In today’s hybrid work landscape, businesses must rely on technology to function Some firms realized this early on, giving them a future-proofed advantage in the new digital world of work. But for those who have only begun adjusting to these circumstances, knowing where they stand in this situation can be confusing.
For organizations and HR teams curious about how prepared they are to respond to the demands and ever-changing developments of technology, Sprout’s HR DigitalMaturity Model (HR-DMM) can help.
This methodology is based on the Capability Maturity Model (CMM), which shows how an organization’s existing processes become more organized and mature in five levels. The U.S. Department of Defense first used this model to evaluate an organization’s software development processes, primarily focusing on methodologies and techniques.
Eventually, more complex frameworks for other industries emerged. The Human Resource Maturity Model (HRMM) is one such framework, with organizations using it to assess how they manage human capital.
Sprout has helped local businesses streamline their HR processes with its HR and payroll tools. Now, it’s introducing a new tool to help organizations evaluate the digital maturity of their HR department through the Sprout HR DigitalMaturity Model (HR-DMM). Here’s a look at this framework and what it covers.
What is Sprout’s Digital HR Maturity Model?
The HR-DMM is the brainchild of Sprout HR Evangelist Atty. Lester Ople. It’s a framework inspired by CMMs and the company’s interactions with other local firms in various stages of digital transformation. HR leaders can use this comprehensive tool to assess their department’s evolving corporate functions, methodologies, and technologies in these key verticals:
- HR Operations
- Employee Experience and Engagement
- HR Business Strategy
How Will the HR-DMM Benefit HR Departments & Businesses?
By adopting the HR-DMM, HR teams can see their current level of digital maturity. In turn, HR departments can determine how to create an advanced, multi-leveled solution that helps them achieve digital maturity goals, measure success, and chart growth.
Since this digital era has made assessing digital maturity a must for HR teams, it’ll help HR departments and leaders reach their desired level of digital maturity and deliver beneficial outcomes for their organizations. The HR-DMM allows HR teams to improve how they perform essential HR processes.
As for businesses, it’ll equip them with the necessary skills to surpass competitors through more knowledge of how processes, technology, and HR are connected. Companies can see how they can maximize HRM’s role to operate more effectively to reach business goals.
What Does the HR-DMM Cover?
The HR-DMM encompasses the following aspects:
HR Maturity Levels
The number of maturity levels in CMMs varies. Organizations can use frameworks with three to five stages, with most models showing five levels. A CMM typically includes the following stages:
Level 1: Initial
An organization has established unpredictable, poorly controlled, and reactive processes during this stage. It works in a volatile environment with more risks and inefficiencies.
Level 2: Managed
Companies at this phase have processes characterized by projects. Moreover, these processes are often reactive.
Level 3: Defined
The organization implements well-characterized and well-understood processes. The business is also more proactive and has established company-wide standards to help everyone deliver desired outcomes.
Level 4: Quantitatively Managed
The company follows and maintains measured and controlled processes. It executes data-driven, predictable strategies focusing on organizational goals.
Level 5: Optimizing
At this point, companies implement stable, flexible processes. They also prioritize improvement and adapt to changes.
Looking at the HR-DMM, we see five phases describing a company's HR maturity corresponding to how HR in the Philippines has evolved. Additionally, we matched each stage to a suitable Sprout product or professional service.
Besides the five stages of HR maturity, the HR-DMM provides companies with core measurement areas that evaluate their HR processes’ digital maturity at every phase:
Core HR Measurement Areas
- Organization - how the business manages its people. This aspect covers training, culture, and other intangibles connected to an organization’s HR department.
- Methodology - the philosophies, policies, and processes that inform HR business strategies
- Technology - the technology stack and other digital tools used for HR operations
These standards reveal how effectively a business uses digital processes and technology to change its operations and culture.
HR Vertical Integration
Improving employee experience heavily depends on vertical and horizontal integration. The HR-DMM mainly covers vertical integration, where HR departments align HRM practices with the organization’s strategic performance goals and objectives. It goes beyond broad areas of concern in HR by making them highly specific, expanding on each Core HR Measurement Area more granularly.
The Verticals Under the HR-DMM
Vertical integration evaluates whether a company has successfully aligned its learning and development (L&D) and HR strategies with its business strategy. Three verticals come into play here: HR operations, employee experience or engagement, and HR business strategy.
HR operations are about the daily transactions that HR departments handle. Meanwhile, employee experience or engagement refers to how workers interact with their employer and HR operations. Finally, HR business strategy is how corporate leaders value HR operations and employee experience (EEX). Each HR vertical comes with corresponding descriptions for each maturity level.
Take a Step Towards Digital Maturity
Nowadays, we live in an increasingly digital-dependent world with more companies relying on technology to work and deliver results efficiently. But these businesses are at varying levels of digital maturity. Some businesses have improved their existing processes with digital tools, while others are still working toward digital transformation.
A CMM is one way for businesses to assess their digital maturity. It’s what drove us to devise our HR digital maturity framework. The HR-DMM lets HR teams know how much their processes have evolved after using digital tools. Moreover, it’s useful for businesses wanting to adapt and succeed in a digital working environment. HR departments can look at the HR-DMM and determine how they can reach digital maturity.
If you want a closer look at our framework, the full HR-DMM whitepaper has everything you need to know. Download the white paper and take the self assessment test today. For more insights about HR technology and other HR-related areas, visit the Sprout blog.
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