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HR digitalization as a driver of business transformation: Insights from Employer Partners

  • Iva Ćaleta, HR Consultant, SELECTIO Group
  • 13. November 2025.
  • 8 min read

In recent years, digitalization has become a central topic when discussing the modernization and efficiency of HR functions. It is often associated with introducing new tools, onboarding applications, selection systems, or platforms for learning and knowledge management within an organization. However, organizations that truly succeed in advancing toward a modern, transparent, and strategic HR approach share one key insight: they do not see digitalization as a goal in itself, but as a consequence of clearly defined processes.

For over 20 years, the Employer Partner certificate has evaluated the quality of HR systems across organizations of various sizes and industries, providing an objective and structured benchmark. After thousands of HR system assessments across the region, SELECTIO Group HR consultants have observed that digitalization only starts delivering real value once processes are defined, standardized, and measurable. The Employer Partner certification is not merely a process for confirming excellence, it is a diagnostic tool that gives organizations insight into their maturity and clearly identifies opportunities for improvement.

This insight often becomes a turning point, accelerating the development of the HR function and its strategic role in the business. Organizations undergoing certification start implementing digital solutions not because “they need a system,” but because they clearly understand the problem they are solving and the results they aim to achieve. This awareness differentiates digitalization as a strategic investment from digitalization as a purely administrative project.

Once processes become measurable, standardized, and transparent, two things happen:

  1. HR gains legitimacy – as decisions can be made based on data.

  2. Digitalization becomes the natural next step – not because it is trendy, but because it supports organizational growth.

Different contexts, different approaches: Insights from practice

Comparing organizations across countries, industries, and business models that have undergone HR system evaluation through the Employer Partner methodology shows that there is no universal blueprint for digitalization, and that is actually encouraging. There is no single “right” model, but there is a solution for every organization. Digitalization is shaped by the organization’s business needs, labor market, and strategic HR objectives.

Retail: Digital HR responding to diverse labor markets

The experience of two Employer Partner certified retailers from the same corporate group, but operating in different markets, Lidl Serbia and Kaufland Croatia, demonstrates how similar corporate structures can develop different HR approaches depending on market conditions.

Lidl Serbia operates in a high-turnover, less stable labor market, particularly for operational roles. Their HR focus is on team leadership development and systematic employee engagement. Digital tools support this by tracking employee satisfaction at the team level, measuring engagement, collecting feedback, and planning interventions where turnover risk exists. Here, digitalization is not process automation, but a way to understand organizational dynamics.

In Croatia, Kaufland faces a completely different challenge: attracting candidates quickly in a market with limited labor availability. Digitalization begins already in the selection process. Automated candidate selection platforms and innovative initiatives like the Mini Jobs model enable a simple, efficient, and candidate-friendly hiring process, reducing time-to-hire and improving the candidate experience. In a more mature labor market with lower turnover, HR digitalization naturally focuses on process optimization, employer branding, and engagement culture.

Examples include:

  • Digital Recruiting – a social media-based recruitment model using mobile-friendly quizzes instead of traditional CVs, with candidates automatically ranked through an integrated system.

  • Mini Jobs – a flexible employment model offering 16, 24, or 32 hours per month, ideal for supplementary employment, particularly in areas with seasonal work.

  • “Najkolega” (Best Colleague) – an internal recognition program rewarding employees who best embody company values, emphasizing team connection and engagement.

  • Kaufland Radio – an internal podcast and radio show on the K-Connect app, hosted by HR, sharing employee stories and company news.

These examples show how digitalization in retail goes beyond automation, becoming a bridge between efficiency, culture, and belonging. Employer Partner provides a framework that allows organizations to recognize different but equally valuable approaches.

Telecom: HR as a driver of digital culture

The telecom industry often sets the pace for digitalization in society, and this influence is reflected within organizations. A1 Croatia has developed a digitalized onboarding process that eases new employees into the workplace and reduces initial uncertainty. Through the Future Hub program, employees have structured development paths and can track their progress, making career growth more accessible and measurable. Their centralized HRIS connects all key HR functions and supports numerous digital solutions, from offboarding apps and automated benefits to the virtual assistant Bob Rock chatbot, which answers employee questions and automates routine processes.

At Hrvatski Telekom, another Employer Partner certified organization, digitalization is most visible in leadership development and fostering a culture of accountability. Employee development and performance evaluation systems are designed so employees can see goals and expectations, while leaders have tools for systematic team management. HR does not operate “behind the scenes” but uses data to make strategic decisions.

In both telecom companies, digitalization is not about simplifying administration, it is about strengthening transparency, accountability, and continuous development culture.

FMCG: Stability through data

In fast-moving, highly competitive sectors, digital HR systems help maintain stability. Atlantic Group uses advanced systems to track engagement, employee development, and benefits, making data-driven decisions on career development and wellbeing programs. The result is extremely low unwanted turnover and high organizational resilience.

Zagrebačka pivovara, on the other hand, uses digitalization to differentiate itself in the labor market. Employer branding and wellbeing programs are supported by digital platforms that enable continuous communication and employee involvement. Here, digitalization supports organizational attractiveness, not only process efficiency. The Employer Partner methodology demonstrates its breadth, recognizing excellence in both global systems and local initiatives, valuing digitalization as a tool tailored to the organization’s real needs.

Banking and construction: digitalization as transformation

Erste Bank uses digital learning programs and clear development paths to ensure employees acquire skills aligned with fintech sector developments. HR’s role becomes strategic: ensuring the organization develops people capable of meeting future market demands. The virtual HR assistant Vilma further simplifies daily processes, making HR services more accessible and efficient.

Holcim, in turn, demonstrates that digital transformation is not reserved for “digital” industries. In construction, digital HR systems enable tracking ESG goals, standardizing processes, and coordinating global initiatives. HR here is not merely operational but a partner in business model transformation. A standout example is CareerHub, an AI-powered internal platform developed with Gloat, connecting employees with tailored career opportunities, mentoring, and internal mobility, fostering a culture of growth and collaboration.

Digitalization changes how HR is perceived

The best results occur when quality and digitalization develop in parallel. Digitalization without clear processes can create chaos, while quality without digitalization can slow an organization. When balanced, HR becomes sustainable, effective, and strategically relevant.

Today, 92% of Employer Partner certified organizations use one or more integrated HR systems, and a third already provide mobile apps for employees. Yet the real story is not in the numbers, it is in what they reveal: digitalization has shifted HR from a function that reacts to change to one that drives it.

Every organization progresses at its own pace. If you are ready to discover where you currently stand on the path to HR excellence, our team of experts will gladly help you find the approach that best fits your needs, regardless of your industry or company size. Get in touch with us!

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