KOTO case study cover image showing a notebook with the title 'Case Study' written in cursive, highlighting HR digitalization and employee engagement.

Case study: The impact of the digitalization of the HR function on employee experience and employee engagement at company KOTO

Urša Mlakar, Director of Human Resources Development and Management

Anita Čolić, HR Expert 

Ensuring digital capabilities as the first step towards digital transformation


Three years ago, KOTO embarked on the path of digital transformation. We have adopted a digital transformation strategy and defined projects that will guide us on the path of digitalization of our business. Priority has been given to projects that increase our digital capabilities. In the field of human resources, we have set ourselves the following goals: 1. to optimize HR processes, 2. to renew the competency model and include competencies that will support employees in the process of business digitalization and the digital economy, 3. to build a culture for digitalization, and 4. to establish a digital knowledge base.  

The first step on our journey was the renewal and digitalization of HR processes. The digitalization of HR processes is a crucial step in digital transformation for several reasons:  

  • The digitalization of HR processes and the automation of routine tasks allow the HR team to focus on employee strategy and development.  
  • Digitized HR processes provide appropriate analytics that enable management to make faster and more informed decisions about HR strategies.  
  • It allows for a better employee experience.  
  • It allows for better tracking and management of employee talents. 

 

To effectively support each of these processes, as well as basic HR administration, we decided in 2022 to digitalize the HR function on the FledgeWorks platform. We were aware that the way these processes were carried out had a strong impact on the good employee experience. The lifestyle that employees live privately has transformed their expectations in the workplace. One of the main focuses of the digital transformation of KOTO’s HR function was also employee experience management. We wanted technology to support all HR processes, which are also phases in the employee’s journey, make them employee-friendly and offer them a positive work experience. With technology, we wanted to speed up and facilitate work, ensure smooth communication, offer access to data and information from anywhere, ensure transparency, encourage quick feedback, enable success measurement and analysis, monitoring of employees’ experiential needs, and improve work processes.  

Two years after the introduction of the FledgeWorks information system, we can say that most of the goals have been achieved. Digitalization has enabled us to significantly save time in administrative HR tasks and provided a digital environment for HR processes that actually affect employee engagement and good experience. Digitalization has not only empowered us in the HR department, but also employees, who can independently access HR data, information and documents relevant to them. Also, employees and especially managers can easily and efficiently participate in HR processes, from recruitment and onboarding to performance management and development.  

The impacts on employee experience and engagement are as follows:


 

  1. The digitalization of HR administration and the introduction of self-service options for employees have had a positive impact on the employee experience. Digitalized HR administration has improved the HR employee experience and given us more time to manage talent. Manual data entry has been reduced, resulting in fewer errors, and automation has made administrative tasks faster. Self-service access empowers employees and enables them to quickly obtain information and documents from the employment relationship. This increases their independence, sense of control and responsibility. Reducing the administrative burden contributes to increasing employee satisfaction and engagement.  

  2. Good digital support of the recruitment process makes it much easier for us to select and evaluate the right candidate. In the selection process, it is essential to choose the right candidate, who will have the opportunity to do what they do best in our work environment, use their knowledge, skills, talents and develop their potential. With the FledgeWorks platform, we can easily involve several colleagues in the process of assessing the suitability of candidates, while burdening them with additional administrative work as little as possible. The way of assessing the suitability and selection of candidates is simple and transparent, so we can rely on inviting the right candidates for an interview with much greater objectivity and certainty. Since the employee experience begins before the recruitment process, it is important to provide a good experience to the candidate in the application and selection process. Digital tools make our work much easier for us and for candidates. Message automation, which at the same time allows for a sufficient degree of personalization, allows candidates to receive quick feedback on the status of their role and at the same time relieves colleagues in the HR department. The simple organization of interviews additionally relieves us of administrative work, and the time saved can be spent on preparing for interviews. Good digital support allows us to offer a good experience even to non-selected candidates. This is especially important from the point of view of our employer brand and building a candidate base, and consequently for a faster response to recruitment needs and building relationships.

  3. A renewed and digitally supported onboarding process has allowed us to ensure that new employees have a clear idea of what is expected of them when they arrive at the workplace, and provided with all work equipment and work instructions. FledgeWorks allows us to clearly write down the program and onboarding activities, as well as goals and expectations for the onboarding period. These are always available to new colleagues and members of the onboarding team in a few clicks. FledgeWorks also enables easy and transparent feedback, so that a new colleague can check and monitor their progress at any time. Clearly defined onboarding activities and reminders for leaders and members of the onboarding team encourage them to follow the onboarding program more systematically and consistently, which gives new employees a sense that they are well accepted into the team, valued and that they have the right conditions for learning
     
  4. Performance management. This is one of the more complex processes with a great impact on employee engagement. In this process, we want to connect the mission and vision of the company with the personal business goals of the individual, which define the meaning of his work, encourage employees and provide them with conditions for the development of their potential. These processes directly affect both the employee’s experience and especially all dimensions of engagement. Since these processes are both crucial and at the same time very complex, and impose additional challenges on managers, good digital support is crucial here. FledgeWorks allows us to make these processes transparent and as focused as possible on employees and managers. With agility in managing the competency model, leading development conversations between managers and employees, and setting goals and personal business plans for employees is very efficient. Easy management of the competency model, assessment of competencies and competency profiles of employees, support managers in setting clear expectations for their employees, monitoring their development and setting motivating goals for them. Employees always have the opportunity to see their own competency profiles and set goals. Digitally supported development interviews make it easier for managers to conduct them and encourage employees to make suggestions for their own and organizational development.
     
  5. Training. When revamping the processes of planning and implementing training, we wanted it to encourage employee engagement as much as possible. Digital support allows us to easily link development and competency goals with an appropriate training program with a predefined education catalog based on a competency model. In the FledgeWorks information system, we create training programs, invite participants, monitor their attendance, and keep diplomas and certificates. In this process, we ensure the agile development of competencies necessary for successful work in the workplace and empower employees to work independently, make decisions and implement improvements. This enables employees to experience feelings of overcoming limitations, growth, self-worth and self-confidence.

Conclusion:


With the renovation and digital support of these processes, we have laid a solid foundation for further development, both of HR processes and tools, as well as of all employees. These will make it easier for us to face the challenges ahead, especially in the field of career development of employees.