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Digital HR: How Technology Improves All Aspects of Your Employee Relations

7 minute read

While scrolling through the agendas of upcoming HR conferences, the topic of digital HR clearly stands out.  

Given the countless benefits of the digital transformation of human resources for both companies and employees, this comes as no surprise. 

In this article, we will have a quick look at the different features of digital HR, and we'll try to answer the following questions:

  • What is digital HR transformation?
  • What are the benefits?
  • How do you start implementing digital HR?

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Digital transformation means more than automating processes.

Digital transformation is the transition to a business that has technology as its core. However, that goes way beyond ‘digitization’ - shifting from manual to digital processes. The essence of digital HR transformation is to create a culture of digitalization - an agile organization that is ready to change as technology keeps advancing.

Five benefits of digital HR

In 2015, Capgemini published a slide show titled Creating Value with Digital HR. Five years is an eternity in our age of turbulent technological progress, but the values still stand. Recent global developments and ever-advancing technology have made the transformation to a digital HR culture even more attractive and, yes, inevitable.

If you look up "benefits of digital HR", Google comes up with 252,000,000 results within half a second. We have summarized the five notable benefits to convince you of the message that digital HR is smart HR because it:

1. Improves employee experience

Your employees shop online, make reservations through apps, and socialize on their mobiles. They’ve come to expect digital options for everyday tasks and require their employer to provide them with similar user experience.

2. Helps HR professionals to be more productive

Automating time-consuming manual processes leaves spare time to focus on more productive and significant work. Digital HR allows HR professionals to streamline workflows and improve the quality of their work and their productivity.

3. Provides data for HR analytics

With digital transformation, HR becomes more data-driven. If you have easy access to all necessary data, your decisions will be better supported. Benchmarking key performance indicators, for example, helps HR professionals to set goals for improvement. As of now, HR officials are responsible for many tasks such as conducting employee surveys, monitoring performance and development, recognizing positive or negative trends. In a digital HR culture, completing these tasks is more efficient and fault-free, allowing employers to give HR professionals other considerable responsibilities.

4. Helps to attract the best talent

Applicant Tracking (ATS) systems allow companies to manage huge volumes of applications by using algorithms to look for certain applicants' CVs and answers.

But there’s more.

28% of Americans have used a smartphone as part of a job search, and half of these “smartphone job seekers” have used their smartphone to fill out a job application.” That is one of the statistics in Searching for Work in the Digital Era.

Digital HR offers a great variety of possibilities to reach and engage with the talents you find interesting. This includes discovering the most promising places to look in and even offering a virtual tour of the company.

5. Boosts employee engagement and performance

With an automated performance management system, you can easily keep track of individual accomplishments. The data enables you to monitor the goals you have set together. Digital HR helps to choose the best training programs for employees and keep track of their professional development. It can tell managers when there’s an opportunity for appraisal. In all things – big and small - that shape a company culture where employee well-being comes first, digital HR plays a vital role.

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5 digital HR practices to implement

More and more companies are adopting the latest HR technologies. If you are thinking about following their example, here are five suggestions to start your digital transformation journey.

1. Employee app

The mobile phone is your employees’ favorite device, so it should be yours as well. An employee communication app is the most effective tool for communicating with your workforce and using the data gathered through automation. It includes sending targeted messages, gathering feedback, praising individual performances, keeping track of your employees’ well-being, and measuring your communication impact. It's astonishing to think about how a mobile app delivers all this and in a way that people are used to and appreciate.

2. People analytics

Although your employees’ behavior is more a matter of individual conduct than a quantitative one, automated data gathering can still produce valuable insights. For example, tracking billing hours, travel data and other performance metrics enables instant feedback to improve areas requiring attention.

3. VR for training

With virtual reality, you can simulate real-life experience during training. And, as we all know, hands-on learning is the most effective way to perfect skills. VR is also a productive onboarding tool that helps new employees to become a full-fledged part of the team quickly.

4. Recruiting through social media

Eighty percent of employers say social recruiting helps them find passive candidates (people who are not actively looking for a new job), and 89% of the companies plan to recruit on social media. These are two stats you can find in Recruitment Statistics 2018. Using digital HR tools enables you to connect with a vast talent pool that would otherwise be out of reach.

5. Gamification

Playing games at work is not only relaxing but also productive. There are many ways you can use the dedication people reserve for playing games to improve engagement and performance. Think of things like a real-time leaderboard to create friendly competition between coworkers. And reward outstanding performances with attractive prizes.


Digital HR transformation is unavoidable if you want to keep up with the competition. And this applies to every company, from big tech giants to small and medium-sized businesses.

The goal of digital HR transformation is to create an organization that is ready to change as technology keeps advancing. A digital culture that embraces all the innovative new possibilities should be your ultimate aim. But the important thing is to start transforming and implement some of the technologies that best suit your business.

For more information on building more lasting and loyal relationships with your employees, check out this research study!

Rob is a content writer, copywriter and novelist. His work for Apple, WWF, Mercedes-Benz and many other brands has been awarded with prestigious creative awards.

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