“The new HR experience will completely transform the Learning & Development experience, recruitment process, information sharing protocols with digital experience. The new HR experience enriched with digitization will make the HRIS work well for employees.” – MiHCM.
Digitization is no longer a buzzword in HR circles, it is the key to improving processes and adding value to the employee experience and business outcomes. The digitization of HR is vital for companies looking to enhance departmental efficiency and company morale. Thus, Integrating digital tools and automation allows companies to streamline workflows, reduce human error, and create a more engaging work experience for employees. This article explores the transformative impact of HR digitization and looks at example case studies of leading retailers that have successfully implemented it. Discover how leveraging technology is transforming human resource management and the modern workplace.
What is HR Digitization?
HR digitization is the modernization of traditional HR processes using new technologies. Digitization involves integrating digital tools and automated systems to improve staff management.
For example, a digitized HR department could automate processes using cloud storage, scheduling software (ie: TimeWellScheduled) and software as a service (SaaS).
What is the Goal of HR Digitization?
A key aim of HR digitization is to reduce or eliminate manual processes. Manual processes are often slow, cumbersome, and error-prone because users must input data multiple times.
Automation can relieve employees of many mundane processes and data entry tasks.
Why is HR digital transformation a significant trend?
Digital HR transformation is changing the way businesses manage people and operations. Its key advantages include:
- Streamlining HR efficiency
- Improve information security
- Improving the employee experience
- Increasing the use and scope of data-driven decision-making
Tools like AI and data analytics are reshaping recruitment and talent management, ensuring compliance, and guiding strategic implementation.
“Studies show that digitalisation practices such as video interviewing improves hiring accuracy by as much as 86% due to the usage of automation in determining the candidate’s specialization, technical skills, years of experience.” – Mangipudi Mruthyanjaya Rao, Symbiosis International University.
What are The Benefits of HR Digitization?
Digitization introduces several significant benefits impacting many aspects of a business’s operations, customer and employee interactions:
Increased HR Effectiveness
HR automation and digital tools streamline human resources processes, reducing manual efforts and operational costs while improving overall efficiency.
Improved Customer Experience
Implementing digital solutions enables personalized interactions, seamless transactions, and quicker responses, enhancing customer satisfaction.
Increased Agility
Digital technologies facilitate faster adaptation to market changes, enabling businesses to remain competitive and agile in evolving landscapes.
Better Decision-Making
Access to comprehensive data and analytics empowers informed decision-making, leading to more strategic and impactful business choices.
Opportunities to Innovate
Digital transformation is creating an environment conducive to innovation, enabling the development of new products/services and market offerings.
Seamless Collaboration
Digital tools facilitate seamless collaboration among teams and stakeholders, regardless of geographical barriers, ensuring better teamwork and productivity.
Improved Data Security
Modern digitization incorporates robust security protocols to safeguard data, protecting businesses from cyber threats and breaches.
“An Oxford University Study found that HR administrative jobs had a 90% chance of being automated by 2035, but HR managers, directors and officers were far less likely to be replaced by robots in the next 20 years” – Michael Osborne and Carl Frey, Oxford University.
5 Retail Companies that Have Implemented HR Digitization
1. Walmart
Walmart has implemented several digital HR strategies, including virtual reality (VR), for training personal shopping assistants. Further, the company has automated many transactional HR tasks and transformed traditional roles, such as cashiers, into more customer-focused personal shopping roles.
“Learning is always better through practical, real-life experiences or via practice. With the emergence of virtual reality (VR), companies can simulate real-life examples during training.” – Kiren Velu Pillai, Health Metrics.
Impact: The introduction of VR for training has allowed Walmart to simulate real-life scenarios for trainees, which enhances learning and prepares employees better for on-the-floor challenges. Automation of transactional roles has increased efficiency and allowed employees to engage in more meaningful work, enhancing job satisfaction and customer service.
2. Target
Target has embraced digital tools for recruiting and employee onboarding, including the use of mobile applications that streamline the application and hiring process. They also use digital platforms for employee training and development.
Impact: Target’s digital HR processes have improved the efficiency of hiring and onboarding new employees, reducing time-to-hire and improving the new hire experience. Their digital training tools have allowed for more personalized learning experiences and better tracking of employee progress, leading to more effective training outcomes.
3. Best Buy
Best Buy has implemented a comprehensive learning management system (LMS) for employee training and development. The company also utilizes digital tools for performance management and employee feedback.
Impact: The LMS allows Best Buy to offer tailored training programs to employees, enhancing skill development and career growth. Digital performance management has led to more timely and relevant feedback, helping employees improve their performance more effectively. This strategic approach to HR has contributed to higher employee engagement and retention rates.
4. Coca-Cola
Coca-Cola has deployed a mobile HR application that enables employees to access a wide range of HR services, including benefits information, training resources, and performance management tools.
Impact: The mobile app has significantly increased employee engagement and satisfaction by providing real-time access to essential HR services. It has also enhanced HR operational efficiency, allowing for better data management and quicker resolution of employee inquiries.
The app provides managers with real-time data on employee performance, which can be used to make informed decisions about development strategies and interventions.
5. Canadian Tire
Many Canadian Tire stores have implemented TimeWellScheduled’s cloud-based scheduling software to address several HR challenges, including scheduling, labor cost management, and payroll processing.
“This is a great tool for budgeting and managing labor costs” – Mike Denomme, General Manager, Canadian Tire, Saint John’s NB, Canada.
Impact: The adoption of TimeWellScheduled has led to significant improvements across various HR functions at Canadian Tire:
- Scheduling Efficiency: Employee scheduling is now 80% faster, with the ability to quickly adjust schedules, communicate changes, and manage shift swaps through an online portal and mobile app.
- Labor Cost Management: The software provides tools for controlling wage costs and budgeting more effectively. It allows for real-time tracking and adjustments, helping managers adhere to budget constraints and reduce unnecessary labor expenses.
- Communication: The digital system enhances communication between managers and employees regarding schedules, shift changes, and time off requests, ensuring that all staff are well-informed and that shifts are covered efficiently.
- Employee Satisfaction: Employees benefit from the ease of clocking in and out using the mobile app, checking schedules, and requesting time off remotely, contributing to increased job satisfaction and operational harmony.
“There is a reluctance to modernize. That’s natural as changing is hard, but there’s no alternative. Traditional HR methods are failing. Until recently, nine out of 10 organizations used annual employee surveys to monitor opinions.”- Brian Kropp, Group VP, Gartner Research & Advisory.
Final Comments
Embracing HR digitization is not just a trend but necessary for companies looking to modernize operations and people management capabilities. Companies that choose to leverage technology, can streamline HR and other processes, reduce human error, and create a more engaging work environment. As retail businesses like Walmart, Target, Coca-Cola, and Canadian Tire demonstrate, implementing digital tools leads to measurable improvements in process efficiency, employee morale, and business performance.
Thank you for reading our article!
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