How HR Can Lead and Succeed in Digital Transformation

The digital transformation in HR is a decades-old topic at this point. Every time a new platform or application debuts on the market, it's accompanied by ever-more bombastic claims that this is the solution you've been searching for. But the reality is a lot more complicated.

As generative AI and intelligent automation sweep through every industry, your HR team must step back and reexamine the foundation the company has built before adding new technology into the mix. The foundational building blocks are strategy, culture, and governance, not technology platforms.

The Elephant in the Room

Once you have a solid grasp of the foundation, you can address how you expect AI to fit into the workflow. Whether you dip your toes in or dive head-first, Al will shake up the industry (if not this year, then soon). In organizations where HR leads digital transformation in 2024, you may find a Chief Artificial Intelligence Officer slotted into the department.

Al for HR is more than a few capabilities built into an Applicant Tracking System or Information System. AI is already embedding itself into HR software to make systems more intuitive to the needs of the organization and its employees. Chats, emails, workflow, and new variants of Al will boot up and swim alongside your current systems.

As you evaluate 2024, look at Al in context with the underlying values of your organization's digital transformation.

Strategy

Creating a unified strategy in a company is far from straightforward. A CEO may want to hire a hundred more people, whereas the CFO might want to let twenty go. Digital transformations fall apart when everyone is on a different page because there's no way to move forward when the business doesn't have unified goals.

At Pixentia, we always come back to talent. The HR team may not dictate the overall budget or the individual compensation packages, but they can steer leaders into smarter talent decisions. Al helps you compile the data and extract the insights needed to back up your points, but the need for critical thinking is more significant than ever before. Only when you've established a sound strategy with clear goals can you win in the HR digital transformation of 2024.

Culture

The pandemic has shifted our understanding of culture, and not everyone has thrived in this new world order. Despite all the ways to get in touch with one another, siloed departments are still common (even accepted to a certain extent). What's more, everyone has their own relationship with the digital world. People are understandably nervous about learning new tools or being replaced with Al.

Much like strategy, HR needs first to define the culture as it is and what changes (if any) they'd like to see. As you consider your culture, keep the following questions in mind:

• Does the leader's instinct make significant decisions, or are they data-driven?
• Are people applying to the company to make ends meet, or are they genuinely excited about the work?
• Do people embrace technology or remain skeptical of the risks?

Cultures may seem to form on their own, but they're the product of countless decisions made by everyone in the company. Ideally, digital transformation will be a pathway to collaborative workflows, where decisions are as driven by experience and expertise as they are by the data that supports them.

 Our second recommendation is to hire as much for cultural fit as for skills. This is a tricky business for any decision­maker. All HR teams know how much money and time they waste when managers hire the wrong candidate. And, as you may already know, Al has fallen short in its skill-matching abilities (though we expect this to change in the future). The best thing any HR professional can do is assess candidates' behavior and attitudes, working out how and where they fit in.

Governance

Governance is essential to any company's digital transformation. Data management across tech systems is integral to the company's compliance record as privacy concerns increase. While plenty of platforms meet the various regulations, we expect AI to step in and unify data management.

Analytics are more robust when you feed them scrubbed and cataloged data. It's easier to see where the gaps are and how you can close them. You can use information systems, talent management platforms, and people analytics to fuel the greater Al fire, so there are fewer hiccups with an internal or external audit. You can update and refine policies as laws change, with no need to implode the existing system.

Whether the HR team is dealing mainly with GDPR, FLSA, HIPAA, or impending AI regulations, staying ahead of change is the best way to shield yourself from the fallout of a leak or breach. This is also a time to focus on the ethics during the digital transformation. Each tool should support the organization's approach to data security and policy transparency.

Why HR Must Lead Digital Transformation­­­­­­

HR is at the heart of the company, and digital transformation is one of its top ten priorities. HR is also a significant force in culture formation, how employees relate to one another, and where the company goes in the future. When HR leads the digital transformation, they set the stage for everyone else.

If you want to expand your horizons, consult a technology partner who can help you do more than sort through the endless list of technologies available.

Pixentia is a full-service tech company that can help you harness the tools available today to succeed in tomorrow's markets.

PhenomeCloud is a comprehensive technology solutions provider committed to empowering businesses to overcome challenges, enhance their workforce capabilities, and achieve superior outcomes.