By Praveen Visal, 04 September 2019
In today’s world, technology and business are inextricably linked. In the recent years, HR is being driven to take on a larger and crucial role in helping organizations become digital. While a multitude of organizations has begun to embark on their digital HR transformation journey, HR leaders are exploring newer technologies and different platforms every day to reap maximum benefits from the transformation.
But are HR digital transformations smooth roads? When your organization is following a protocolled path and you bring in a change that disrupts normalcy, you are bound to expect humps and bumps midway.
Following are the major challenges that stop organizations move towards successful HR digital transformation journey
- User adoption & end-user training
Although organizations try to keep up with the pace of technological changes involved in digital transformation, some fall prey to digital Darwinism. Every organization exhibits a culture that it had developed since its inception. As a result of this culture, employees follow a prescribed way of operating and delivering. This limits them to be receptive to any technological change and hence leads to poor user adoption of any new technology that the organization brings in to use as a result of digital transformation.
Getting employees change habits just because there has been a new platform implementation is not an easy task! Organizations might also fail in their digital transformation journey if the end-user training strategies are not properly planned. End-user training unfortunately seems to be a time-consuming area where businesses tend to get cold feet.
Another instance where user adoption becomes a challenge is when legacy systems exist even after the new system’s implementation. As a part of migration, organizations may allow both the old and new platform to co-exist, resulting in confusion among employees
- Vendor management
Managing a separate implementation partner, an AMS provider and a service partner is one of the most challenging phases in an organization’s digital transformation journey and assumes mission-critical significance. Having multiple vendors can be difficult as in that case, the time, effort, resources of the organizations need to be spent in order to build relationships and manage them. It also involves multiple contracts, different invoices, and different sets of paperwork. Moreover, the total cost of ownership will be high in this case.
- Multiple sources of data
Extraction of data that will be used by the HR function is another major challenge in case of a digital transformation as they would be inevitably required for better analytics and decision making. Lacking a single source for data extraction might possibly lead to inaccuracy in data. Multiple data silos can result in repetitions and unnecessary confusions between disparate groups which need to collaborate. Different approaches to data storage will make cohesive blending a tedious task.
In case of multiple systems, each system throws data in different formats, and the organization might be forced to spend time and internal bandwidth to convert it into useful data.
- Cost optimization
Organizations require today’s HR leaders to not only satisfy the digital aspirations and the needs of the workforce but also transform the HR functions into efficient and strategic partners. Cost optimization initiatives form a critical component of an HR transformation journey. But, in most cases, they are lost out in the mess that follows. Hence, many organizations fail to keep their cost optimization on track during their HR transformation journeys and end up with exorbitant HR costs – significantly greater than their peers.
Is there a silver bullet?
To overcome these challenges and undergo a successful digital HR transformation, organizations can choose an ‘integrated HR technology and operations’ approach where both the technology implementation and the service delivery is carried out by one single strategic partner. Let’s dig deeper into this approach.
The integrated HR technology and operations approach offers bundled HR services with technology to fill the white spaces in an organization’s technology landscape. It typically involves three phases – Build, Execute and Support. Let’s see how an integrated transformation journey looks like.
What do organizations gain?
With such an approach towards digital transformation, organizations can gain:
- A fully managed, flexible cloud solution
- A single global system that brings together components under a single system
- Single-vendor experience, rather than fiddling with multiple vendors in different locations that often results in split-accountability
- A risk-free experience, since all responsibilities are taken up by the single vendor
- Focus on core business objectives rather than transactional activities
- A globalized and standardized transformation journey that is more seamless and rapid
- A truly holistic integrated solution
- Transformed user adoption and change management
- Better cost value proposition
Neeyamo, as a global BPO partner with SAP, follows the ‘integrated HR technology and operations’ approach and offers its bundled HR services on SAP SuccessFactors. To learn more on how organizations can benefit from this approach and how bundling SAP SuccessFactors with HR BPO services helps them operate at peak-level HR efficiency and simultaneously offer superior employee experience, watch the on-demand webinar ‘HRO Powered by SuccessFactors®: Accelerated HR transformation on tap at predictable & reduced cost’.
Join our next live webinar with speakers from SAP & Neeyamo, who will illustrate the benefits that organizations stand to gain, through a custom-made solution crafted for organization-specific requirements.