Transformation | Companies are embracing digital HR tools, but are employees on board?

Companies are embracing digital HR tools, but are employees on board?

In our digital era, technology has reshaped every facet of our lives, including the realm of human resources. The ascent of digital HR tools has revolutionised businesses, offering efficiency, cost-effectiveness, and data-driven decision-making. Yet, the challenge emerges as employees grapple with the pace of these advancements. Moreover, companies must comprehend the optimal ways to reap benefits from these tools.

We’re in the digital age, where technology has transformed various aspects of our lives. The world of human resources is no exception.

Digital HR tools have gained significant momentum, offering countless benefits to companies in terms of efficiency, cost-effectiveness, and data-driven decision-making. However, there are growing concerns as employees struggle to keep up with these new tools. On top of that, companies may fail to understand how they can benefit from them properly.

Whether you're in the process of selecting your next software solution or you're new to the world of HR systems, this article will guide you through making the process seamless.

The digital transformation in HR

The advent of digitalisation and the unprecedented challenges posed by the COVID-19 pandemic have accelerated digital transformation in HR. Companies are beginning to recognise the need to embrace digital solutions to streamline processes, enhance productivity, and adapt to remote working environments.

According to a survey conducted by software company SD Worx, a record-breaking 68% of British companies are investing in digital HR solutions. This statistic highlights the significant shift towards digitalisation in the HR domain and its many benefits.

Benefits of digital HR tools

Digital HR tools offer a plethora of advantages to companies. Firstly, these tools increase efficiency by automating administrative tasks, enabling HR professionals to focus on strategic initiatives.
Secondly, they provide cost-effectiveness by reducing manual paperwork, streamlining processes, and optimising resource allocation. Additionally, digital HR tools enable data-driven decisions, offering insights into employee performance, engagement, and workforce planning.

With these benefits, companies can leverage technology to enhance their HR functions and drive organisational success. It’s a no-brainer.

Employee adoption and understanding

Despite the benefits, there is a noticeable gap in employee adoption and understanding of digital HR tools. SD Worx revealed that 37% of employees face difficulty understanding and utilising these tools effectively.

This can be attributed to various factors such as lack of training, resistance to change, or simply a lack of awareness. It is crucial for employers to address this gap and provide the necessary education and support.

Bridging the gap

Bridging the gap between the implementation of HR technology and employee understanding is a critical component in the successful digital transformation of HR. Ensuring that employees not only comprehend but also embrace new HR technologies can drive effectiveness, productivity, and overall satisfaction.

Below are some key strategies for companies to effectively introduce and communicate the benefits of HR tech to their workforce:

Transparency in Implementation

Being open and clear about why the new technology is being implemented and what it means for the employees is vital. Transparency fosters trust and helps employees understand the importance of the change.

Open Communication Channels

Establishing continuous lines of communication between management and employees ensures that everyone stays informed and feels included in the process. Regular updates, Q&A sessions, and forums for expressing concerns or suggestions can enhance employee buy-in.

Highlighting Benefits

Clearly articulating and demonstrating the benefits of the new HR technology to the employees helps in alleviating resistance and apprehension. Workshops, live demonstrations, and interactive tutorials can make it easier for employees to see the tangible advantages.

Successful Employee-Centric Initiatives

Many companies that prioritise their workforce's needs have successfully implemented HR tech initiatives. For example, a multinational corporation implemented a personalised onboarding process through HR tech that allows new hires to tailor their orientation experience. This led to higher employee satisfaction and faster integration into the company culture.

Overcoming challenges

Integrating digital HR tools often presents challenges, especially in terms of resistance and adaptation within the organisation. Successful integration requires a blend of robust leadership, strategic planning, and active engagement with employees.

By recognising and directly addressing resistance, and by encouraging and supporting adoption through a well-planned strategy, organisations can smooth the transition to digital HR solutions.

Choosing the right HR software

Finding the right HR software has the potential to transform your HR department and business. It empowers HR managers to automate tasks, fosters seamless communication with team members, and gains valuable insights into employee satisfaction. However, the process of finding the right HR software can be challenging.

At Phase 3, we take away the overwhelming nature of HR and outline the steps you need to take in order to identify the most suitable HR software for your business.

Take a look at our 4 steps to choosing the right HR software: a buyer’s guide to help guide you in the right direction.

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Explore professional services, including data migration support and consultancy to unlock the full potential of your HR technology investments.

To learn more about how Phase 3 can help your organisation bridge the gap between digital HR tools and employee understanding, contact a member of our team.

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Phase 3 are leading providers of People Technology professional and managed services with over 18 years' experience of working with HR, Payroll and Finance solutions. We are independent specialists who ensure that your HR technology and people processes are perfectly aligned.