Team Zalaris Archive

Multi-Process HR Outsourcing (MPHRO) is an advanced HR service model that enables organisations to streamline multiple HR functions by entrusting them to a single, strategic outsourcing partner. Rather than handling payroll, time, recruitment, benefits administration, and compliance separately, businesses can consolidate these processes into a unified and integrated solution.

MPHRO providers offer end-to-end HR support, leveraging innovative technologies on cloud platforms such as seamless automation, continuous data synchronisation, AI-powered support, and real-time analytics to optimise workforce management.

Unlike single-process outsourcing, where only one HR function is outsourced at a time (e.g., payroll or recruitment), MPHRO centralises multiple processes under one provider. This approach eliminates fragmentation, reduces operational inefficiencies, and enhances overall workforce productivity. With HR functions becoming increasingly complex due to global and local compliance regulations, increasing expectations around employee experience, and evolving technologies, organisations are seeking comprehensive and standardised solutions across borders that decrease their administrative loads and facilitate strategic initiatives.

The demand for MPHRO is growing rapidly. According to a recent report from the Everest Group, the global MPHRO market is projected to expand at a CAGR of 7-9% through 2025. Read on to dive deeper into key MPHRO capabilities, differences between single-function solutions and MPHRO solutions, and the advantages and challenges of MPHRO.

What does MPHRO do?

Multi-Process HR Outsourcing consolidates all major HR functions under a single provider, ensuring seamless and efficient workforce management. Rather than relying on multiple vendors or handling HR tasks internally, organisations benefit from a unified outsourcing solution that provides continuous support.

The following functions are typically included in a MPHRO solution:

Payroll processing: Employee compensation, tax calculations, and statutory compliance with local and international payroll regulations are managed by the HR partner. Automation is used to reduce payroll errors, minimise administrative burdens, and ensure accurate, timely payments.
Recruitment and talent acquisition: MPHRO providers manage end-to-end hiring processes, including candidate sourcing, screening, and onboarding. AI-driven tools and analytics improve talent acquisition strategies, reducing hiring time while enhancing candidate quality.
Employee benefits administration: Health insurance, retirement plans, paid leave, and other benefits are administered. A centralised approach ensures accuracy, timely updates, and compliance with regional regulations.
Workforce analytics: HR data is collected and analysed to provide insights that support strategic decision-making. A centralised data system aids in tracking performance trends, design retention strategies and optimise workforce planning.
Compliance management: HR providers ensure adherence to labour laws, industry regulations, and data protection policies such as GDPR and local employment laws. Legal risks are mitigated through continuous policy updates and alignment with regional requirements.
Core HR services: Leverage simplified management of employee records, contract administration, and HR policy implementation. Centralised record-keeping ensures consistency across multiple locations, improving operational efficiency.
Technology implementation and integration: A strategic HR partner can support the deployment and maintenance of HR technology platforms, including upgrading to newer systems. Different functions such as time and attendance and payroll are integrated to enable seamless data flow between HR, payroll, and workforce management tools.
Standardised operations across countries: With an MPHRO system, various locations and countries can be unified under a single system, improving consistency in employee experience across the globe, centralising business data and ensuring effortless compliance with local payroll and data regulations.

Why do organisations prefer MPHRO over single-function HR systems?

When HR functions are managed separately, it often results in inefficiencies, errors, and a fragmented employee experience. The need to coordinate multiple vendors, manually reconcile data, and integrate systems can lead to operational slowdowns and an increased administrative workload. These issues are compounded when an organisation operates in multiple locations or countries and relies on isolated providers.

By consolidating HR processes under a single provider, redundancies are eliminated, operations are streamlined, and service delivery is enhanced. Administrative burdens on HR teams are reduced, and employees benefit from a unified and efficient HR experience.

Key differences between single-process and multi-process outsourcing:

	Single-Process HR Outsourcing	Multi-Process HR Outsourcing (MPHRO)
Scope	Singular and isolated HR functions.	Multiple HR functions under one provider.
Scalability	Difficult to scale across multiple locations or countries.	Seamlessly scales to include more locations or countries.
Efficiency	Fragmented, requires multiple vendors.	Streamlined, reduces redundancies.
Technology	Separate platforms for each function.	Unified digital system.
Decision-making	Scattered data, limited insights; limited analytics and strategic support.	Centralised data for better decisions and continuous support from strategic partner.
Cost	Higher long-term costs due to inefficiencies.	Cost-effective, integrated system.
Compliance	Managed separately, risk of inconsistencies.	Holistic compliance across functions.
Employee Experience	Multiple providers, inconsistent service.	Seamless, integrated HR support.
Strategic value	Short-term solution, difficult to drive digital transformation and long-term efficiency.	Long-term solution that can grow with the organisation and drive innovation.

Beyond functional services, HR partners also provide strategic guidance, design HR policies, drive innovation and create roadmaps for long-term success. The Hackett Group’s analysis of MPHRO providers revealed that 87% of buyers see their MPHRO providers as sources of both digital and thought leadership, underscoring the significant role these partnerships play in driving HR excellence.

Key ways in which MPHRO can enhance operational efficiency

Streamlining operations

MPHRO brings multiple HR functions into a single system, reducing redundancies and establishing seamless HR operations. By consolidating payroll, recruitment, benefits, and compliance management, organisations will no longer need separate systems or vendors.

Automation and cloud-based tools reduce manual tasks, speed up data processing, and minimise errors. For example, advanced payroll systems automatically update for changes in tax laws or employee benefits, ensuring seamless compliance with changing regulations. MPHRO also helps organisations manage challenges like budget limitations and data inconsistencies.

Improving decision-making

MPHRO centralises all HR data into one system, enabling organisations to make informed decisions faster. This makes it easier to analyse trends and draw insights into metrics like employee performance, turnover rates, and recruitment timelines. With continuous access to real-time reports, HR leaders can identify and mitigate emerging issues.

A study by The Hackett Group found that organisations using MPHRO are better at handling challenges like budget constraints and data inconsistencies compared to organisations relying on single-process outsourcing. Centralising HR functions allows for quicker, more informed decisions, which helps organisations stay agile and focused on their goals.

Enhancing productivity and employee experience

By outsourcing administrative HR tasks, MPHRO allows HR teams to focus on strategic priorities such as employee development, engagement, and workforce planning. This shift improves HR’s overall impact on business growth.

MPHRO can also enhance the employee experience through self-service portals. These portals let employees manage their personal information, payslips, benefits, and time off with ease, reducing their reliance on HR teams for basic requests.

As Forbes notes, today’s employees expect HR systems to be as user-friendly as the consumer technology they use daily. A clunky, fragmented HR system can cause frustration and impact daily productivity.

Driving HR transformation

MPHRO solutions often include HR transformation services that help organisations move beyond administrative tasks and focus on strategic objectives. Continuous management support and smooth integrations can ensure that your organisation stays up to date with emerging HR technologies and maintains business continuity.

Challenges and costs associated with migrating to modern HR systems can be significantly reduced by partnering with HR outsourcing providers with expertise in HR integrations and implementations.

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Overcoming challenges in Multi-Process HR Outsourcing

While MPHRO offers numerous benefits, organisations must address certain challenges to ensure successful implementation:

Balancing standardisation and customisation: MPHRO provides a unified approach to HR, but organisations with diverse regional operations may require customised processes based on local regulations and compliance rules. Organisations and their HR partners must strike the right balance between standardised global HR frameworks and local adaptations.
Change management and internal adoption: Transitioning to MPHRO requires a shift in processes, technology, and employee expectations. Resistance to change, lack of internal alignment, and inadequate training can hinder adoption. A well-structured change management plan – including clear communication, leadership buy-in, and employee training – can drive smooth transitions and ensure long-term success.
Integration with existing systems: Seamless integration between the new HR systems and the organisation’s existing platforms is essential to maintain operational continuity. Partnering with experienced integration specialists can facilitate this process.
Data migration complexities: Moving large volumes of HR data from multiple legacy systems into a centralised MPHRO platform is a complex process. Ensuring data accuracy, avoiding duplication, and preventing data losses requires meticulous planning and execution.
Loss of direct control over HR processes: While MPHRO enhances efficiency, some organisations may hesitate to relinquish direct control over critical HR functions. Establishing clear service-level agreements (SLAs), governance frameworks, and regular reports ensures transparency and alignment with business objectives.
Selecting the right HR outsourcing partner: Organisations should evaluate potential MPHRO providers based on their ability to tailor solutions to unique needs, local presence in regional markets, and continuous support.

Adopting Multi-Process HR Outsourcing can significantly enhance organisational efficiency by streamlining HR and Payroll operations, improving decision-making, and freeing-up internal HR capacity to focus on what matters the most: your people. As the MPHRO market continues to grow, organisations have the opportunity to partner with experienced HR services providers like Zalaris to ensure long-term success.

If you are looking for a comprehensive solution to HR and Payroll management? Zalaris’ HR Excellence services include four powerful hubs to deliver holistic HR experiences. Manage everything from payroll to talent with ease using the centralised, multi-location HR Operations Hub. Smooth HR ramp-ups and seamless tech integrations are powered by the HR Transformation Hub. The HR Process Hub ensures top-tier efficiency and compliance with expertly designed HR processes by subject matter experts. HR Partner Plus offers on-demand HR Business Partners without the cost of full-time hires.

Interested in knowing more? Get in touch with our experts today.

Under the new Payday Super legislation, announced by the Australian Government and overseen by the ATO, superannuation must be paid at the same time as wages. This shift impacts every employer, not just in timing, but in how payroll, reporting, and cash flow are managed.

Although not yet law, the reforms have a clear objective: to improve retirement outcomes and address the billions in unpaid super reported each year. But the road to implementation won’t be simple.

Five core changes that will reshape Payroll operations

The shift to Payday Super isn’t just about timing — it changes how payroll systems must function day to day. Employers can no longer rely on quarterly processes or batch updates. These are the five biggest operational changes:

Super must be paid on payday
No more end-of-quarter catchups — superannuation must be remitted at the same time as wages
If funds are not received in an employee’s superannuation account within 7 days, the employer will be liable to pay the SG charge, even ahead of the ATO issuing an assessment. An employer in this situation should make contributions to their employee’s superannuation fund as soon as possible to minimise their liability and penalties.
Real-time reporting becomes essential
STP2 reports need to reflect super contributions per pay event. Any delays or mismatches will be flagged faster.
Payment validations must tighten
Weekly or fortnightly cycles leave no room for late corrections. You’ll need instant feedback loops to catch errors.
Funding pressure increases
With shorter windows between pay events and super deadlines, treasury models and approvals must be leaner.
Integration with super clearing becomes critical
You’ll need to automate through compliant platforms (such as WRKR) to avoid manual uploads and delays.

How will Payday Super changes affect employers?

For employers used to quarterly super contributions, the shift to more frequent payments introduces significant pressure on systems, cash flow, and team capacity.

Industries with high turnover, variable rosters, or weekly pay cycles, like retail, hospitality, and healthcare, will be hit hardest. These organisations must now manage super contributions in sync with every pay run, leaving less room for error or delay.

The challenge isn’t just frequency, it’s responsiveness. Payroll systems must now validate and process contributions in near real-time. Legacy platforms or semi-manual workflows simply won’t keep up. Processing super manually every week or fortnight increases admin workload, error risk, and compliance exposure.

For many, this reform is a trigger, not just to comply, but to modernise. Whether you’re already using SAP Payroll or considering a move, now is the time to reconfigure, automate, and future-proof your payroll operations.

Payday Super isn’t just a compliance deadline, it’s a wake-up call for organisations to modernise how they manage payroll. With increased scrutiny and tighter payment cycles, businesses can no longer afford to rely on outdated systems or manual workarounds. Now is the time to invest in payroll solutions that not only meet today’s legal requirements but also scale for the future. Future-proof payroll isn’t a nice to have anymore, it’s essential for protecting your workforce, your brand, and your bottom line.

– Mike Ellis, EVP Zalaris and ANZ Payroll Expert

Technical impact for SAP Payroll teams

To meet the new compliance model, updates will be needed across:

SAP Payroll configuration (pay date logic, super calculation timing)
STP2 reporting cadence and accuracy
Payroll Control Center (PCC) rule adjustments
Funding models and approval workflows
Payroll calendar frequency and exception handling

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Comprehensive Payroll Management That Goes Beyond Payday Super

Zalaris doesn’t just help you comply with Payday Super; we help you build a better payroll operation. Our end-to-end SAP SuccessFactors Payroll management solution supports every stage of the payroll lifecycle, from system configuration and STP2 reporting to real-time super payments and funding alignment.

This integrated approach helps you:

Reconfigure SAP Payroll for new compliance standards
Implement SAP SuccessFactors with a future-proof foundation
Migrate from outdated legacy platforms without disruption

Through our partnership with Wrkr, a specialist in superannuation automation and STP compliance, we bring payroll operations into real-time. Combined with Zalaris’ deep SAP expertise, this enables full visibility, accurate contributions, and seamless payment execution, all in one compliant workflow.

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About Zalaris

Zalaris is a leading global provider of SAP HCM-focused HR and payroll services, with 25+ years of experience supporting organisations with standard, complex, and multi-country payroll needs. In Australia, we focus on helping mid-market businesses modernise their HR and payroll operations through expert advisory, implementation, managed services, and ongoing support.

With operations in 100+ countries and flexible smart-shoring options, we deliver high-quality payroll consulting services focused on compliance, cost-effectiveness, and risk mitigation.

Our PeopleHub solution is an SAP Qualified Partner-Packaged Solution for ANZ, offering rapid, cost-effective deployment of SAP SuccessFactors and Cloud Payroll. It provides access to leading technology and pre-configured best practice processes, designed to ensure local compliance while supporting global scalability. PeopleHub helps organisations streamline operations, manage costs, and reduce risk, while future-proofing their HR and payroll capabilities.

Recognised with the SAP ANZ Partner Excellence Award 2025 for People Development, our Australian consulting team brings deep SAP SuccessFactors and payroll expertise to every engagement.

Simplify work life. Achieve more. For more information about us, go to zalaris.com.

Figures underscore its growing popularity: the global human resource outsourcing market stood at approximately $39.25 billion in 2024. Expectations predict it to reach $57.59 billion by 2033.

So, how can organisations leverage key aspects of HR outsourcing to align it with their strategic objectives and drive long-term success?

Let’s examine the main types of HR outsourcing models and discover their practical benefits and potential challenges. The article assists HR and operational leaders identify which model best fits their needs. Whether the objective is to reduce administrative burdens, access specialised HR capabilities, or support geographic expansion, this guide offers a structured overview of the key considerations. It also highlights how outsourcing can serve as a long-term value driver for modern HR operations when aligned with the right partner and technology.

What is HR outsourcing?

In general, outsourcing refers to the practice of delegating specific business functions or processes to third-party service providers, typically to reduce costs, gain access to specialised expertise, or improve operational efficiency. Organisations often outsource functions that are not part of their core business activities, allowing them to focus resources on areas that directly contribute to their primary goals.

HR outsourcing follows this approach, specifically focusing on human resource responsibilities. This can include functions such as payroll processing, benefits administration, recruitment, and compliance management. By outsourcing these HR tasks, organisations can leverage external expertise, reduce operational costs, and enhance service quality, all while maintaining focus on their core business activities.

Types of HR outsourcing services

The different types of HR outsourcing services are essential for organisations to understand in order to make informed decisions. In this section, we will summarise the key HR outsourcing models.

Professional Employer Organisation (PEO):

In this model, the PEO becomes the employer of record for tax and compliance purposes, handling HR functions such as payroll, benefits, and compliance. This co-employment arrangement is particularly beneficial for small and medium-sized enterprises expanding into new markets, where local employment laws can be complex and time-consuming.

Administrative Services Organisation (ASO):

ASOs provide administrative support without entering a co-employment relationship. They handle tasks like payroll processing, benefits administration, and compliance assistance, allowing organisations to maintain control over their workforce. This model works well for organisations seeking process efficiency while preserving internal decision-making and cultural alignment.

Human Resources Outsourcing (HRO):

HRO involves outsourcing core HR functions, such as recruitment, training, or performance management, to specialised providers. For instance, an organisation may outsource recruitment during high-growth phases to scale faster without overburdening internal HR. Similarly, learning and development functions can be externalised to bring in up-to-date expertise and reduce training costs.

Business Process Outsourcing (BPO):

BPO extends beyond HR to include other business functions, but in the HR context, it often means outsourcing the entire employee lifecycle, from onboarding to exit management. BPO providers typically offer integrated platforms to support high-volume, process-driven operations such as shared service centres or pan-European HR operations.

Benefits of outsourcing Human Resources

Outsourcing HR functions can offer several advantages:

Cost savings: By outsourcing, organisations can reduce expenses related to hiring, training, and maintaining an in-house HR team.
Access to expertise: External providers bring specialised knowledge and experience, ensuring HR functions are managed effectively and in compliance with regulations.
Enhanced compliance: Staying abreast of changing employment laws can be challenging. Outsourcing partners help ensure compliance, reducing the risk of legal issues.
Improved efficiency: Outsourcing allows internal teams to focus on strategic initiatives by offloading time-consuming administrative tasks.
Scalability: As organisations grow, outsourcing partners can adjust services to accommodate changing needs without the complexities of expanding internal teams.

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Challenges when outsourcing HR

While HR outsourcing offers numerous benefits, organisations should be aware of potential challenges and understand how to manage them effectively:

Loss of control: Delegating HR functions can sometimes lead to reduced oversight. Defining service-level agreements (SLAs), reporting expectations, and escalation procedures from the outset is critical to mitigate this.
Cultural misalignment: External providers may not fully grasp the organisation’s values or tone of voice, which can impact employee experience. Ensuring providers are briefed on internal culture and included in internal communications planning helps maintain consistency.
Data security concerns: Outsourcing involves sharing sensitive employee information. Selecting providers that comply with ISO/IEC 27001 standards, use encrypted platforms, and implement robust access controls can significantly reduce data risk.
Dependence on providers: Over-reliance can pose risks if the provider underperforms or the partnership ends. Maintaining strong vendor governance, exit clauses, and fallback processes ensures operational resilience.

Proactively addressing these challenges increases the likelihood of long-term success and strengthens the partnership between HR teams and outsourcing providers.

How to choose the right HR outsourcing model

Selecting the appropriate HR outsourcing model depends on various factors:

HR outsourcing — a smart strategy for today’s businesses

HR outsourcing has evolved into a strategic tool that enables organisations to optimise their human resource functions, ensuring compliance, efficiency, and access to specialised expertise. With proper implementation, outsourcing allows internal HR teams to focus on what matters most: talent development, workforce planning, and organisational growth.

Zalaris offers a comprehensive range of HR outsourcing services, including HR and payroll outsourcing, time and absence management, and advanced workforce analytics. With specialised expertise across industries and regulatory environments, we support organisations in standardising HR operations, ensuring cross-border compliance, and enhancing employee satisfaction.

Our solutions integrate seamlessly into existing systems and are backed by scalable architecture to meet the demands of growing and geographically diverse organisations. Explore how our HR outsourcing services can help transform operations. Book a consultation today and take the first step towards a smarter HR function.

To unlock true potential, HR must evolve into a proactive business partner—leveraging data, technology, and expert consulting to achieve measurable outcomes.

By adopting a consulting-inspired approach to strategic HR, organisations can align people practices with business goals, improve decision-making through data, and build more agile, employee-centric operations. This article explores the essential components of an effective HR strategic plan, provides actionable HR strategy examples, and highlights the role of HR management consulting in driving long-term success.

What is an HR strategy?

HR strategy is a comprehensive approach that aligns the organisation’s human resources practices with its overall business objectives. An effective strategy, therefore, goes beyond traditional personnel management to encompass strategic talent management, driving organisational success.

Modern HR strategies take a more proactive approach, using cross-functional collaboration between HR, finance, and operations to anticipate market disruptions. There is a greater emphasis on people analytics to predict future outcomes rather than merely analysing past trends. Overall, the focus of an HR strategic plan has shifted from recruitment to retention.

Key elements of a successful HR strategy

To develop a comprehensive HR framework, the key elements are the following:

These key pillars can be further narrowed into three core areas:

1. Workforce planning: Assessing current skills and capabilities while forecasting future talent needs based on business goals and market conditions.

2. Employee engagement, wellbeing, and diversity: Fostering a positive, engaging, and healthy work environment. Using employee wellness and work-life balance initiatives together with diverse and inclusive hiring practices.

3. HR policies, procedures, and data evaluation: Defining policies that ensure consistency, fairness and compliance, and establishing HR metrics aligned with business objectives.

How to implement an HR strategic plan & best practices for success

Successfully implementing an HR strategic plan requires structured execution, stakeholder engagement, and measurable outcomes.

1. Define the HR vision and its objectives

The overall HR strategy must align with business goals. To achieve this, HR teams need to set measurable and realistic objectives that are directly linked to business outcomes, such as the desire to meet diversity targets.

A well-defined vision can help gain executive and stakeholder buy-in. At this stage, senior leaders should be engaged by clearly articulating how the chosen HR strategy supports business priorities.

2. Conduct a gap analysis and develop the action plan

Current HR processes can be evaluated together with consultants. Talent capabilities, workforce engagement and organisational culture must be mapped out to identify specific areas for improvement.

Clearly specified roles, responsibilities, and deadlines can improve accountability at this stage. Allocate resources and define checkpoints to support progress tracking and timely adjustments.

3. Prioritise initiatives and communicate consistently

Focus initially on high-impact, manageable tasks that demonstrate early success. HR initiatives benefit from phased rollouts that manage resources effectively and enable early wins.

Communication should be transparent and consistent throughout the implementation of the HR strategy. Organisations can achieve this by regularly updating all employees on objectives, benefits, and progress.

4. Monitor, measure and evaluate progress

Track success against predefined metrics, such as employee engagement scores, retention rates, internal promotions, or cost-per-hire. HR teams need to regularly evaluate and measure these outcomes. If the framework is not working, strategies can be adapted based on data-driven insights.

5. Refine the HR strategy

Strategic HR management is not a one-time initiative. Businesses need a flexible mindset to modify initiatives based on feedback. Organisational goals can change, and external factors, recently revealed by the pandemic, can impact desired objectives. Revisit the HR strategy regularly to ensure alignment with changing business conditions, employee expectations, and market trends.

HR management consulting: How it drives HR success

Human resource management consulting can provide the right expertise, external perspectives, and advanced technology solutions, driving HR strategy plan’s success through:

Unbiased expertise: Consultants can identify gaps and inefficiencies that internal teams may miss.

HR process optimisation: They streamline operations, including payroll, recruitment, and workforce planning.

Technology integration: HR consultants introduce advanced technology solutions to improve data accuracy and help with best practices, including better employee experience.

Strategic alignment: They ensure HR goals closely align with business objectives, making HR a strategic partner rather than just administrative support.

Studies have found that organisations supported by HR consulting during HR technology implementations reported up to 20% improvement in overall workforce efficiency. Their HR administrative burdens are reduced by up to 30%.

HR strategy example: Consulting-inspired approach

A consulting-inspired approach transforms traditional HR strategies into dynamic frameworks that address business performance and evolving workplace challenges. A real-world example of strategic HR management consulting comes from our collaboration with Amica Group, a leading manufacturer of household appliances operating across multiple European markets.

HR strategy in action: Consulting with Amica Group

Amica was seeking to modernise its HR processes and better align them with business growth objectives. We supported them by consulting on SAP SuccessFactors implementation, integrated with the existing SAP HCM environment. The project was delivered through our full-cycle consulting approach, combining technical implementation with strategic advisory.

As part of this engagement, our SAP Strategy & Advisory team worked closely with Amica to:

Define business requirements and develop a tailored HR transformation roadmap
Provide early-phase (Phase 0) planning to ensure a stable implementation foundation
Manage organisational and process design to support long-term change
Deliver training and drive digital adoption across teams

Through this partnership, Amica was able to:

Streamline talent management processes, from recruitment to performance evaluation, within one unified platform
Increase data accuracy and access to real-time HR insights, improving decision-making
Reduce manual workload for HR teams, freeing time for more strategic people initiatives
Improve employee engagement and retention by introducing personalised digital HR experiences

By combining deep SAP technology expertise with strategic HR management consulting, we enabled Amica to move from siloed processes to a modern, integrated HR ecosystem.

This case illustrates how consulting-led HR transformation, backed by the right technology, can deliver measurable value. It also reflects our broader commitment to helping organisations become more agile, data-driven, and employee-focused.

Conclusion

The future of HR is strategic, data-driven, and technology-enabled. Companies that embrace HR consulting and digital transformation will not only keep pace with evolving workforce demands but also gain a competitive edge.

By leveraging the expertise of human resources management consulting, organisations can build HR strategies that reflect today’s workforce challenges and anticipate tomorrow’s opportunities.

Whether through improving performance management, refining talent acquisition, or adopting advanced HCM systems, our SAP Strategy & Advisory team enables a shift from reactive operations to proactive planning. This technology and consulting support help organisations see measurable gains in retention and engagement. Together, we can establish a forward-thinking HR strategic plan.

Are you ready to elevate your HR strategy? Let’s work together to build a future-proof HR approach that delivers measurable success.

The latest SAP SuccessFactors release delivers powerful enhancements designed to revolutionise your HR processes. From AI-powered innovations to streamlined workflows, this update empowers your organisation to achieve more with less effort.

Key innovations include:

Joule AI copilot integration across mobile and desktop platforms
WalkMe guided tours for SAP SuccessFactors applications
Enhanced Employee Central capabilities for streamlined hiring and data management
AI-assisted insights for succession planning and interview feedback
Reimagined candidate experience with guided application processes
Comprehensive alumni experience with post-employment system access
Universal rollout of the latest Goal Management
Advanced Payroll Control Center for complete payroll cycle management

These powerful enhancements deliver measurable improvements to employee experience, operational efficiency, and strategic decision-making.

As your trusted SAP partner, Zalaris provides expert guidance to help you leverage these innovations effectively within your organisation.

Ready to explore how the 1H 2025 release can transform your HR operations?

Complete the form below to download our comprehensive infographic and take the first step towards HR excellence.

In this blog post, we go over the principles of agile HR management, the best practices and implementation guidelines that can drive organisational adaptability.

Changes in the workforce, organisational needs, and technology have accelerated rapidly in just a few years. Traditional HR practices became slow and inflexible in the face of technological advances fuelled by Artificial Intelligence (AI) and the rise of remote work. To address these challenges, many teams are turning to agile HR. But what exactly is agile HR, and what are its principles, practices, and benefits? This innovative HRM approach mirrors the adaptability and speed of agile methodologies. By focusing on flexibility, collaboration, and continuous improvement, HR teams can stay ahead and navigate an ever-changing landscape.

What is agile HR?

Agile HR is a modern approach to human resource management. The framework emphasises flexibility, responsiveness, and adaptability in aligning workforce activities with organisational needs. Agile practice in HR prioritises collaboration instead of traditional, control-focused HR practices.

Agile HR has its roots in agile software development, such as Scrum. These methods organise work into short cycles or “sprints.” The approach helps HR teams deliver value incrementally, adapt to changes, and respond effectively to workforce needs.

The principles of agile HR

At its core, agile HR focuses on flexibility, responsiveness, and value. By prioritising outcomes, collaboration, and continuous improvement, agile HR enables organisations to adapt and thrive. Let us explore the key principles that drive this approach.

Focus on outcomes and value

Rather than adhering to rigid processes, agile HR prioritises achieving measurable outcomes. The framework emphasises setting clear goals that are broken into actionable steps to ensure alignment with organisational objectives.

Continuous feedback and iteration

HR teams establish regular feedback loops and iterative processes that allow testing, refining, and adapting. Being agile in HR fosters continuous improvement and fast responsiveness to changing workforce demands.

Collaboration and empowerment

Agile HR promotes a collaborative environment where employees take ownership of their work. This enables faster, more innovative and strategic decision-making within the whole team. Cross-functional collaboration helps solve complex problems.

Human-centric approach

Employees are key to organisational success, and an agile framework designs employee experiences that support and engage the workforce. HR teams actively seek direct feedback to validate and improve existing HR practices.

Incremental development

Value comes in small, manageable increments that allow continuous testing and learning. This approach reduces risks and ensures HR initiatives remain aligned with evolving organisational needs.

Simplification and automation

HR involves many repetitive and manual tasks. Agile HR tools can streamline and automate these tasks, freeing up time for strategic initiatives. HR teams can focus on value-added activities, enhancing overall efficiency.

Data-driven decision-making

The framework leverages data and analytics to inform decisions, making strategies based on evidence rather than assumptions. HR teams can create targeted interventions to address workforce challenges effectively.

Flexibility and adaptability

Agile HR responds quickly to changes in the business environment. Recent years have shown that workforce needs and technological advancements are constantly evolving. With the flexibility of the agile framework, HR departments stay relevant and accurate in a dynamic landscape.

Agile HR practices

The most vital agile HR practices focus on building a dynamic, responsive, and employee-centric HR environment. At the heart of these practices are five core practices based on the core agile principles.

Practice	Description
Implementing continuous improvement with regular feedback	Using short, iterative cycles and ongoing feedback ensures HR strategies evolve in line with employee needs and organisational goals.
Nurturing collaboration and transparency	A cross-functional, transparent culture empowers teams and builds trust, driving collective decision-making and fostering great innovation.
Adapting quickly with flexible HR strategies	Agile HR embraces flexibility, allowing recruitment, development, and talent management strategies to respond efficiently to changing business environments.
Prioritising value-driven HR initiatives	Data and analytics help inform teams, leading to more strategic initiatives that promote employee satisfaction and performance
Streamlining processes and promoting ongoing skill development	Companies need to automate repetitive tasks with the right HR software. Tools like the Zalaris Learning Management Solution provide continuous learning opportunities, leading to efficiency and improved knowledge.

Real-world example: agile HR success at Innomotics

Innomotics, a global provider of electric motors and large drive systems, partnered with us to transform its HR operations using agile methodologies. The company was undergoing a carve-out from the parent company, with the aim to implement a new partner for payroll and HR. They wanted new solutions and processes that were agile and made them more flexible in the face of changing market requirements.

An increase in HR process efficiency
Enhanced employee engagement rates
Significant reduction in time spent on routine tasks through automation

These improvements highlight how agile HR can create measurable benefits by streamlining HR processes and empowering organisations to stay competitive.

Agile HR: before and after comparison

Before Agile HR	After Agile HR
Manual, repetitive processes slowing down HR productivity	Automated processes, increasing efficiency
Limited employee feedback and delayed responses	Continuous feedback loops enhancing responsiveness
Slow adaptation to market and workforce changes	Flexible, quick response to evolving organisational needs
Employee dissatisfaction and lower engagement rates	Increased employee satisfaction and engagement

Benefits of agile HR

Being agile in HR brings a range of benefits, including a more adaptive, employee-centric, and value-driven HR approach. Let us see how these benefits translate into real-world outcomes for organisations.

Improved employee engagement. Agile HR’s feedback-driven approach increases motivation, satisfaction, and long-term retention by aligning employees with broader organisational goals.

Enhanced flexibility. Organisations become better equipped to quickly adapt to internal and external changes. Iterative cycles allow HR teams to test and refine strategies in real-time.

Increased innovation. Agile methodologies encourage experimentation, leading to a culture of continuous organisational learning and improvement.

Faster problem resolution. The agile approach identifies and addresses issues early through feedback loops, preventing small difficulties from escalating.

Better talent management. Talent management becomes a dynamic and continuous process. Data-driven assessments make it easier to identify skill gaps, and personalised development opportunities lead to employee growth.

Overall, organisational responsiveness has improved alongside streamlined HR processes. HR teams can respond swiftly to market changes and internal demands, and as overall efficiency improves, they can focus on strategic initiatives that drive organisational success. 63% of HR leaders agree that prioritising agile transformation is essential for navigating current workforce challenges.

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Implementing agile HR in your organisation

To adopt a flexible, iterative and collaborative approach to human resource management, the following steps can guide a smooth and positive transition.

Define the HR challenges

The road to agile HR begins with identifying current HR challenges or inefficiencies. All stakeholders, including employees and leadership, must be involved in pinpointing areas for improvement.

Assemble an agile team

The identified concern needs the right team to tackle it. A small, cross-functional team with clearly defined roles and responsibilities can establish goals and set a roadmap for the project.

Develop sprint goals

Breaking down the problem into actionable tasks with clear objectives gets the team going in the right direction. HR teams need to set clear, short-term goals that are achievable within 2–4 weeks.

Execute the sprint

The highest priority tasks must be cleared first. To keep everyone on the right track, daily stand-up meetings can be great to track progress, address obstacles, and ensure alignment.

Gather feedback and iterate

The end of the sprint should include a full evaluation of the process. Teams need to encourage a culture of transparency and ask for feedback on both the good and the bad. Feedback can be used to iterate and improve the process in subsequent sprints.

Companies can offer training on agile methodologies and encourage experimentation throughout. The purpose of agile HR is the ability to respond quickly to changing environments and continuously learn.

Conclusion: HR agility drives organisational success through adaptability

Adopting agile HR practices can significantly enhance an organisation’s ability to adapt, innovate, and meet the workforce’s ever-changing needs. Agile HR helps teams create a more dynamic and employee-centric environment. The focus shifts to flexibility, collaboration, and continuous feedback, which drive both employee satisfaction and organisational success to new heights. As businesses face increasing pressure to remain competitive and responsive, integrating agile HR practices can be the key to staying ahead.

We specialise in empowering organisations with robust HR software solutions and strategic support for effectively transitioning to agile HR. Our expertise spans comprehensive HR management solutions, including automated payroll processing, employee lifecycle management, cloud-based HR analytics, and continuous learning systems such as our Learning Management Solution. Through our powerful suite of tools and proven strategic consulting, we ensure HR departments are agile, efficient, and future-ready.

Ready to transform your HR processes and drive lasting success? Get in touch with our expert team today and learn how we can specifically support your organisation’s agile HR journey.

The SAP SuccessFactors 1H 2025 Release for HCM heralds a new era of innovation, with more than 250 updates and enhancements, seamlessly integrating AI-powered features and streamlined workflows to revolutionise HR processes. These comprehensive updates not only enhance core functionalities but also introduce cutting-edge tools designed to optimise employee experiences and drive organisational success. Join us as we delve into the transformative enhancements that will redefine the future of HR management with SAP in your organisation.

Image – Highlights Topics of the SAP SuccessFactors 1H 2025 Release

SAP SuccessFactors Employee Central Core

Employee Central continues to evolve with updates that streamline processes and improve data integrity.

Add new employees to a position

A significant enhancement to Employee Central allows HR teams to initiate the new hire process directly from a position in the Position Org Chart.

Key fields like hire date, position, and company are prefilled and read-only, streamlining the process and reducing manual entry.

New National ID Information with validity period

To enable tracking of changes to national ID information, the validity fields ‘Valid From’ and ‘Valid To’ have been added to the National ID Information section.

These fields allow you to store multiple national ID records for a person, supporting more flexible, accurate, and compliant handling of national ID data across different countries and time periods.

Mass Data Management for job information

Mass Data Management now supports the ‘Job Information’ object, allowing synchronous processing of up to 50 records for a single mass change request. Previously, this functionality only supported the ‘Position data’ object.

This solution enables both technical and non-technical users to efficiently manage mass changes in ‘Job Information’.

Image – Mass Data Management for job information

SAP SuccessFactors People Analytics

People Analytics introduces enhancements that strengthens reporting capabilities and deliver actionable insights.

Foundation Object Workflows now reportable in Story reports

You can now report on Foundation Object Workflows in Story reports.

The Foundation Object schema includes the ‘Workflow Step’ and ‘Workflow Step Approver’ tables for reporting on workflow details.

Workflow Request details for Custom MDF Objects now reportable in Story reports

The Generic Object Workflow Request table is available as a related table for the chosen custom MDF object.

This enhancement allows tracking workflow approvals for better visibility and control.

Compensation Structure now reportable in Story reports

The new Compensation Structure table can be found as a related table from the Compensation Information table.

This enhancement enables detailed and location-specific reporting on compensation structure, aiding better-informed decisions regarding compensation policies.

Image – Compensation Structure now reportable in Story reports

Deprecations withdrawn

The following deprecations that were announced before have now been withdrawn:

Pixel Perfect Talent Card (PPTC)
Tiles and Dashboard reports
Canvas Reports for transactional reporting
Table Reports

SAP SuccessFactors Foundation/Platform

Foundation sees significant updates focused on enhancing user experience, improving efficiency, and enabling AI-powered insights.

Mobile

SAP’s AI copilot, Joule, is now available in mobile apps, supporting transactional, navigational, and informational activities across various modules.

This enhancement allows users to manage daily tasks more intuitively and efficiently using Joule.

Multi-language support for Joule

Joule now supports multiple languages, including English (US), German (Germany), French (France), Spanish (Spain), Portuguese (Brazil), Japanese, Korean, Chinese (Simplified), Vietnamese, Greek, and Polish.

WalkMe guided tours for SAP SuccessFactors applications

WalkMe guided tours provide structured, step-by-step assistance for employees, managers, and administrators to help them complete common tasks.

SAP has delivered WalkMe guided tours in several SAP SuccessFactors product areas like People Profile, Org Chart, Continuous Performance Management and Learning Team View to help people of all role types make the most of the system.

Image – WalkMe guided tours for SAP SuccessFactors applications

Enhancements to the latest People Profile in SAP SuccessFactors Mobile

Enhancements include Microsoft Teams chat availability, employment indicator for contingent workers, redeem awards action, and field masking for HRIS entities.

These updates enhance the user experience by providing more functionality and visibility within the mobile application.

SAP SuccessFactors Learning Management System

The Learning module has seen significant improvements that make it easier for both learners and administrators to manage learning activities.

Improved Browse Library functionality

The ‘Browse Library’ feature has been enhanced to give users more options to find learning activities they may be interested in completing.

Previously, users were only able to search for courses based on the category or course name input in the search bar, limiting discoverability.

New ‘Team View’ reporting hierarchy

Managers can now see team hierarchies on the Team View page, replacing the flat team view where all direct and indirect reports were listed on one level.

Selectable icons expand the hierarchy to show direct reports, and it is now possible to choose the number of levels below the reporting hierarchy visible to users.

Optional curricula assignments in the new Learning Experience

Learners will have access to optional curricula and sub-curricula directly from the New Learning home page. Optional curricula assignments will not be visible in the Important Learning section.

This improvement creates a more consistent user experience in the new Learning Experience interface.

Image – Optional curricula assignments in the new Learning Experience

SAP SuccessFactors Onboarding

The Onboarding module has been updated to provide a more seamless experience, streamlining processes, improving data collection, and incorporating AI-assisted writing.

Handle multiple onboarding processes

The system now supports employees having two parallel onboarding processes, such as processes for new hire and internal hire, or an onboarding process for rehire with old employment shortly after termination of a new hire.

The system will display indicators to show which process is involved. Employees can distinguish process tasks through home page card tags and will receive separate documents based on assigned processes, eliminating confusion with multiple open processes.

Alumni experience – Post employment system access

Employees can continue to log into the system even after leaving and perform functions such as viewing and adjusting their personal data.

Managers can also access alumni data via the offboarding dashboard.

This feature strengthens employer-alumni relationships while requiring less effort from HR.

Enhancement to the E-Verify ‘Further Action Notice’ process

The E-Verify Further Action Notice (FAN) process is now fully integrated into the Onboarding module.

If there is a discrepancy in information that leads to an E-Verify Tentative Non-Confirmation (TNC) employment verification result, hiring managers can now choose to complete the FAN process within the onboarding program or the existing offline process (e.g. in person).

Image – Enhancement to the E-Verify ‘Further Action Notice’ process

SAP SuccessFactors Recruiting

The Recruiting module has received significant updates focused on improving the candidate experience and leveraging AI capabilities with AI-assisted writing in more areas.

AI-assisted interview feedback insights

In Interview Central, users can now generate insights using AI based on interview feedback about candidates that has been provided by interviewers.

By leveraging these AI-generated insights, recruiters can save time summarising feedback, make more informed decisions about a candidate’s suitability, and ensure consistency in review criteria across all applicants.

Candidate ‘drag and drop’ functionality

The drag and drop feature allows for quick and easy movement of single or multiple candidates within the recruiting status pipeline.

Whether moving one or multiple candidates, the functionality respects permissions for each status and provides feedback to the user if there are issues with permissions or eligibility.

Reimagined candidate experience

A ‘Guided Application Experience’ is now available to provide candidates with a walkthrough of the application process, which can include business rules to make it more dynamic based on their responses.

Applications and candidate information are stored in dedicated places, and candidates have more control over their account with additional personalisation settings.

Image – Reimagined candidate experience

SAP SuccessFactors Performance and Goals

Performance and Goals modules have been upgraded with new user interfaces and AI-powered features.

Universal rollout of the latest Goal Management

Following the 1H 2025 release, the latest Goal Management upgrade will be universally enabled for all customers.

The universal rollout ensures that customers still using the legacy version will be upgraded to the latest version, with no option to revert.

The latest Goal Management supports a more streamlined and modern goal-setting process.

Create team goals using Generative AI

For customers with AI licenses, users can now create team goals using generative AI with the latest Goal Management.

With the new Generate goal creation option, users can input a brief description of the required goal, and AI generates relevant content based on the goal plan template.

Users can review and refine the AI-generated content, maintaining control over the final goals.

Image – Create team goals using Generative AI

Latest experience of Performance Management forms

The redesigned Performance Management form introduces a streamlined and flexible new layout with vertical navigation bars, tables for rating sections, and dynamic side panels to structure content more intuitively.

The new layout also incorporates AI features to support the review process.

SAP SuccessFactors Talent Intelligence Hub

The Talent Intelligence Hub (Opportunity Marketplace) has received updates focused on enhancing flexibility and improving recommendations.

Withdrawing assignment offers

Assignment owners and co-owners can now withdraw assignment offers even after applicants have accepted an offer.

They can also decline applications or withdraw offers in bulk using the ‘Decline Applications’ option in the Applicants list.

Linking Dynamic Teams to assignments

Assignment owners can now link their Dynamic Teams to Opportunity Marketplace assignments when creating or editing assignments.

When applicants accept the offer, they are added to the dynamic team automatically.

Image – Linking Dynamic Teams to assignments

Enhanced opportunity recommendations

Non-intelligent opportunity recommendations have been added to the ‘Opportunities to Grow’ section in the skills details page in Growth Portfolio.

For customers with intelligent recommendations enabled, the section now contains both intelligent and non-intelligent recommendations, with duplicates removed.

SAP SuccessFactors Succession and Development

Succession and Development modules have been enhanced with AI capabilities and improved functionality for mentoring and career development.

AI-assisted Successor insights

Users can now access AI-driven insights in the Succession Org Chart or Position Tile view by selecting the Generate Insights option when there are 1-10 successors.

These insights are organised into an Overall Summary in the Successor Insights dialog box, providing a high-level overview of job role requirements and all nominated successors.

Image – AI-assisted Successor insights

Team development summary in the latest Career Worksheet

Managers can access a new team development summary through the Growth Portfolio Team View.

On the Summary tab, they can view roles and aspirations, identify skill strengths, and identify skills to improve.

This enhancement helps managers better support their employees’ upskilling and career development by providing a comprehensive overview of team capabilities and development needs.

Allow mentors to manage development goals for mentees

Mentors with the appropriate permissions (new mentor-MT role) can now manage their mentee’s development goals on both the ‘Development Goals and Mentoring’ pages.

This feature provides tighter integration between Mentoring and Development Planning, allowing mentors and mentees to track career development during mentoring activities.

SAP SuccessFactors Employee Central: Time Management

Time Management has received updates and enhancements, including AI-driven features, improvements to employee experience, and expanded time sheet functionalities.

Enhancements for consolidated Time Recording

Enhancements for Consolidated Time Recording supported in the SAP S/4HANA, include:

Cross-Midnight attendance recording based on the work schedule.
Generation of Fixed Breaks based on the Work Schedule configuration.
Allowance recording.
Absences are displayed in real-time.
Work schedule details are displayed.

Image – Enhancements for consolidated Time Recording

Half-day absences for Clock-Time users

In the Time Off interface, clock-time users can now select the first or second half of a day when creating an absence request without having to enter the start time and end times.

The Custom Duration option lets employees enter the start and end time of an absence request. The duration of the absence is calculated accordingly.

SAP SuccessFactors Employee Central Payroll

The payroll module has received significant upgrades that improve user experience, optimise operations, and offer a more comprehensive view of payroll activities

AI-assisted payment statement information

One of the most innovative updates is the AI-assisted ‘Explain My Pay Statement’ feature for Employee Central Payroll based on SAP Human Capital Management for SAP S/4HANA.

Users can now use SAP Joule to get explanations of their most recent pay statements or compare them with previous statements.

Payroll Control Center: Manage payroll activities

Business users can now manage a complete payroll cycle from start to finish with the new Payroll Control Center: Manage Payroll Activities solution.

This feature not only runs payroll calculations but also handles all necessary payroll activities such as bank transfers, statutory reporting, and internal reporting.

Image – Payroll Control Center: Manage payroll activities

Payroll information in the alumni experience

Former employees (alumni) can now view and download pay statements as part of the alumni experience.

Those assigned the new ‘alumni’ role can access the system after their employment ends to view and download pay statements, payroll and tax-related documents, as well as compliance-related information in the Payroll tab.

Legal changes for countries and specific regions

This update provides an overview of the most important legal changes in Employee Central Payroll.

Updating the ECP system to country-specific legal requirements helps ensure compliance with local laws and avoids potential legal penalties and fines.

New local version for Bulgaria

A tailored ECC version for Bulgaria is now available.

This version includes Personnel Information, Address Information, Challenge Information, Contract Elements, and Dependents Information.

With this feature, customers can run Employee Central Payroll in Bulgaria, ensuring compliance with local regulations and improving payroll management efficiency.

SAP SuccessFactors Compensation and Variable Pay

Compensation and Variable Pay module has been enhanced with AI capabilities and improved transparency in compensation management.

AI-assisted plan instructions

The system now offers AI-powered assistance to enhance Plan Instructions for variable pay templates and improve content in the Compensation Statement Editor, ensuring clarity, consistency, and alignment.

This reduces manual effort, streamlines the compensation planning process, and helps teams focus on strategic decision-making.

Image – AI-assisted plan instructions

Employee Central data on compensation statement templates

Organisations can now display Employee Central data on Compensation Statements without including dedicated fields in the compensation plan.

This feature supports various data types including Date, Boolean, String, Localised, Translatable, and Legacy Picklists.

The enhancement provides more personalised and informative compensation statements without maintaining dedicated fields in the Compensation plan.

Template validation and PDF preview for rewards statement templates

A new validation has been added when importing custom templates as XSL files in the statement editor.

Users can now use the ‘Download Sample PDF’ action to preview PDF statements before generating them for employees.

The new validation for XSL imports helps catch formatting issues early, ensuring smooth template uploads, while the preview option lets you verify statement layouts, reducing errors and improving accuracy.

Exclusive eBook: Your ultimate guide to the SAP SuccessFactors 1H 2025 release in Human Capital Management (HCM)

The SAP SuccessFactors 1H 2025 Release for HCM represents a significant step forward in HR technology, with a strong focus on AI integration, improved user experiences, and streamlined processes.

By implementing these updates, organisations can enhance their HR operations, make better talent decisions, and provide superior experiences for employees at all stages of their journey.

Our global team of SAP SuccessFactors specialists have meticulously examined the newest features and improvements in this release, covering the full scope of the HCM suite. Their analysis has resulted in a detailed eBook, delivering valuable insights into the updates across all modules and their practical uses.

Grab your copy of the eBook now to deep dive into all the other updates from the 1H 2025 release.

Adopting digital HR practices not only enhances operational efficiency, but is also essential for attracting top talent and fostering a motivated workforce. Technologies, such as artificial intelligence (AI), advanced analytics, and cloud-based platforms can optimise many key HR functions including talent management, recruitment, onboarding, performance evaluation and employee engagement. With digital solutions, HR teams can create a responsive, agile, and employee-centric workplace environment.

In this article, we explore digital HR trends and how organisations can successfully implement them to maximise their benefits.

Digital HR and the impact of technology on Human Resources Management (HRM)

Every industry has undergone a technology boom in the 21st century, and HR is no different. The global HR technology market is growing with a CAGR of 9.2% and is projected to grow into a US $81.84 billion market by 2032. Digital HR solutions leverage technology to enhance and automate human resource processes, making HR functions more efficient and data-driven.

HR digital transformations are integral to meeting employee expectations; As forbes notes, today’s employees expect the HR tools they use to be as intuitive and easy to use as the consumer tech we all use every day. Modern HR is now a strategic, tech-driven function. Organisations around the world plan to adopt cutting-edge technologies into their HR workflows, with four out of five HR experts noting their interest in integrating AI into their HR processes, with over half expressing enthusiasm and excitement.

While digital HR shows a lot of promise, it is integral to choose solutions that fit your organisation’s unique needs. Read on to learn more about HR functions that stand to benefit the most from leveraging technology.

Digital HR trends that are reshaping key HR functions

Artificial intelligence, cloud-based solutions, and advanced analytics are revolutionising HR, transforming everything from recruitment to employee experience. These innovations are not just improving efficiency but redefining how HR operates in a digital-first world. A Deloitte study on AI adoption in HR functions among retail businesses decreased HR function calls by 33% and cut time spent resolving workplace process issues by 75%. This underscores AI’s role in streamlining HR operations and enhancing productivity.

Here are the key HR functions undergoing the most significant transformation, where AI and digital tools are reshaping processes and driving smarter workforce management:

Recruitment & Onboarding: AI-powered tools help recruiters efficiently identify the most suitable candidates for unique positions, based on skills and experience, streamlining the hiring process. New hires can access necessary documents, training materials, and introductions to their teams before their first day. These systems support faster integration, reduce administrative overhead, and help improve retention. Additionally, remote onboarding tools enable consistency and connection for employees across locations, ensuring a cohesive experience regardless of geography. Once employees are onboarded, remote management tools keep geographically dispersed teams connected and productive.

Performance Evaluation: Continuous feedback platforms are replacing traditional annual performance reviews. These AI-driven systems can track progress in real time, providing employees and managers with insights into areas for development and help align individual goals with company objectives, enhancing engagement and accountability.

HR Analytics & Decision-Making: Advanced analytics provide predictive insights into employee turnover, productivity, and engagement levels. Companies leveraging people analytics report a 25% increase in business productivity.

Employee Experience & Learning: Employee experience platforms provide tailored learning recommendations and self-service options to enhance employee engagement and satisfaction. Self-service features typically include updating personal information, viewing payslips, submitting leave requests, accessing customised learning paths, and accessing performance feedback.

These platforms empower employees to take greater control over how their data is managed. Meanwhile, managers gain valuable tools to track progress, recognise achievements, and support development plans, allowing them to proactively cultivate talent. Training has evolved beyond passive sessions in meeting rooms. Employees can now use personalised learning materials, accessible even on mobile devices, delivering a more engaging and inclusive learning experience.

Benefits and challenges of digital HR

Adopting digital HR practices provides substantial benefits. Organisations can enjoy operational efficiency, improved data management accuracy, and greater employee engagement through personalised experiences. Additionally, leveraging digital HR solutions delivers actionable insights. These enable proactive rather than reactive HR strategies.

However, transitioning to digital HR does come with challenges. Organisations often face resistance to change, data security concerns, and the need for significant investment in training and infrastructure.

Let’s break down the opportunities digital HR presents, and the obstacles that must be overcome to ensure a successful adoption.

Benefits of digital HR solutions	Challenges of digital HR solutions
Enhanced operational efficiency	Resistance to organisational change
Automates repetitive tasks, freeing up HR teams for strategic initiatives.	Hesitancy to adopt new technologies and workflows.
Improved data accuracy and management	Data security and privacy concerns
Reduces errors in HR data, ensuring reliable employee records.	Increased reliance on digital systems requires robust cybersecurity measures to protect sensitive information.
Increased employee engagement	High initial investment in technology
Personalised digital HR tools improve employee satisfaction and retention.	Upfront costs for implementing new HR systems can be significant.
Streamlined recruitment and onboarding	Need for comprehensive training
Digital recruitment tools and digital onboarding improve candidate experience and speed up hiring.	HR teams need proper training to effectively use digital tools and maximise their benefits.
Actionable, data-driven insights	Integration issues with existing systems
Leaders can make informed decisions about workforce trends and needs.	Integrating new digital HR solutions with existing infrastructure can be challenging.
Greater agility and responsiveness	Lack of direct oversight
Cloud-based HR platforms enable real-time decision-making and proactive risk management.	Since cloud HR is often administered by an HR provider, organisations may hesitate to lose direct control.
Improved compliance and regulatory management	Continuous maintenance and updates
Automated compliance tracking ensures adherence to labour laws and reduces risk.	Digital HR systems require ongoing updates, monitoring, and enhancements to stay up-to-date.

Best practices for implementing digital HR solutions

To successfully implement digital HR solutions, organisations must take a strategic approach that ensures seamless integration, user adoption, and long-term efficiency.

Here are the best practices to maximise the impact of digital transformation in HR:

Clearly define goals and outcomes expected from digital HR initiatives: Establish measurable and realistic objectives aligned with organisational strategy, ensuring clarity for all stakeholders.

Engage stakeholders early, securing buy-in from leadership and employees: Active involvement from senior leaders, HR personnel, and employees fosters a collaborative approach. This reduces resistance and promotes organisational alignment.

Prioritise user-friendly and intuitive technology to ease adoption: Selecting intuitive and accessible tools significantly reduces barriers to adoption, encouraging widespread use across teams.

Invest in comprehensive training and ongoing support to ensure smooth transitions: Tailor-made training programmes and continuous support mechanisms enable employees to adapt to new digital systems. Quicker adoption rates maximise the benefits of new digital systems.

Continuously assess and optimise the implementation process based on feedback and measurable outcomes: Regular evaluations through employee feedback, usage analytics, and performance metrics inform ongoing adjustments. This ensures sustained improvement and alignment with evolving organisational needs.

Ensure robust data security measures are in place: Implementing rigorous data protection protocols and compliance with relevant regulations safeguards sensitive employee information, maintaining trust and mitigating risk.

Promote transparency and consistent communication: Clear and consistent messaging throughout all phases of implementation helps manage expectations, facilitating a positive adoption experience.

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Embracing digital HR solutions for a competitive edge

By adopting digital HR, businesses can enhance operational efficiency, improve employee engagement, and gain strategic insights into workforce trends. HR advancements also impact employee productivity. A study from PwC shows that 77% of employees are more productive when provided with digital HR tools that offer self-service options and personalised experiences.

Digital HR isn’t a luxury anymore – it’s a necessity. In today’s competitive market, leveraging advanced HR technology is vital. In doing so, they not only future-proof their HR operations but also cultivate an environment where talent and productivity thrive.

Find the right solution The relevant software solution for digital HR transformation

Given the various complexities of digital HR solutions, choosing an expert HR partner who understands your organisation’s unique needs is crucial for successful digital transformation.

Zalaris Peoplehub is an enterprise-ready solution that seamlessly integrates payroll, time tracking, travel expenses, and talent management. Looking to upgrade your existing SAP infrastructure? Leverage Zalaris’ consulting services – with over 25 years of expertise, we specialise in implementing SAP SuccessFactors to help organisations unlock their full HR potential. Get in touch with our team today to get started.

Team Zalaris

What does MPHRO do?

Why do organisations prefer MPHRO over single-function HR systems?

Key ways in which MPHRO can enhance operational efficiency

Streamlining operations

Improving decision-making

Enhancing productivity and employee experience

Driving HR transformation

Overcoming challenges in Multi-Process HR Outsourcing

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Five core changes that will reshape Payroll operations

How will Payday Super changes affect employers?

Technical impact for SAP Payroll teams

Comprehensive Payroll Management That Goes Beyond Payday Super

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What is HR outsourcing?

Types of HR outsourcing services

Professional Employer Organisation (PEO):

Administrative Services Organisation (ASO):

Human Resources Outsourcing (HRO):

Business Process Outsourcing (BPO):

Benefits of outsourcing Human Resources

Challenges when outsourcing HR

HR outsourcing — a smart strategy for today’s businesses

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What is an HR strategy?

Key elements of a successful HR strategy

How to implement an HR strategic plan & best practices for success

1. Define the HR vision and its objectives

2. Conduct a gap analysis and develop the action plan

3. Prioritise initiatives and communicate consistently

4. Monitor, measure and evaluate progress

5. Refine the HR strategy

HR management consulting: How it drives HR success

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HR strategy example: Consulting-inspired approach

HR strategy in action: Consulting with Amica Group

Conclusion

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What is agile HR?

The principles of agile HR

Focus on outcomes and value

Continuous feedback and iteration

Collaboration and empowerment

Human-centric approach

Incremental development

Simplification and automation

Data-driven decision-making

Flexibility and adaptability

Agile HR practices

Real-world example: agile HR success at Innomotics

Agile HR: before and after comparison

Benefits of agile HR

Implementing agile HR in your organisation

Define the HR challenges

Assemble an agile team

Develop sprint goals

Execute the sprint

Gather feedback and iterate

Conclusion: HR agility drives organisational success through adaptability

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SAP SuccessFactors Employee Central Core

SAP SuccessFactors People Analytics

SAP SuccessFactors Foundation/Platform

SAP SuccessFactors Learning Management System

SAP SuccessFactors Onboarding

SAP SuccessFactors Recruiting