Table of Contents

• Introduction 
• Challenges faced by companies during HR digitalization processes 

• Risk-averse company culture
• Insufficient funds to implement digital transformation 
• Lack of expert team leaders 
• Employee resistance to changes 
• Lack of synchronization between the organization and the IT company.
• Conclusion 

Introduction 

The buzz about digitalization gets louder daily. Many HR managers are beginning to see that complex business processes can be manageable only through technology. However, behind the glamour are challenges that a company may encounter in the process of digitalization. HR digital transformation processes are not always so straightforward, and successful transformation will occur only if companies can deal with the challenges accurately.

Overcoming HR digitalization challenges

1. Resistant business culture 

One of the greatest hindrances to organizational growth and development is resistance. Some business owners prefer to continue doing things traditionally, and may not want to adopt new technologies. However, if a company desires to have a successful transition into digitalization, then it has to revise its company culture. Digitalization of HR is not just about technology. It is a change in the way of thinking about many organizational processes. In a case where a company has a risk-averse culture that resists change, it is the duty of the HR team to dialogue with the company stakeholders. It is only when the company culture is upgraded, that it can be more flexible to adopt new digital solutions.

2. Insufficient budget 

The fact is that reforming HR systems from analog to digital is quite an expensive process, which requires substantial investments. Companies that do not appreciate technology may allocate insufficient for digitalization. Insufficient funds may eventually impede the process of digitalization. A viable solution to this challenge is to take the digital transformation process one at a time. The HR team should work with the project manager to determine how much money to allocate for each phase of the transformation. Asides from allocating money for products, enough funds should be spared for the training and onboarding processes for each stage.

3. Inefficient leadership team

The role of leadership is crucial to ensure the digitalization process is successful. Leaders help employees easily adopt new standards, make improvements, and develop their skills. Unfortunately, many employees leave their jobs because of poor relationships with their leaders. It takes a combination of an excellent management system and technology to go through your digital transformation. One without the other will not pull through. Selecting leaders to anchor digitalization initiatives should not be based on sentiments. If your organization does not have the expertise to handle the virtualization process at the money, you may find business partners or new hires that will help you on your digital journey.

4. Employee pushback 

Humans like routines. When we feel comfortable doing something, we prefer to continue doing it the same way. This love for comfort zone is a workplace challenge. Experiencing digitalization is the epitome of discomfort. It makes employees feel threatened, as they’ll be required to move out of their comfort zone into unfamiliar territories. Hence, it is not uncommon for employees to push back. In this situation, awareness and transparency are the solutions. Keep employees engaged through the whole digitalization process, allow them to air their opinions, and encourage them. In addition, the HR team should ensure that the digitalization process is implemented in a way that improves the employee experience, and considers employee satisfaction as the key to business performance. 

5. Inadequate collaboration between IT companies and organizations 

The challenges faced during the digitalization process are not only internal. In many instances, the hindrance could be a result of a lack of synchronization between your organization and the company contracted to handle the digitalization process. Collaboration problems may include failure to meet up with deadlines, lack of proper communication, and development of terrible digital products that are in line with the company’s goals and objectives. The key to choosing the right IT company for your business is taking research. Partner with a company that does not only have the right expertise. Look out for a company that has an excellent reputation, understands your business goal, and is ready to walk every step with you toward ensuring that your HR digitalization dream becomes a beautiful reality. 

Conclusion 

Digitalization has enabled profound changes in the operations of organizations. But in every company, the development of the human resource department is fundamental to the overall business success. Digitalization is a unique opportunity for the HR department to reinvent itself, to drive a higher level of productivity and a lesser degree of employee churn. Choosing the right company to implement your digitalization goals is paramount. With a partner like TotalIt Development, your business will be able to overcome these challenges and have a seamless HR transition.