Why Employees rebel
against Digitalization And how you can counteract this from the Outset

Digitalization often fails because of the Employees - not the Technology

The project sounded so promising: a new ERP software was to be implemented in order to simplify a large part of the processes. The management of Random Fitness GmbH - a medium-sized retail company for fitness clothing - had put together a small interdisciplinary project team: four hopefuls whose skills and expertise complemented each other perfectly. The team’s task was to find a suitable ERP solution, plan its implementation and finally implement it.

From today’s perspective, however, it became clear early on that not enough attention had been paid to the wishes and needs of all employees in the change process - although tensions were already apparent at the beginning, but these were not taken seriously. There was no need to “make a mountain out of every molehill”.

In the end, there was the sobering realization: the general working atmosphere seemed completely poisoned just five months after the start of the project. Instead of open communication, the atmosphere was characterized by irritation and intrigue of employees and the digitalization project was put on ice for the time being.

How could it even come to this - the project plan that you had carefully worked out before the ERP implementation was perfectly worked out and the new solution fit like a glove…!

Many digitalization projects in SMEs fail not because of your technology - but because of your employees. What are the typical causes of this? And how can you recognize resistance in your team at an early stage and prevent it from the outset?

Employees rebel against Digitalization - identify, overcome and prevent 4 typical Causes

First Cause: “Not knowing”

In some cases, the negative attitude towards change comes from a lack of understanding. These employees are not yet convinced that the change project will improve things in the future. They don’t see or understand the benefits of digitalization.

How can you prevent this?

It is important that you involve the employees concerned in the project at a very early stage. Explain to them why it is time for a new ERP system - and make it clear to them that your competitors are already much further ahead in some cases and will overtake you in the competition if you do not act.

Use concrete facts and key figures so that the whole thing doesn’t just sound like abstract phrases to them. Above all, employees should recognize the added value for themselves and internalize the holistic objective behind the project. This ensures their intrinsic motivation - which is what matters in the end. At what points will I be relieved of monotonous processes and be able to devote myself to interesting, new tasks? Where will I save how much time in future, e.g. in coordinating with interfaces?

What is also particularly important: prevent “one-way communication”! Conduct dialogs at eye level in which your employees can provide feedback at any time. This lays the foundation for shared visions - and makes it possible to create new routines that your employees can identify with.

Second Cause: “Not being able to”

There is actually a lack of skills and know-how with regard to new technology or there is a lack of language skills - in the digital world, a lot of things are done in English.

How can you prevent this?

Ensure that individual employees acquire the necessary qualifications in good time - whether through (individual) training or (online) workshops. It is also worth setting higher budgets for this. After all, you are investing in the future!

Make sure that employees have enough time to acquire the skills and know-how. Because too much time pressure can also always lead to resistance. It is important that you ensure “lifelong learning” in the company. After all, digital technologies do not stand still.

Microlearning for Employees Build up Practical
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Moreover, the digital transformation often cannot be achieved by the existing workforce alone. It also makes sense to bring new young employees on board who support the change with their visionary views. Your IT system can also give you an advantage in the “war for talent”.

Enable communicative exchange between employees, for example, by providing hierarchy-free open space solutions and community rooms.

Third Cause: “Not wanting to”

In most cases, this is where the problem of resistance lies: and that is a mentality problem. Out of mistrust, employees stick to the status quo and fight against change.

One reason may be fear for their own job. “Will my job even be needed if I am now involved in implementing technologies that can then take over my current job?”. In view of the automated processes in Business Central, this is also a legitimate question.

The high level of transparency that comes with a digital way of working also often causes headaches. There are fears that the whole thing could degenerate into “digital surveillance”. Afterwards, we will become ’transparent employees’ who are under constant surveillance.

How can you prevent this?

Address the concerns and needs of the individual - even before the project starts! Promote a culture of trust in which your employees feel they can share their fears and concerns at any time. An empathetic communication policy with the right choice of words is the basis. You can also do this with a regular (digital) project newsletter, for example.

Make the change as such a topic and address possible difficulties proactively from the outset. Be honest. “Which changes will be easy for us - and which will take a little more effort? What are we worried about? What specific measures do we plan to take?”

Create new positions that can only be filled internally so that your employees realize that they are by no means superfluous. You should clearly define the new job and role profiles for all employees.

New employees can also help to have a positive impact on “digitalization opponents” and motivate them. Impulses at eye level sometimes achieve much more than the “top-down approach”.

Fourth Cause: “Not allowed”

This group is definitely open to change, i.e. causes 1 to 3 do not apply, but they lack the resources to implement it. This is usually due to financial and time constraints.

How can you prevent this?

Since no rethinking is necessary here, this type of resistance is probably the easiest to change. First, provide the necessary budgets in a timely manner.

And here too: give the change enough time. A digital transformation is not a “rush job”. Your employees cannot change over overnight. You may need to relieve them of some of their core tasks.

Digital Transformation and Resistance: inseparable Twins

Digitalization has become a strategic competitive factor. Companies that can’t keep up with it now have virtually no chance against their competitors - they are simply being left behind in this marathon race.

There are profound changes in processes and procedures needed, some of which are firmly anchored. However, change never works without resistance! The two components are firmly connected like twins.

Also realize that digital transformation is a lengthy process. It will not proceed in a straight line, but there will always be different phases: sometimes the general euphoria prevails, sometimes phases of uncertainty and mistrust dominate. It is important to always recognize these at an early stage and respond to them - so that the resistance never becomes too great. When you start to establish changes, proceed in smaller steps when in doubt.

Turn Resistance into Opportunities - with targeted Change Management

Your digital transformation needs targeted change management, because change starts with your employees!

Once again, the most important points you should consider:

1. Involve your employees already in the preparation phase and support them - through transparency, visible added value based on key figures and communication at eye level.

2. Enable your employees to build up all necessary qualifications in good time, especially with regard to new technologies and language skills, and strive for a mix of core staff and new visionaries who enrich each other.

3. Take time for the concerns and fears of your employees, for example of “digital surveillance”. And create trust that digitalization is the right path. Proactively address possible stumbling blocks in the project.

4. Provide your employees with budgets and sufficient time in each phase.

And if there is no other way in certain situations: namely, when simple differences of opinion slowly but surely mutate into intrigues the management has to put its foot down if necessary.

All these insights could probably have saved Random Fitness GmbH from the debacle. In retrospect, their project was doomed to failure right from the start. Even if every change project stands on its own, they all depend in addition to the support of competent partners on the same decisive factor: the employees must support the change.