Digitalization in your Company: How to digitalize the talent development process and transform the process of HR-employee communication successfully

Topic
This master’s thesis investigates the digitalization of HR practices at Xovis, a mid-sized company. The study focuses on enhancing talent development and employee-HR communication by implementing digital tools. The central research questions include identifying the risk and success factors for digitalizing these HR processes and understanding their impact on employee engagement and organizational efficiency.

Relevance
Integrating digital tools into HR processes is increasingly important as technology advances and disrupts traditional business operations. For mid-sized companies like Xovis, staying competitive and meeting employee expectations requires effective digital transformation. This research is relevant for companies looking to enhance their HR functions through digitalization, providing insights into how digital tools can improve talent development and communication efficiency.

Results
The findings suggest that digital tools can significantly enhance efficiency and data management but must be balanced with personalized human interactions to maintain employee engagement and company culture. Key challenges include resistance to change, data security concerns, and the need for comprehensive change management strategies. Success factors involve aligning digital tools with organizational culture, providing comprehensive training, and maintaining clear and transparent communication. Digital talent profiles and an HR ticketing system enhanced transparency, performance evaluations, and career planning.

Implications for Practitioners

• Integration of Advanced Analytics:
  HR departments should leverage advanced analytics to gain insights from the data generated by digital tools. Analytics can help identify trends in employee performance, engagement, and retention, allowing HR to make data-driven decisions and tailor interventions to meet specific needs.
• Focus on Collaboration: HR departments should actively collaborate with IT and other departments to successfully implement digital tools. Collaborative decision-making can help develop effective strategies for digital transformation.
• Consideration of Data Security: Addressing data security challenges is crucial. Implementing robust security measures and ensuring compliance with data protection regulations are essential for protecting sensitive employee information.
• Balanced Integration of Digital and Personal Interaction:
  While digital tools enhance efficiency, maintaining personal interactions is crucial for building strong employee relationships. HR practitioners should balance automating routine tasks and ensuring personal touchpoints, such as face-to-face meetings for performance reviews and career development discussions.

Methods
The study followed a systematic qualitative approach to answer the research questions. First, a literature review was conducted to create a contextual basis and support the development of the interview questions. This was followed by semi-structured expert interviews with HR professionals, which provided valuable insights into integrating digital tools and the associated challenges. The interview data was transcribed and analyzed using the grounded theory method, which involves iterative coding and categorization to identify key themes and insights. Focus groups were conducted within Xovis to validate and refine these findings and ensure the recommendations were theoretically sound and practically applicable in the business context.