What Is Digital HR? The Latest Trends in Human Resources

Introduction

The digitalization projects that surfaced in every field during the pandemic look set to remain a trend in the years ahead. For most organizations, digital transformation sits at the very top of the list of strategic goals.

Along with this trend, HR departments are also coming under the influence of digitalization. We'll take a look at what it takes to develop a digital HR transformation plan and at the most current HR trends.

What is digital HR transformation?

Digital HR transformation is a process optimization in which technology is used to improve the way the HR department (and therefore the organization as a whole) works, making it more efficient and more effective. These technologies include cloud-based HRIS (HR Information System), digital recruitment solutions (ATS), internal communication platforms, engagement surveys, hiring assessment tools, performance review tools, and much more.

HR teams that can look beyond their own department and operations are the ones able to design a genuinely successful digital HR process. The key point here is that HR professionals, when making decisions during digitalization, should be able to take a bird's-eye view of their processes, make decisions that will speed up and improve HR processes in the short term, and at the same time implement a holistic vision that will work well for the entire organization over the long term.

According to Dave Ulrich, a company's digital HR journey consists of four stages:

1. Stage: Efficiency

At this stage, companies invest in and build technology platforms that allow them to manage HR processes efficiently. Large global companies tend to choose platforms such as SAP, Oracle, and Workday, while startups and scale-ups tend to opt for platforms such as Hiroo, BambooHR, Lever Hire, and Greenhouse, selecting according to the company's needs.

2. Stage: Innovation

This is where the question of how far we use technology to renew our HR practices comes into play. In the table below, you'll find some examples of how HR practices can be improved with technology tools.

3. Stage: Information

In traditional ways of working, access to information gave leaders power, because leaders had more information than their employees. Today, with open access to information through technology, information is less a matter of power and more a matter of being able to make better decisions.

Organizations, too, are investing more in data analysis, big data, predictive analytics, and engineering teams so that information is easily accessible and can guide decision-making.

4. Stage: Engagement

While digital HR processes enable efficiency (stage 1), innovation (stage 2), and information (stage 3), the most important impact of digital HR transformation will be on "engagement." The design of the process needs to focus on emotional commitment, on the bond between employees themselves, and on the employee experience. To that end, HR teams can again use technology to come up with various activities, social responsibility projects, and event ideas that connect people with one another.

Leading HR Technology Trends in Digital Transformation

Looking at HR technology trends in recent years, we see the strong influence of the past year and a continuing movement toward digital transformation.

The five most important technology trends in digital transformation for HR are:

1. Use of Artificial Intelligence in Recruitment

AI-based algorithms, the use of RPA, and input from a variety of sources including social media activity are changing the way HR professionals find talent by offering a unique perspective on candidates.

2. Digital Learning, Training, and Development

The pandemic created unprecedented opportunities to retrain and develop employees. Companies began offering training modules to help employees adapt to remote work culture. Employee learning and development looks set to remain an important topic in advancing HR technology. In short, organizations want platforms where they can share documents and resources, automate workflows, and support employees pursuing professional development.

3. Remote Work Culture

As work-from-home culture took off in 2020, we moved from our offices to our couches. Even after the pandemic ends, the remote work trend looks likely to continue. In addition to the wide range of tools already available for remote work, more updates appear to be on the way.

4. HR Analytics

Over the last 100 years, Human Resources Management has changed. It has moved from an operational discipline to a more strategic one. The popularity of the term Strategic Human Resource Management (SHRM) is one example of this.

You no longer have to rely on your instincts alone to make decisions. Analytics allows HR professionals to make data-driven decisions.

5. Wellness

The pandemic has also changed the wellness practices companies provide to their employees.

Free healthy food in the office fridge or fitness classes may not be the benefits offered to employees this year. Examples of new wellness trends for companies include:

• Psychological support programs: Examples include free therapy services, memberships to meditation apps, a 24/7 confidential support helpline, and free sessions.
• Telehealth: Telehealth is the delivery of healthcare services, health education, and health information services through remote technologies. With such a service, employees can book virtual appointments with doctors at a time that suits them, or put their health-related questions to a specialist.
• Personalized Wellness Services: These include services employees can choose from within a package, covering areas such as health coaching, fitness, and personal care. Companies can direct employees to specific apps and cover the subscription on their behalf — fitness, breathing exercise, or meditation apps, for example.

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