Man over Machine: Recognising the human value of digitalisation in SMEs

The move from the physical to virtual office was fully realised when the pandemic hit. As organisations navigate this hybrid work model, it's become crystal clear that the digitalisation of the workplace is not one-size-fits-all. Maintaining a human touch in the face of a digital transformation is key to the successful adoption of new technologies, and keeping employees satisfied and confident in a post-pandemic world.

In a 2021 Employment and Recruitment Trends for SMEs survey conducted by Employment Hero in Singapore, we found that although 69 per cent of all employees indicate they feel prepared for the digital changes that may arise in 2021, 24 per cent of entry-level employees feel unsure or unprepared about the upcoming changes in their organisation. Research carried out by Boston Consulting Group also found that only 30 per cent of organisations that attempted digital transformations met their target value and experienced sustainable change.

The challenge with technology is that because it seems to connect people so seamlessly, it's easy to overlook how it affects team dynamics, and whether it takes away the essential human touch we need to build a great culture and engage employees. One important thing that SMEs have to remember is that other than simply onboarding new technology in an attempt to make business processes smoother, it is vital that the human side of digital transformation is not neglected. One or two technological improvements at the virtual office is hardly a transformation - and digital transformations require an overhaul in current mindsets and processes.

So how can SMEs integrate people, processes and technology together to ensure a successful digital transformation in 2021?

Lead with heart

Our survey found much of employee discontent boiled down to a lack of both mental health (36 per cent) and financial support (33 per cent). This is an indicator that empathy and understanding will take precedence, and traditional top-down management styles of leadership will no longer function as well in the new normal. Leaders will not only need to lead alongside digitalisation, but will have to relearn how to command, inspire, empower and engage their employees remotely in order to have their efforts seen, heard and felt by those who work for them.

According to a recent article in Forbes, providing employees with autonomy, and meaningful relationships and work is the best way to maintain employee satisfaction. As a leader, adopting a relationship-oriented approach - rather than a task-oriented one - to address concerns and assist in the successful deployment of technology changes can be particularly effective. For instance, if you notice an employee underperforming having a simple chat can be really useful in working things out. An employee's poor performance could be due to something happening in their personal life, by offering your support you're not only building trust, but loyalty too. This approach to leadership allows leaders to put the needs of their employees ahead of their own, and opens up an avenue to listen in without judgment.

Listen to your people

At least 79 per cent of SME employees in Singapore still feel they need more support from employers to achieve their career goals, on top of what is already being provided to aid remote working and team bonding in companies. Employees know what sort of technology they require to carry out their day-to-day work with ease, and listening to their feedback as you go along will help you to understand what more is needed for them to feel supported in their personal growth.

Simply put, allow employees to guide what they require in the transformation to the digitalised workplace. After all, you can bring on board as much technology as you want, but it won't be effective if it doesn't contribute to the work your employees do, or if they find themselves unable to adapt to it.

This should be carried out together with ongoing efforts to upskill current employees, ensuring they are ready for this new system of work. A recent study by UOB found that nine in 10 Singaporeans still believe they will need to reskill or upskill to stay competitive beyond the pandemic. People are a company's most valuable asset, and through expanding the skillsets of current employees matched with the latest processes and tools, you will find yourself with a more diverse, agile, innovative, well-rounded workforce that can adapt quickly to change.

Keep the culture

Think of technology as a way to reshape the current structure of communication and engagement within the organisation, rather than a means to remove elements of human touch and interaction. A study by Deloitte has shown that 87 per cent of organisations believe that culture and engagement is an important challenge that must be overcome, as highly engaged companies have lower turnover rates, higher profitability, and are more productive. Building a strong culture gives the company a competitive advantage, aids in the process of attracting and retaining top talent, and supports the move to digitalised workplace much more seamlessly.

A great way to go about this is to establish a central place for all communication. Consider using just one easily accessible spot dedicated to communication, where you can share topics of interest and recreate a virtual culture that emulates the physical workplace. Use this spot to encourage fun and interesting conversation on a regular basis to ensure that employees are kept connected and engaged beyond the grind of mundane tasks. Remember, consistency is key.

It's no surprise to anyone that COVID-19 led to rapid digitalisation of our workforces. As we move forward, it is imperative to remember that humans have an influence on organisations and the companies that they work for, and it is the duty of employers to be conscientious of how technology and people should be balanced.

Through meaningful and smart solutions, and paying attention to building a strong culture, enforcing communication in a remote working landscape, and drawing attention to employee development, SMEs in Singapore can achieve a successful digital transformation that lasts beyond the pandemic.

The writer is chief executive officer and founder of Employment Hero