The Need for HR-Led Workforce Readiness Assessments in Digital Transformation: Identifying Hidden Barriers Beyond Digital Skills

Abstract

This study examines the need for HR-led workforce readiness assessments in ERP-driven digital transformation, with particular emphasis on spreadsheet dependency as a hidden barrier to system adoption. Although ERP implementation failures are frequently attributed to technical and change management issues, limited attention has been given to the behavioral risks associated with employees’ long-standing reliance on spreadsheet-based work practices. Using a practitioner-reflective case study approach, this paper draws on observations from seven ERP implementation projects across manufacturing and service sector organizations in Sri Lanka over a ten-year period. The findings reveal a counterintuitive pattern in which employees with high spreadsheet proficiency, rather than those with low digital literacy, demonstrated the strongest resistance to ERP adoption. These employees frequently maintained shadow systems, relied on parallel spreadsheet environments, and delayed post-go-live stabilization, thereby undermining the intended benefits of enterprise integration. In response, the paper proposes an HR-led Workforce Readiness Assessment framework incorporating an Excel Dependency Audit to identify workforce-related risks during the pre-implementation stage. Furthermore, the study introduces the Digital Workforce Readiness Index (DWRI), a structured diagnostic framework designed to measure workforce readiness across dimensions including spreadsheet dependency, system adoption readiness, digital literacy, and process standardization acceptance. The paper argues that integrating HR into early ERP planning can improve implementation realism, support targeted change management interventions, and reduce adoption-related delays. The study contributes to the growing discourse on the strategic role of HR in digital transformation and offers practical implications for ERP project teams and organizational change practitioners.