Theory: HR Digitalisation

Reducing costs – Compared to manual, paper-intensive, traditional methods, digital solutions are far more cost-effective. Also, they eliminate pointless meetings, saving both the business and the staff members time and money. 

Improving efficiency – By enhancing decision-making capabilities, forecasting capabilities, visibility into operations and productivity, reducing pointless meetings, decreasing paperwork/paper trails, etc., digital HR solutions help to maximise employee productivity, enabling you to complete more work in less time without sacrificing quality or accuracy. (Team, 2022) It also enhances HR procedures by utilising analytics to identify processes that are and are not in line with HR strategy. (Daniel, 2018) Duplicate HR systems can be streamlined to make all processes more efficient.  

Increasing employee satisfaction and productivity – Because employees have more control over their schedules, workloads, etc., they feel more empowered as a result of the introduction of new technology into their daily life, which increases job satisfaction. (Team, 2022) Employees do not want to quit a business where they feel valued, this boosts employee morale, which results in better retention rates. By automating repetitive operations, digital solutions boost employee productivity ​by enabling​​     ​ workers to complete their jobs more rapidly. Also, they let people plan their workloads and schedule meetings with co-workers, clients, etc. more efficiently.  

Improving quality of data – The amount of time spent on administrative chores will decrease as your staff become more accustomed to utilising technology and are more likely to input accurate data into their systems, which will increase the accuracy of reporting, forecasting and other processes. (Team, 2022) Employees can spend more time doing what they do best and less time on non-value-adding duties like data entry with the help of new technologies. ​Having​​     ​ projects launched promptly and iterated will reduce the change of widespread failures of methods and technology that can’t be easily modified. (Daniel, 2018) 

Higher talent retention – Individuals want to grow in the professions, and when businesses demonstrate that they care about employees’ careers, exceptional employees are more likely to stay with the company longer, lowering recruitment expenses.  

Stronger alignment between company strategy and people management – Business can better align themselves with the company strategy with the help of business intelligence tools like workforce planning and people data.  

Lower HR costs – Organisations who have engaged in digitising HR (through systems like cloud HCM and talent management (Daniel, 2018)) over the long term save a lot of time and money as processes are streamlined and improved (Spencer, n.d.). Having visibility across your whole workforce also allows you to boost internal mobility while spending less on external hiring.  

Consolidates HR systems – Consolidating entails a unified source of truth and a consistent user interface. Employees are more likely to engage and finish activities without jumping between programs or being perplexed by functionality if there is a single platform for all of their HR needs (Spencer, n.d.).