Digital Transformation in Human Resources Management

Woman smiling at her computer
Morgane Lança
November 17 2021

Digital transformation is a hot topic and a growing phenomenon in all professional fields.

Inspired by the increased use of technology and the sudden expansion of remote work due to the COVID-19 pandemic, this transformation is particularly crucial in managing an organization’s human resources. Yet, this digital shift is not always easy for some companies which are falling behind in this strategic transformation. Traditional and manual processes slow down their growth and hinder the smooth running of their organization.

This digital transformation process particularly challenges managers and human resources professionals, and it is not uncommon for them to feel overwhelmed by the tasks and issues involved.

What is digital transformation in HR? And most importantly, what are the benefits of this business strategy? 

Quick Overview of the Digital Transformation Process

The digital transformation or digital transition consists in the dematerialization of information: paper documents are converted into computer files and are centralized on a digital platform. For example, human resource management software enables a smooth and complete digital transformation

Digital HR for Operational HR Processes

With the expansion of remote work and the emergence of hybrid work models, HR data centralization has taken on a new meaning. So what are the benefits of a digital transformation in HR? They are numerous, and we’ll tell you all about them!

Flexibility and Adaptation

The digital transformation is driving flexibility, which has been another key focus for companies in recent years. Once considered unrealistic and difficult to achieve, organizational flexibility has become a matter of course to adapt to the modern working world, which has been quickly and profoundly evolving.

This flexibility, made possible by digital technology, is essential to meet the many challenges companies currently face – labour shortages, high turnover rates, pandemic-related economic, organizational changes and competitiveness.

It also demonstrates the organization’s willingness to evolve rather than maintain practices that are often not aligned with the reality of managers and employees.

Attracting Candidates and Increasing Employee Engagement

A flexible and forward-looking organizational strategy will be essential for the companies of tomorrow. Consequently, these organizations will also be the most attractive to new job candidates.

With the current labour shortage, who wouldn’t want to ensure they have an attractive employer brand? A company’s attractiveness is directly linked to its digitalization. Younger generations of workers are particularly affected by the digital experience and enjoy using digital tools daily. This demographic group will soon be the majority in the labour market, and it is crucial to adapt to their expectations to increase attractiveness and talent retention.

Moreover, the digital transformation often empowers employees and fits their new organizational expectations – remote working, hybrid work, flexible hours… Autonomous employees with more manageable administrative tasks will be more engaged and productive. Therefore, the digital transformation is a beneficial shift for the company and its employees!

Time Savings and Transparency

Paper files are a source of errors and loss of information. For human resources management, these issues are all the more damaging because they are time-consuming for managers and employees. Repetitive tasks can be dematerialized to improve everyone’s motivation and productivity.

Even better, digitizing data allows for transparent HR management in your organization. Workers will have access to their personal data by using employee records information and HRIS software. Furtheremore, they will be able to update it whenever needed without asking their supervisor for approval. Your empowered and autonomous workforce will therefore feel that you trust them and will save precious time daily. In addition, easy access to information and data confidentiality will also be ensured. 

As you can see, the digital transformation allows for workflow optimization and rapid and efficient management of human resources!

Digital Transformation in HR: a Mandatory Shift?

All these advantages and the pressing need to keep up with the ever-increasing flow of digitalization within companies make the digital transition an obligation rather than a simple strategic choice. Businesses know this urgency: 85% of decision-makers believe they need to increase their digital transformation efforts in the next few years.

Human resources are particularly affected by this digital need: employees are looking for more flexible working conditions and therefore need management practices adapted to their new realities.

While the usefulness and urgency of dematerializing human resources management no longer need to be proven, you still need to determine how to initiate this transformation in your organization. This shift is not always easy, depending on your context, and it is crucial to identify the essential tools and best practices to make your digital transition a success.

How to Achieve Your Digital Transformation?

Use the Right Tools

The dematerialization of your HR data will be achieved with the right tools. A human resources management software or HRIS (Human Resources Information System) is essential for this organizational shift.

These HR systems offer a platform that centralizes all your information and various management solutions. The onboarding modules adapted to remote workers’ contexts are among the key features offered. Another example is the employee profile database that can be self-accessed, anywhere and at any time!

Automated reminders on your interactive HR management dashboards will allow you to manage absences and vacation requests in a few clicks. In short, all your administrative tasks related to human resources management will be more accessible daily. In addition, you will say goodbye to heavy paper files and time wasted searching for information in your material archives! These savings on paper costs represent another considerable advantage of using digital HR solutions: decreasing the environmental impact of your business processes, especially when managing environmentally conscious nonprofits.

Identify your HR Needs

Now that you know what HRIS can offer you daily, it’s time to identify your company’s digital needs and gaps.

If you need a global and statistical view of your organization’s performance, our KPIs (Key Performance Indicators) are here to help.

If your primary concern is the individual performance of your employees, Folks HR software offers various evaluation methods depending on your reality.

Digital tools also allow for efficient HR analytical management in your company. A must in these times of organizational changes!

Our team can help you identify your integration needs according to your reality! Feel free to contact us to discuss possible integrations and demonstrations.

Choose the Best Ally for your Digital Future

Folks offers all of the above digital HR solutions and much more! Our mission is to provide human resource management software tailored to the reality of SMBs and supports their digital transformation strategy.

We also work to offer the best integration possibilities to our users. Indeed, Folks HR can seamlessly integrate your payroll, insurance and time management software to reach your digital transformation goals.

Our motto: flexibility, power, and accessibility, all at an affordable price! In addition, our demos are free and personalized

Digital transformation is undoubtedly a mandatory shift to reach future business goals. Using human resource management system to set up operational HR processes directly helps a company’s growth and employee productivity.

Improving employee experience while ensuring your organization’s flexibility is the best strategy for your human resources processes!

Folks supports your digital transformation journey!

Discover our powerful, flexible and affordable solutions:

Request your free demo

Related articles

How to Convince Your Boss You Need an HRIS

It’s not always easy to convince your management to invest in HR technology to achieve your business goals…

Read more
How an HR Software Helped an SMB Save $175,000 in One Year

We often hear about HR technologies and the value they bring to the organizations that use them, but what about the facts? This case study, conducted by an external human resources consultant, highlights the various positive impacts…

Read more
7 Effective Tips to Improve Workplace Communication

It’s hard to imagine a functional workplace without communication. We talk with each other to express our thoughts and concerns and to ensure that work is going well.

Still, workplace communication can lead to internal struggle rather than offer solutions to various problems.

Read more
How to Write a Self-Performance Review (With Examples)

Self-assessments help you identify your own strengths and areas of improvement for a more effective performance management process. Here is everything you need to know to write the best self-review.

Read more
30 Employee Onboarding Statistics for 2024

We all know that employee onboarding programs are a crucial part of your HR strategy… right? Sometimes, you need numbers to realize how vital a strong onboarding process and a good employee experience are for your company culture.

Read more
Human Resources Today