Digital transformation in HR: how to accomplish it effectively?

12 of February, 2025

Certainly, you’ve heard of digital transformation in HR. It’s a concept that chases us. But, what is digital transformation? What does this phenomenon consist of? How can I apply it to my organization?

That said, the Human Resources department alone will not be able to complete the digital transformation. The support of the company’s management is crucial if we want it to be a success.

What is digital transformation within companies?

Digital transformation is the process where technology is integrated into the different areas of the company. This implies a radical change in our way of operating, in addition to offering more value to customers.

The company faces a constant challenge. We have to challenge the status quo, experiment with technological novelties.

This process can involve changes in our products, processes, and strategies. If we want to get the most out of the transformation, it’s likely that we have to rework them.

The supply chain and the workflow will change. The workforce will need new skills, and the management will initiate new discussion processes. The way of interacting with customers also changes.

Behind it can only be one goal: to remain competitive. It helps us continue to grow at market pace, being able to meet customer needs.

In other words, the digital transformation in companies allows us to adapt in a changing environment. Technology evolves constantly. If we don’t update, we’ll be surpassed by the competition.

Differences between digital transformation and digitization

Now that we know what digital transformation is, we must differentiate it from digitization. These are concepts that are often confused. However, they involve significant differences that you should know.

As we have seen, the digital transformation in companies is a paradigm shift. A completely different way of working.

On the other hand, digitization involves converting physical elements into digital ones. For example, the form that was previously filled out on paper becomes a digital form.

It could be said that the company’s digitization is part of the digital transformation. Adopting new technologies is just the first step. When management takes that step, Human Resources must take action and initiate the transformation process.

What are the types of digital transformation out there?

There are many types of digital transformation in general. To understand their scope, suffice it to know that in 2023 almost 9 billion euros were invested in this matter. We, for our part, are going to show you the most common types:

Treatment transformation. Focused on changing the customer’s interaction and satisfaction with a brand through digital channels.
Operational transformation. Dedicated to improving the efficiency and effectiveness of a company’s internal processes.
Product and service transformation. Focused on the innovation and creation of new products and services through digital technologies.
Transformation of organizational philosophy. Directed to change the culture and strategy of a company to adapt to the digital world.
Automation transformation. Seeks the automation of repetitive and manual tasks to improve efficiency and reduce errors.

Types of digital transformation applied in companies

Not all types of digital transformation have the same effect in a company. A case of strong influence is the impact of digital transformation on talent management. In this regard, the ones you should not lose sight of in a company are the following:

Customer experience transformation. Centers on improving the customer experience through the integration of digital technologies. Examples are artificial intelligence and automation.
Business process transformation. Focuses on improving the efficiency and effectiveness of business processes. It includes the automation of manual tasks and the elimination of obsolete processes.
Organizational culture transformation. Seeks to change the culture and mindset of a company. It aims to adopt a more technological and digital approach.
Company strategy transformation. Concentrates on realigning the company’s strategy. It aims to take advantage of digital technology opportunities and improve competitiveness.
Technology infrastructure transformation. Is aimed at modernizing and improving a company’s technological infrastructure. It seeks to ensure preparedness for new technologies and market changes.
Business model transformation. Focuses on the development of new business models based on digital technologies. It includes the platform economy and the digital economy.

That said, each type of digital transformation focuses on a different aspect of the company. Some companies may choose to adopt more than one type. It all depends on its specific needs and objectives.

How to help the digital transformation in HR?

An obvious example of improving the management of Human Resources is the software to generate HR reports. It’s a tool that streamlines, enhances, and simplifies processes.

However, it’s just a small example. In reality, there are several ways in which the human resources department relates to what we’re telling you:

Adopting human resources technologies

Human resources technologies can improve the efficiency and effectiveness of human resources processes. Examples are talent management platforms and selection applications.

Promoting a digital culture

The human resources department can help foster a digital culture in the organization. For example, through awareness and training in technology and digitalization.

Developing new work models

HR can work with organization leaders to develop new work models. These can be adjusted to digital transformation, like remote work and flexible work.

Evaluating and developing digital skills

From HR, employees’ digital skills can be evaluated. Also, provide training and development to improve these skills. They can even ensure that employees are trained for digital transformation.

Integrating diversity and inclusion in digital transformation

The human resources department is key in this point. It can work to ensure that digital transformation is carried out inclusively. That is, it does not exclude certain demographic groups.

Remember, of course, that the key to all this is always to maintain an open attitude. That will be the only way to be willing to change and evolve. The future is promising in this regard!

Benefits of carrying out a digital transformation in the company

Changes are usually beneficial. For example, the arrival of collective labor contracts greatly streamlined recruitment processes. Along these lines, it has been studied that digital transformation improves productivity by almost 23%.

Some of the most common advantages of this digital process are the ones we indicate here:

Improvement of efficiency. The automation of manual tasks and the digitization of processes can reduce errors. It can also improve efficiency in a wide range of company areas. This includes finance, accounting, and human resources.
Improvement of the customer experience. Digital transformation can improve customer interaction and satisfaction with the company. For example, through digital channels and real-time customization.
Greater flexibility and agility. Companies can respond more quickly to changes in the market and customer needs. Among other things, thanks to the greater flexibility and agility that digital technology provides.
Greater collaboration and communication. Digital collaboration and communication tools can improve the client-company contact. This includes electronic, videoconference platforms, and messaging applications.

In conclusion, you can say now that you know the different types of digital transformation. This information has probably been enormously useful. We believe from Sesame HR that you’ll be able to apply it in your day-to-day life.

If you want to digitize your company’s Human Resources, I invite you to register in Sesame HR and see how, in a few clicks, you can take your team management to the next level. Request the 14-day free trial and see how automation reduces human errors and saves the time you need.

Professional with over 20 years of extensive experience in various areas of Human Resources (Recruitment, Training, Occupational Risk Prevention, and Personnel Management). Experience in the Management Department: Broad understanding of the company and HR.

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cristinamartin

HR Content Specialist