acquire digital experience that is similar to the consumer experience. The department should also go further and analyze the data to find future risks and challenges.

Natural language interaction: The department should ensure quick execution of operations by encouraging the continued use of HR digital processes like chatbots, messenger applications, and voice recognition capabilities. The platform should also use the natural language to remind users of what they need and what they might have forgotten.


Although digital technology is critical in the HR digital transformation, it is always important to remember that the process is more about the right mindset than about the latest technology. The HR department should use the available technology to develop an innovative approach that would bring the right skills and talent to create a digital workplace. In order to be successful, the department should have a continuous strategy that would ensure employees do not get back to the previous ineffective processes. The process should also have a clear goal, support from all stakeholders and easy for all stakeholders to understand it.