Digitalization: why HR needs to take the plunge!

Digital transformation, industry 4.0, digital transition… Are these terms familiar to you? And with good reason: 85% of small and medium-sized businesses have already embarked on their digitalization [1], as have 95% of large companies [2]. Digital technology seems to be everywhere… And yet, BPIFRANCE’s latest study shows that the maturity of companies in terms of digitalization is far from complete… Although the difficulties are legitimate…

That’s why you shouldn’t hesitate to take the plunge and go digital!

Digitization of companies: the obstacles are still there, but the results are!

While 53% of small and medium-sized business (SMB) managers claim to have begun the digital transformation of their company, almost 1 in 2 is still a long way from having started the digitization process.

And although large companies are more advanced on the subject, they still have a long way to go: in fact, only 35% of large companies estimate that they have advanced their digitization project by half (or more) [2].The difficulties encountered in the face of digitizationLarge Groups, ETIs or SMEs, the difficulties encountered by companies in the face of digitization can be summarized in 5 points:

– Lack of time to devote to the digitalization project without compromising their business imperatives.

– Lack of resources to initiate transformation.

– Lack of perspective on the complexity of the subject and the technologies available.

– Lack of internal resources to manage the digital transition.

– There are also differences between business sectors, for example: while the retail sector is one of the most committed to digitalization (with 90% of companies “digitized”), only one industry in four has begun its digital transformation.

Digitization, what are the results?

Digitization, in the broadest sense, enables [3] :

1. significantly improve the company’s results (increased productivity and competitiveness).
2. Strengthen customer relations through new communication channels.
3. Promote well-being in the workplace (easier internal communication, improved responsiveness, e-learning, etc.).
4. Gain operational efficiency for all company functions (sales, IT, administration, communication, logistics, HR, etc.).

These 4 improvements are observed in over 40% of companies that have successfully digitized.

In addition to business optimization (company results, customer relations, etc.), digitization transforms the way the company functions, and therefore involves all company departments.

Digitization, the key challenge for the HR function!

2/3 of managers consider HR digitalization to be one of their top priorities. 53% of companies say that digital solutions make it easier to gather information and optimize HR processes [4].

Among the HR functions most impacted by digitalization are: payroll management and declarations, HR administrative management and planning, training and the assessment and recruitment process.

Difficulties encountered?

1. 50% of ETIs are held back by a lack of financial resources.
2. 60% of VSEs/SMEs face persistent cultural resistance.
3. 66% of large companies are finding it difficult to compensate for the lack of in-house resources and skills.

Managers are also concerned about data protection, cybersecurity, hyperconnection and the risk of dehumanization…. And yet the benefits of digitalizing HR are numerous!

Digital, to put people back at the heart of HR!

47% of HR managers believe that digital technology enables the function to refocus on high value-added missions [4].

By digitizing repetitive and time-consuming tasks (through partial or total automation), HR staff can optimize their time and productivity for better quality of service.

More in tune with employee expectations, this digitalization enables us to offer a more personalizedemployee experience.Challenges in attracting and retaining employeesDigital tools for managing leave, tracking processes, accessing administrative and payroll documents, etc., thus meet a real challenge in retaining “digital native” and “digital/mobile user” employees.

The dematerialization favored by digitalization also enables HR documents to be centralized. In addition to the economic and ecological impact, it enhances the data protection required by the RGPD via secure forms, management and data storage processes.

In addition to the impact it has on the day-to-day running, performance and quality of the HR function, digitalization reflects a more than positive image of the company, and represents one of the key challenges for Attracting Talent! Digitalization, an invaluable recruitment assetThe digitalization of recruitment is nothing new. Since the advent of social networks, for example, over 87% of recruiters use them to recruit [5].

But it goes further than that!

Digital tools optimize recruiters’ day-to-day work in all areas of the business:

• From sublimating the Employer Brand to optimizing thecandidate experience.
• From generalized sourcing to automated application processing.
• From assessments and tests to deferred video pre-interviews.
• FromATS management to centralizedonboarding processes.
• From facilitatingemployee commitment to digital co-optation.

Digitalization for sourcing and employer branding: focus on cooptation cooptation !

Digitalization has enabled companies to professionalize cooptation (recruitment by recommendation).

The use of digital tools makes it possible to do on a large scale what used to be done by hand, and to effectively organize the internal referral program to involve all employees in the process and, therefore, multiply the chances of finding the right person for a job.

Digital referral also enhances the transparency of recruitment policies, increasing employee commitment and their role within the company. They become players and ambassadors for their company.

And the benefits are there!

The adoption of a digital tool dedicated to referral, such as Keycoopt System, enables :

– Saves time in the recruitment process.
– Reduces recruitment costs: on average, Keycoopt System customers cut recruitment costs by a factor of 3.
– Increases the number of referrals per vacancy, with higher-quality applications. On average, Keycoopt System customers only need 7.7 referrals for 1 recruitment.
– A more visible Employer Brand thanks to employees’ commitment to the process.Support for the processSpecialists in digital referral since 2015, Keycoopt offers a specialized digital platform as well as dedicated support: more than a tool, a solution.

Our project managers support and advise their customers from the strategic design of this digitalization to its implementation: program design, tool configuration and support in using the platform (via assessments, training, tutorials, etc.), as well as in optimizing digital marketing and the co-optation program (monitoring KPIs and recommendations)…They’ve taken the plunge!

In view of the various results linked to digitalization (macro and micro), does it really make sense to ignore this contemporary challenge? It’s true that the obstacles to digitalization can be numerous… But the benefits are just as numerous, if not more…. And let’s not forget the impact on employee loyalty, with over 70% of employees appreciating the time and efficiency savings and autonomy that digitalization brings!

Assessment: getting started with digitalization for HR

3 basic principles to respect

Whether at company, HR, recruitment or referral level, going digital involves :

1/ Clearly identify, as part of a global strategy, the tasks to be dematerialized and automated, and the solutions for optimizing day-to-day operations.

2/ Involving the management team AND employees (especially local managers) from the outset, so as to capitalize on the support generated.

3/ Follow a logic of change management, i.e. progress step by step to enable teams to appropriate these new operating modes and tools.

So are you ready to get started?

Sources :

• [1] According to the results of the survey conducted by BPIFRANCE LAB
• [2] according to the EY study on the digitalization of large companies.
• [3]Socialy Study on the results of digital transformation
• [4] According to 2 studies One conducted during the Baromètre des DRH 2018 and the study by Sopra HR Software and L’Usine Digitale: Study conducted from November 13 to December 3, 2018 among a sample of 306 human resources, digital and information systems decision-makers using the online self-administered questionnaire method (Cawi).
• [5] according to HR PANEL conducted by Great Place to Work.
• [6] Digital Workplace Barometer by Julhiet Sterwen and Ifop.