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    Your Guide to What Digital HR Can Do for Your Company

    A young employee smiles while working on a laptop to access digital HR tools.

    Your Guide to What Digital HR Can Do for Your Company

    June 1, 2021

    Digital transformation has become an important concept in every industry. Artificial intelligence (AI), internet usage, cloud-based tools, automation, and machine learning all play a role. Human resources (HR) is no exception, as technology is changing the way companies manage employees through tools that streamline processes and make businesses more efficient. 

    Digital HR is transforming HR departments by harnessing the right software and technologies. This guide to digital HR will walk you through what digital HR is, its key benefits, and potential challenges to be aware of.

    An Overview of Digital HR

    Digital HR refers to the practices used by HR professionals and departments to continue to improve workflows. Examples of digital HR at work include using innovations such as: 

    • Data and analytics to improve decision-making
    • Electronic job applications and employment contracts
    • Automated candidate vetting tools
    • Video conferencing for job interviews
    • AI and machine learning
    • And more

    The newest technologies and innovations are integrated so teams can save money and energy on previously time-consuming or expensive tasks. All these tools should work in conjunction, and other departments should follow suit to create a more seamless, efficient organization. 

    4 Great Benefits of Digital HR

    HR processes have long depended on paper-based solutions, physical storage, and manual data entry. Digital HR improves traditional methods with online and computer-based tools. Former processes are not always replaced entirely, just enhanced. The biggest benefits of digital HR include the following:


    Digital tools like automation and cloud-based software streamline processes such as candidate review, employee benefits management, training and onboarding, and database management. Entering in a lot of data takes time, but when information can automatically be uploaded and copied, these processes are much more efficient.


    Human error can create lots of problems that HR has to resolve later. Digital tools reduce mistakes, and thus data is more accurate. This saves time and creates more efficient processes, and businesses can base decisions on more reliable information.

    Cost Savings

    Faster processes and better workflows mean a healthier bottom line. HR departments can get things done more efficiently, saving money on employee costs. Workers will have more time to focus on big-picture business considerations that lead to growth and increased productivity.


    Cloud-based tools allow teams to access HR platforms and business information from anywhere with an internet connection, so they are especially helpful as more people work remotely. Digital solutions fuel collaboration, since documents can be updated and saved in real time within the same system. Teams can also communicate via instant-messaging tools. Digital time stamps can record each time a change is made in a database to better track information history.

    Managing information has never been easier for HR professionals who adopt these digital technologies. They can incorporate them into all HR responsibilities, including recruitment, time and leave management, employee data storage and updates, self-service benefits management for workers, employee learning opportunities, payroll workflows, and more. 

    Person with globe surrounding them

    4 Challenges of Implementing Digital HR

    Keep in mind that with any transformation comes a few challenges. They are merely hurdles to overcome, but it is helpful to recognize what could go wrong or take some getting used to. Digital HR implementation may come with these four challenges:

    1. Staff Learning Curve

    This isn’t always an issue, especially if employees have experience using digital tools. Sometimes, though, there will be at least a few months for teams to adapt to a shift to cloud-based tools or automated systems.

    2. Less Human Interaction

    Digital HR tools may streamline processes, but they may also minimize face-to-face interactions and connections. Businesses that find this to be a significant challenge should spend more time coming up with ways to keep people connected, whether implementing more video conference meetings or scheduling team-building activities.

    3. Resistance From Employees

    Employees who have worked at the company a long time, or have many years of experience in HR in general, may be a bit more hesitant to embrace new tools. They may have the mindset of: Why should we change something that’s already working? These employees may need extra attention and support when innovations are being introduced. 

    HR teams should patiently emphasize the benefits of new technologies to make sure everyone is on the same page. It may also be beneficial to reiterate that their jobs are not being replaced by technology, just improved.

    4. New Security Considerations

    Cyberattacks are unfortunately a reality for many digital environments. It is thus important to have a robust security infrastructure in place, and an experienced IT team to back it up, before completely transforming to a digital environment. Ensure employees are also educated on security best practices when they start using the tools. 

    Implement a multifactor authentication system for new intranets or systems. Workers, for example, may need to confirm their identity in two formats when logging into a benefit-management platform by entering a code sent to their phone in addition to providing their login information.

    The key point to remember is that staff will need ongoing support to learn new digital tools. Some technologies will be more straightforward than others, and some employees will pick things up quickly. The more support, training, and guidance you give them, the better. It can be a significant step toward improving the employee experience.

    Contact HR Professionals to Learn More about Digital HR

    Digital HR is here to stay and more companies are deploying fully electronic HR every day. Ignite HCM can make it easier with HR software implementation, optimization and support to help your teams adopt the right tools and reap the benefits. We understand how these technologies can transform your processes for the better, and we make sure you get there with minimal roadblocks.

    Contact Ignite HCM for help with your payroll management and HR optimization needs.

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