Digital HR Transformation- Discover Its Benefits and Impact

Nikita Agarwal

Nikita Agarwal

Senior editor

Parul Saxena

Chief editor

Last updated: August 6, 2021

The use of modern technology is changing Human Resources (HR), pushing traditional approaches to the sidelines. Increasingly, companies are automating their HR processes and bringing about data-driven digital transformation.

Looking for HR Software? Check out SoftwareSuggest’s list of hr software solutions.

The pandemic has further accelerated the adoption of HR software to adjust to the new norm of remote working. There’s a clear need for digital human resource management to streamline activities and improve employee experience.

In 2021, 52% of HR leaders polled by Gartner expect a shift from planning work for efficiency to creating work that can be flexible.

However, there are still a few companies that have their reservations regarding tech intervention.

In light of our continuing remote work, these companies should realize the need to transition digitally. This blog talks about the needs and benefits of digital HR transformation and how it can impact your company.

How Can Digital HR Transformation Benefit Your Business?

The best way to welcome a digital renaissance in your HR management system is by integrating HR software. Here are some of its benefits:

1. Helps Automates HR Processes

You can stay viable and ethical by streamlining procedures within your organization. By simplifying management procedures, digital HR makes the work of human resource professionals easier.

Digital HR can take shape in the form of AI integrated recruitment procedures. An HR hiring software can pre-screen possible job prospectors seamlessly.

Additionally, it can grade each candidate for the role, screening through Q&A and video interviews. Artificial intelligence in HR can also help in social media monitoring and analyzing the efficacy of recruitment methods.

While in-person interviews will eventually be required, AI can contribute to the efficiency of the employment process. Managers can spend less time and effort locating new workers and interviewing unqualified applicants with this system.

2. Increases Employee Engagement and Satisfaction

With HRMS ( human resource management system ) software, you can streamline your HR-related activities and reduce staff workload. For instance, the software automates the process of extracting data and updating employee contact information. You can automate the process of approving leave requests and check HR regulations with just a few clicks.

Overall, it makes the whole process of getting approval or printing salary slips quick, thereby keeping your employees satisfied.

With the digitalization in human resource management, you can optimize internal procedures and improve communication.

Besides, the use of chatbots can reduce employee workloads. You can easily resolve employee concerns and share information, making it quite helpful when dealing with remote employees.

3. Saves Time and Brings ROI

hr software Saves Time and Brings ROI

Image Source:

Bringing a digital HR transformation comes with its own perk. You can reduce time spent on administrative chores and focus more on strategizing. With manual entries out of the way, HR professionals are able to achieve corporate objectives with full accountability.

Besides, cloud-based HR software acts as a centralized database whereby all employee information is stored. You can access your employee information from any device and share information with ease.

Most importantly, these cloud-based HR systems are budget-friendly. It doesn’t require any upfront infrastructure cost. You just need to pay a subscription fee — monthly or annually — based on the features you choose.

You also can’t ignore the fact that these digital solutions are linked with indirect cost reductions, such as associated labor costs on preparing quarterly reports.

4. Amps Up Security

hr software Amps Up Security

Image Source:

Digital human resource management software offers increased security. The use of professional hosting providers, encryption, and backup methods makes data secure.

The software ensures that employee access to private and confidential information renders secure. It maintains all of the company’s data at one centralized secure location.

Furthermore, it enhances efficiency by reducing paperwork, accessing outdated papers, and archiving training manuals and handbooks. 

What Are the Challenges to Digital HR Transformation? 

Despite all its benefits, most companies are still skeptical about bringing digitalization into human resource management.

The challenges pertaining to the same might be contributing to this apprehension. Some of these includes: 

1. Establishing a Digital Culture in the Company

Existing company culture acts as the first hindrance to digital transformation. 

Unless the work environment has already adopted the technological changes, it can be hard to infuse it for the first time.

People, in general, are resistant to change. So while implementing digital transformation, you need to carry out rigorous training and sessions.

It should explain to them how these new technologies will contribute to their productivity. Make them aware of the purpose of using these digital tools.

Choose an HR software that is easy to use so that even a non-tech user can access it without much difficulty. Create a strong digital corporate culture if you want to grow your business. 

2. Reinventing HR Practices 

Digitalization should be aptly reflected in HR procedures, which can be challenging at times.  They should be converted into flexible activities that can quickly adapt to changing circumstances.

For starters, the onboarding and training processes can be made smooth with the help of HR software.

Employee incentives along with skills training can be digitally focused.

It’s also critical to pay attention to employer branding for a smooth digital HR transformation. Employees should be given the opportunity to speak up and discuss their experiences with new and evolving technology.

3. Personalizing Employee Experience

The task of personalizing the digital experience for each employee can prove to be challenging. 

As an HR professional, your job is primarily to deal at an individualistic level.

Every employee has distinct objectives and expectations, and it’s up to you to ensure they’re in line with the company’s culture. But at the same time, you also need team cohesiveness.

For instance, some employees may adapt to the tech changes faster than others. But you should make sure to educate them all equally along the way.

How Can You Achieve a Seamless Digital HR Transformation?

Seamless Digital HR TransformationImage Source:

You can enable a flawless digital HR transformation for your company by following a few simple steps.

Here are the five principles you must keep in mind while digitizing your HR department. 

1. Know Where to Begin

Assess your organization’s present baseline before investing in HR technology.

Identify any skill gaps if any  — for instance, you might need an additional employee or train your existing member to implement the digital change.

Before embarking on a large-scale HR change, have a clear aim in mind and define your objectives sharply.

Ask yourself — does digitalization make the process easier for everyone involved?

The end-user should profit from the digital revolution. When HR builds an automated performance management system to gather salary appraisals, both managers and workers should have access to this platform.

Also, evaluate the financial impact of such a move. This transformation objective must be linked to a business aim.

The business value that a digital transformation project adds is what determines its success. For example, by maintaining a seamless employee absentee record, you can look into the causes of disengagement. By resolving those, you can effectively increase productivity. 

2. Have a Discussion

All relevant parties and each employee should be informed of your decision to digitalize. When it concerns a digital HR transformation that will impact the whole company, you’ll need all the help you can get.

HR executives should keep everyone in the loop in order to apply feedback and suggestions — making the system more effective.

3. Evaluate the Best HR Technology 

The validation procedure of HR software is essential. You must assess all the options and define what you want, what criteria you’re looking for in a vendor, and how you’ll choose the best option.

Rather than a haphazard approach, have potential suppliers give demos tailored to your organization’s needs.

Additionally, confirm cloud-based platform dependability records and security protocols.

Find out if the solution can scale with your business and how much control you’ll have over modifications and additions over time.

4. Be Flexible

The whole point of integrating modern technology is to get rid of old, obsolete ones. Be flexible in letting go of traditional mechanisms and opting for newer, more effective ones. 

5. Create a Culture 

The creation of digital culture is at the heart of HR’s digital transformation. This entails not just knowing how to employ automated solutions, but also how to use them to improve human skills.


A digital HR transformation for your company can be a good and necessary move.

The paradox here is that digitalization curbs the same challenges it poses. However, the pros outweigh the cons.

Digital HR software will automate and streamline HR procedures. It will reduce effort, time, and cost, making your company function better.

The world is moving fast-paced, and it is only logical to keep up with it. With every sector being revolutionized, why not the human resource department?

Invest in good software, and see significant changes unfold.

Nikita Agarwal
Nikita is a SaaS copywriter and content marketing expert with almost five years of experience. She creates engaging and high-quality content for businesses that want to see their Google search rankings surge. When she is not writing, she is busy following the search industry news to stay updated on all SEO tactics.

Recent Posts

No posts found.


Please enter your comment!
Please enter your name here

Captcha loading...