Across industry, vertical and geography, every company has to consider HR transformation as an integral part of its journey into the future.
In the past, it was assumed that HR already had a handle on everything that needed to be done, and so transformation centered mainly on making existing HR services more efficient, effective and compliant. Today, basic HR capabilities are as important as ever, but forward-looking businesses are also considering the HR capabilities that do more than support the business strategy—they actually enable it.
HR transformation helps companies expand their global footprint, respond to shifts in the marketplace, and increase revenue and margins for improved competitiveness, profitability and growth. Here are some tips for how to best get started.
The need for HR transformation
The role of HR has undergone a radical and profound change in recent years, and to remain competitive in our ever-changing and global environment, companies have to see HR management as more than just a support function that delivers employee services.
HR transformation extends to all areas of the function and their processes, including hiring and onboarding, payroll and benefits, learning and development, rewards and recognition, performance management and more.
The majority of HR executives understand that workforce transformation is a top priority, but just a little over one third feel confident in their abilities to achieve their goals by integrating cutting edge technologies.
Digital HR and organizations of the future will have embraced innovation and experimentation. And with companies becoming less siloed and more transparent, and employees continuing to shift to digitally savvy veterans and natives, HR transformation becomes more urgent.
By strengthening the fundamentals and administrative responsibilities of HR, organizations are alleviating costs and improving efficiencies, which drives the organization to new heights, while also positively impacting workplace culture.
How to begin HR transformation
According to a recent article from HR Technologist, a logical approach to HR transformation includes strengthening HR across all contours of the business, impactful HR decision making, taking care of a flexible workforce, and continuous employee engagement and collaborative learning.
Identifying the stages of HR transformation is very important, but they say a practical implementation requires that organizations learn the steps that will turn their theory into a reality:
- Setting a clear goal: Companies must establish a well-defined goal that makes sense from a business perspective, before they begin their HR transformation journey. This will also help the organization prepare for possible problems or challenges, as the ultimate focus of HR transformation centers on initiatives that strengthen employees as end-users.
- Bringing everyone together: Everyone needs to be on board, from employees to the C-suite, because HR transformation stands to impact all areas of the organization. Thus, getting everyone on the same page is an imperative.
- Picking the right technology: To achieve transformation goals, businesses need to advance their tools for recruiting, planning, performance management and more. Legacy systems need to be replaced with a structured, yet flexible platform for deploying solutions across the organization.
- Evaluating performance: Evaluating the performance of growth outcomes can help detect impediments or obstacles and using the right technologies to drive HR digital transformation can help tackle these difficulties.
Interested in learning more about how Level can help with your HR transformation? Get in touch and see how we can help you start your journey today.