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Digital transformation of HR

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By Carlos Pardo, CEO Iberia and Latin America Meta4

2016 has been a year of great challenges for HR management and digitization, unquestionably, has been one of them. The well-known international firm, Deloitte after conducting a large global survey concluded in their article Digital HR: Revolution, not evolution that: “This new world of digital HR is arriving fast, but, according to this year’s survey, only 38 percent of companies are even thinking about it and only 9 percent are fully ready. Nearly three-quarters of companies, or 72 percent, believe this is an important priority and 32 percent define it as very important (...).”

This is further substantiated by our recent report on the Evolution of HR Technology, developed by IDC, analysing over 340 surveys conducted in companies located in Spain and Latin America, shows that "despite the fact that most of the organizations claim to have a digitization strategy, in more than 51% of the cases, these strategies are not unified or aligned with business processes "(*) This trend for digital HR transformation will continue in 2017.

Digital HR Transformation

The digital revolution compels companies to transform their traditional vision of everything to do with human capital management into a long-term vision, allowing them to manage and control the talent of the future, which is necessary for completing the digital transition of their business.

New technologies are enabling the decentralization of talent management as an activity traditionally relegated to the HR field, giving it a major role in business activities. At the same time, technology is also fostering greater integration and flexibility in companies, involving employees more and giving them an opportunity to create their own work experiences. In this sense, new technologies are radically transforming how HR is organized in companies and redefining the future of their function.

In this new environment, talent management processes are no longer the sole responsibility of HR. Digital technologies are shifting information and decision making to employees. Likewise, they are turning talent acquisition and retention into critical and complex issues for organizations, as large crowds of new generations of professionals flock the market expecting a work environment that fosters innovation.

In this organizational transition to digital, companies need to be innovative and spur deep changes in their business processes, by using technology and integrating into this transformation process, every single person who is part of the organization itself. Within this HR digitization, it will also be necessary to consider how companies can tackle the changing nature of HR’s work by using applications and tools that facilitate communication and collaboration among employees.

Thus there is no doubt that the new technologies are transforming how HR is viewed as well as the way employees work, interact and communicate at their workplaces. Although we do not know what the future of HR will be, we can see that the role of digital will grow more than ever in every one of the human capital management processes. That’s why companies must begin their digital transformation right away. Only companies that are able to adapt digitization to their talent policies well will succeed in their business.

(*) Source: Evolution of HR Technology, developed by IDC in Latin America and Spain Companies. September 2016.

Editorial HR

Meta4, with 1,300 customers in 100 countries, manages more than 18 million people worldwide. The company’s R&D&I center located in Spain (Madrid) develops HR applications capable of meeting local and global needs of all types of organizations. The editorial team is made up of professionals with over 15 years of experience in the HR technology field.

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