The Human Resource function is undergoing a significant digital transformation - one that is crucial to organizations remaining competitive in the labor market and able to retain talent through an enhanced employee experience. A successful transformation requires the HR team members to have the right technology and people skills. -BY Jill Motley

Human Resources is undergoing a digital transformation to meet the changes that technologies are driving in work models, current and future employee skills needed, communication, employee experience and expectations, and the ever-present compliance requirements. Disruptions have accelerated over the past couple of years due to change events such as the widespread implementation of hybrid work, the introduction of artificial intelligence, global talent sourcing, and changing employee expectations – and these have made it clear that new talent management systems and practices are needed. For HR professionals in Asia, the priorities are utilizing technology to meet the evolving expectations of employees and also support an agile organization within the context of rapid external business disruptions.

THE HR DIGITAL AGENDA

The PwC Digital HR Transformation Survey 2022: Southeast Asia reinforced various APAC surveys, making it clear that many organizations have a digital HR agenda. The PwC survey included HR leaders from Singapore, Thailand, Malaysia, Indonesia, and Vietnam. The HR agenda is focused on utilizing technologies as tools for designing a better employee experience, supporting the role of change agent, and improving talent development. The HR role today goes far beyond digitizing for compliance and reporting. There were four main insight areas identified in the survey. First, HR must be instrumental in enabling a digital culture. Dave Chen, Workforce Transformation Partner, South East Asia Consulting, PwC Singapore, said, “The purpose of digital HR transformation goes beyond digitalising the HR function. It can potentially catalyse the adoption of a digital mindset and propel the organisation’s digital transformation journey." This is an important point to note. What HR does in the area of technology can influence how well the entire organization addresses technology disruptions - and whether it develops the right culture for supporting digital transformation across functions.

The second insight was that SE Asia HR leaders believe they must expand on the fact that internal communication tools were key to ensuring business continuity during COVID-19. HR must lead the digitalization of the workplace and find new people management practices, like social collaboration and agile management, all part of a larger effort to create a digital workplace with strong connectivity, collaboration, and communication. The end users and their points of view are considered, and employee engagement and sentiments are actively monitored and managed. “The only way to predict the future is to lead and create it – value creation to the business through HR digitalisation and data insights. We will elevate the digital customer and employee experience interaction to our employees, customers and clients as we scale faster, perform better and go further,” said Chee Gay Lim, Group Chief Human Resources Officer, TDCX.

The third insight in the PwC survey is that HR should play a role in creating a “human” digital experience. A people-centric approach to digital transformation uses digital tools that emphasize the employee experience in their design. It is easy to forget that humanizing the digital journey of employees remains an integral part of a successful digital transformation. The fourth PwC insight was the need for HR to lead the bridging of the skills gap with HR solutions. Chief Executive Officers expect the HR function to assume responsibility for developing new employee skills and upskilling. The need for appropriate workforce skills is slowing digital transformation at the organizational level. HR will need to provide learning platforms and become talent developers and coaches. This is similar to a significant finding in the HR Exchange Network’s State of HR survey that queried corporate leaders worldwide, of which 28% were in the Asia-Pacific region. Learning and development, says the report, must be an area that HR prioritizes. The top priorities in learning and development are identifying skills to train for, creating new learning pathways, adapting to training to a hybrid workforce, investing in new technologies, and motivating employee development.

HR AS KEY FACILITATORS OF CHANGE

Each year, Alight publishes HR studies. In Alight’s State of HR Transformation Study 2021, Asia Pacific and Japan, respondents identified capability gaps across the roles in the HR function. Almost half of the respondents were Chief Human Resources Officers. Other roles included HR experts in Centers of Excellence, Human Resources Shared Services, and Human Resources Business Partners. The capability gaps included analytics, facilitating change, leveraging technology, and many others. The study found that some HR teams fall short in executing tech solutions. “HR teams must achieve better selection, design, implementation, and adoption of platforms,” per the report authors. It also says HR teams must “embrace their role as key facilitators of change and drive transformation for the entire organization.”

Alight identifies how adaptable HR functions are embracing change, first triggered by the pandemic. The adaptable HR reports a Net Promoter Score 22 times higher on technology satisfaction compared to market averages. The adaptable HR is three times more likely to be proactive in “driving institutional change, new ways of working, and adoption of work technologies. “The HR function is “three times more likely to succeed in delivering a closer partnership with the business through their operating model and capabilities,” and “1.5 more confident in their HR strategy and execution.”

WHAT ABOUT ARTIFICIAL INTELLIGENCE?

Any discussion of digital transformation must also address artificial intelligence. It is already clear that AI is impacting some HR functions. Cary Shek Pui-yee, Vice-President of People and Culture at Klook, said it had already modernized operations using AI to assist customers and for internal recruitment and training. “We conduct regular performance reviews and provide training directions to colleagues,” Pui-yee said. “The AI platform allows us to analyse data and develop effective talent strategies, especially in retaining employees.” Sid Sibal, Vice-President of Greater China and Head of Hong Kong at the search firm Hudson, believes human resources information systems can improve employee experience but do not attract talent.

SUPPORTING PEOPLE NOW AND IN THE FUTURE

The takeaways are that HR functions should implement technologies that support an agile organization through its people and a future-ready workforce. Staying technology current is important to helping the organization remain competitive in the labor market and retaining talent once onboard. However, while HR people must have the right technologies to elevate learning and development and the employee experience, they also need leadership skills to be strong change agents.