A new survey of 1,400 companies worldwide shows a clear correlation between digital transformation and financial performance. The survey, conducted by industry analyst firm Valoir, shows that most companies are well underway with digital transformation projects, with the average company roughly 70% through the process.

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“Despite all the recent hype around employee experience, clearly companies have prioritized digital transformation efforts on customer experience and other areas. Given the Great Resignation, attracting and retaining talent has become a top priority. Digital transformation is crucial for improving the employee experience in today’s hybrid workforce”

The survey assessed businesses on a scale of 1 to 10, where 1 signifies companies that have not yet started digital transformation and 10 represents those that are complete. Companies scoring 8 or higher showed roughly twice the revenue growth compared to companies scoring 3 or less.

“There’s a lot of talk about digital transformation, but many companies have been challenged to assess the value of their efforts. We found that advancing digital transformation drives both revenue and margin improvements by improving efficiency and delivering better customer and employee experiences,” said Rebecca Wettemann, CEO of Valoir.

HR Lags Behind
The report also reveals surprising findings about how far HR lags behind other departments such as customer service, marketing, IT, and operations in their digital transformation.

Valoir finds that fewer than 20% of companies surveyed have adopted modern, digital HR capabilities in key areas such as reskilling and coaching, mentoring and training, and real-time analytics.

“Despite all the recent hype around employee experience, clearly companies have prioritized digital transformation efforts on customer experience and other areas. Given the Great Resignation, attracting and retaining talent has become a top priority. Digital transformation is crucial for improving the employee experience in today’s hybrid workforce,” said Wettemann.

The study, which included companies from a broad representation of industries and company sizes, also finds healthcare, financial services, and high tech are the most advanced industries from a digital transformation perspective. The public sector, utilities, and consumer goods lag behind.

Regionally, the survey finds North America and Latin America are ahead of the EMEA and APAC regions regarding digital transformation.

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