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Gartner Identifies Five Business Strategies for CHRO Towards Digitalization

Gartner has revealed top five business strategies that HR leaders need to explore for effective implementation of digitalization efforts across their organization .

“As more organizations become increasingly digital across their operations, HR departments are facing a tall order: not only do they have to lead the digital transformation of their company and satisfy the desires of the CEO, but they must also meet employee demands that digitalization efforts provide improved experience for them,” said Brian Kropp, group vice president of Gartner’s HR practice.

CEOs are seeking ways to keep costs down while achieving gains in efficiency and productivity, and the HR function is expected to lead digital transformation efforts across their organizations. 67% of business leaders agree their company must become significantly digitalized by 2020 to remain competitive, and they are looking for HR leaders to lead this transformation, according to Gartner, Inc.

The five macro strategies to lead this transformation:

  1. Attracting more digital candidates
  2. Gaining better insights about employees
  3. Coaching managers to develop the digital capabilities of their teams
  4. Improving technology to drive employee self-service at work
  5. Evolving performance management

Realizing the expectations of the employees is critical given the state of the labor market, which includes decreased employee effort amid some of the lowest unemployment numbers in recent history.

According to Gartner research, the number of employees who are willing to go above and beyond the call of duty in the workplace has declined significantly, both globally and in North America. In 3Q18, only 17 % of North American employees reported high levels of discretionary effort, down from 26 % in 2013. Globally, a mere 14 % of employees reported high levels of discretionary effort in 3Q18, six percentage points lower than in 2013.

“The U.S. unemployment rate was 3.8 % in the third quarter of 2018 and the U.K.’s wasn’t much higher at four percent, indicating labor markets that are the tightest they’ve been for some time,” said Mr. Kropp. “For most organizations, talent is the single biggest overhead expense, and the biggest competitive advantage. As such, heads of HR are under extreme pressure to deliver on the promise of what digitalization has to offer, both in terms of the business and employee experience.”

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