Dear Business Leaders, I have one simple question to ask to all of you. ‘What Value You Want to Derive the Most from HR?’
I believe that your answer may revolve around –
‘More operational efficiency, better employee productivity and higher retention rate at lesser cost’.
Right? Now, it is your turn to ask the question back to me. ‘How to achieve that sustainably in 2020 and beyond?’ The easy answer is – ‘HR Tech Transformation’. You see? It’s simple math.
But before we go into ‘what, when, where, how etc.’, let’s first understand the ‘what’ part of it.
What is HR Tech Transformation?
A rookie in HR may ask, “What is HR tech transformation?”
Many people confuse HR Tech Transformation with just implementing a new HR software in an organization. There can’t be a bigger myth than this. A good HR software will consolidate all the disparate legacy HR systems, workflows and processes, tools and individual applications to streamline HR operations. Is that all? Of course not! I wish it was that easy. Let me clarify.
Today, HR is expected to play the role of a strategic partner. To overcome these challenges and many more, HR is supposed to deliver human-centric seamless employee experience with the power of digital technologies across the enterprise. HR Tech transformation has the power to revolutionize how your workforce engages with the workplace. As a result, the technology empowers the HR department to be more agile and efficient and significantly contribute to the business value – like a true strategic business partner. The most compelling evidence is – every industry is going through different kinds of digital tech transformation that include mobile computing, cloud computing, virtual reality, artificial intelligence, machine learning, automation and more. In effect, the HR industry is no exception to this phenomenon.
According to the recent KPMG report, by 2020, adopting new technologies in a workplace will not only change the way of recruitment but will also decrease the manual workforce. So, no prize for guessing that ‘HR Tech Transformation’ is the buzzword today. In 2020 and beyond, HR Tech Transformation holds the key to a better-digitized future where technology enables and empowers the modern workforce to deliver its full potential. This becomes much more imperative amid the COVID-19 crisis, when companies are struggling to manage end-to-end employee experience while trying to be equally agile and business-focused.
How To Accomplish HR Tech Transformation
To accomplish true HR Tech Transformation for an organization, it demands a fresh mindset.
It necessitates to re-imagine the employees as the new consumer.
Once you start taking your employees as your consumer, only then you will focus on how to deliver end-to-end optimal employee experience across the employee lifecycle. Remember, good employee experience equals better customer experience. More importantly, for an organization, HR tech transformation should not be just about HR but it must align with:
- Align with the organization’s key business objectives
- Aim to be more efficient and cost-effective
- Focus on delivering a great employee experience
Now, HR Tech transformation is something that can’t be achieved overnight. Like any challenging mission, HR Tech Transformation too has its own journey, obstacles and milestones. Let me explain this journey into 4 phases:
PHASE 1: ESTABLISH THE NEED
This is a phase where an organization understands the real need to digitize their HR operations. To establish the need for HR Tech Transformation, first it’s important to understand the common challenges an organization face when it comes to managing the HR:
- Poor operational efficiency
- Modest Employee engagement
- Sub-standard productivity
- Poor retention rate
- Higher operational costs
- Time-consuming processes due to legacy systems
- Lack of tangible business value
All these and more such challenges force an organization to look for alternative ways to manage the HR. So once the problem has been identified and needs are established, it’s easier to seek the right path. Don’t forget the fact that despite realizing the need to transform the HR, several organizations may not be fully ready to implement it for different reasons. Reasons may vary from organization to organization. It may be related to finance, legacy systems, integration challenges, poor digital literacy, and more.
PHASE 2: GET STAKEHOLDERS BUY-IN
Once the need for HR transformation has been established officially, it’s time to get everyone aligned towards the same goal: higher business efficiency and better employee performance.
After all, HR transformation can’t be done in isolation. It has to get the complete stakeholder buy-in from all divisions. What might be obvious to one leader in HR may be an alien idea to another leader in the same organization. All leaders should be on the same page when it comes to aligning the organizational culture with employee experience. All leaders should be very clear about the problems the organization is facing.
For example,
- Retention rate is very low
- Employee turnover is high
- Time to replace the employees is increasing
- Organizational goals aren’t being met
- Revenue is decreasing
- Employees are dissatisfied
You may even look at external factors such as a disruptive technology, or an emerging competitor that is forcing you to consider new approaches. Therefore, a strategic level discussion starts taking shape among the leadership team to weigh in the business relevance, the cost-benefit analysis, organizational challenges, business competitiveness etc.
During this process, the organization’s leadership will be able to achieve strong stakeholder engagement and line-manager’s buy-in to make the initiative a success. Not just that, this brings out the power of strategic collaboration to its true form with shared efforts and insights.
PHASE 3: BUILD A STRATEGIC ROADMAP FOR HR TECH TRANSFORMATION
Once the leadership team is on-board, it’s time to take the next step which is detrimental to the success of the HR Tech Transformation initiative. An internal digital transformation team should be formed to guide the company from strategy and operations perspective. This team will craft a planned HR Tech Transformation roadmap from the company’s perspective to set the long run and short term goals. This roadmap may need some tweaking here and there once the HR Tech Transformation implementation partner is on-board.
PHASE 4: Choose the Right HR Tech Transformation Partner
A wise man once said, ‘Our choices seal our fate.’
So how you choose and whom you choose to be your HR Tech Transformation partner is going to be the game-changer. This phase is the 2nd most important factor in determining the success or the failure of the HR transformation initiative. First of all, you need to understand very clearly that selecting and implementing HR technology solutions is a combination of art and science. The science involves the solution functionalities, scalability, robustness, feature richness, proven implementation methodologies etc.
The art part is ‘to have the common sense’ to set eyes on the bigger picture where you aim to drive organization-wide faster technology adoption, elevate the employee experience and continue the digitization evolution. When you choose an HR Tech Transformation partner, you’re choosing several other aspects too such as:
- Work ethics
- Skill and capabilities
- Solutions and processes
- Operational excellence
- Customer services
- Sense of ownership
- Sense of urgency
- Collaborative approach
- Flexibility to meet the future needs
- Ability to meet the rigid timelines
…and much more.
So, do the due diligence at your end and look at the cultural fit for your organization. Two organizations with contrast work cultures can’t write a success story. So, it is recommended to be conversant with the leadership team, understand their perspective, how well they understand your business and objectives, check their past work, and judge them on their ability to add more value in your strategic roadmap and more.
FINAL THOUGHTS
Let’s admit that there is no alternative to HR Tech Transformation. Traditional HR methods are failing. Usual hiring costs are increasing, the retention rate is going up and productivity is flat-lining or going downward. All things considered, to stay relevant and add business value, HR must transform. In short, the change-makers will go ahead with HR Tech Transformation to align with a digitized present and future. By and large, they will be the future leaders, and those who fail to change and adapt now, failure is inevitable for them. To sum it up, companies can build and drive an awesome employee experience, reduce complexity, and fuel collaboration with HR’s Tech Transformation.
Do you believe that it’s high time to re-look at your HR’s business impact and align it to your business’ long term objectives in true sense?
What are your thoughts on HR Tech Transformation ideas shared in this article?
What does HR Tech Transformation mean for your company?
Are you wondering how to connect your HR technology investments with business outcomes?
Let me know in the comments section below or tweet me @iamnitinmalik.
