Digital Transformation

Meaning & Definition

The process of Digital Transformation involves changing how organizations operate, deliver services and engage with their employees through the use of digital technology. In HR, this means transitioning from traditional manual-based systems into automated, digitally based processes through the application of HRMS, Payroll Software, Analytics, and Automation in order to enhance efficiency, accuracy, and the overall employee experience.

Why Digital Transformation Matters?

• Improves productivity by automating human resources processes.
• Increases the documented experience of employees and allows for self-service access.
• Allows for data-driven human resource decision-making.
• Decreases manual errors and administration time.
• Provides for growth and supports the needs of today’s employee.

Compliance Requirements

In India, there is no specific legislation that governs digital transformation; however, when digitizing the HR function and employee data, organizations need to comply with the Digital Personal Data Protection Act 2023 (DPDP Act), IT security requirements, and their own internal data protection policies.