While busy evaluating the talent match-up of a potential transaction in the digital era, HR professionals should also glance in the mirror at their own approach to the digital age. Back in 2016, the global EY organization conducted a study that found 65% of HR rules-based processes have the potential to be automated. This year, a survey jointly conducted by the EY organization, DDI and the Conference Board found that about 70% of HR professionals saw an increased need to up their game in applying HR technology and analytical skills, and only 16% of HR professionals reported being “very prepared” to operate in a digital environment, despite leading the efforts to modernize the way talent will be developed.
Now consider that scenario when an M&A deal is on the horizon. As the deal proceeds, HR could invest in the technology and automation to do it right. Digital tools today can prepare the work in a deal that HR could never do before.
Plans for leadership and talent in a newly formed organization are likely to focus on digitally empowered people across all functions. Not only can automation make the HR function exponentially more efficient, it can assure more accurate processing of all HR information globally and across businesses and functions. Innovative HR systems should be a part of the new way to make and value deals.
Digitization can help harmonize extremely complex operating models and organizational structures that can result in the capturing and reporting of synergies. Consider the variety of rewards packages all over the world. With technology, it’s possible to document those reward systems and make better decisions through conjoint and comparative analysis. Data analytics and data visualization are vital to comparing HR policies, formulate new systems and models and gain approval for a talent strategy that will carry a merged organization forward.
But that’s just part of the importance of innovation. Technology now is utilized to garner global collaboration around a targeted new culture by leaders everywhere. All skills, attitudes and capabilities can be reinforced by culture. Culture is how people work, and HR can simulate new ways to work through technology, as well as track the adoption of new work processes. The need for data extends beyond decisions about people and business, it also helps to support inclusivity, agility and fairness — all HR priorities in today’s workplace.
Technology can enable all of this and support the transformation to the new culture even as the transaction begins. With a goal of transforming as you transact, new technologies can change how HR is done. Much of the HR role these days is intertwined with other functions, like real estate and the business units. The technology should then be able to connect data and analytics across the dispersed input. As post-transaction infrastructure and talent management become part of the conversation, it is time to make sure that the new company will join the ranks of the 64% of financial outperformers that, according to a study of the EY organization, use analytics to evaluate talent supply and demand on an ongoing basis.