7 Things Worth Digitizing in HR (and What's Not Worth Digitizing)

In human resources, just as in other areas of business, digitization has become a cornerstone for efficiency, accuracy, and strategic growth. As organizations strive to keep pace with technological advancements, it’s crucial to discern what aspects of HR should be digitized and what might still benefit from a personal touch (and when and how these two overlap). So, we’ve created this quick guide to help better inform your decisions when it comes to digitization and Human Resources.

What we think is worth digitizing:

1. Employee Records and Data Management: Digitizing employee records will greatly improve data management efficiency and time. Digital records are easier to update, search, and analyze compared to paper files. It also ensures sensitive information is stored securely, complying with data protection regulations.

2. Payroll and Benefits Administration: Automating payroll processes helps to eliminate errors and saves time, while also ensuring compliance with tax laws and labor regulations. Similarly, digitizing benefits administration allows employees to easily enroll, update, and manage their benefits, enhancing their overall experience.

3. Recruitment and Onboarding: From applicant tracking systems (ATS) to automated onboarding platforms, digitizing recruitment processes will streamline your hiring process. It helps in efficiently managing job postings, applications, and communications with candidates. Incorporating some aspects of digital onboarding also ensures new hires have access to all necessary information and training materials from day one.

4. Performance Management/Employee Performance Reviews: Digital performance management systems facilitate continuous feedback, goal setting, and performance reviews. These systems provide analytics and insights, helping managers make data-driven decisions about employee development and organizational growth. (Keep in mind that we think the feedback for these should be in person. No one wants complex feedback about their performance or job to be delivered via email or in a digital format).

5. Learning and Development: We recently discussed the importance of continuous learning for your employees, and E-learning platforms or online training modules allow employees to learn at their own pace, improving both engagement and retention. Digital systems can track progress and provide personalized learning paths, ensuring employees acquire the necessary skills and knowledge.

6. Employee Self-Service Portals: These digital platforms empower employees to access their information, such as pay stubs, leave balances, and personal details, reducing the administrative burden on HR. They also enable employees to request time off, update personal information, and engage with HR services effortlessly.

7. Documentation: Whether it’s notes from staff meetings, communications with clients, or important job-related details when an employee leaves their position, documentation processes should be digitized and accessible/searchable. The checks and balances will ensure seamless transitions from project to project, employee to employee.

So what might not be worth digitizing?

1.Personal Interactions and Counseling: While some aspects of HR can be automated, personal interactions should always remain human. Employee counseling, conflict resolution, and sensitive discussions surrounding career growth are best handled face-to-face to ensure a high level of empathy and understanding. A computer will never be able to replace that human connection, and employees need to know there is a person within the organization who truly cares for their well-being. 

2. Employee Engagement Activities: It’s no secret that team-building activities, social events, and cultural initiatives thrive on personal interaction. While digital tools can support planning and coordination, the essence and purpose of these activities lies in human connection and should not be fully digitized. [If you are a fully remote organization, look for ways to help your employees intentionally connect - zoom coffee chats or dinners out when traveling for conferences can all help to build team relationships.]

3. Certain Training Programs: Some training, especially those involving hands-on skills or complex interpersonal scenarios, are more effective in-person. Simulated environments or classroom settings will often provide a richer learning experience than digital platforms for employees.

4. Exit Interviews: Exit interviews are crucial for gaining honest feedback. Conducting them in person or via a personal video call will further generate openness and trust, providing more valuable insights than an online survey. (While exit interviews should not be digitized, the record of them, and what was discussed, should be).

Digitization in HR can drive efficiency, improve accuracy, and enhance overall employee experience. However, it's not all black and white, and is essential to create a balance and recognize that some aspects of HR are inherently human, and they benefit from personal interaction. By thoughtfully digitizing processes while maintaining a human touch where it matters, organizations can build a robust and effective Human Resources department that contributes positively to the overall success of the organization.

If you’re not sure where to begin, please reach out to us! At Powerhouse HR, we’re putting the human back in human resources, while making smart decisions on where digitization leads to a happier, more productive, more empowered workforce.