HR news

Digitalisation in HR administration

Published · updated · 3 min read

Over 80 per cent of retailers use digital tools in HR administration – yet few see real progress in them. The actual challenge lies not in the technology but in using it strategically, so that it makes day-to-day HR noticeably simpler.

Key points

  • Many companies use digital HR tools – without well-considered integration, the potential stays untapped.
  • Disconnected systems, outdated technology and missing interfaces slow efficiency noticeably.
  • Self-service portals, mobile HR apps and automated processes streamline work and relieve staff.
  • Artificial intelligence takes on growing parts of HR administration – but demands clear rules on data protection and ethics.
  • Used in a structured and responsible way, HR becomes a driving force for innovation.

The tools are there – the progress often is not

81 per cent of retail companies use digital programmes according to Statista (2022); but only 20 per cent of HR managers rate the development as “very positive” according to the aconso study (2023). The reasons for the gap:

  • Missing interfaces between HR systems and other departments
  • A high training requirement for staff
  • Outdated legacy systems that prevent automation
  • Small budgets for digital HR projects

In many places HR counts as less digitalised than other business functions. Anyone taking digitalisation seriously makes HR not the laggard but the driver of innovation.

Between efficiency gain and added burden

According to the IDG study (2021), 40 per cent of employees report a rising workload caused by digitalisation – mostly because of poorly coordinated systems and a lack of process improvement. Fragmented applications lead to parallel processes, duplicate entries and breaks between media. A central problem is the proliferation of tools: applications are introduced without coordination, without central steering or a consistent interface.

The pandemic accelerated digital HR processes drastically – often without strategic coordination: digital personnel files for access from anywhere, hybrid recruiting with automated interview processes, e-signatures for contracts. The potential is there; for digitalisation not to become a brake, the processes have to be coordinated with one another.

Where the benefit is measurable

Clear efficiency gains show up in standardised processes such as digital payroll or automated onboarding – according to the aconso study (2023), 79 per cent of respondents see the greatest benefit here. The digital personnel file reduces archive space by an average of 73 per cent; according to Kenjo HR statistics (2019), modern solutions save up to 40 per cent of the time spent on administrative tasks.

Automation and people analytics

AI-based recruiting platforms take on pre-qualification of applicants through matching algorithms, automated interview scheduling and structured feedback management. Data-based evaluation – at KPMG, for example – supports forward-looking HR strategy with figures and dashboards.

Software: getting started and scaling

Small companies start with open-source solutions; those with broader requirements turn to complete suites with modules for payroll, time recording and compliance.

AI, data ethics and agile organisations

Responsible use of AI in HR needs guard rails:

  • Data protection concepts strengthen trust and secure compliance.
  • Agile HR structures support quick adjustment and a culture of learning.
  • Flexible, data-based organisations decide on facts without losing sight of their people.
  • Continuous training builds digital competence and ethical awareness in the HR team.

Clear processes in people analytics and digital ethics bring innovative strength and the protection of employees into balance.

Conclusion

Digitalisation in HR administration is not decided by the toolbox but by integration: connected systems, coordinated processes and trained teams turn digital tools into real relief. Anyone approaching that strategically makes HR a driving force for innovation and growth.

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