What Is a Digital Workplace? Definition, Benefits, Best Practices

Years ago, you had to travel to an office or worksite to get to your job. But the rise of technology — and a global pandemic — accelerated the adoption of more flexible work. Learn more about digital employee experience.

Today’s modern workplace is a combination of physical spaces, digital tools and technology — and everything in between. The digital workplace is the glue that binds it all together.

What Is Meant by Digital Workplace?

Reworked’s 2022 State of Digital Workplace report defines the digital workplace as: “Ever-evolving, the digital workplace combines leadership, culture, technology and practices to yield critical outcomes that impact both operational effectiveness and employee engagement.”

Reworked contributor Sam Marshall, owner of ClearBox Consulting and digital workplace specialist with more than 20 years of experience, shared this digital workplace definition: “The concept that there is a virtual equivalent to the physical workplace, and that this needs to be planned and managed coherently because it is fundamental to people’s productivity, engagement and working health.”

The digital workplace includes all the components — both physical and digital — of a business. It might be a physical office space in Chicago, an office location in San Francisco and 30 full-time employees who work remotely. It also encompasses all of the tools, technology and resources those employees need to succeed in their roles.

According to Marshall, the heart of the digital workplace comes down to three things:

• Putting people first: What’s the impact on employees?
• A technology layer: How are technological advances effecting digital working?
• Management and design: How does the proactive digital workplace design unite people, process and technology?

Due to their digital natures (where employees can’t speak in person or may not even reside in the same timezone), digital workplaces must prioritize productivity and collaboration through the use of the right software, apps, hardware and other technology.

You might be wondering: Why do we need a digital workplace? That answer is multi-faceted.

On the one hand, digital working allows businesses to remain agile in times of hardship or change. Think of the pandemic, when many companies could switch to digital work or shut down entirely.

On the other hand, businesses have found that digital workplaces offer a lot of benefits, from making it possible to hire more diverse candidate pools to cost savings around office rentals and utility fees.

Let’s take a closer look at the transition from the physical workplace to the digital one.

Related Article: The Jury Is Out on the Future of Work

What Is Digital Workplace Transformation?

According to PwC, modern business success hinges on the ability to connect, easily access information, respond quickly, collaborate seamlessly and make decisions in real-time. That’s where digital workplace transformation comes in, sometimes merely called digital transformation.

Digital workplace transformation is the process of using digital tools and technology to improve the traditional workplace. While you may already use technology to your advantage, digital transformation is about maximum optimization — getting the most out of each tool, app or piece of software.

It includes steps like:

• Assessing your current workplace: How does your workplace stand in the industry’s competitive landscape? What are the business’s shortcomings?
• Outlining your future workplace: How can you optimize your workplace through the lens of your employees’ behaviors, pain points and preferences? How can you address shortcomings?
• Exploring technologies: What digital workplace tools and technology can you use to meet your organizational goals, connect team members and maximize productivity and effectiveness?
• Designing the space: What will your workplace look like? Your design should include the physical office (if there is one) and the digital work environment.

One caveat: While technology is essential to digital workplace transformation, it’s only one part of the puzzle.

Rachel Happe, digital workplace strategist and advisor, as well as founder and digital workplace catalyst at Engaged Organizations, said businesses often make the mistake of starting digital transformation with tech. “If you apply technology before you change and work on and invest in process,” she said, “you’re actually codifying the old process, rather than changing.”

Another big barrier to successful digital transformation, according to Happe: Board members and C-level executives who were successful in the old world of communications but have a hard time adapting to the new environment.

“It’s a shift in how you treat people and how you think about employment and leadership and all of those things. And I think having that kind of old school mentality at the board and senior executive level is capping a lot of companies from making this change,” Happe said.

Related Article: Why Digital Transformation Is a Process, Not a Destination

The Digital Workplace Components and Features

What does a digital workplace look like? It’s not a physical office you can walk into and observe. Instead, it combines a company’s physical and digital presence, and the technologies and tools connecting the two.

Nancy Goebel said in her role as CEO at the Digital Workplace Group, they refer to the digital workplace as the organization’s “digital headquarters.”

The front door to that headquarters? The intranet, said Goebel, which provides access to digital spaces that allow employees to connect, collaborate, converse, get work done and create new things.

“Of course,” she said, “there can be various windows and doors that provide alternate entry points via mobile apps, the metaverse and other digital channels.”

What Are Common Digital Workplace Tools?

Modern, digitally focused companies use a myriad of digital workplace software and tools. Some of the most common include:

• Communication apps: Allow external and internal communications between colleagues, management, vendors, customers, etc. Includes email, instant message and video chat.
• Collaboration tools: Encourage employees to share knowledge and work together, despite being physically apart, such as through virtual meeting tools or shared cloud-based documents.
• Productivity tools: Digital workplace solutions that enable employees to manage and optimize their workflows.
• Data management features: Simplifies the navigation and finding of information, whether customer, product, employee, etc., within the digital workspace.
• Process automation tools: Automate routine operations in each department to free up employee time.

Related Article: Digital Workspaces Emerge: Here Are the Technologies Enabling Them

What Are the Benefits of a Digital Workplace?

“Three years of survey data shows that organizations have seen gains in productivity and report that employees are experiencing better work/life balance from the move towards digital workplace,” said Sarah Kimmel, Simpler Media Group’s VP of Research. “In our latest research, the digital workplace remained a priority for organizations, with 72% saying it is an extremely or very important priority.”