Incorporating digital technologies into your day-to-day HR processes can improve employee attitudes and engagement. As more HR teams make the move toward automated platforms, other HR teams are scrambling to catch up.
Are you planning or considering an HR transformation at your organization? Today, we’re exploring the benefits you can expect when you switch from legacy systems to more modern technologies.
What is an HR Transformation?
Most companies understand the importance of trading their outdated HR solutions for a more digitized approach. However, due to time and budget constraints, most organizations choose to implement such changes in incremental stages.
While this approach makes sense for many organizations, it’s not necessarily considered an HR transformation. This is the complete overhaul of all a company’s current HR functions where it implements modern software platforms that offer enhanced efficiency, performance, and cost savings.
Different types of HR software include:
- Enterprise Resource Planning (ERP) systems
- Human Resource Information Systems (HRIS)
- Human Resource Management Systems (HRMS)
- Human Capital Management (HCM) systems
Companies that already have an ERP system in place can integrate HCM features to enhance this functionality. Most ERP systems include some type of HR-specific capability, though an HR transformation typically requires more robust tools.
Selection & Process Improvement Case Study
In helping the client get its project back on track, one of our primary focus areas was decreasing their customization needs by improving their processes to align with the system's best practices.
5 Reasons to Pursue HR Transformation
With so many potential projects to pursue, why should a company focus on improving HR? Let’s look at a few of the top benefits:
1. Position HR as Strategic Company Partners
Now more than ever, companies are turning to their HR departments to help deliver on greater company initiatives. This is because HR leaders have direct access to a business’s most valuable resource: human capital.
This represents a major shift in the way companies view their HR teams. Now, they’re no longer seen solely as workforce developers and managers. They’re also critical partners and key players, enabling companies to more quickly reach their goals.
One of the main benefits of HR transformation is that it gets the HR department involved in this capacity. This is possible because modern digital tools allow HR to integrate seamlessly with other parts of the business, rather than operate in a silo.
With the new insights the HR department provides, business leaders can make timely, data-driven decisions that enable new business strategies.
2. Facilitate Easier Data Access
There are four primary components of a successful HR transformation. These include:
- Digitizing data
- Automating manual processes
- Establishing metrics to measure progress
- Facilitating digital interactions
HR employees switching from manual, time-consuming processes to using an enterprise software platform have many benefits to look forward to.
Not only will they have quicker and easier access to employee data, but they can share that information with authorized parties in just a few clicks. Also, without the risk of human error, they will have confidence that the information is accurate and up-to-date.
3. Secure Workforce Information
The HR transformation process doesn’t just make data clean and accessible; it makes it more secure.
These platforms have advanced security and user authorization measures in place to ensure that files are only viewed and shared by those with the credentials to do so.
This is especially important in HR, where leaders and team members handle a significant amount of confidential information. From payment processing data to employee identification documents, these files contain sensitive material that must be protected at every turn.
4. Enables HR Process Management
There are several core functions that an HR team is responsible for performing:
- Benefits administration
- Payroll processing
- Succession planning
- Recruiting employees
- Onboarding employees
If there’s even a minor inefficiency in any of these processes, then it can hinder the entire company.
An HR transformation can solve these issues because it’s about examining current processes and finding ways to eliminate pain points. This might entail business process reengineering, which ensures processes are designed to make the best use of new technology.
For example, a company may want to redesign its employee training and development, or it may discover that it could bring in a greater number of prospective hires by revamping its benefits package to make it more scalable and accessible.
5. Strengthen Data Governance
When all of a company’s HR data is available on one central platform, the company can more easily follow the latest legal and regulatory guidelines regarding employee hours and wages, health and safety, and more.
To demonstrate compliance, HR teams must keep strict records and reports. Misplacing a physical file could mean facing a penalty for noncompliance. When all records are digital and easy to find, then data governance is infinitely more effective.
Transform and Unlock Your HR Potential
Your HR department is one of the most valuable components of your organization. These are the team members who are working every day to ensure your workforce is happy, knowledgeable, and productive.
When you pursue an HR transformation, this department can take a more active role in helping your organization reach its goals. Modern HR software encourages collaboration, enables data access, and simplifies even the most complex HR processes.
Contact our enterprise software consultants below to learn more and to request a free consultation.