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Top 10 benefits of HR digital transformation

Gareth Spencer

UK Field Marketing Manager at Cornerstone

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 and performance) and 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.

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

1. Higher talent retention

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.

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

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.

6. Automation of manual 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.

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

Advanced analytics don’t just give insights, they can prove the impact of HR’s work and help the team be audit ready. Machine learning can also further automate functions – such as pushing learning to employees based on interests of others – by using existing data to forecast future behaviour.

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.

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