Awakening the digital HR giant
July 25, 2019
In brief
In brief
- Digital technologies are having a dramatic effect on the workforce and workplace.
- Cloud capabilities offer flexibility but also introduce security risks.
- HR systems need to be tailored and ready for the workforce of the future.
- Five steps can help HR professionals reinvent their function.
Designing for digital
Digital technologies are transforming entire businesses, not just IT departments. And while HR leads can take advantage of the low cost and flexibility of cloud capabilities, there are also risks, such as the security of data and employee sensitivities.
Managing shifting practices means HR leaders must take another look at their digital strategies. HR systems need rich functionality that is not only tailored to the individual needs of the organization but also future proof. Five steps can help HR professionals reinvent their function and fully prepare to manage the workforce of the future.
Avoiding obsolescence
Changes to existing systems must be carefully considered and skillfully executed—some system capabilities and software extensions are more critical than others. Digital technologies bring new value, such as:
Innovative ways to deliver HR services easier and faster using mobile devices, social media or familiar consumer technologies can open up “anytime-anywhere” services.
Embedding talent management in the business by going beyond traditional self-service to involve the workforce in recruitment, onboarding, performance review, learning and career development procedures.
Customizing talent practices and communications using technology for a more marketing-oriented approach to specific groups or individuals.
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The new HR
A less centralized, nimble and more business-integrated role is key to the new HR. Earlier research undertaken with SAP SuccessFactors shows that organizations which made more extensive use of human capital management solutions realized significant benefits.
15.2%
Decrease in attrition
13.7%
Increase in internal job fill rate
5.4%
Increase in productivity
Powerful extensions
SAP Cloud Platform offers users the flexibility and control needed for application customization. Using application extensions, HR professionals are freed up to spend time on the strategic aspects of their role—while reducing time and effort.
40%
Data load time saving from conversion and migration extension
$100K
Cost saving from data validation and monitoring extension
$80K
Penalty payments saving from test data and optimization extension
Reinventing HR
Digital technologies are not being fully exploited by HR leaders. While workflows have been improved through interconnected systems and the automation of paper-based processes, for many HR departments the digital giant is still slumbering.
The time is ripe to be fully awake. Organizations must employ an effective digital strategy to lower operating costs and help to streamline and enrich human resources business processes. Cloud is a natural choice and, with the right extensions, HR leaders can gain the flexibility and agility they need to serve their role’s future demands.
Five steps to digital success
So how can HR leaders get started? Here are five ways digital technologies can reinvent HR organizations today:
1. Move to an integrated, consolidated HR platform
A central HR platform can provide the unified, consistent data needed to gain a single view of the workforce, automate extended processes, and work seamlessly across employee-interaction channels.
2. Migrate to the cloud for agility and innovation
HR organizations that are embracing Cloud/SaaS solutions have realized that many typical HR transactions are in fact “commodity” and can be consistent across the enterprise.
3. Use analytics for deeper insight
Analytics can be used to measure the effectiveness of HR and the impact it has on the business, as well as develop insights that can strengthen HR processes
4. Use social media to get close to employees
This familiar and effective channel for engaging employees helps HR executives to improve collaboration and speed up HR processes.
5. Make HR mobile
Mobile technology is critical to reaching a constantly moving, dynamic workforce—and to extending HR processes out to the business.
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