HR supports digital transformation, but lacks the resources to make it happen
- HR leaders want to help their organizations undergo digital transformation, but lower budgets, HR staff decreases and gaps in other resources could keep the change from happening, according to a new report from The Hackett Group. Although more than 90% of HR executives believe that technology will fundamentally change their enterprises' operations — including HR functions — less than half feel they have the resources to make it happen.
- The Hackett Group’s 2018 Key Issues Study, "Enabling Enterprise Digital Transformation Takes Center Stage But Gaps in Critical Capabilities Persist," also found that HR isn't prepared to develop executives to lead in rapidly changing environments or help execute business strategies. However, HR leaders have made these shortfalls their focus for 2018, according to the report.
- Additionally, while mining, analyzing, modeling and forecasting human capital data are widely recognized as important capabilities for HR, the report shows that practitioners haven't adequately developed the tools, skills and technology/data infrastructure required to do so.
HR executives recognize the need to adapt to technology shifts, which begins with a digital culture. Employees' mindsets must be receptive to change, and they must have the skills and tools necessary for a successful digital transformation. And part of this shift can happen regardless of HR's available resources.
HR can have a hand in any type of culture shift, but may be in a particularly good position to create a digital culture. After all, HR functions have been among the first within organizations to become digitized. With firsthand knowledge in the advantages of technology, HR has the experience and insight needed to influence decisions among C-suite members and shape business strategies.
HR leaders might not have all the resources required for a digital transformation, but they can start helping employees make the necessary mindset shift now to prepare for the inevitable change.