Why HCM Must Be Part Of Your Digital Transformation

Dina Blasi

Digital disruption is shaking up how people think about traditional business functions, and many companies are starting to take action. But are companies doing enough if digital technology isn’t integrated into every aspect of the business?

For many companies, HR is like the infamous red-headed stepchild and doesn’t get the attention it requires compared to the frontline sales teams. For example, human capital management (HCM) is easily and often overlooked when it comes to thinking about digitally transforming a company.

Digital transformation is not only about passively managing back-office processes, it’s also about managing your most precious resource – people. And digitizing HR LoB operations provides more than just accurate information on existing employees, it allows for tightly integrated talent management solutions as well as robust workforce analytics and planning, with tangible and measurable results. In other words, a digitized HCM solution helps you attract the best people and allows you train them on what’s needed in real-time. This approach results in better communication, stronger alignment, and no surprises during performance reviews.

Some experts advise that a digital transformation strategy shouldn’t begin by focusing heavily on the technology component. For instance, Yvette Cameron, SAP SuccessFactors SVP of Strategy, recently stressed in an ASUG news interview the importance of framing a company’s digital strategy around people first, and then following up with the technology strategy once that process of instilling culture is already in motion.

“You need a strategy for transforming culture and mindset,” said Cameron, adding that contingent and temporary workers must be factored into this strategy, since procurement hires freelancers that report back to managers directly.

Leading the pack

I recently connected with Beth Thiebault, Principal, Deloitte Consulting LLP and Global SAP SuccessFactors lead, and asked how HCM solutions are impacting business for customers. She explains, “The digital world of work has disrupted the way we manage talent, enabling an “always-on” organization focused on culture, engagement, open communication, and feedback.”

As winners of the 2016 SAP Pinnacle Awards in the category of Workforce Partner of the Year, Deloitte is setting the standard in running a live business by leveraging HCM solutions as the platform for managing talent and for improving the employee experience.

So how exactly are they doing it? Well, they’ve integrated easy-to-use applications focused on engaging their employees, making everything simple—from enabling employees to input their hours into a time sheet from their mobile device, to making information such as performance reviews and performance feedback quickly accessible from anywhere.

Other applications provide a list of current learning offerings available through Deloitte University, including a list of the attending colleagues as well as which wellness classes will be available when they are on campus. There’s even a scheduling app used to secure meeting space at any of Deloitte’s offices. Together this suite of applications helps the firm to engage with their talent in every aspect of HR.

From back office to front lines

Digital transformation is taking human resource management from the back office to the front lines. Having the right HCM software solution makes it easier to recruit top talent, streamline the onboarding process, establish meaningful goals linked to performance, accurately compensate talent, improve development and career planning, and develop comprehensive learning strategies. This should be a main priority for any organization that values top performers and attributes people’s performance to the success of the business strategy. If it’s not, you could feel the repeated churn of turnover, which can be costly and time-intensive and create a rough experience for your customers.

Another benefit of having an integrated HCM approach is that it allows users to create benchmarks and forecasting, deliver actionable and quantitative insights, and promote productivity and teamwork through collaboration, which is one of the beauties of digitizing HR. And knowing that your competition is likely going digital, ask yourself: What is the cost of not digitizing my HCM solutions?

Regardless of where you are in the digital transformation journey—whether you are an early adopter or still haven’t gotten out of the digital gate—keep this in mind: Having the right people strategy tied to the business strategy will help drive your digital transformation success.

For more on digital transformation in HR, see DigiTalent: The New Frontier For HR.

About Dina Blasi

Dina Blasi is a Senior Marketing Communications Professional focused on partner marketing and HCM solution communications. Before joining SAP in 2007, she worked for ADP in investor communication services, and Curran & Connors, Inc. in sales and project management. She holds a master's degree in communications, a bachelor's degree in marketing, and an associate's degree in business administration.