Effects of digital transformation on employee morale in the business banking department of a financial organization.

Abstract

Many organizations are undergoing digital transformation to remain competitive. Digital transformation in these organizations involves replacing old software with new software or automating manual processes. Organizations undergo this transformation without considering the effect on employees. This digital transformation process has a direct impact on employees. The study aimed to uncover the effects this transformation has on employee morale; the benefits of digital transformation and the strategies organizations should follow when implementing digital transformation. A quantitative study was conducted in the business banking division of a large financial services organization. The sampling technique used was stratified random. There was a total of fifty people that was sent a questionnaire within the business banking division of the financial services organisation. It was found that the benefits of digital transformation included streamlining of the operational process in the department, reducing manual activities, automating repetitive tasks, and minimizing errors. Respondents also showed positive results towards digital transformation increasing efficiency and allowing for more efficient data gathering and utilization of that data to gain valuable insights. Data from the questionnaire showed that employee morale increased with the introduction of digital transformation. Employees can do more meaningful work with the automation of tasks, thus doing more complex work and having a sense of accomplishment when complete. Digital transformation leads to increased motivation in employees with the desire to learn new skills and grow their career. Strategies needed to successfully implement digital transformation included training of employees on the new technologies to boost confidence and increase morale. Employees want to be included in the transformation process by providing inputs to decision-making. There needs to be clear and transparent communication from leaders during digital transformation. The data showed that employees require rewards while undergoing the transformation journey as this increases morale and allows adoption and culture shift to happen quickly. Lastly employees should be provided feedback regularly to show that their opinion matters, this increases morale. It is recommended that organizations embrace digital transformation totally and utilize the strategies identified in the study.