HR Digital Transformation: Which Software for HR is the Best?

If you don’t already have software for HR, chances are your HR department will need software for HR very soon. The HR digital transformation is here and moving fast. If you don’t keep up, you risk being left in the dust.

Why is Software for HR Important?

In a 2018 Gartner report, two-thirds of business leaders said that their businesses would have to digitalize in order to stay competitive. 2020 has only sped up the digital transformation process as businesses set up hundreds of thousands of employees in home offices. In March, employees learned that VPNs, chat software and video calls were all a part of the “new normal.”

Has your HR department been keeping up with the changing times? In this post, we’ll cover everything you need to know about harnessing technology and bringing your organization up to speed.

Up-level Your HR: Start by Automating Your Processes


What is Digital Transformation in HR?

Digital transformation is the integration of technology into all facets of a business. It isn’t simply automation or digitalization. Instead, digital transformation is an overall shift in workforce approach, resulting from the use of automation or digitalization.

Organizations undergoing a digital transformation use technology to source, leverage, retain and upskill a diverse workforce. These businesses are comfortable with experimentation and are ready to use technology in order to quickly identify and solve problems.

Transformation starts with HRa powerhouse of data. Many businesses are not currently using their HR departments to their full potential. However, in the digital transformation, HR will be a data-driven powerhouse of information and strategizing hub.

Digital transformation for HR is already beginning. With HRMS software to simplify hiring, streamline onboarding, and track everything from hours to sick days to vacation, HR is better-equipped than ever before. That means HR is able to make more informed decisions that keep the organization on track to meet its goals. Furthermore, software for HR analytics can give leadership a glimpse into the day-to-day happenings at the organization. It provides, more importantly, unforeseen opportunities to improve and evolve.

As more and more businesses adopt software for HR, those that haven’t yet find themselves at an important inflection point: it’s now or never.

The Relationship Between HR and Digital Transformation

HR isn’t just responsible for its own digital transformation. It also needs to support the implementation of technology across the enterprise.

When businesses implement new technologies without the right introduction, employees may be skeptical or reluctant to put them to use. HR must create a culture that is technology-literate and receptive to digitalization. How to create a digital culture? By using top-tier technological tools, automated systems that are faster and more dynamic, HR can embed technology in the daily work of employees.

More than automating services, HR must create an integrated experience of digitalization. That entails a major shift as HR changes from the administrator of transactional processes to becoming a digital curator and strategizer.

Software for HRM is fundamental to this effort. These tools not only simplify management with self-service onboarding, streamlined performance management, and simplified expense reporting. They are also deeply important to the employee experience. Software for HR facilitates an atmosphere of transparency, trust, and regular communication. Moreover, data gained from these interactions can help HR to seamlessly improve workforce management. They can implement training programs as necessary, and help upskill and prepare employees for new roles.

hr trends

The Future of Digital HR Practices and Software for HR

Digital HR practices are quickly shifting with the implementation of software for HR. As employees expect more from their employers —and their HR departments— technology steps in to help fill the gap.

  • Streamlined Recruitment and Onboarding

In order to attract top talent, HR teams need to present the right company culture and branding. Employees want to work for an organization that has cutting-edge technology with streamlined, transparent interactions. Software for HRIS smooths the hiring process with an applicant tracking system that follows candidates from applicants to new hires. Tracking with technology means no information gets lost in the fray. Software for HR can also help organizations create beautiful career pages and source more diverse candidates. Potential hires will be attracted to the cool professionalism and once they’ve made the cut, their transition will be smoothed by HR onboarding software.

  • Optimized Performance Management

Annual performance reviews are so last year. Providing a mountain of information once in a blue moon isn’t the best recipe for employee confidence or success. Digital transformation means that employees can receive feedback year-round using performance management software. With customizable performance reviews, management feedback, and self-assessment tools, software for HR will make sure that employees have all the information they need to step up their game. They can make regular, small adjustments as they go along and stay on an upward trend.

  • Insight through Workforce Analytics

In order to make strategic decisions, management needs information and lots of it. HR software makes it easy to take advantage of all the data your organization creates every day. With custom HR reports and analytics, managers can generate reports on hours worked, expenses reported, or holidays taken. More importantly, they can explore relationships between different metrics to see how one aspect of the business is affecting the others. Digital transformation means harvesting this information and your workforce analytics to make smart decisions for the future of the organization.

Choosing the Right Software for HR Professionals

Digital transformation is inevitable. The only question left is: Is your business equipped with the right software for HR? There are different types of HR software that may interest you.

The first step to finding the perfect software is to identify a clear strategy or goal. Where are your current HR practices falling short? To find this out, you may need to investigate pain points with employees. Are they miffed about the lack of transparency? Delays when it comes to expenses reimbursements? Struggling to adjust to the changing work environment?

Easy! If employees need more transparency, make sure to invest in software that has an employee portal. That way, employees can check up on their information at any time. They can also track the progress of time-off requests or expense reports. This not only eases their peace-of-mind but can also help to cut down on redundant follow-up emails.

If expense reports are lagging, employees are bound to be upset. Simplify your expense management system with software for HR! Employees can submit digital receipts and reimbursement requests which managers can approve on their own time. No more delays! This will be especially important in HR software for nonprofits and other sectors where every expense counts.

And, if your employees need more support in the form of training or upskilling, look into software with self-service onboarding and automated workflows. That way employees can guide their own training and learn at their own pace. In short: no matter what your organization needs, there’s software that’s right for you.

Role of HR in Digital Transformation Across a Business

HR has an important role to play in the digital transformation of your organization. They need the right equipment in order to support the entire business as it grows and evolves. Make sure that your HR team has the right software for HR in order to succeed.

Step up your company’s digital transformation with the help of Factorial HR – Try it for free.

Written by: Valerie Slaughter

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