How digital transformation is revolutionising HR to create strategic value

By Nomsa Mbuli, Strategic accounts leader, Ziyasiza

Traditional human resources functions are undergoing a rapid Darwinian evolution of the survival of the fittest business model.

The shape and construct of the traditional ‘HR department’ – known for tasks such as recruitment, training, performance evaluation, and employee relations – is changing at pace. The human capital function is experiencing the impact of digital transformation, which is creating space for human capital leaders and their teams to act as strategic value creators within their organisation. Digital transformation is accelerating the opportunity for human capital professionals to rewrite the playbook on how to remain a relevant business partner as organisations adapt to win in a new world of digital work.

The 2023 Deloitte Global Human Capital Trends report talks about HR becoming less of a function and more of a discipline, where people expertise is no longer solely owned by the HR department, but rather becomes part of “the fabric of the business to create multidisciplinary solutions to increasingly complex problems.”

That may be easier said than done. However, the trend towards outsourcing transactional human resources tasks to specialists, such as payroll, recruitment, and disciplinary enquiries is increasing. This shift is primarily driven by concerns about the cost and efficiency of maintaining a fully-fledged traditional HR department where the organisation could possibly benefit from outsourced service providers delivering the expected quality and service at a lower price point – without the hassle.

By focusing on the area of greatest strategic value creation, human capital teams can help their organisations create a future-ready workforce that is adaptable, technology savvy, and able to adapt with flexibility to new ways of work. As automation and technological advancements reshape job roles, there’s a pressing need for upskilling and reskilling initiatives within organisations.

To stay ahead, human capital leaders must consider unbundling components within talent management that require specialised attention and skills. This includes investing in capacity- and competency-building projects requiring technical skills and scarce critical skills, much of which is being driven by digital transformation.

Expleo’s 2023 Business Transformation Index highlights the acute shortage of digital skills is the most common barrier to business transformation progress, across all sectors. This is where the human capital function can make a marked difference as a strategic business partner. Clearly, the key ingredient to winning is investing into critical skills to create a workforce that is purpose-driven, appropriately skilled, and technology savvy.

For example, automotive manufacturer Toyota embarked on an initiative to use “citizen development” to drive digitalisation in the company. By employing Microsoft Power Platform, the company was able to tap into its citizen developer community for first-hand knowledge and experiences, expertise sharing and quality assurance support. The project included more than 3 000 employees in six months.

However, change brings complexities, especially for organisations slow to respond to digital transformation. Embracing change realities is essential to retain talent and drive success in the digital era.

A digitally transformed workforce enhances employee engagement, improves culture, centralises data, and increases communication and flexibility. Increasingly, it includes hybrid and remote work options. It opens doors to global markets, which also intensifies competition, challenging organisations with technology advantages.

We are at a critical juncture in the development of people for a world of work that we are still trying to understand. Today’s digitally transformed workplace requires specialised talent management attention to retain skills and focus on core business stability. In addition, we must be mindful that the investment in digital skills will have a positive impact on communities and skills transfer, which can begin with investments at an early childhood development stage.

There are five priorities for human capital leaders to focus on as they begin to capitalise on the advantages that digital transformation offers:

• Assess current skills and future needs by conducting a comprehensive skills audit to identify existing skills and determine those needed to thrive in the digital era.
• Develop a strategic workforce plan that defines how the organisation will acquire, develop, and retain talent to achieve its digital transformation goals.
• Leverage data and analytics to inform decision-making and identify trends, patterns, and opportunities for improvement.
• Continue to invest in learning and development, especially focusing on building digital literacy and technical skills among employees.
• Embrace talent management practices to enable flexibility, collaboration, and rapid adaptation to changing business needs, within a strong organisational culture and values framework.

Human capital leaders and their teams should leave transactional tasks to outsourced specialists and instead focus on becoming strategic business partners. The modern human capital leader who can master this will be an invaluable asset as they direct their organisations’ people priorities to benefit from digital transformation and help them remain competitive in an increasingly dynamic business environment.

Nomsa Mbuli is leading strategic account growth at Ziyasiza, a South African professional services firm focusing on governance, integrated risk, talent, and technology. She is a multi-talented professional, with more than 25 years’ experience in Human Resources, Employee Relations, Talent Management and Business Development.

Nomsa has earned her experience in several sectors, including mining, banking, NGOs, aviation, and professional services.

She is a champion of diversity, inclusion, and women empowerment in the workplace.