COMPAREX

Digital Transformation And The Impact on
Human Resources

HR and Digital Transformation: Coming Out Stronger

Digital transformation is disruptive and, like any form of disruption, human resources plays a key role in how organizations succeed at it. At the same, digital technologies themselves are changing the fabric of human resources. Here is an overview on how HR and digital transformation influence each other.

“The number one opportunity from digital technologies to HR is around change management,” says Jason Mackay, General Manager, COMPAREX Canada. “But also in your ability to adapt and transform your people as a whole. The ability to find the right people to fuel growth, and to train people for it. Now is a transformative time in people’s careers and HR is part of a smooth transformation.”

We sat down with Martijn van Dort, Executive Director Global Human Resources for COMPAREX, to discuss how digital technologies have changed HR landscape, as well as his role in the company’s shift to a global managed services provider.

Q: HR plays a critical role in helping businesses anticipate and manage organizational change. How is technology aiding this?

In the more than 20 years I’ve been in HR, I’ve seen the transition. And I’ve seen how global organizations need for digitalization to work on a global scale.

I think digitalization will never take over from the human interaction in a company. Human resources is always about people and the human connection. It’s always different if you look someone in the eyes or see them on Skype.

From a digital aspect, it’s moving so fast. It’s very exciting to see what’s possible based on the IT development within HR. In the past, you could see the basic HR data in the system. More and more the core processes from hire-to-retire are being digitalized, connecting 36 COMAREX countries. We’re really a global company and we also have to look at how we’re going to organize ourselves digitally from an HR perspective. We have a lot of great local initiatives that take advantage of digital technology, for example, the use of social media for hiring in Brazil. But those initiatives are scattered.

My role is to look at HR globally, and digitalization is going to play a huge role in that. Everything is connected - systems, processes are connected - including the core HR data. But access to that data needs to be faster.

Availability of information needs to be on-demand and communication fast. This is the way our customers want information, but also our employees. Managers get a bit annoyed if they don’t have access to employee data globally.

Looking into the future, you want to have access to HR data, on a global scale, at all times, anywhere in the world. So that you could do your core processes from a mobile device - such as performance, management, compensation or benefits - using an app.

We’re not there yet. But we need to think about how we’re going to get there.

Q: What’s driving digitalization in HR? What are its benefits?

Let’s have a look at what’s happening in the world. The new generation is online. They make their purchases online, but also have immediate feedback. It is the same for employees. They want immediate feedback, they don’t want to have to wait for an annual review.

There are feedback mechanisms with which you are in constant dialogue with your employees. Are things alright, or no? Thumbs up, thumbs down, or emoticons.

Online surveys are a great way to keep up with employees across regions and generate a lot of data to work with. In recruitment, the era of ads is over. Social networking is changing the way we find good people within their networks. If you look at training, you can train globally much faster with technology. There’s less need for travel.

There are new benefits models that give employees customizable solutions where they choose what benefits they need online. You can offer employees more solutions, tailored to their situation, and you can link providers in.

Some processes are too bureaucratic, like creating letters for promotion or salary increase, and they should be digitalized as far as possible, so that managers and employees can spend their time on the right things. For an employee that could be time with the customer, or for the manager time talking to the employee.

More and more of the core HR processes should be digitalized.

Q: How will cloud technologies and big data affect your world?

If you don’t connect all the data you have within HR it becomes difficult to steer the organization. Big data provides key insights. The more you put in a system in terms of core data, the more you can take out of it. If you want to analyze costs of labour, compare different salaries, development costs, career progress, turnover or even behavior of our employees—the more data you have, the more impact you can have as an HR organization. Impact in helping managers drive their business forward and off course in attracting, developing and retaining our COMPAREX employees.

HR should prove its value to the business. HR technology investments can help facilitate business decisions by looking at data and analysis of the market. HR organizations really should be bringing data to the table to justify business decisions.

Q: As COMPAREX changes its global business, how do you see the role of HR evolving?

The move towards working global for example in managed services is a culture shift. It’s a change of the operating model, and a lot of change management needs to happen to support people in working globally. That must be supported by the way we work and by IT.

Systems, processes and procedures for HR, and employee mobility are all considerations in a global HR operation. Digital technologies enable that. I see how it’s building to a key position as a global managed services company. There’s work to do, but that’s the way it should go.

HR is integral to this, because people must be managed through any change. It’s a phase of disruption, right? So how do we as a company facilitate managed change across different regions, cultures and processes?

Q: How are IT and digital transformation supporting change management?

Digital transformation aids in change management, but everyone is at their own stage of understanding it. Some people are way ahead, some just cannot get rid of their notebook and pen.

In a global company, in one department you may have old fireproof cabinets of personnel files, and another might be fully digital. There’s also local regulation that can have an impact on how you deal with personal data. This is one of the biggest challenges for the cloud from a data perspective; security and privacy.

Digitalization can help with communicating change more quickly, and in helping to bring people on board. It brings people together on a global level.

But there’s also the human factor.The change curve is always present when something is disruptive, the trick is how you get people excited and come out of it even stronger.

Looking for more information about Digital Transformation?

In today's fast-paced world, digitally transforming your business is the key to success. COMPAREX is by your side throughout this process. Visit our Digital Transformation web page to get all facts:

Leipzig, 04/24/2018

Comments

Write a comment