Digital HR transformation: The future of human management in the era of digitization

Digital transformation is a term that has not left the mouth of managers, HR leaders and technology specialists for years. In the context of people management, this change is not limited to the implementation of modern tools supporting business processes – including those related to people management. A real transformation occurs when organizations begin to perceive employees as key participants in building the value of the company, and technology becomes a catalyst for the development of the organization, and thus to disclose the full potential of employed people.

Changing the role of HR – from administration to strategic partnership

Until recently, HR departments performed mainly an administrative function – management of recruitment, remuneration or dismissal processes. As a result of progressive digitization, we observe the evolution of HR in the role strictly administrative to the role of a strategic partner for managerial staff, which involves providing data on the market and current employees in the field of business indicators and recommending solutions. The strategic role of HR is also monitoring and reporting of processes, which translates into creating a conscious personnel policy in the organization.

According to the McKinsey report, as many as 78% of HR leaders indicate the strategic role of the HR department in building and maintaining the company’s competitiveness. Organizations that effectively combine technology with human management increase employees’ involvement by 30%, which affects their long -term loyalty and productivity. Modern organizations implement technologies that allow you to better understand the needs of employees, optimize processes and build an organizational culture conducive to commitment and long -term loyalty.

“HR transformation is a process that begins with a change in the mentality of people employed in the HR department. Employees are not only resources, but people who bring real value to the organization. Technologies allow better understanding of their needs and motivation, which allows you to build more effective and satisfying relationships in the workplace, which in turn translates into a reduction in rotation, greater effectiveness in achieving business goals, and consequently the success of the entire organization “ – says Bożena Roczniak, CEO of Ostendi Hr.

HR changing technologies – examples of global giants

Great organizations around the world invest in HR technologies that allow them to better manage employees’ experience and efficiency. Examples of such organizations show how technologies contribute to increasing value for both employees and the organization itself.

Starbucks He used advanced analytical tools to predict the demand for employees in individual locations. Thanks to this, the company optimizes work graphics and cares about Work-Life Balance of its teams. Effect? A global decrease in employee rotation by 10%, which has a key impact on team stability and their commitment.

Googlewhich in its activities is based on the data, develops the “People Analytics” approach. By analyzing real -time data, the company personalizes your career paths, enabling adaptation of development programs to the individual needs of employees. This strategy increases commitment and satisfaction from work, and also increases talent retention. It is worth noting that companies using employees analyzing employees increase the satisfaction of their teams by an average of 23%, as the Gallupa report indicates.

Airbnb introduced a digital platform to onboarding, which allowed to shorten the adaptation time of new employees by 30%. This results in faster achievement by new employees with full productivity, which has a direct impact on the efficiency of teams.

Unilever In turn, he automated the selection process of candidates using artificial intelligence. This translated into a faster recruitment process, which was shortened by 75%, and to reduce prejudices in the selection process, which provides more diverse teams.

These are just a few examples of organizations that effectively combine technology with HR, achieving real benefits in the form of better employee experience and greater operational efficiency.

Artificial intelligence, data analysis and automation – key changes

With technologies that break the barriers of traditional HR, we become witnesses of the revolution in the area of ​​employment and development of talents. Artificial intelligence, Data analysis and process automation They are the foundation of the digital transformation in HR.

Artificial intelligence plays a key role in recruitment. An example is Unilever, which implemented the AI ​​system for application analysis. Thanks to this, the selection process becomes faster, and the systems eliminate subjective errors, such as preferences for gender, age or origin of candidates. It is worth adding that organizations using AI in the recruitment process reduce the time for selection by an average of 40%, which significantly increases the efficiency of the HR department.

Another area that uses technology is Personalization of development. The “People Analytics” approach, implemented by Google, allows managers to create personalized career paths based on employees. Thanks to this method, 65% of Google employees find that they feel better supported in their development, which positively affects their motivation.

Process optimizationsuch as creating work graphic designers, is another technique used by market leaders. Starbucks uses advanced predictive analysis to optimize employment, which results in better adaptation of working hours to the needs of employees. As a result, the productivity of the bands increases and the rotation decreases.

“Technology in HR is not only digitization of processes, but above all real support for People & Culture teams. Automation of repetitive tasks allows HR specialists to focus on strategic aspects of human management – developing talents, building organizational culture and increasing employee involvement “ – emphasizes Bożena Roczniak.

Psychological challenges of HR digital transformation

Although technologies bring many benefits, introducing changes is not a process without challenges. Employees, afraid of the loss of control over their work or a sense of anonymity in the organization, often perceive digital transformation as a threat.

Research shows that 60% of employees are afraid that the automation of HR processes can lead to loss of work. To conduct an effective transformation, organizations must focus on three key aspects:

• Trust in technology – Employees must know that new tools support their development, and not only for monitoring their results. Transparency and open communication are crucial for success.
• Human-Centered approach – The implementation of AI and analytical systems should go hand in hand with attention to interpersonal relationships. Technology should support HR in building a positive organizational culture, not replace it.
• Education and implementation – The key is to prepare teams for changes and show what benefits they can result from a new approach to talent management.

“In the era of digitization, it is crucial for technology to be in HR” service “and not the other way around. On the one hand, the implementation of technology with AI analytics allows you to take into account the needs of the organization and increase the likelihood of the implementation of the strategy, and on the other hand the individual needs of employed employees ” – he sums up Bożena Roczniak.

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About us

Ostendi Global is a manufacturer of HR software that provides customers with a modern and thoughtful HRM system. The offered solutions are based on the latest technologies and extensive knowledge.
Technology improves the daily work of People & Culture departments by automation. This allows customers to save time, avoid expensive mistakes and make decisions based on reliable data. By offering modern solutions and the highest quality of customer service, the company strengthens the market position, although it was created only in 2019.
Ostendi Global supports both large and small organizations and helps improve HR processes, including in Budimex, Stock Polska or Wielton.
Website: https://ostendihr.com/

The report uses data from: McKinsey report “Reimagining HR: Insights from People Leaders”, Gallup’s report “State of the Global Workplace: 2023 Report”, as well as from services: https://wynagrodzie.pl/artykul/wyngrarad-i-motywowanie-pracownikow-w-firmie-starbucks?utm_source, https://www.pumedu.cz/en/news/the-practical-application-of-ai-unilever-veduced-recruitment-time-by-75-112n, https://hrpolska.pl/rynek-praca/badania/60-pracownikow-obawi-sie-z-z-powód-technology-wkrotce-meze-stracic-prace?utm_source