Workforce Implication of Digital Transformation

An abrupt digital transformation in the business may profoundly affect production and turnover, though for a short period, but another long term risk that arises is the risk of employee disengagement

Fremont, CA: Every organization is looking towards digital transformation today for obvious reasons such as operational efficiencies, employee productivity enhancements, higher quality products and services, and inevitable cost savings. While focusing more on the digital transformation, enterprises ignore another crucial transformation–workplace transformation. Workplace transformation is as important and vital for an organization as digital transformation is.

An abrupt digital transformation in the business may profoundly affect production and turnover, though for a short period, but another long term risk that arises is the risk of employee disengagement. It means there is a clear need for focused attention on the impact upon the workforce caused by digital transformation. It mostly happens with the organizations with disjointed IT applications, processes, and systems, which altogether results in a highly complex integration process.

Let us have a deeper insight into both digital and workplace transformation.

Digital Transformation  For a successful digital transformation, the internal processes need to follow the customer experience. It results in breaking down of processes and functional roles, besides changing the demand for new skills and capabilities to comply with the ever-evolving customer demands. When these changes are not adequately addressed, they can damage employee morale, particularly if senior leaders have not laid down a compelling reason for the change.

A culture of fear and mistrust in the organization makes people more resistant to change as they perceive it as employment risk. It also needs the senior leaders and board of directors to have the necessary transformational management experience to steer the workforce towards the change.

Workplace or HR Transformation  In pioneering the change program, HR should also undergo change. The processes and system that act as hindrances to the workforce innovation, flexibility, and agility must be removed immediately. Creating the right workforce is an art that goes beyond creating a rigid process to assess people. HR people must convey the 'why' and the 'what' of the transformation objectives to the employees.

To mitigate the risks of transformation, HRs should encourage senior leaders to run a talent capability diagnostics before initiating the digital transformation. It sounds great to have a brilliant transformation plan in place, but the organizations must honestly assess its existing ecosystem to recognize possible skills gaps.

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