In today’s world, we are surrounded by some of the most advanced technology ever created. From machine learning and artificial intelligence to robotics and data analytics, technology is permeating nearly every aspect of our lives. However, despite having these incredible tools at our fingertips, many organizations are squandering their potential by failing to develop a cohesive HR digital strategy. Instead, they are haphazardly buying pieces of technology and hoping they will miraculously work together. This approach is not only ineffective but also is a disservice to the technological advances we have made.
The global market for HR technology is expected to reach $38.17 billion by 2027, growing at a CAGR of 11.4% from 2020-27. This remarkable growth illustrates the increasing importance of HR technology in modern organizations. However, it’s not enough for organizations to merely acquire the latest technology. A comprehensive digital strategy is crucial for employers to fully leverage these tools and optimize their potential.
A robust HR digital strategy encompasses several areas: a mindset shift, activation of the organization for changes, deployment and implementation of solutions, sustainment of the strategy and a focus on continuous innovation. Through this process, leaders must identify the key areas of focus, such as talent acquisition, employee engagement, performance management, and learning and development—essentially, what the organization has decided it wants to be great at, versus what it’s just performing at. By carefully selecting the right combination of tools and systems, organizations can streamline their people journeys and processes, drive efficiency and, ultimately, enhance their competitive advantage.
Those with good HR digital strategy have seen results
Companies that have embraced a well-thought-out HR digital strategy have seen tangible results. For example, IBM’s Smarter Workforce initiative, which involved implementing data-driven HR technologies, resulted in a 25% decrease in time to fill open positions, a 50% reduction in employee attrition and a 67% improvement in employee engagement. These are just a few examples of the many benefits a well-executed HR digital strategy can bring to an organization.
However, merely throwing together an assortment of technologies is a recipe for disaster. A study in the Harvard Business Review found that 75% of digital transformation initiatives fail to deliver the expected results. This staggering figure highlights the need for a strategic approach when incorporating technology into HR processes.
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10 tips to create a successful digital HR strategy
To create a successful HR digital strategy, organizations should consider the following:
- Alignment with organizational goals: The strategy must support the broader objectives of the company. This requires a deep understanding of the organization’s vision, mission and values.
- Prioritizing and sequencing investments: Not all technologies are created equal. Careful evaluation of the potential return on and value of investment for each solution is essential.
- Integration and interoperability: Ensuring that various technologies can seamlessly work together is critical to avoid inefficiencies and drive a positive workforce experience.
- Change enablement: Deploying new technology often requires a significant shift in mindset and work processes. A comprehensive change-enablement plan can help ensure a smooth transition.
- Ongoing evaluation and adjustment: A successful HR digital strategy is not a one-time event. Continually assessing the effectiveness of the technology and making necessary adjustments is essential to maximizing its benefits.
- Employee involvement: Encouraging employee participation in the selection and deployment of new technologies will facilitate buy-in and drive adoption.
- Training and development: Investing in comprehensive training programs ensures that employees can effectively understand the value of new technologies and maximize their benefits. This not only boosts productivity but also enhances employee satisfaction.
- Data security and privacy: As more HR processes are digitized, protecting sensitive employee information becomes increasingly important. Organizations must ensure that they are compliant with data protection regulations and implement robust security measures to safeguard their systems.
- Collaboration with vendors and partners: Establishing strong relationships with technology providers and partners can facilitate the successful deployment and integration of new tools. This includes seeking out expert advice, sharing best practices and staying informed about the latest developments in HR technology.
- Future-proofing the strategy: Technology is constantly evolving, and organizations must be prepared to adapt their HR digital strategy to stay ahead of the curve. This involves regularly reviewing the strategy, keeping an eye on emerging trends and being open to change when necessary.
The choice before organizations is clear as the world is at a technological tipping point: Either embrace a comprehensive HR digital strategy or risk squandering the potential of the advanced technology that is readily available. By taking a strategic approach to HR technology, organizations can revolutionize their human resources processes, improve employee engagement and secure a competitive advantage in the rapidly changing business landscape.
Learn more about HR digital strategy at the HR Technology Conference, Oct. 10-13 in Las Vegas. Click here to register.