70% of digitalization projects fail, and that rate is far beyond significant. It’s huge.
But what are common pitfalls? How can one build on others’ experiences, learnings? What can HR leaders and departments do to stay on the safe side and decrease projects going out of hand?
In this first part of our article series, we present HR digitalization’s main topics and territories because we don’t try to run before we can walk.
Which are the most critical areas?
The recruitment systems, aka ATS (Applicant Tracking System), make it facile to fill open positions. For anyone involved in recruitment, it saves time, and the recruitment process becomes smoother. The candidate has a better chance to get feedback. The recruiter saves time with selection, keyword search, filtering, and the company manager would get up-to-date information faster. Pre-screening, interviewing, selection, candidate management, testing, evaluation become easier. And it makes settlement easier with job-hunter agencies too. It is an absolute win-win situation. You do not have to handle GDPR manually, and your CVs are stored securely. You can also say goodbye to a significant proportion of Excels and emails and hours-consuming searches every day.
Nowadays, a high-standard workplace is known when it applies a recruitment system. In Hungary, 50% of companies use a recruitment app, of which 65% use recruitment statements. Globally, we can see that 98% of Fortune 500 companies use them. These ratios precisely show that there is room for improvement for other companies worldwide to come up trumps.
Organizing the onboarding of new colleagues is a challenging and substantial administrative task. Meeting with the leader, the team, taking over the tools and accesses, and participating in the entrance training require a serious admission process, organization, and proper IT tools. The potential of an error is significant, and there is a risk of disappointment at the beginning of the employment relationship if you make a mistake. The Glassdoor research show that a great employee onboarding process improves retention by 82% and productivity by over 70%. In addition, The Human Capital Institute points out, 87% of the company says the mentor and buddy programs speed up their new hire proficiency. But they draw attention; still, 54% of the companies focus only just the process and the paperwork.
Furthermore, when somebody leaves, it is necessary to make a specific list of their current tasks and what tools and permissions this colleague should take back.
According to DigitalGroup research, one-third of ex-colleagues retain access to their previous workplace files.
The chatbots live their best lives nowadays; meanwhile, a few years ago, they were uncommon. Many companies have recognized the potential for efforts savings with these tools. Chatbots do an excellent job of answering frequently asked questions, public information, and more straightforward inquiries of employees. Like within the company, installed chatbots can be solutions on public portals for recruitment purposes. They can be time-saving in the initial stage of the communication with the candidates. The acceptance of chatbots is constantly rising, with many not looking for a personal touch at the beginning of contact. Since artificial responses can be alarming, the chatbot needs a boundary on how long it responds to the conversation and where to pass the thread of the conversation to an administrator.
In our next part of the article we will talk about HR Analytics, Performance Management and Training, Development.
The article was published in October 2021 in Munkajog.
Sources: AIMultiple, Glassdoor 2021,
HRFest 2021, Human Capital Institute
2021, PwC 2020, The DigitalGroup 2020
HR-IT professional, Nordconn