Digitalization is revolutionizing the world of work, but this change is often progressing slowly, especially in HR. According to the Digitalization in HR 2023 study, the digitalization of HR processes is one of the biggest challenges in HR - right behind the shortage of skilled workers. HR digitalization offers enormous opportunities to increase efficiency and productivity, conserve valuable resources and give companies a decisive competitive advantage.
This article shows you why digitalization is essential in HR, which steps facilitate change and how innovative technologies such as artificial intelligence (AI) or automated applicant management systems (ABS) can increase efficiency. You will also learn how HR automation can free up valuable time for strategic tasks while meeting modern requirements for employee satisfaction and flexibility.
The difference between strategic HR work and operational HR tasks
A key reason for the relevance of HR Management 4.0 is that it relieves the burden of operational and administrative tasks. Many companies waste valuable resources because the majority of time in HR is spent on routine activities such as processing personnel files, managing documents or responding to employee inquiries. Although these tasks are necessary, they do not offer any direct added value for the strategic development of the company. Strategic HR work, such as developing concepts for employee retention, optimizing the employee experience or planning long-term measures to combat the shortage of skilled workers, often falls by the wayside. This is where HR digitalization comes in: It creates the basis to gain time through automation and digitalized processes and to focus more on future-oriented topics.
HR digitization in 5 steps
A structured approach is the key to successful digitalization in HR. These five steps are essential to ensure that change is managed efficiently.
1. automate processes to free up resources
In order to create capacity for digitalization, routine tasks should first be analysed and automated. Success can be achieved quickly, particularly with recurring tasks such as document management or processing inquiries. In this way, the HR team is relieved and can concentrate on strategic tasks.
2. involve experts from various fields
Successful projects thrive on interdisciplinary teams. The combination of HR experts, IT specialists and managers makes it possible to take all relevant perspectives into account. This team is responsible for steering the process and developing a clear vision for digitalization.
3. clearly formulate the HR objectives
The basis for digitalization is a well thought-out HR strategy. Both short and long-term goals are defined here. Which processes offer the greatest potential for optimization? Where are the greatest time and financial burdens? And how can digitalization increase employee satisfaction and efficiency? The answers to these questions guide the transformation.
4. start with a digitalization strategy
As soon as the HR strategy is in place, it is supplemented by a digitalization strategy. This determines which technologies and tools are to be introduced and in what order. Start with the processes that will quickly bring the greatest added value, such as self-service portals or automated workflows in recruiting.
5. to convince with a solid business case
For the project to be successful, the entire organization must be behind digitalization. A convincing business case clearly demonstrates the benefits of the transformation. Whether it's time savings, lower costs or increased employee satisfaction - concrete figures and comprehensible arguments create trust and acceptance.
How to digitize and automate your HR tasks
Recruiting and application process
From the creation of job advertisements to the management of incoming applications and the selection of suitable candidates - the recruiting process can be significantly accelerated by using automated applicant management systems (ABS) and AI-supported selection processes. Candidate experience and employee experience benefit equally, as processes become more transparent and faster.
Personnel administration and employee files
The digitization of personnel files and the introduction of self-service portals enable more efficient employee administration. Employees can retrieve or update documents independently, which reduces employee inquiries and relieves the burden on HR departments.
Personnel development and e-learning
Digital tools make it easier to create and provide individual training opportunities. E-learning platforms make it possible for employees to continue their education regardless of time and place, while HR teams can use data-based analyses to plan individual development measures.
Shift and deployment planning
The automation of shift and shift planning not only saves time, but also ensures better communication within the teams. Employees can use digital platforms to enter their availability and apply for shifts, while the system automatically calculates the optimal distribution.
Performance management and HR controlling
Modern tools support performance management by digitally recording and evaluating targets, performance and feedback. At the same time, HR controlling makes it possible to analyze important key figures such as fluctuation rates or employee satisfaction in order to make data-based decisions.
HR digitization for strategic HR work
HR Management 4.0 offers companies the opportunity to focus more on strategic tasks and at the same time make routine administrative processes more efficient. The use of innovative technologies such as artificial intelligence (AI) and automated systems not only reduces time and financial expenditure, but also improves employee satisfaction and strengthens employee loyalty. A frequently expressed concern that HR could lose humanity as a result of digitalization is unfounded. On the contrary, automation creates the freedom to focus more intensively on employee development and support. At the same time, the HR department is becoming more agile, location-independent and better prepared for the challenges of the modern working world. Through digitalization, HR can become the interface between technology and people by combining administrative efficiency with strategic foresight. Companies that tackle digital change at an early stage not only secure a competitive advantage, but also actively shape the future of human resources. Now is the right time to start digitization in HR and take advantage of the opportunities offered by a modern HR strategy.
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Frequently asked questions in relation to HR digitization
Why is HR digitization important?
HRdigitization is essential for automating routine processes, saving time and costs and creating more space for strategic tasks. It improves efficiency, increases employee satisfaction and helps companies to remain competitive.
ICB GmbH, for example, has digitized the HR department of HI Wohnbau GmbH. digitized the HR department of HI Wohnbau GmbH:
The implementation of the HR software Personio has significantly optimized the HR processes at HI Wohnbau GmbH. It now ensures greater efficiency, transparency and legal certainty in the HR department, which brings considerable benefits for both the company and its employees.
Which processes can be automated using HR Management 4.0?
Processes such as recruiting, employee administration, personnel development, shift planning and performance management can be efficiently digitalized. This reduces effort and creates valuable resources for other tasks.
Which technologies play a role in the digital transformation of HR processes?
Modern technologies such as artificial intelligence (AI), automated applicant management systems (ABS) and e-learning platforms are crucial. They support companies in making data-based decisions and improving the employee experience.
