- Digital transformation is vital for companies to remain competitive, according to 84% of global recruiting firms in a new study by Bullhorn, a cloud computing company. Artificial intelligence was cited as the form of digitization that 55% of the 2,185 recruitment professionals in the 2019 Global Recruitment Insights and Data research said will positively impact customer and candidate engagement.
- Although respondents saw digital transformation as an advantage, they also saw it as a challenge, with nearly half saying that making the transformation was their top operational hurdle, with cost coming in second and competition from gig platforms third.
- The study made a distinction between respondents' challenges and priorities for 2019. The top challenges cited were skills shortages and limited talent pools (73%), followed by rising wage increases due to an employee-driven market and the economy (38%) and higher turnover rates caused by low unemployment (27%). Respondents' named their priorities as sourcing and attracting candidates (61%) and improving the candidate experience (36%).
An overwhelming percentage of HR professionals agree that digital transformation is critical to their organization's competitiveness. In a report released by The Hackett Group in 2018, more than 90% of HR executives believed technology would significantly change how their companies operate, including the HR function, but less than half said they lack the resources needed to adopt the technology. Organizations must weigh the initial cost layout of digitization against the long-term benefits, including efficiency and cost-savings.
Funding is essential for a digital transformation; however, HR leaders can begin preparing employees for the change — even before it occurs — by creating a digital culture. Preparing employees' mindsets so that they're receptive to new skills, tools and possibilities can occur before resources are approved or become available.
The talent shortage clearly is the front-running challenge of the year for businesses, and why it must be a priority. A recent XpertHR study calls the acquisition of talent HR's top challenge for 2019. The talent shortage is so acute that respondents in a Gartner study identified its emerging as a top business risk. To meet the challenge, employers might need to redefine how work gets done, such as providing remote work options or hiring gig workers. Employers also might, among other things, need to train or upskill workers, as the respondents in the Bullhorn study suggested; step up their talent management efforts; and provide benefits that most people value.