Other parts of this series:
- Financial services firms must quickly ready themselves for the arrival of the digital workforce
- Financial services firms must rethink the work their employees perform so they can harness powerful digital technology
- Financial services firms need to transform their HR departments to meet the needs of the emerging digital workforce
- Financial services firms are set to benefit from innovative HR departments that use analytics to deliver key business insight
The digital transformation of the workforce will compel financial services companies to overhaul how they source, manage and lead their employees.
The Human Resources (HR) departments at these organisations will be vital to the success of this transition. They’ll not only need to facilitate and support many of the changes sweeping through the workforce. They must also undergo major transformation themselves.
HR departments that get it right will be an increasingly valuable asset to the organizations they serve. They’ll help improve the efficiency and effectiveness of workers in the fast-growing digital economy. Furthermore, they’ll contribute significantly to the business performance of the enterprise.
In my previous blog I pointed out that the rise of digital technology, such as user-friendly cloud-based services, is prompting HR departments to take greater control of their IT systems. It’s also decentralising a lot of HR departments and embedding many of their traditional functions within the business.
There are some further important changes. Firstly, new digital technology is enabling HR departments to gather and analyse workforce data far more effectively. Sophisticated Human Capital Management (HCM) solutions, from vendors such as Workday, Oracle and SAP, allow HR staff to capture worker feedback and data from across the organization. The analytics capabilities of new-generation HCM systems and other advanced analytics applications enable HR departments to extract important insights from this information. Such data can be crucial to companies in the fiercely competitive financial services industry.
Better workforce data is driving another important trend. HR departments are finally able to apply predictive workforce insights to support the objectives of the organization. They’re delivering valuable information that enhances workforce management and ensures the organisation is equipped to meet its goals. The analytics capabilities of advanced HCM systems help HR departments prevent or reduce temporary skills gaps that might impair the organization’s competiveness. External talent pools can also be managed more effectively. Moreover, workforce analytics can improve significantly the planning, management and assessment of change management processes.
The HR department is evolving from a business unit that mainly improves efficiency and effectiveness into an integral part of the organization that substantially enhances its value. This transformation is elevating HR into the top echelons of the organisation. HR executives will increasingly occupy the c-suite in financial services and other industries. They’ll provide crucial insight about workforce management and talent acquisition vital for the success of the organization.
The digital transformation of the workforce will place big demands on HR departments. They’ll need to steer the workforce through enormous change and also ensure the organization capitalizes of the potential of new digital technology. HR departments that are well advanced in their own digital transformation and are quick to embrace the power of analytics will be the best guides for the digital workforces of the future.
For further information about the future of work in the new digital economy, take a look at some of these links.