HR Digitization – Personnel Management of the Future

In HR, digitization is more than just a trend in personnel management. The world of work is changing in many industries, placing new demands and expectations on modern human resources management. Digital transformation in HR is therefore indispensable for many companies in order to continue to find sought-after specialists in the future, to retain them in the company, and to train the right people in the right positions within the company.

In this article, you’ll read what HR digitization really means and how it can be applied in concrete terms.

1. What is HR digitization?

HR digitization means that classic and analog HR processes are transferred to the digital world and, above all, that data is consistently collected and also used. Digitization in the area of human resources ensures time savings and more data security. For example, inquiry management, a time-consuming task for the HR department, can be highly automated.

At the first level, personnel files no longer need to be kept in paper form. Plannable assignment of rights means that only authorized persons in the company have access to the data they really need. If HR digitization continues, employees in the company can be motivated, promoted and placed in the right areas of responsibility in a data-based and targeted manner.

2. Application areas of digitization in HR

  • Automation: Saving time by simplifying administrative tasks and increasing efficiency are often the top priorities when it comes to digitizing HR processes. Time-consuming, recurring and standardized processes can be accelerated and automated using suitable HR software. Digital document management or an employee portal for inquiries and applications makes a lot of work easier for HR staff and frees up time that can be used for other work.
  • Digitization in recruiting: In many industries, the labor market is changing from an employer market to an employee market. The battle for talent is becoming more and more important and so recruiting measures such as active sourcing on social media or improving the candidate experience are becoming increasingly important. Onboarding processes also benefit from digitization and become more efficient and better as a result, especially with regard to mobile working. Here, digital personnel management can make a lot of things easier.
  • Digitize talent management: It is important that companies not only successfully train their employees, but also retain them in the long term. This is especially important with younger generations who are digitally savvy and have different values. Employees would like to have more personal responsibility and creative possibilities, so individual software solutions such as feedback tools can help. It is also important to know the skills of each employee in order to develop them in a targeted manner. Digital software can help build a talent management system and keep qualifications and goals transparent.
  • Using e-learning: Modern HR work also includes personnel development, in which digital learning opportunities play an important role. These offer many advantages, as they can be called up flexibly and are accessible at any time. The possibility of using digital learning offers individually enables HR managers to ensure personalized knowledge transfer. What’s more, with digital learning options, you can respond quickly to changing working conditions. In times of home office, e-learning is already indispensable in many places.

3. Digitization in HR: What are the advantages?

The benefits of HR digitization are numerous:

  • Many standard tasks can be processed automatically, saving time, and HR employees can devote themselves to other strategic tasks.
  • Digital HR systems enable improved data collection and processing. This means HR leaders can access better data, which enables more effective decision making.
  • Talent management is being taken to a new level through digitization, for example through e-learning and digital onboarding.
  • The digitization of HR systems enables greater flexibility, as employees can access their data from anywhere and work processes can be performed from anywhere.

The benefits of digitization in HR are obvious, but HR managers must also remember that changes always initially involve effort and can also generate negative feedback from employees, as not every person is open to change. From this point of view, HR digitization must also be understood as a challenge, especially in companies with long-standing processes.

4. The right approach to digitizing HR processes

Step 1: Identify tasks

First, list all the tasks of the HR department and all the processes that occur on a regular basis. It is best to already sort all activities here according to task areas and responsibilities.

Step 2: Mark time-consuming tasks

Now the amount of time spent on each task should be determined so that the biggest time wasters can be found.

Step 3: Compare and choose HR software solution

Choose the most suitable software for your purposes from the range of HR solutions. The important thing is that it’s not always just about digitization for its own sake. Just because you can do a task digitally doesn’t always make it easier or faster.

Step 4: Integrate data into HR software

After deciding on a digital HR solution, all data must be transferred to the system. Many vendors can assist with data import so that effort can be minimized. Also pay attention to all regulations regarding data protection, such as personnel files or payrolls.

Step 5: Get all employees on board

Also, in the event that there are reservations in the company about change or digitization in general, as many people as possible should be informed or involved as early as possible. The better each person in the HR department can handle the software, the greater the benefit will be. Training can also help here.

5. HR Consulting around digitalization & more

Do you have questions about HR digitization? We would be happy to advise you and help you maintain an overview and show you how you can benefit from a professional HR solution.