Emilia Dunaj
Emilia Dunaj
Head of Technology Insights
March 2024, 9 min. read

Think about the last time you used an app on your phone. It was easy and quick, right? Managing human resources can be that simple with Digital HR. 

Traditional HR practices, often manual and paper-based, can be time-consuming and inefficient. Digital HR transforms this, freeing up valuable time for more strategic tasks and employee engagement.

But what does this mean in practice? In this article, we’re going to explore what Digital HR is and how it outshines traditional methods. Keep reading to find out how modern digital HR tools make the department more efficient, data-driven, and employee-friendly. 

But let’s start with the basics.

What is Digital HR?

The Digital HR term refers to the digital transformation in human resource management. This change is driven by new technologies, which change how businesses gather and understand their data. Digital HR empowers both the organization and its workforce.

In the day-to-day, Digital HR means using software and the internet for all sorts of HR jobs. From recruitment and onboarding to managing employees and assessing performance, these tasks are now handled digitally. This shift means less paperwork and manual recording. Information is easier to access, track, and analyze.

The goal of Digital HR is straightforward: make smarter decisions. With repetitive tasks automated, your HR professionals can focus on the HR strategy, contributing more to the business’s growth and development.

A key aspect of Digital HR is enhancing the employee experience (EX). By using digital platforms, employees can manage their own HR needs, like viewing payslips or applying for leave, with ease. Plus, they can easily get training, learn new skills online, and grow in their careers.

How digital technology impacts HR

In traditional HR, things were mostly manual: offices with stacks of paper forms, long in-person meetings, and manual tracking of employee information. It was time-consuming and often led to errors.

Now, enter the digital world. Digital HR leverages technology to do things faster, more accurately, and in a way that connects people no matter where they are. 

Here’s how:

Cloud technology has revolutionized data management in HR. It allows for the storage, processing, and accessing of vast amounts of HR data over the internet. This means HR teams can work remotely, collaborate easily, and have all the necessary up-to-date information at their fingertips. All this while ensuring data security and compliance.

Automation in HR streamlines repetitive and time-consuming tasks. From sorting resumes to scheduling interviews, back office automation tools reduce the workload on HR professionals. Automation speeds up processes and minimizes human error, leading to more efficient HR operations.

Virtual Reality (VR) is starting to make waves in HR, particularly in training and development. It offers immersive learning experiences, simulating real-world scenarios for employee training. For example, factory workers can use VR to practice on machines in a virtual world before they use them in real life.

Intelligent technologies, like Artificial Intelligence (AI) and Machine Learning (ML), allow HR to be more proactive and strategic in attracting, training, and retaining employees. 

A type of AI called Generative AI is particularly useful in creating realistic scenarios for training or generating data-driven job descriptions. Predictive AI, another type of AI, excels in forecasting workforce trends, like identifying potential employee turnover. 

Meanwhile, ML continuously improves these processes by learning and adapting from new data over time, ensuring that HR functions evolve with the changing workforce landscape.

Benefits of HR digital transformation

The shift to digital in HR brings tangible benefits that can transform a business. Here are some key advantages:

Boosted efficiency and productivity

Digital tools automate repetitive tasks. This means HR teams spend less time on paperwork and more on strategic activities. Automation reduces errors and speeds up HR processes like payroll and time tracking. 

Improved data management

Digital HR means better data handling. With everything stored digitally, it’s easier to access, update, and analyze information. Your HR management can make decisions based on reliable and up-to-date information. 

Cost savings

Virtual and remote interviews and training reduce expenses associated with travel. Additionally, moving to digital platforms for document management and communications cuts down on the extensive use of paper. It saves money spent on printing materials and aligns with environmentally sustainable practices. 

Easier internal communication

Digital B2B portals enable smooth internal communication within the organization. With tools that offer collaborative features like internal chat systems, comment functions, and file sharing, exchanging information within teams has never been easier. Teams can connect from any device, at any time, from anywhere in the world. This fosters a more collaborative and transparent work environment.

Reduced staff turnover

By using digital tools for employee feedback, satisfaction surveys, and career development planning, companies can better understand and address employee needs. This proactive approach focused on employee experience (EX) helps in retaining talent and reducing turnover rates.

Better employee engagement

Incorporating elements like gamification in training and development initiatives can make learning more interactive and enjoyable for employees. This not only enhances their skills but also boosts their engagement and motivation.

Performance monitoring

Digital HR allows for more effective tracking of employee performance. With real-time data and analytics, managers can identify areas for improvement and recognize achievements, leading to a more productive and goal-oriented workforce.

Strategic recruitment

Digital HR transformation revolutionizes hiring. Online applications, digital interviews, and automated screening make the recruitment process faster and more effective. Additionally, by analyzing data on candidate skills, experience, and cultural fit, companies can make data-driven decisions, ensuring they bring in the right talent.

Streamlined onboarding

Digital onboarding processes make it easier for new employees to get up to speed. Interactive guides, online training modules, and digital paperwork streamline the workflow, making it more efficient and welcoming for new hires.

Simplified payroll management

Digital systems automate and simplify payroll management, reducing the time and effort required to process payments and ensuring accuracy in employee compensation.

Ensured compliance

Keeping up with legal requirements is easier with digital HR. Automated systems help ensure that companies stay compliant with labor laws and regulations, reducing the risk of legal issues.

How to get started with Digital HR?

Ready to streamline your HR functions and empower your workforce? Let’s break down the steps to take on your digital HR journey:

1. Assess your current HR processes

Start by taking a close look at your current HR processes. Which areas feel slow, burdensome, or error-prone? These are the prime candidates for a digital makeover.

2. Set your objectives

What are you hoping to achieve with digital HR? Do you want to boost efficiency, enhance employee experience, or simplify recruitment? Having clear goals will act as your roadmap throughout the transformation.

3. Research and select the right tools

Once you know what you need, finding the right tools gets easier. There are lots of ready-made solutions out there, but make sure you pick one that fits your company’s size and needs. Custom software can be a great choice because it’s agile and built to meet your specific challenges, something pre-made software might not always do.

4. Train your team

Ensure your HR team and employees are ready for the change. Since 62% of people don’t like to leave their comfort zone, it’s key to make training for new digital tools easy and friendly. A supportive learning environment can really help people get used to new ways of working and overcome any worries about change.

5. Monitor and adjust

Once implemented, keep an eye on the results. Are you achieving your goals? Be prepared to adjust your approach based on feedback and performance data.

10 Steps to HR Digital Transformation
10 Steps to HR Digital Transformation

Top 5 Human Resources digitization tools

Leading market players are already investing in Digital HR. 66% of technology decision-makers say that they’ll increase investment in EX or human resource technologies in 2024. 

In digital HR, certain tools stand out for making significant impacts. Here are the top five tools that are revolutionizing HR processes:

Human Resource Information Systems (HRIS)

HRIS is the control center for your HR. It’s an HR software system that manages employee data, payroll, recruitment, benefits administration, and more. HRIS often provides powerful analytics tools, offering valuable insights into workforce trends and helping in strategic decision-making.

Besides managing key HR functions, HRIS software also enhances data security and compliance, which is crucial for sensitive employee information. Its role in integrating various HR activities creates a unified and efficient HR ecosystem.

Applicant Tracking Systems (ATS)

Hiring the right people is crucial. ATS makes this easier by automating the recruitment process. It screens resumes, tracks applicants, and helps in managing the hiring pipeline. ATS systems can significantly reduce the time and effort needed to find the perfect candidate.

ATS also enhances the candidate’s experience, reflecting positively on your company’s brand. It’s instrumental in building a more diverse and inclusive workforce by minimizing unconscious biases in the hiring process.

Employee Self-Service Portals

These portals empower employees to handle many of their own HR-related tasks. From updating personal information to applying for leave, these portals put control in the employees’ hands, freeing up HR staff for more strategic tasks.

These self-service portals also promote transparency in HR processes, allowing employees to access their HR data, thereby building trust and improving employee relations.

Performance Management Systems

Performance Management Systems transform how companies evaluate and improve employee performance. They enable continuous feedback, goal setting, and performance reviews, providing a more dynamic and effective approach to managing employee growth and productivity.

Beyond performance reviews, these systems foster employee development through personalized training recommendations and career pathing tools, aligning individual growth with organizational goals.

Learning Management Systems (LMS)

An LMS is a digital platform for learning and development. It allows employees to access training materials, courses, and educational resources online. LMS supports continuous learning and makes it easier to track progress and completion.

Learning management system platforms can be integrated with other HR tools for a seamless learning experience. Their ability to provide analytics on employee learning patterns is invaluable for tailoring future training programs.

In conclusion

Human resources is one of the most admin-heavy departments in any organization. Digital HR is transforming this crucial function from the ground up. It’s automating routine tasks and applying AI for smarter, more strategic decision-making.

The benefits of implementing Digital HR are clear and impactful. Modern digital tools are redefining HR departments, making them more efficient, driven by data, and employee-friendly.

Ready to make your company a thriving workforce? 

Our team at Right Information can guide you through your HR digital transformation journey. We offer expert digital consultations, helping you choose the right software and strategies to transform your HR operations and drive your business forward.