At the beginning of 2020, nobody could have possibly predicted the massive changes to the global economy that have occurred since the onset of COVID-19. This has proven to be a game changer like no other, with office employees around the world forced to work from home or deliver services remotely. The long-term consequences of what is happening right now will only be fully understood in years to come but this does not change the fact that business critical departments have to make decisions in the here and now about what to do next.
In this article, we will examine how the global pandemic has impacted the HR Department at multinational companies around the world -in particular, we will look at the impact it is likely to have on potential digital transformation projects and the likelihood of these projects being fast tracked as leadership teams everywhere look to respond with urgency to minimize the negative consequences associated with the global pandemic.
Invest now?
This is an important question and HR managers will be in discussions with the wider leadership team at multinational companies to decide whether or not now is the right time to fast track projects around digital investment or to simply hold fire and see what plays out in the market.
It is a volatile time as the global workforce may be undergoing dramatic change. Remote working has become the new normal, and companies looking to get out in front of the curve may now examining ways to make a large part of their workforce fully remote or distributed. This is all well and good if the network connectivity and digital tools are of a sufficient level to support the remote delivery of services. This is about a lot more than stable internet connections and video calls-it is much more about data security, employee welfare and employment legislation that is now being asked to create a set of governance rules for a workforce that may no longer be located in an office environment on a full-time basis.
There are major implications for multinational companies everywhere when it comes to employee location and how they deliver their duties. Contracts may need to undergo significant amendments and the manner in which companies deliver services may also be significantly disrupted. There is a lot to think about and HR managers now find themselves in a delicate balancing act -they want to avoid rushing into anything or making rash decisions but at the same time, action is needed in order to secure the right levels of talent around the world to maintain or create a competitive edge in the market. Investing in a digital transformation project right now may prove to be the wisest thing to do or it may prove to be a bit of an overreaction as time and circumstances may reveal that a more prudent approach and a little bit of patience could have delivered more dividends in the long run. Right now, we simply don’t know.
Digital Transformation
Trends of digitalisation, which were already apparent before the virus struck, have rapidly accelerated as many corporations feel that there is simply no time to waste, especially if some of their more business critical functions have been lacking when it comes to modern and innovative digital tools. In these cases, digital transformation projects are being greenlit, investment has been secured and project managers are already engaged and working towards pressurized deadlines.
It is clear that there is a fear of missing out or a fear of not being ready for a new global workforce in play here, and many HR managers will be more than happy to secure funding that can transform any dated legacy technology they have into innovative tools that will help them source, interview, secure and on board new employees in multiple locations.
It may be a case that HR digital transformation projects are easier to get fast tracked right now as people are more willing to roll the dice with confidence, given that the emerging situation appears to point towards a new, remote and geo-dispersed global workforce. But what about those HR departments that have not begun or even considered to transform their legacy technology into an innovative digital process?
Do these HR departments risk being left behind completely? Perhaps some of them had not planned a digital upgrade at all in 2020 or 2021, believing that time was on their side or perhaps waiting for the next wave of cutting-edge technology and getting on board then? These departments will now be faced with a much more urgent problem as they may struggle to hire in an environment that no longer supports face to face meetings. It may also be an environment in which the remote worker is in the position of power.
A virtual new world
If the new employee world is likely to be a virtual one, then only those HR departments who have undergone a digital transformation are in a position to prosper in this world - those who have not will be beset by problems, inadequate technology and a feeling that they are unprepared for the new order of things.
HR managers will be very keen to avoid this scenario and will be pressing home an urgent message to leadership teams everywhere, that if they want to hire the best employees and on board them quickly in order to meet strategic objectives, then the HR Department must be equipped immediately with innovative tools and digital technology that will help them meet all of their recruitment needs.
The challenge they will face of course, is that every other department in the business will likely to also be requesting some form of digital upgrade -the nature of the coronavirus and its consequences is that it affects all aspects of a business, so demand will be coming from all sides for investment in a digital upgrade. CIOs, CFOs and other leadership executives will be faced with difficult decisions around how to prioritize investment in digital technology. Each department will have a valid business case, and each will likely highlight the consequences of being ignored.
What is needed now?
A digital upgrade can take many forms, but you can expect HR managers everywhere to be looking at immediate short-term requirements that can help then recruit staff and also better enable existing staff. Automation tools, communication tools, video conferencing technology, online apps and integrated platforms will top their list as they will stress the need for robust and more secure connectivity across current and future business functions.
AI, machine learning, more advanced reporting and real-time analytics may also be on their wish -lists but, they will likely have to content themselves with what they can get as budgets tend to be tightened during times of economic uncertainty. Any platform technology that can direct employees to the information or data they need in a simple and helpful way will be welcome too as this can significantly reduce the number of queries going into a HR Department. A greatly improved digital experience can also serve to put employees at ease as they can then sense that their employer is in control and has the digital ability to manage the headwinds created by the global pandemic situation.
Decisive action is needed to fast-track a digital transformation project in a HR department, but this also has to be balanced with a certain level of patience because the reality is -digital transformation is a journey, not a quick fix. It takes time, investment and expertise -people require training to adapt to new digital tools and you cannot simply force next generation digital innovation onto an unprepared workforce and expect them to just go with it.
They will need time to adapt and it is worth bearing in mind, that COVID-19 has already asked them to adapt and change significantly to a new working environment, so it is important to be mindful not to push too much onto them too soon. Change, like any other business process, needs to be introduced gradually and manage continuously.
That said, global employees everywhere need to get used to a new working normal and they can expect to be working with more digital tools in the future if the business environment demands that the digital route is the only way forward for the foreseeable future.