HR digitalization is not a purely technical process.
Ideally, automation frees the HR function from routine tasks. Certain processes are fully automated, while others are prepared to such an extent that managers and employees can handle them themselves. This frees up capacity.
And for SMEs in particular, this is an opportunity to completely rethink the positioning of HR. With more resources available, the HR department can now focus more on strategic topics such as recruiting, talent management or personnel development and thus drive the company's development.
The new positioning of HR is also changing the cooperation between HR and managers or employees. They take on some of the routine tasks - and therefore also the responsibility for them: for example, it is now the employee's responsibility to ensure that the new address is entered correctly into the HR management system. Of course, these two groups may complain that HR admin issues are delegated to them. But this can be prevented by pointing out the added value that HR development measures have for managers and employees.
An opportunity for modernization, especially for smaller companies
The digitalization of HR management is also an opportunity to initiate modernization steps that have long been desired but not possible for various reasons. This is because digitalization often gives managers a high level of transparency about their team and its processes. Whether organizational assignments or time data and salaries: structures and processes can be easily tracked and quantified. This in turn speeds up work and decision-making processes. Managers have to make decisions even if they do not yet have all the information. If they were to wait until they had all the relevant information, they would run the risk of certain aspects becoming outdated again. This almost automatically leads to employees being pushed into decision-making situations more than before. They are given more responsibility - and not just for the accuracy of the data they enter.
This in turn changes the role and self-image of managers and employees. Managers are now more a part of the team. Their role is that of a coach who accompanies their employees. They in turn work much more independently and autonomously than before. In short: the hierarchies are becoming flatter.
This only works with a corresponding culture of error. Employees need to know that they are not at a disadvantage if they make decisions that may turn out to be wrong in retrospect. The value of employees and managers must allow for such shifts in responsibility.
A different corporate culture
The technical process of HR digitalization therefore also leads to a change in corporate culture: to a flattening of hierarchies, a changed understanding of roles and a greater tolerance for mistakes. And throughout the company. Ultimately, HR management affects employees in all departments of a company. A digitalization strategy should keep an eye on this change and, if necessary, not only accompany it, but also force it.
What could such a strategy look like?
I would proceed as follows:
1. Identify the processes to be digitalized.
At the beginning, there must be clear planning with all affected areas, which processes need to be digitalized and why. If, as a department, I only think about what I need and in what way after the implementation has been completed, adaptation is usually no longer possible - or is associated with high costs and time expenditure.
2. Simplify the processes before you digitize them.
It is also clear that digitizing a process does not automatically lead to its improvement. If, as an HR function, I currently have a process that is complicated and time-consuming, switching to a digital process will not necessarily lead to an improvement. On the contrary: with a digital process, it will be more difficult than before to make manual interventions and corrections.
It is therefore critical to work intensively with the departments that are to use the digital tool in the future when converting the process accordingly.
3. Establish a project organization.
A recurring experience in this context is that "HR digitalization" is a full-time job that has to be done full-time by professionals. This cannot be successfully implemented by the HR organization as a "side job". This is where establishing a project organization that includes internal HR professionals and external specialists comes in handy, but not only: the works council should also play a strong role here as an important internal stakeholder.
4. Develop a change management plan.
A corresponding communication and change management plan is critical for the successful implementation of a digitalization of the HR function. As the HR function is often a very visible central unit of a company that also deals with critical information such as personal data, salaries or career opportunities, every change to corresponding processes leads to employees critically monitoring what is happening.
And this also raises certain expectations and fears. These need to be managed culturally and communicatively through appropriate change management measures.
5. Redesign career paths and remuneration systems.
The shifts in corporate culture also affect career planning and associated aspects such as remuneration or the awarding of status symbols. Many modern companies do not offer their staff the opportunity of a vertical career path - perhaps one that spans several decades. Instead, career paths are often horizontal:
- Employees move to a comparable position, but elsewhere.
- Or they take on - temporarily - responsibility for a project.
The challenge for HR here is that such career moves must have a financial effect. In many cases, the traditional financial value of positions based on hierarchical levels is no longer appropriate. Career paths and remuneration systems also need to be redesigned.
6. Adapt your employer branding and recruiting.
A positive error culture, flat hierarchies, horizontal career paths: a renewed corporate culture also opens up new opportunities in employer branding and recruiting. For example,
- employers can offer their employees the broadest possible professional development,
- unusual experiences such as stays abroad or
- more flexible personal life planning through career breaks
. Many employees see this as enriching their CV, but above all as expanding their personal horizons.
Conclusion: HR digitalization needs a clear vision
The digitalization of the HR function is a company-wide process that will affect many areas - in and especially outside the HR department. Therefore, my clear recommendation:
- Develop a digitalization strategy with the entire management and
- communicate this clearly and comprehensibly within the organization.
Without the support of management and a clear vision of the goals to be achieved with the project, such a project cannot be brought to a successful conclusion. All of the above aspects naturally require the HR function to have the relevant know-how and time capacities. If these are lacking, the relevant expertise or capacities can be flexibly and reliably supplemented with an interim manager. (You can read about how this can work, for example, in this project report.)
Are you planning a major digitalization project? Or do you want to complete an ongoing project quickly? I can support you as a consultant with strong conceptual skills - or as an interim manager who can strengthen your team operationally.
