KPMG. (2025, June 6). KPMG’s Sri Lanka Academy: Your Rights, Your Responsibility (KPMG Webinar) [Video]. YouTube. https://youtu.be/rTPHOGrFpz8
Introduction
In the era of rapid technological advancement, digital change has changed the whole nature of the ways organizations do business, particularly in HRM. HR was previously seen as a function that supported the business but is now a strategic partner that has been enabled using technologies like HRIS, cloud computing, AI, and data analytics. The change from manual HR to digital systems is not only about saving time but also about building a responsive, people-centric, and data-driven HR environment.
1. The Nature of Digital Transformation in HR
Digital transformation in HR involves automating, optimizing, and rethinking HR functions using digital tools. This includes:
- HRIS (Human Resource Information Systems) for storing and managing employee data.
- Cloud-based platforms for anytime-anywhere access to HR services.
- AI-powered tools for recruitment, learning, and performance management.
- Analytics for making data-driven HR decisions.
The study puts forward that organizations are installing the use of technological gadgets like Applicant Tracking Systems (ATS), big data analytics, and mobile platforms in the very core of HR functions such as recruitment, payroll, and learning management. The survey reveals that more than 70% of HR managers affirm that they cannot do without the tool like HRIS in the current digital HRM environment.
- Digitalization has significantly impacted core HR areas: Recruitment & Selection: Platforms with AI capabilities streamline hiring and reduce biases.
- Training & Development: Customized learning paths using LMS and VR-based training are becoming common.
- Payroll & Benefits: Automation reduces errors and saves administrative time.
- Performance Management: Real-time feedback and digital appraisals support agile work environments.
The study found that 55% of organizations have adopted digital systems for payroll management, and 64% for recruitment and selection
3. Tools and Technologies
- Organizations are leveraging a variety of tools:
- HRIMS (HR Information Management Systems)
- Artificial Intelligence and Machine Learning
- Blockchain for secure record-keeping
- Virtual Reality for immersive training
- Process Automation to eliminate repetitive tasks
Interestingly, 91% of HR managers plan to expand process automation, while 93% reported using Digital Employee Management Systems
4. Challenges of Digital HR Transformation
Despite its benefits, digital HR faces notable challenges:
- Skill gaps: 66% of HR managers cited the need to build digital skills.
- Cross-functional cooperation: Collaboration with IT and other departments can be difficult.
- Security and compliance: Handling sensitive employee data requires robust systems.
- Resistance to change: Organizational culture can inhibit the successful adoption of new tools
Ahmad, I., Shahzad, K., Ahmad, M. & Ali, H. (2023) 'Exploring human resource management digital transformation in the digital age', Journal of the Knowledge Economy, 14(3), pp. 1789-1812.
Bondarouk, T., Parry, E. & Furtmueller, E. (2017) 'Electronic HRM: four decades of research on adoption and consequences', International Journal of Human Resource Management, 28(1), pp. 98-131.
Chinyama, K.M. & Bwalya, K.J. (2025) 'Traditional to digital: human resource management transformation', Journal of Work-Applied Management, 17(2), pp. 185-201.
Ahmed, S., Patel, K. & Thompson, R. (2024) 'Human resource information system (HRIS): navigating the implementation, challenges, and benefits', Journal of Information Systems and Technology Management, 21(3), pp. 145-164.
Need to add citations and the reference list.
ReplyDeleteAs someone who values efficiency and innovation in the workplace, I find the shift from traditional HRIS to cloud-based systems truly transformative. It’s not just about upgrading technology—it’s about empowering HR to be more agile, data-driven, and people-centric. Personally, I’ve seen how cloud platforms simplify processes, improve access, and support smarter decision-making in real time. It’s a step forward every modern organization should embrace.
ReplyDeleteYour post on the digital transformation of HRM—from cloud-based systems to HRIS—offers a concise and insightful summary of how technology is changing HR procedures. I like how you emphasized the advantages of cloud solutions, such as enhanced data management, flexibility, and accessibility. Modern HR departments must adopt these innovations if they want to remain effective and flexible. I appreciate you sharing these insightful observations about this developing field.
ReplyDeleteThis blog offers a comprehensive and timely overview of digital transformation in HRM within the Sri Lankan context, highlighting crucial technologies like HRIS, cloud computing, AI, and analytics that are reshaping HR functions from transactional to strategic roles.
ReplyDeleteThe emphasis on tools such as Applicant Tracking Systems and AI-driven learning platforms aptly reflects current global and local trends. As a Sri Lankan, I appreciate how the blog realistically addresses key challenges, including digital skill gaps (noted by 66% of HR managers), cross-functional cooperation difficulties, security concerns over sensitive employee data, and organizational resistance to change, which are highly relevant here as outlined in Sri Lanka’s National Digital Economy Strategy 2030.
However, the blog could be strengthened by offering more localized insights on initiatives aimed at overcoming these barriers, such as government-led capacity building to enhance digital skills and industry collaborations to align HR and IT efforts. Further, including examples of successful Sri Lankan companies that have effectively transitioned to cloud-based HR systems and AI adoption would improve its applicability.
Overall, this blog effectively stresses that embracing digital HR tools is indispensable for Sri Lanka’s future-ready and agile workforce, though it would benefit from deeper engagement with ongoing national strategies and practical implementation stories to provide a fuller picture and actionable guidance.