Katie Whitehouse, senior people director at ServiceNow, describes how future-focused HR leaders are ushering in a new digital era for business.
Breakthroughs in AI and other technologies – combined with systemic shifts in business goals and operating models – are ushering in a new business era. To prepare, organisations are accelerating digital transformation into full-blown business transformation. But making this shift at scale and pace is not easy. It requires realigning the people strategy to the business strategy, a fresh organisational mindset and future-ready talent.
Our recent Employee Experience Trends 2024 Report – based on the findings of a comprehensive survey of senior HR leaders from around the world – found that the organisations making the most progress in their digital transformation are turning to a new kind of HR executive – what we’re calling ‘HR innovators’.
As their organisations transform, HR innovators have more than just a seat at the table. They’re working hand in hand with the rest of the C-suite to engineer wide-reaching organisational change and propel top-line growth.
Compared to less digitally advanced organisations, those with HR innovators at their core are more proficient and proactive users of technology, particularly AI and data analytics, and are further ahead in improving employee productivity and experiences across their enterprises. As a result, their workforces are better equipped to drive future business growth.
AI and data solutions transform people management
AI, data and digital solutions are reshaping the foundation of business strategy and the world of work. They are revolutionising talent management by enabling more strategic, data-driven decisions. With 65pc of HR leaders saying AI is having a radical impact on work, businesses cannot afford to ignore its transformative capability. In fact, across EMEA, 56pc of HR innovators now leverage traditional AI, making it the most used foundational technology in the field.
AI is also transforming how organisations identify and address emerging talent needs, with 95pc of HR innovators across EMEA using data analytics to anticipate skill gaps and future workforce demands. In the context of an ever-deepening talent shortage, the ability to foresee – and seize – upskilling opportunities before they become business-critical is invaluable.
Nine-in-ten (89pc) HR innovators in EMEA currently employ data-driven solutions to boost productivity and performance, optimising employee engagement and development. These technologies empower HR teams to enhance efficiency, drive talent acquisition and better align workforce capabilities with organisational goals.
Put simply, HR innovators are using technology not just to drive transformation in their own function but across the board.
Aligning skills and talent for the future
Many workforces are ill-prepared for an upcoming business era powered by AI, data and digital technologies.
According to our research, energy and utility firms, public sector organisations and manufacturers, still in the early days of digitally enabled business transformation, have the least equipped teams to drive growth.
In EMEA, the future readiness of all industries is worryingly low, with more than half (56pc) of respondents saying that the majority of their workforce is not well-equipped to drive future growth.
Even those industries that have made the most progress in business transformation still have chunky skills gaps to fill, highlighting a pressing need to focus on learning and development, upskilling and, crucially, deploying the right talent in the right roles. To address this, 47pc of HR teams across EMEA are ramping up training programs, ensuring employees develop the competencies they need to meet future demands. Additionally, 32pc of these HR teams are offering mentoring opportunities, facilitating knowledge transfer and leadership development.
Recognising the importance of strategic talent acquisition, 48pc of senior executives in EMEA plan to hire essential talent over the next 18 months, focusing on roles that will drive future growth. Moreover, 47pc of organisations are prioritising the alignment of talent development with their business plans, ensuring that workforce capabilities are closely tied to organisational objectives.
In the short term, 69pc of EMEA organisations believe this will make work more efficient and productive. But, by investing in training, mentoring and targeted hiring, companies can build a resilient, future-ready workforce that is well-positioned to achieve long-term business goals too.
Driving employee satisfaction
Driving employee satisfaction and productivity requires a focus on creating better experiences, particularly through digital solutions.
With 67pc of HR innovators across EMEA recognising that digitised employee experiences (EX) are fundamental for success in the next business era, the shift towards digital transformation is becoming a priority. These enhanced experiences are not just about convenience; they directly impact how employees engage with their work and their overall satisfaction.
Six-in-ten (60pc) of EMEA HR leaders agree that digitised EX enhances productivity, illustrating the strong link between a well-designed digital workplace and improved performance. HR innovators have made considerably more progress than those in beginner organisations, digitising and improving the employee experience. About nine out of ten have made moderate to high progress in digitising and automating workflows across departments, 87pc in gaining visibility into employee needs, and 87pc in providing staff with easy access to the data they need.
By streamlining processes, offering personalised support and facilitating seamless communication, digitised EX creates an environment where employees thrive, leading to higher engagement levels, decreased employee frustration and, ultimately, better outcomes for the organisation.
Investing in digital tools and platforms that support employee wellbeing and productivity is a strategic imperative for companies aiming to succeed in an increasingly competitive and fast-paced business landscape.
Actionable insights
To build long-term value through people, organisations must address challenges head on.
Investing in the right technologies and strategies to create an adaptable, secure and inclusive work environment that meets the diverse needs of a modern workforce is vital. No single action or group of actions define transformation success. Still, HR innovators who work to overcome the flurry of hurdles give their organisations the best chance of success.
The lessons these industry leaders have learned boil down to four key pieces of advice.
Build partnerships
To avoid organisational resistance, ensure you have support from both management and staff to drive strategic change. HR innovators get the best results when they align their strategies with business goals and focus on strategic actions, such as creating a positive work culture, to maximise productivity and performance.
Make data a strategic asset
HR innovators know that organisations gain a competitive age when they fully harness data and integrate it into decision-making and business operations. More than four-in-ten innovators recommend turning data into a tool for staff enterprise-wide, especially the HR team, so everyone has the information they need to make evidence-based decisions.
Lay the groundwork for digital success
This involves three key elements. First, breaking down silos to ensure cross-department collaboration. Second, streamlining processes before digitising them, and third, installing an end-to-end IT platform that facilitates the addition of new digital tools and solutions.
Fully embrace digital innovation and AI
Organisations should develop a clear business case for digitising workforce experiences and processes. Then, they should hit the gas since digital is the future of work. But they shouldn’t just focus on tech since it will take people to drive business change.
The road ahead
Building value through people is crucial for business success, but challenges remain. 40pc of HR innovators in EMEA struggle to support a multigenerational workforce due to differing needs and expectations, especially when it comes to new technologies. A lack of real-time data (43pc), data security concerns (37pc), and inadequate investment (27pc) also hinder transformations. Still, the benefits of digitalising HR and enhancing employee experience clearly outweigh the costs.
Almost half of HR innovators report increased productivity (48pc) and faster issue resolution (47pc). Additionally, more than half of HR leaders see tangible financial rewards, such as cost reduction (51pc) and increased revenue (51pc), demonstrating that investing in human capital can directly enhance business performance.
Wider advantages are also enticing, as half of HR innovators report improved organisational outcomes, including better planning and decision-making (50pc), stronger corporate culture (48oc) and accelerated innovation.
The benefits are clear. By embracing digital transformation and prioritising HR innovators, organisations can cultivate a motivated and skilled workforce equipped to thrive in the evolving digital landscape – ushering in a new business era.
Katie Whitehouse is senior people director, EMEA at ServiceNow, leading the HR and people initiatives for the region. She first joined ServiceNow in 2020 as UK and Ireland HR director. Whitehouse has more than 20 years’ experience in human resources and management, having worked with several enterprise organisations, including Sky, Blackberry and Ticketmaster.
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