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How an Internal Audit Can Help You Achieve Digital Transformation

In a December 2023 updated report, Ernst & Young (EY) found the average cost per manual data entry made by an HR professional increased to $4.78. Read about EY’s latest findings for more information.


As work environments continue to evolve, businesses are experiencing an urgent need for more efficient, digital processes.

According to a recent Harris Poll, 92% of business leaders agree that to survive and thrive, companies must enable digital channels and process automation, and 88% agree the pandemic has increased this need. Yet 86% of businesses have one or more key barriers to implementing this automation.

The top organizational challenges cited in the poll included the complexity of integrating processes and budgetary constraints. In other words, multiple systems are costly hindrances keeping companies from progress.

In fact, a 2018 Deloitte report revealed that the average large corporation has 15 systems of record! If you’re thinking, “Oh, no! That’s my company!” don’t worry. It is 100% possible for your organization to achieve digital transformation. Here’s how.

What holds your company back?

I’ve found a common misconception many companies have about digital transformation is the belief that it’s a job for IT — moving traditionally paper-based processes to a digital platform.

But that’s only looking at a small part of the picture. At its core, digital transformation is about removing any processes (including outdated technology) holding your company back and replacing them with the right tech to help your business reach its full potential.

Consider where you want your business to be by 2022 and even several years down the road. Are your current digital processes enough to get you there? If not, what areas need to change in order to reach your goals?

For example, is your onboarding strategy helping you retain the talent you want? Today’s tech-savvy job applicants not only want a simple, convenient onboarding experience, but expect it. If you depend on multiple systems to enter a new hire’s information, it may have to be done several times — souring a new employee’s experience from the start. And if the data is entered incorrectly, those errors — and the cost it takes to correct them — are multiplied as well.

With the cost of each manual data entry averaging $4.51, per Ernst & Young research, it only takes a few hundred missed entries by employees to cost an organization thousands of dollars that could easily be avoided.

Where else can gains be made?

Open enrollment is another great example. The process can be notoriously time-consuming for HR and stressful for employees. What could your company gain by giving employees the ability to view and enroll in benefits from their smartphone whenever it’s convenient for them and allow HR to focus on strategic initiatives instead?

Other key areas to evaluate include how your organization:

  • finds, hires and onboards employees
  • trains and develops employees
  • complies with laws and regulations
  • manages labor and employees’ hours worked
  • manages submission and reimbursement of expenses
  • manages payroll

Digital transformation should be approached holistically because it affects every part of your business. In order to achieve this, you need technology that addresses every part of the employee life cycle.

Who benefits?

HR tech reaches its maximum value when all of your employees are using it to complete necessary tasks like enrolling in benefits, requesting time off, updating personal information, engaging in learning opportunities and more. A comprehensive app empowers employees by directly connecting them to their HR data — anytime, anywhere.

But the benefits don’t end with employees. Without having to play the middleman between employees and their information, HR is freed to focus on strategies that move your business forward.

2020 may have created hardships for businesses, but it has also placed internal processes on the digital fast track. Get your business on the road to success with an automated system that takes the guesswork out of HR, empowers employees and gives the C-suite the tools to lead confidently.

About the author
Author picture, Jennifer Kraszewski
Jennifer Kraszewski
Jennifer Kraszewski, Paycom’s senior executive vice president of human resources, has more than 20 years of HR leadership experience, driving transformative, business-focused human capital strategies in high-growth industries to achieve efficiencies, compliance and employee engagement. Named by Human Resource Executive® magazine as one of the Top 100 HR Tech Influencers in 2020 and 2021, Kraszewski is a featured blogger and hosts webinars on HR topics through the Society for Human Resource Management, HR Daily and She is SPHR- and SHRM-SCP-certified.