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  • Key Steps to Start HR Digital Transformation

Key Steps to Start HR Digital Transformation

26 October 2022

If you are interested in transforming HR, you are welcome to read our first article regarding the urgency of Digital Transformation for HR departments The Urgency of Digital Transformation for HR Department - BDO. For continuing readers, we offer insight on key steps to take when one wants to transform their HR department. Each step is crucial to ensure that the transformation one makes provides the desired outcome. Many companies crave the transformation of HR, but very few act on it and fewer act wisely. These steps are meant to be guidelines to make sure that we transform our HR from a slow caterpillar it is now, into a digital butterfly, and not just a really fast caterpillar.

There are four key steps for HR to come into the digital fold: self-assessment, identifying gaps, drafting a plan, and continuous improvement. The first step involves self-reflection, where one should have a comprehensive self-assessment. This self-assessment includes identifying processes that could be improved. This comes back to the pillar of digitation, finding out which activities could be made more efficient and inclusive of technology. It could be as simple as converting all paper documents into a PDF form. The second step is benchmarking to identify the gaps between yourself and the industry leaders. This step allows the team to compare their current state to the highest standard. By doing so, it can highlight weak points that the team did not even know of. These benchmarks include usual activities that an HR team does, such as the hiring and interviewing process. 

The third step is drafting a plan. In this step, the HR team can question themselves, “How would we compete and create value through digital transformation?” This plan encompasses the previous two steps and puts them into action. A big part of creating value is using data to guide all areas of HR, be it pay-grade, benefits, and performance management. The fourth and final step is to be prepared for continuous improvement. In an ever-evolving digital environment, we must not become complacent. Even the industry leaders are ever prepared to improve their systems, hence so should we.

Every step must be passed gradually, and nothing should be skipped. For example, if we ignore the self-reflection step, we will never truly be efficient as there will be processes that do not belong in the digital fold. With a guideline in place, the company can rest assured they have something to refer, if they ever feel lost or complacent.