By Bożena Roczniak, founder & CEO OstendiHR

ostendi_hr_pole

 

Over the past decade, the role of HR departments and the way they work has been changed. This change has gained a very fast pace especially in the last four years. One of the factors accelerating the digitalisation of HR was the pandemic, which forced us to move many tasks to online, but at this point it is also worth mentioning the announcement of AI and ChatGPT.

Today, we are not only witnessing the transformation of HR, but also, in many cases, direct recipients of the digitalisation processes taking place in this area. How will the digitalisation of HR processes translate into the functioning of employees in the organisation? What obstacles may we encounter when implementing technology into the company? And what benefits do modern solutions bring? We’ll explore these topics in today’s article.

Obstacles to digitalising HR

Implementing new technologies in HR translates into speeding up many processes, saving employees’ time. By freeing up time previously spent on repetitive tasks, HR representatives can focus on strategic activities and be closer to employees. The benefits seem obvious – but why do many organisations still show resistance to adopting new technologies?

Lack of understanding on the part of managers

One of the major challenges to improving HR processes is the ongoing lack of awareness of the strategic role that HR departments play in organisations. In many companies, the HR function is still seen as administrative, even though the legal responsibilities of these departments are much broader. From a business-strategic perspective, HR manages the largest budget in the organisation (employee salaries), and its personnel policies often play a crucial role in maintaining business continuity and driving company growth.

Unfortunately, in the case of many boards of directors, HR is seen purely as a cost, leading to the belief that investing in its digitalisation is an unnecessary and redundant expense. The challenge of implementing technology becomes even harder when HR employees themselves view their role as merely administrative (rather than strategic). So, how can we convince management to adopt the latest HR solutions?

One of the first steps worth taking is mapping out the key HR processes within the organisation and identifying repetitive tasks that consume time. It’s useful to calculate the specific savings that will result from the implementation of technology. Numerical data can be what shifts management’s perception of new technologies.

Fear of change and lack of digital skills in the team

Another factor that can slow down HR digitalisation in your company is employees’ fear of change. Employees and managers may be accustomed to older methods of working and might be apprehensive about adopting modern digital solutions. The reason for this is often a lack of knowledge and skills in this area. The company may lack specialists with the necessary digital competencies. Employees are also afraid that new technology will take away their jobs.

Therefore, when implementing various tools to streamline work, it’simportant to verify the digital skills in the organisation and ensure that employees are properly trained. Equally important is the communication aspect, so that employees know the goals of introducing a solution. Managers should be involved in the implementation as leaders of the change. It is worth organising special training for managers so that they can effectively support their team in the change.

Integrating the new system with other tools

Another barrier could be the lack of integration between the new system and the other applications the company already uses. Many companies use different, often incompatible IT systems. Integrating these into a cohesive whole can be both a technological and logistical challenge.

That’s why it’s worth choosing solutions that allow for the integration of existing tools with the new system or enable quick data import into the new platform. To address this barrier, we continuously develop our OstendiHR platform in terms of integration. Currently, our platform integrates with tools such as Google, SAP, Microsoft, eRecruiter, Teta, ADP, Comarch, and many other applications available on the market.

The cost of implementing technology into the company

The path to HR development leads through technology. Many companies are aware of this, but what often holds them back from implementing technology is the financial burden and the need to cut budgets. This can be especially challenging for smaller organisations.

The solution is to gradually implement new tools into the company. This approach also has the advantage of giving employees more time to master the new tools and develop processes. The OstendiHR platform is built from multiple independent modules that form a complete system but can also function individually. This allows clients to choose only the solutions that best meet their current business needs, without committing to the entire platform.

Benefits of digitising HR

What benefits will we gain if implementing the technology goes well?

Increased efficiency and reduced costs

Introducing modern technologies into HR significantly enhances a company’s operational efficiency and allows for cost reduction. By automating routine tasks, employees have more time to focus on the strategic aspects of the business, fostering faster company growth.

Eliminating human error

Automation of processes also reduces the risk of human error. HR technologies significantly minimise the need for manual execution of repetitive administrative tasks, such as calculating working hours, managing leave, or preparing reports. This not only speeds up these processes but also reduces the likelihood of errors, increasing overall precision and reliability in HR operations.

Enhanced company competitiveness

A company that invests in new technologies and the development of its employees’ digital skills gains numerous advantages, boosting its market competitiveness. Employees who have the opportunity for continuous learning are more engaged and motivated, which translates into higher productivity. Improved team efficiency positively impacts financial results, strengthening the company’s market position.

Additionally, organisations that invest in employee development become attractive workplaces, drawing talented professionals seeking growth-friendly environments. The introduction of modern technologies also allows companies to react more swiftly to market changes and adapt, helping them maintain a leading position in the industry. As a result, the company not only strengthens its market position but also gains the flexibility to adapt better to a dynamic business environment.

Advanced analytics

Modern tools allow for the analysis of large data sets to identify trends, predict staffing needs, and evaluate the effectiveness of training and motivational programs – all with just a few clicks. HR management platforms also enable the generation of reliable reports that executives can use to make informed business decisions.

Scalability

Automated HR systems can easily scale as the company grows, allowing for the management of a larger workforce without the need to expand the HR department.

Data security

Modern, automated HR systems provide better protection of employee data, which is crucial given the increasing number of cyber threats and the requirements associated with information management.

Introducing digitalisation into the HR department not only automates processes but also opens up new opportunities for strategic management. Thanks to advanced analytical tools, organisations can better anticipate staffing needs, identify talent, and manage employee development effectively. Digitalisation transforms HR from an operational role into a key element of building competitive advantage, impacting the company’s innovation and flexibility. A digitised HR department is a solid foundation for effectively building the future of any organisation and is an invaluable business partner for management.