Rapid digital transformation is the norm of our times. Organizations are not only having to make changes to their business delivery, but they are also needing to do a lot more to create a truly digital work experience for their employees. Of course, this has been accelerated by Covid-19 and the urgent shift for many to remote or flexible working.
People management practices have not kept pace with other technological developments. Risks involving cybersecurity, loss of personal information, and system obsolescence are heightened due to how HR data is maintained, and how benefits and other HR programs are delivered.
Misalignment of HR and business strategy:Workforce planning, organizational change management, and HR/benefit technologies and processes being inconsistent with strategic business vision.
Skills obsolescence:Gaps in workforce skillsets due to rapid digitization and automation resulting in unmet business goals.
Cybersecurity:Increasingly sophisticated and frequent cybercrimes including those that stem from people management processes and vendors resulting in business interruption and brand damage.
Data privacy:Breaches that result in loss or misuse of personal information, including those that stem from people management processes and vendors.
Obsolescent HR technologies:Failure to capitalize on technology advances that will make HR activities, benefits, and healthcare more personalized, convenient, and secure resulting in a suboptimal employee experience.
Businesses are embracing technological developments and seeing the clear benefits that a digital-first organizational strategy can bring. However, HR departments are failing to keep pace, and rising cybersecurity and data privacy concerns – especially in light of remote working, high volumes of employee benefits data, and vulnerable processes – goes beyond a HR role.
As such, HR is being challenged to accelerate digital transformation, but can only do so by ensuring that the HR strategy is in alignment with the business vision and protected through a risk lens. We urge HR and risk management teams to work together to seize the opportunities to transform programs and embrace the employee health, well-being, and risk protection benefits that digitalization can bring.