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How digitilisation can support the changing role of the HR department

The HR department has gone through some major changes in recent years. It's no longer just about doing payroll and managing benefits. Modern HR departments now play a key role in shaping a company's overall business strategy. In this blog post, we'll dive into the evolving responsibilities of HR and how digitalisation can support these new functions.


Traditionally, HR departments focused on managing the administrative parts of an employee life cycle, from recruitment to retirement. However, today's HR demands extend far beyond these tasks. HR professionals are now responsible for designing and implementing recruitment and retention strategies, fostering a positive workplace culture, optimising employee productivity, ensuring development and training opportunities, managing compliance and legal issues, to staying attuned to external factors that impact the business.

Digitalisation and HR technology, commonly referred to as HR Tech, can greatly support these new functions. By leveraging digital tools, HR teams can attract top talent, enhance employee satisfaction, and foster strong relationships that drive business growth.


Perfectly aligned performance management

One area where HR Tech can make a significant impact is performance management. With a comprehensive HR system, organisations can align individual performance indicators and goals with departmental and corporate objectives.

Digital tools enable tracking and progress monitoring at different levels, keeping employees engaged and focused on contributing to larger goals. Additionally, dynamic performance indicators and goal adjustment capabilities provide the agility needed to adapt to changing priorities.

HR digitilisation

Talent management and retention

Another critical aspect supported by HR Tech is talent management and development. HR systems can provide a centralised overview of competencies at both the organisational and individual levels, identifying skill gaps and training needs.

Integrated learning solutions make education and development opportunities easily accessible, increasing employee loyalty and engagement. HR curators can also use these systems to track performance, identify top talent, and make informed decisions on hiring or internal promotions.


Streamlined onboarding and offboarding

Digitalisation also simplifies administrative tasks, such as recruiting, onboarding, offboarding, and salary reviews. Automated workflows ensure that all parties involved are informed and up to date, reducing delays and improving efficiency.

Furthermore, HR systems offer reliable data collection and reporting, empowering HR professionals to interpret business data for strategic insights and decision-making. Compliance with legal guidelines is also facilitated through self-service functionalities and improved data quality.

In conclusion, digitalisation plays a vital role in supporting the changing responsibilities of the HR department. By adopting HR Tech solutions, organisations can enhance their HR functions, contribute to overall business goals, and strike a balance between employee well-being and business considerations. 
With reliable HR master data, HR professionals can align teams and individuals with corporate objectives, identify skill gaps, and generate valuable insights to drive strategic decision-making.

Embracing digitalisation is essential for HR departments to thrive in today's fast-paced and competitive business environment. Learn more by downloading our E-book below.

Aleya Begum Lonsetteig

Aleya Begum Lonsetteig, 12 June 2023

Aleya Begum Lønsetteig is content marketing manager at CatalystOne. Her background is in journalism, business, and marketing across different sectors, with a focus on SaaS organisations more recently. She is passionate about communication and helping companies develop marketing strategies through continuous learning.

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