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Why Digital Transformation Is The Top Priority For Your HR In 2021

We all feel threatened by thinking about the ‘2020’ year. It was challenging for all of us to come out of it. Many businesses suffered from losses, and it created a pure transformation of our lives. To handle all tasks effectively with proper time management without considering whether you can reach or not the company’s place transformation to digital is the only key to unlock the growth path. 


Digital Transformation

Every firm is trying to upgrade itself as the technology is growing fastly and for remaining ahead in the market, they need to adopt the policies that give the same results. The HR people should also have to develop new ways to eliminate the lengthy process by adopting new strategies that reflect the digital platform’s usage. It helps in completing the operations at the earlier stage with appropriate accuracy and efficiency.  

What Is Digital Transformation?

Digital Transformation is all about merging digital technology usage in all the business domains that result in upgrading the quality of processes, which improves the customer’s services and leads to step ahead in the market. Rather than following an older version of the methodology, it’s time to change it digitally. 

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The concept simply means to go ‘paperless.’ Manual handling of processes is tedious and cannot bring productivity to the firm at the earlier stage. With automation, all this stuff will vanish and open a path for innovatively growing the firm.   

What Is Need For Digital Transformation In HR?

HR people have to manage different tasks and to get them done on time is very important. To run all the procedures related to the employees successfully for the firm’s betterment, they have to adopt different automated tools. As per Deloitte’s 2017 report, ‘It is about the HR professional that behaves like beam balance, carries HR functionality on one end, and transforms the labor force on the other.’  

It will result in upgrading many processes as mentioned below-

1- For Improving The Recruitment Process

Digital Transformation

Recruiting is a crucial task for HR people as it will ultimately affect the firm’s growth rate. To handle it effectively, they have to go through a list of candidates and search for the appropriate one. It is a time-consuming task and also decreases the level of accuracy. 

With ATS(Applicant Tracking System), recruiting and hiring goes on an online platform. The system collects the resumes’ database, and HR members can filter it according to their requirements by searching about the essential skills that needs for that post.   

Using different Software and Chatbots to overcome the difficulties faced by HR, like consider the onboarding process. Starting from recruiting the candidate to introducing them to the firm, giving a thought about the policies, and presenting different tools, all these spend a lot of HR department time. Thus AI-based technology has evolved with various solutions to reduce the burden and improve the depth of working. 

2- To Increase Productivity

An increment in productivity can result only from the actual availability of data as and when required. HR Analytics refers to a center for collecting data related to various processes carried out in the organization. It will help them to know which activities are running well and which ones need attention.

For effectively managing the employee’s salary calculation by taking care of all the aspects like leaves, taxes, the company must enhance itself with factoHR, the best payroll software in India that fulfills all these requirements with 100% accuracy.

A frequent occurrence of an event like employees has queries among the list of ever-asking questions that HR people knew. AI-based Chatbots are available to answer the repeated questions. It responds in natural language to the employees, saving the HR team’s time, and workers also feel satisfied by getting the answers on time. 

3- For Improving People Management

For the smooth flow of the working environment, it is necessary to manage all the employees effectively. The HR members are responsible for handling all the concerns related to employees. People management includes many factors like learning, compensating, and predicting attrition. 

Learning is at the top of the priority list for companies’ growth. There must be a continuous learning process carried out by the firm. To effectively run these, educating software helps a lot by keeping employees’ data, tracking their growth rate, and adopting different approaches to improve the learning process. 

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Compensation is the tool that improves the employee’s happiness and satisfaction factor. If there will be any mistakes in this process, it creates a wrong impression, and the company loses the trust of their employees. For preventing this kind of situation, proper software for performing the task without any error is in need.  

Which Technology Trend Is Requirement For HR Using Digital Transformation?

4- Artificial Intelligence

AI is the technology that is possible to use in every aspect of the business. For the HR domain, development in the process like recruiting is possible. With AI, it is possible to find the best CVs from the long list without spending much time. It can also arrange an interactive online interview to detect their facial expression and find the suitable one.  

AI helps automate many tasks and leads to growth using many tools.  All these tools will improve the working environment. Artificial intelligence has come as a blessing for business growth that results in developing practical and faster growth for employees with innovation.

5- Cloud-based Tools

         Cloud is the only storage capable of handling millions of data and sharing it without having the trouble of transferring at millions of kilometers away. With HR, the management of data is essential. They have to keep every information securely, and with recruiting new employees, it requires to update accordingly. Various tools are available that use the cloud for storage purpose, like the HCM tool. It is essential to handle the whole organization’s data precisely and use it for competitive advancement. It is possible only by transforming digitally. 

         6- Virtual Platform

Virtuality is all about developing an environment that improves human understanding with the availability of a three-dimensional view. It is used not only for entertaining the public but also for a better understanding of different aspects of the firm. To advance the onboarding process, HR can use such a platform to improve employee’s knowledge and show that the firm is trying to develop according to the up-gradation in technologies. 

7- Easiness In Remote Working 

         We all know about the 'Covid-19' situation. It has created a transformation of work from office premises to home. It was challenging to manage all the tasks without attending to the company’s site. It was a problematic situation for HR to collect the data of employees remotely. That year of life makes everyone feel like to have those technologies capable of handling all this stuff. The HR department is trying to adopt digital transformation to avoid such cases and also help in the future.


HR is the only domain that requires updates daily as they are responsible for handling the future key of the organization’s development, ‘the employees.’ By advancing the methodologies for better handling of workers result in building a long term relationship. 

Digital transformation is the only booster for developing new ideas and enhancing the working culture considering the above benefits and trends. Thus in the planning calendar of 2021, every HR professional will give the digital platform the foremost priority.  

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Author Bio: 

Sweta is an experienced content strategist at FactoHR, having a keen interest in communication and the latest trends that are useful to entrepreneurs. Her passion for learning aids team members to represent new ideas that later help businesses to achieve their mission and vision. 

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