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A Critical Intersection Between HR Departments and IT Departments

In modern organizations, human capital and technology are equally indispensable to organizational success. Yet, many companies still treat employee experience, traditionally managed by HR, and IT end-user feedback, a responsibility of the IT department, as separate entities. This division is a missed opportunity—one that can directly affect the success of digital transformations.

With the failure rate of digital transformations estimated to be between 70% and 95%, as noted by major consultancies like McKinsey, KPMG, and Boston Consulting Group (BCG), it’s clear that bridging this gap is crucial. Many digital transformation efforts fail not because of technology but due to a lack of understanding of how people—the employees themselves—interact with and engage with that technology.

This blog explores why organizations must align HR’s focus on employee engagement with IT’s responsibility for digital tools. By continuously collecting and integrating IT end-user feedback into broader employee experience strategies, companies can not only survive but thrive in today’s digital age.

The Convergence of Human Capital and Technology

Technology and human capital are deeply intertwined, and both are critical to success. Employees today depend on digital tools to perform almost every aspect of their jobs. As a result, the overall employee experience is heavily influenced by how well these technologies support their productivity, collaboration, and well-being.

While HR traditionally manages employee experience, focusing on engagement, retention, and culture, IT focuses on digital tools and infrastructure. However, job satisfaction alone is no longer enough to ensure high performance. In today’s digital workplace, employee engagement is the key driver of productivity, innovation, and retention.

Want to know more about the practical benefits and recommendations for aligning HR and IT departments? Click here to read about how to align HR and IT for Successful Digital Transformations ↗️

Why Satisfaction Isn’t Enough: Understanding Employee Engagement

An employee can be satisfied with their job—content with pay, benefits, and work-life balance—without being truly engaged. Job satisfaction provides the foundation, but engagement is what leads to productivity. Engaged employees are deeply invested in their work, driven by factors such as Meaning, Autonomy, Growth, Impact, and Connection (MAGIC). These factors go beyond basic satisfaction and inspire employees to contribute more to the organization.

Organizations with engaged employees experience higher retention, innovation, and customer satisfaction. They also face fewer accidents, reduced absenteeism, and lower training costs. However, engagement doesn’t occur in a vacuum. It is heavily influenced by the digital tools employees use daily, which is where IT comes in.

The Disconnect Between HR and IT: A Missed Opportunity

Despite the importance of both human capital and technology, HR and IT often operate in silos. HR collects feedback on employee engagement but may overlook how digital tools contribute to or detract from that engagement. Meanwhile, IT may focus on technical metrics like system uptime and ticket resolution, without understanding how those issues affect the overall employee experience.

This disconnect is a missed opportunity. Technology is often seen as a plug-and-play solution, but when it fails to meet employees’ needs, it can lead to frustration, decreased productivity, and disengagement. As researchers Thomas Davenport and George Westerman noted, many organizations wrongly assume digital transformation will be a cure-all. However, the success of digital transformation depends just as much on people as on technology.

To bridge the gap between HR and IT, organizations must establish a continuous feedback loop that includes both employee engagement data and IT end-user feedback. Regular input from employees on their experiences with digital tools allows HR and IT to work together to resolve issues and optimize the Digital Employee Experience (DEX).

This integration offers several benefits:

  1. Proactive Problem Solving: Addressing IT-related frustrations before they escalate improves both satisfaction and engagement.
  2. Improved Digital Experience: Ensuring digital tools are user-friendly and aligned with employee needs increases productivity and job satisfaction.
  3. Enhanced Engagement: Engaged employees are not only satisfied but motivated to contribute to the company’s goals, leading to better business outcomes.

Want to explore our solution for improving digital experiences? Learn about our Digital Wellbeing Diagnosis ↗️

Why Digital Transformations Fail: A Focus on People

The high failure rate of digital transformations can be attributed to organizations’ flawed assumptions about the nature of transformation itself. Many believe digital transformation is purely about technology. However, as the Brightline Initiative notes in its People Manifesto, successful transformations hinge on human capital. Leaders often overlook the importance of engaging employees throughout the process, which can derail even the most well-planned strategies.

Benham Tabrizi and colleagues identified five key lessons from failed digital transformations. Two of these involve the human aspect: if people lack the right mindset and the organization has flawed practices, digital technologies will only magnify those flaws. Transformation isn’t just about deploying technology—it’s about changing mindsets, behaviors, and engaging the workforce.

How to Harness the Power of People in Digital Transformation

The focus of digital transformation often centers on technology, but people are the true key to success. Here are some critical steps to harness the power of human capital in driving successful transformation:

  1. Don’t Leave People in the Dark: Make sure everyone affected by the transformation knows what’s happening, why, and how it will impact them. A clear communication strategy from the start ensures people are informed and engaged.
  2. Focus on Quick Wins: Iterative rollouts of digital transformation, with early and visible successes, help build momentum and support. Keeping the entire project under wraps until completion breeds anxiety and dissent.
  3. Explain the Why: People need to understand not just what the transformation entails, but why it’s happening. This allows them to see the bigger picture and plan for their own future, whether or not they remain with the organization.
  4. Confront Fear Head-On: Many employees fear that digital transformation will make their jobs obsolete. Organizations must address these concerns directly and provide reassurance, training, and support to help employees navigate the transition.
  5. Be Agile: Digital transformation is a long-term effort, often spanning years. Unforeseen events, such as global pandemics or economic disruptions, can derail the best-laid plans. Agility and contingency planning are essential for adapting to new challenges.

Yorizon team members smiling

Conclusion: Building the Bridge Between HR and IT for Digital Success

The failure of digital transformations can often be traced to one fundamental oversight: people. Technology is a powerful enabler, but it is the human element that makes or breaks a transformation. By aligning HR and IT and bridging the gap between employee engagement and digital tools, organizations can improve both productivity and retention.

The future belongs to companies that understand the dual importance of technology and human capital. By fostering collaboration between HR and IT, continuously gathering feedback, and making data-driven decisions, businesses can create an environment where employees are not only satisfied but fully engaged. In doing so, they can increase their chances of digital transformation success and ensure they remain competitive in an ever-changing landscape.

Here are recommendations on how HR and IT can align and collaborate in optimizing satisfaction, engagement and overall success ↗️

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