Assessing the maturity of HR processes facilitates a critical analysis of the actual situation, using the dimensions of the proposed maturity model. Their optimization increases the operational efficiency of the company and adds value to the business. By digitizing HR processes, you can automate core workforce tasks and free up more time for strategy and growth. Digital transformation in HR helps companies become resilient and bring competitive advantage.
1. What is digital maturity in the context of HR?
2. Is a digital maturity assessment needed?
3. Operational excellence
4. Maturity Model for Analyzing Operational Excellence
- Automation of transactional processes
- HR metrics reporting
- HR data quality
- Execution and managerial/HR responsibilities
5. Can HR Technology help you to mature your human resources processes?
Digital maturity refers to the level of technology adoption that the HR function has reached in your organization. Think of it as a combination of overall digitization and how well HR processes and administrative work have been digitized.
More importantly, however, digital maturity is a competitive advantage. For many companies, a higher level of maturity corresponds to a higher level of operational excellence or business resilience.
So it helps to think of digital maturity as both a present state and an opportunity. An opportunity to take your organization to the next level by digitizing HR and administrative processes to focus on strategic initiatives.
The Covid-19 pandemic has accentuated an aspect that was already extremely important, namely the urgent need for companies to become resilient. At the same time, it also demonstrated the general importance as well as the value of digital technologies that facilitate work.
After all, your HR department may think the business is digitized, but you may still have a long way to go. Especially when it comes to truly achieving operational excellence, you may have missed solving some “blind spots” that need to be addressed.
A digital maturity assessment can help determine exactly where your organization is in a critical sense. This is because digital maturity can help you unlock many aspects that would make your organization great! And, it all starts with an understanding of the actual situation.
The HR maturity model can be applied to several main themes such as:
- Development of organizational culture
- Operational / transactional excellence and strategic execution
- Attraction and retention
- Performance and responsibility
- Rewards and recognition
- People development
- Employee welfare
Operational/transactional excellence refers to the realization of operational services and HR administration, of high added value at a low cost.
Digital transformation in the context of operational excellence is the use of digital technologies to facilitate the design and execution of basic HR processes. Basically, it means using digitization to make your day-to-day work easier, simpler, with the added benefit of being able to focus on other strategic topics.
Without it, you risk security and data quality issues, higher costs and lower quality of service.
The analysis of operational excellence can be structured on several components:
- Automation of transactional processes
- HR metrics reporting
- HR data quality
- Managerial/HR execution and responsibilities
The qualitative analysis of the evolution of each component can be done based on the maturity levels, which we will instantiate in each case:
- Level 1: AD-HOC
- Level 2: BEGINNER
- Level 3: OPERATIONAL
- Level 4: ADAPTIVE
4.1 Automation of transactional processes
|
Level |
Description |
|
1 - Ad-Hoc |
Most HR transactional processes are manual and labor intensive with minimal support from IT systems |
|
2 - Incipient |
There are isolated initiatives to automate the HR transactional process in some divisions and business areas |
|
3 – Operational |
Some transactional human resources processes are automated through independent systems |
|
4 - Adaptive |
An integrated HR IT system automates transactional processes for recruitment, compensation, performance management, leave management, etc. |
4.2 HR metrics reporting
|
Level |
Description |
|
1 - Ad-Hoc |
No HR values are reported |
|
2 - Incipient |
HR operational metrics are inconsistently and rarely reported |
|
3 – Operational |
Operational HR metrics and some strategic metrics are reported, although they are not always useful for decision making. HR reporting is informally related to business reporting |
|
4 - Adaptive |
HR operational and strategic metrics are reported regularly and consistently, providing a basis for in-depth analysis and sound decisions. HR reporting is an integral part of business reporting |
4.3 Quality of HR data
|
Level |
Description |
|
1 - Ad-Hoc |
The quality of HR data is generally poor, e.g. incomplete, inconsistent, duplicate, etc. |
|
2 - Incipient |
Early HR data quality is at an acceptable level, requiring occasional manual intervention for correction and cleaning |
|
3 – Operational |
Operational Some HR data, isolated from the main HR information system, suffers from data quality issues |
|
4 - Adaptive |
Adaptive There is a single integrated HR data source for all people information, providing accurate data on headcount and organizational characteristics (ethnicity, turnover rates, etc.) |
4.4 Managerial/HR execution and responsibilities
|
Level |
Description |
|
1 - Ad-Hoc |
Managers rely on the HR function for all people-related issues. The HR function is able to carry out simple transactions for the company (eg payroll) |
|
2 - Incipient |
Managers rely on the HR function for most people issues, but manage the learning and development and performance of their group. The HR function provides transactional HR services and aspires to be a strategic partner to the business |
|
3 – Operational |
Operational Managers conduct HR transactions through a self-service system and manage their people issues such as staffing plans, leadership development and succession. HR provides effective transactional services and begins to actively focus on business challenges such as talent management and leadership succession planning |
|
4 - Adaptive |
Managers perform HR transactions through a self-service system. The HR function is focused on improving the organization and creating value and is seen as a strategic partner by line managers |
Completing the maturity assessment helps you understand how optimizing each of the dimensions listed above increases your company's operational efficiency and adds value to your business.
With a digital HR solution, you can not only build a foundation for operational excellence, but build HR processes that future-proof your teams, gain data from their experiences, and keep your organization agile and resilient.
By digitizing your HR processes, you can automate your core workforce tasks and free up more time for strategy and growth.