Digital HR is about leveraging technology in order to make HR more effective and drive better business value.
Digital HR is a process optimization in which social, mobile, analytics and cloud (SMAC) technologies are leveraged to make HR more efficient, effective, and connected.
The sole application of new technologies is not what makes HR digital. Digital HR should also align culture, talent, structure, and processes to balance efficiency and innovation, as well as to sustain a measurable impact on the greater organization as it continuously transforms.”
According to Dave Ulrich, the digital HR journey of any company involves four phases:
1. HR efficiency. In this phase, companies invest in and
build technology platforms that efficiently manage HR processes; often through
existing HR technology providers.
2. HR effectiveness. In this phase, technology is used to upgrade practices in people (staffing, training), performance management, communication, and work.
3. Information. In this phase, information is shared for business impact. Data is accessible, internal data is combined with external data, and people analytics is leveraged to create business-relevant insights.
4. Connection/experience. In the final phase, digital HR is leveraged to create a connection between people. Social networks are leveraged, experiences between people are created, and technology enables a stronger feeling of belonging.
How Digital HR is transforming Human Resources
Just as digital technology has changed our everyday lives, it’s now transforming HR. It enables HR to (among other things):
Use data & analytics
Slowly but surely, HR is starting to understand the value data analytics can add to the business. Preselection, learning & development (L&D), employee engagement, you name it; there’s HR technology out there to measure every single part of the employee lifecycle.
Improve the employee experience
For 21st century employees, the line between their professional and personal lives has become blurred. Yes, they’ll check their social media account during office hours, but they’ll equally check their work emails during the weekend.
As such, they expect to be treated as customers and they want their employer to provide them with a similar user experience when it comes to the digital work environment.
Be competitive in the war for talent
Millennials and generation Z – in other words, the (future) workforce – are constantly connected to social media and glued to their phones. Companies that use these digital technologies for various HR purposes – think sourcing, preselection and learning & development for instance – have a significant competitive advantage when it comes to seducing this demanding generation of workers.