HR managers today face numerous challenges, linked in particular to regulatory changes and far-reaching transformations in the workplace.
In this context, the digitalisation of HR functions should enable them to adapt more effectively and improve their efficiency. “We’ve been talking about digitalisation in businesses for a long time. However, we can see that there is still a long way to go,” comments Sophie Henrion, Managing Director of SD Worx in Luxembourg.
‘The need has been clearly identified, but taking action remains a complex matter, particularly as it involves investment, organisational change and challenging established practices.’
Centralise, interconnect, streamline
For a long time, organisations have built up their HR systems by adding applications, each designed to meet a specific need: time and attendance, payroll, recruitment, training or access management. “Many have equated digitalisation with the elimination of paper. However, the process goes much further than that,” points out Jean-Michel Lukatschewitsch, Head of Implementation at SD Worx Luxembourg. “It is about automating processes, streamlining workflows and interconnecting data in real time. “With a platform that brings all these elements together, it becomes easier to adapt and respond to new requirements and challenges.”
When a new employee joins the company, their details must be automatically fed into all relevant systems: HR management, payroll, access control, the vehicle fleet and internal tools. The increasing number of manual data entries is no longer acceptable, for reasons of both productivity and reliability.
Strengthening the company’s ability to adapt
Interconnecting data to support business processes and support services then enables the company to tackle current economic changes more effectively. “We have never seen so much consolidation in the market,” says Sophie Henrion. “When two companies merge, they often bring with them a number of different tools. However, organisations no longer want to embark on integration projects that last several years. They expect solutions that can be quickly interconnected and adapted to constantly changing environments.”
In this context, tools must therefore enhance the ability to adapt, to integrate new entities or to operate within complex international environments. Indeed, the international dimension is becoming a key factor. “Even small organisations are increasingly being integrated into groups with a presence in several countries. HR solutions must therefore be capable of meeting both local requirements and the global standards imposed by parent companies,” adds Sophie Henrion. “A central, easily interoperable data platform provides greater clarity more quickly, whilst also making it easier to integrate data from various systems.”
Responding effectively to new regulatory requirements
This approach also makes it possible to respond more effectively to new regulatory challenges. “We are currently seeing a great deal of concern surrounding the new requirements on pay transparency,” continues Sophie Henrion. “This shows that the foundations are not always as solid as one might think.”
In light of these developments, organisations must be able to quickly produce reliable data on their workforce, remuneration and any disparities between different categories of staff. “Beyond simply collecting information, companies must also be able to organise, analyse and present it in a usable format,” explains Jean-Michel Lukatschewitsch. “Regulatory requirements do not necessarily generate new data. The data already exists within the company. The real challenge lies in finding it, consolidating it, qualifying it and presenting it in a usable format.”
A company can truly be considered to have gone digital when it is able to comply with new regulations simply by retrieving data that already exists within its systems.
Turning data into a tool for decision-making
The other major challenge concerns the utilisation of HR data. This data constitutes essential management tools. Whether it be changes in the total wage bill, absenteeism, staff turnover, recruitment or skills management, HR indicators now help inform the company’s strategic decisions. “Beyond simply calculating pay, the idea is to make the most of the data and put it to work for the company,” explains Jean-Michel Lukatschewitsch. “HR data offers significant added value because it enables us to anticipate developments, identify trends and support decision-making.”
This development also paves the way for new applications linked to artificial intelligence. “However, we cannot build artificial intelligence without first having reliable, structured and secure data,” points out Sophie Henrion. In the future, AI will be able to facilitate the interpretation of data, highlight certain trends or provide predictive analyses. But its effectiveness will depend directly on the quality of the digital foundations put in place by the company.
Technology to support expertise
Whilst tools play a vital role, they are not enough on their own to address the challenges of transforming the HR function. “Investing in a solution never solves everything,” Sophie Henrion points out. “Companies will always need support to make full use of their tools and turn data into concrete action.”
It is through this combination of technology, services and expertise that SD Worx supports Luxembourg organisations in their transformation.
Today, we position ourselves as a partner capable of providing our clients with open, interconnected and scalable solutions, whilst helping them to meet the regulatory requirements and organisational challenges they face.
In an environment where data is becoming a strategic asset, the success of HR digitalisation is measured by a company’s ability to circulate information, utilise it effectively and rely on it to make the right decisions at the right time.