TECHNOLOGY
A transparent approach
Jeff Phipps, UKmanaging director at ADP , argues that this is crucial in digital transformation
A 2018 survey by Tech Prop either had a digital transformation strategy in place or were working on one. However, the pandemic has accelerated digitalisation at an unprecedented rate. Simply to survive, many organisations have had to transform rapidly, without the chance to really reflect on their efforts. This technological leap has clearly brought some great benefits – including the ability to streamline Research (https://zd.net/3tGdtQE) revealed that 70% of companies processes, reduce human error, and reach wider audiences in different geographies – but accelerating digitalisation can bring significant risks if not managed properly. Businesses can encounter significant obstacles to their digital transformation, especially when it happens rapidly. While budgets, software and infrastructure may all hamper digitalisation, some of the biggest challenges are employee resistance and reluctance to learn new systems, which can slow or even derail efforts. This is often caused by a lack of clear, timely communications between decision-makers and the employees impacted; so, business leaders need to focus on transparency. Adopting a transparent approach involves communicating with and including employees throughout the process of digitalisation – rather than announcing it as a complete package at the moment of transformation or with little notice. It may not always be welcome as change is rarely straightforward; but being transparent about the costs and benefits will earn business leaders the trust of their workforce. This trust is invaluable for engagement, retention, and ultimately success. When decision-makers are as open as possible about why digitalisation is necessary or desirable, it gives individuals a chance to ‘buy in’ and feel part of a team. Allowing individuals to understand
transformation in its early stages reduces resistance: employees and management are working together, rather than in opposition. While transparency is important to maintain culture and engagement, it is also essential for practicalities of digitalisation. New skills and retraining are necessary elements to digital transformation in any industry and depend directly on the efforts of staff. When employees either don’t understand or don’t want digitalisation, resistance to training programmes can hamper the process greatly. Re-skilling initiatives that are simply dictated by management – no matter how much research undertaken – can be ineffective or impractical when implemented. To solve these problems, employees should be included in discussions about retraining at the decision-making stage. Not only are individuals more likely to become enthusiastic about an initiative they’ve had a role in designing, but those on the ground are also best placed to expose any potential flaws before programmes are introduced. Working alongside those who will be most impacted by digitalisation can act as somewhat of a reality check both for business leaders and employees. Encouraging a culture of transparency that flows both ways will help create realistic strategies, while also allowing employers to take control of the narrative, which can otherwise become rife with speculation. For many organisations, digital transformation entails some sort of reduction or change in workforce – an understandably difficult conversation to have. But avoiding this reality until the last possible moment will exacerbate, rather than reduce, anxiety and confusion amongst staff. An open discussion about the reasons behind redundancies shows a far greater level of respect and trust for employees; feelings
which are then reciprocated. This will also allow leaders to present digitalisation as an opportunity to develop new skills and better-serve clients. Communicating honestly with employees will allow businesses to seamlessly integrate digital tools in the best way possible, by streamlining transitions from old to new skills and practices. Transitioning too quickly, or without transparency between different levels within an organisation, can lead to a loss of necessary skills, leaving businesses relying too heavily on technology at the expense of an efficient and effective workforce. Digitalisation is not a simple or linear process. Organisations may find that some functions are less efficient when the human element is removed, or that elements of digitalised work need a more personal touch to deliver the best value. Without careful collaboration throughout the workforce, these complexities are incredibly difficult to manage – but business leaders who communicate transparently will be able to take them in stride. At its best, digital transformation can enhance and improve – not replace – the work done by people within an organisation. Change is never straightforward. But with a transparent approach, digitalisation can become a smoother, more harmonious process. Lack of information is a huge factor in employee resistance: when people understand why change is happening, they want to be a part of it. If a workforce is excluded from decisions that have far-reaching consequences, however, every step of digitalisation will become an uphill climb. If businesses want to preserve their culture, ease transitions, and maximise re-skilling, they need to be transparent about their strategy and desired outcomes. Despite its complexities, digital transformation can be exciting for individuals across every level within an organisation, and when each of these groups work together far more can be achieved. n
New skills and retraining are necessary elements...
| Professional in Payroll, Pensions and Reward | March 2021 | Issue 68 44
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