Everything #HR Needs to Know About Digital Transformation

(Editor’s Note: Today’s article is brought to you by our friends at Paycom , a leading provider of cloud-based human capital management software. They recently announced the release of Ask Here TM , a new tool that gives employees a direct line of communication to ask and get timely answers to work-related questions. Enjoy the article!)

Technology is a huge part of today’s business environment.
As such, it’s becoming a big part of human resources. And we’re not simply
talking about a new piece of software or hardware. Human resources
professionals have to think differently about the role technology plays in the
business as well as the human resources function.  

During the Society for Human Resource Management (SHRM)
annual conference, I had the pleasure to spend some time with Jennifer Kraszewski,
vice president of human resources at Paycom. We talked about how technology
is transforming human resources. It was a terrific conversation, so I asked
Jennifer if she would share her thoughts here on HR Bartender as well.
Thankfully, she said “yes”.

Jennifer, we read and
hear a lot about the term “digital transformation.” Can you briefly describe
what it means?

[Kraszewski] The digital transformation is about more than
just technology. It’s about how technology simplifies the way we do things, and
changes how we think about what’s possible. We’ve seen evidence of this in our
own lives. We use apps to easily complete what used to be time-consuming,
mundane tasks, like personal banking and grocery shopping.

Technology has so simplified the way we generally go about
our days, it has become the backbone of modern life that frees us to pursue more
meaningful goals, both personal and professional.

Why should human
resources departments focus on digital transformation?

[Kraszewski] When it comes to the workplace, this pace of transformation
is behind the rest of the organization. Nowhere is this truer than in the HR
department. Despite the flourish of human capital management (HCM) technology
vendors that have emerged, many HR departments remain mired in manual processes.
Why? Because technology alone is not the answer.

The key to utilizing technology in HR is being open and prepared for changing and simplifying processes that will have a positive impact on organizational culture. For example, by allowing employees to complete their own HR-related tasks with one easy-to-use app, HR is freed from antiquated processes and administrative tasks, so it can focus on high-level initiatives that drive the business forward.

You mentioned giving
employees the ability to complete their own HR-related tasks. Can you share
with readers an example of how employee self-service can digitally transform
the workplace?

[Kraszewski] Late last year, Ernst & Young did a study
that found the cost of data input for HR-related information is $4.39, per data
point. With Paycom’s Direct
Data Exchange, the industry’s first tool of its kind, our clients can pull
employee usage data showing how many entries employees have made for themselves
versus made by HR or their manager on their behalf.

Let’s say the company can see 11,000 data entries or changes made
by the employee, but 72,000 made by the employer that could have been made by
the employee, then there is significant return-on-investment (ROI) available
for the employer: nearly $320,000 simply by having the employee enter the data
or make the change.

Once employers and HR change their mindset to empower their
employees to enter information, self-service technology will truly digitally
transform HR functions within an organization.

What challenges do
you see for organizations considering a digital transformation?

[Kraszewski] Some HR departments remain concerned about
technology eliminating their jobs. We must be careful to not appear as if we
are ‘going around’ the HR person. If HR does not buy into the employee usage
strategy, real change will not occur, and the employees will not have control
over their own data. As a result, the organization will continue to have
antiquated HR processes that prevent them from having a more strategic HR
vision.

Most people who became HR practitioners did so because they
wanted to help people. It’s important the employee-focused message feels
inclusive to HR. Our approach should focus on how HCM technology actually allows
us to be more strategic in our roles. With technology and the digital
transformation, HR needs to rethink or reframe what it means to help their
employees. It becomes a paradigm shift: HR is able to help in more meaningful
ways.

Last question.
Digital transformation obviously has a people component. Are there activities
that organizations should consider to prepare their workforce for digital
transformation?

[Kraszewski] Without leadership’s buy-in, employees won’t be
empowered to use the technology. It should be a deciding factor now, since
there is a direct ROI that we can tie to it through technological advances like
our Direct Data Exchange.

What we need to focus on is the communication and training
piece, not only with the employee base, but within HR. We have to be able to
tell the story behind the ‘why’ and give HR talk
tracks around how they can help employees adopt the usage strategy. An
effective talk track communicates, ‘Without a doubt, we are here because we are
committed to the success of the digital transformation. It’s absolutely
critical this team supports data collection, a blended learning approach with
emphasis on a train-the-trainer philosophy, and 100% usage of the technology!’
and ‘As HR, our goal is to help you make the digital transformation in your
team and across our organization so everyone can benefit.’

My thanks to Jennifer for sharing her thoughts. If you want
to learn more about how HR departments can use tools like Paycom’s Direct Data
Exchange to empower employees, reduce organizational costs, and digitally
transform the workplace, check
out their website and their
blog.

We’ve said it before; technology isn’t going away or being reduced in the workplace. It’s time for organizations to embrace the strategic advantages that technology can bring, so people can do those things that technology cannot. Instead of thinking “either/or” when it comes to our relationship with technology, it’s time to think “both/and”.

Image captured by Sharlyn Lauby while exploring the Wynwood District in Miami, FL

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