The Different Stages of HR Transformation 

Human Resource Management may seem like a trivial part of an organisation. However, it is the most crucial attribute to succeed in any business. If an employer handles their workforce properly, productivity will eventually increase.

HR departments have loads of activities like hiring, onboarding, payroll, and managing the entire employee lifecycle. In a nutshell, HR professionals will be assisting the employee throughout their journey in the company. To glide through an ocean of tasks, HR professionals require technological assistance, and HR Digital Transformation has recently become mainstream in many industries.

HR Transformation – Overview 

Before analysing HR Transformation, it is essential to understand the difference between Digitization, digitalisation, and Digital Transformation.

Digitisation – Saying goodbye to paper-based tasks by embracing digital technologies.  

Digitalisation – Using tech tools to automate HR tasks.  

Digital Transformation – HR Transformation is the combination of digitisation, digitalisation, and automation. An organisation using HR Software is the perfect example, as leave management, time attendance tracking, and payroll management are all streamlined using digital tools.

Moreover, employees will find it easier to access all the information in one place. With a simple yet significant transformation, C-level executives or decision-makers in SMEs can pave the way to business success.

Most organisations have just entered the digitisation stage, but HR digital transformation is pivotal in every company. By default, the legacy of traditional HR activities continues to impact progress. Modernisation is a mandatory step that every organisation should be willing to take. Every business owner should know the different stages of a digital HR transformation.

Stage #1 Business as Usual

The “but-we’ve-always-done-it-this-way” stage

The common phrase is used in most organisations, but this mindset should be changed. Following the “decade-old-solutions” and playing deaf ears to “new ideas” may lead to high business risks.  

The first step is to understand or make people in upper management understand the importance of digital transformation. The next step is to evaluate the entire HR process and gain the assistance of experts to identify gaps in the existing system. When decision-makers understand this, a company can easily surpass the “Business as Usual” phase.  

Tracking employees’ working hours is one of the most important yet difficult tasks for HR professionals. Some workplaces have evolved from manual entries in books to Excel sheets, but digital transformation, in this case, is to have a technological tool for clock-in/out and automatically tracking the work hours of employees.  

Traditional HR Departments must spend several hours just analysing the operating hours. Calculating the salary based on early ins, lateness, and overtime is time-consuming. If the C-level executives in the organisations realise they can save time and effort and prevent risks, they will consider investing in good time attendance software.  

Stage #2 Present and active  

The “Let’s give it a try” stage  

When the upper management is ready to test drive the approach, identify an immediate business need. Explain how the HRMS software can help prevent the issue in the future. Also, envision how to utilise the HR management systems in the long run. Business expansion is one of the main attributes that should be done during the digital HR transformation.

Stage #3 Formalised

The “Getting Started” stage  

In this phase, the transformation will be finalised, and professionals should cautiously look for a Human Resource Management System to solve specific business problems in their company.  

For small and medium-sized businesses, the features required in the HR software will be less. Managing leaves, tracking time, and streamlining payroll is crucial. So, prefer HRMS for streamlining these tasks.  

Stage #4 Strategic  

The most challenging stages have been surpassed; now, it is time to concentrate on the “wants”. Go for a digital solution (HRMS) that remains a unique data source with high data security and validity. In this digital age, data confidentiality is way too important. Ensure that the workforce management solution assures data protection.  

Wrapping up 

Business owners must conduct thorough research before investing in HR Software in Singapore. You can consider as many options as you can. Whether a company is in the first or fourth stage, investing in the right workforce management software is crucial. DigiSME is the best HRMS for small businesses trying to enhance their enterprise with digital transformation. The features in our HRMS are specially designed to meet the requirements of small and medium-sized enterprises.