The world of work moves faster every day. Organizations need to work smarter to stay competitive. This is where human resources (HR) process automation comes in. Automating repetitive administrative tasks frees up your HR team to focus on strategic people initiatives.
According to McKinsey, over 25% of capital spending will go towards automated systems in the next five years.1 With the right tools, HR can drive success through improved efficiency, cost savings, and better employee experiences.
In this comprehensive guide, we will explore:
- The top 7 benefits of HR automation
- Key use cases to target for process improvements
- Steps to implement automation in 2024
Why HR Teams Need Automation
Before we dive into the benefits, let‘s look at why automation is so critical for HR teams today.
HR professionals spend over 58% of their time on administrative work.2 This includes everything from filing paperwork to manually entering employee data. Not only is this inefficient, but it also prevents HR from acting as a strategic advisor.
HR wants to focus on big picture initiatives like:
- Building an enviable employer brand
- Creating personalized employee development plans
- Analyzing workforce trends and projections
But tedious tasks like processing payroll eat up a huge chunk of their time. Automation fixes this problem by taking the repetitive work off HR‘s plate.
This allows your HR staff to become value-added partners in achieving business goals through people.
The Top 7 Benefits of HR Process Automation
Automating workflows delivers game-changing advantages, from hiring to payroll and beyond. Here are the top 7 reasons to get on board:
1. Bolstered Security and Data Integrity
Manual processes are prone to errors and unauthorized access. HR automation software centralizes forms, documents, workflows, and signatures – guaranteeing compliance and data integrity.
For example, automating the employee absence management process minimizes mistakes. Employees can securely submit leave requests online, which automatically flow to the appropriate approver. Customized role-based permissions ensure privacy. Managers can view reports to monitor leave trends and adjust if needed.
Centralizing this process minimizes errors, security risks, and provides data to improve leave policies over time.
2. Smoother, Faster Recruiting and Onboarding
Automating tedious tasks like job posting, resume screening and onboarding checklists accelerates your hiring while ensuring a consistent candidate experience.
According to Software Advice, 75% of candidates are more likely to reapply after a positive experience.3 HR automation enables you to deliver on that expectation.
For example, chatbots can screen applicants 24/7, identifying the most promising profiles. Automated messaging then nurtures promising talent through hiring stages.
Once hired, customized onboarding checklists guide new hires and managers through orientation steps. Automated tools drastically simplify critical first-time experiences.
3. Eliminate Payroll Errors
Payroll issues like incorrect calculations, duplicate payments, and missed deadlines are expensive mistakes. Automated tools significantly reduce errors through accurate, timely payroll processing – improving employee satisfaction.
In fact, 46% of payroll leaders say compliance and accuracy are their top priorities.4 Automation delivers the needed control. Standardized processes minimize human error risks. Automated validation flags any discrepancies for review.
Your team gains peace of mind knowing payroll tasks are handled reliably. Employees receive accurate, on-time pay – leading to improved retention.
4. Increased Efficiency Across the Board
Repetitive administrative tasks waste countless hours that could be better spent on high-value initiatives. 60% of executives leverage AI to drive consistency and quality in their workflows.2
HR spends over 14 hours per week managing tasks like collecting timesheets or chasing down forms and signatures.5 Automation handles these tedious processes so your team can focus on strategic priorities.
With a comprehensive HR automation platform, your team could recover up to 30% or more of their time.6 That translates to 150 hours annually for a typical HR manager – equivalent to 19 full eight hour days!
5. Seamless Team Communication
Disjointed communication causes frustration. HR automation software centralizes information sharing and updates in real-time – ensuring collaboration flows smoothly.
For example, automated org charts instantly reflect team changes, so everyone has access to accurate personnel data. Customizable employee portals act as a one-stop shop for announcements, documents, and self-service needs – improving transparency.
Streamlined communication keeps everyone aligned while eliminating manual efforts.
6. Slash Paper-Based Processing Costs
Printing, storing, and manually entering data is hugely resource-intensive. Automating HR workflows significantly reduces these paper-based costs.
An employee file storage cabinet takes up physical space and requires climate-controlled storage conditions. Digitizing personnel files virtually eliminates these overhead costs.
Estimates indicate that it costs $20 to $120 to process each paper document manually.7 Going paperless slashes these expenses.
7. Strengthen the Employee Experience
As your business evolves, HR automation adapts – effortlessly managing increased workloads to keep employees supported. This flexibility is key for attracting and retaining top talent.
For instance, your organization acquires another company, adding headcount overnight. The onboarding tasks could overwhelm HR staff. Automation handles the increased volume seamlessly, allowing HR to maintain their high level of service through changes.
Employees associate positive experiences with your employer brand – driving engagement and retention.
Top Use Cases for HR Process Automation
From hiring to offboarding, ample opportunities exist to leverage automation for HR process improvements. Let‘s explore some of the highest impact areas:
Image source: KPMG
1. Streamline Employee Onboarding
Onboarding is a make-or-break experience. Automated checklists, tracking, and form completion ensure every new hire transitions smoothly.
For example, automation sends the right forms pre-populated with new hire data for e-signature. Customized portals provide quick access to training videos, company policies, contacts, and everything needed to ramp up quickly.
This eliminates 100+ hours of manual effort per new recruit so your team provides high-touch guidance.8
2. Centralize and Digitize Employee Records
Storing personnel files like employment contracts, training certificates, and performance reviews digitally makes important records easy to access and update from anywhere.
No more printing copies or flipping through filing cabinets. Automated profiles present a holistic view of the employee with just a click, including compensation history, skills, education, goals and more.
Easy access to up-to-date employee information enables better people decisions.
3. Automate Performance Management
HR automation can track goals, prompt review meetings, and suggest personalized development plans based on strengths/weaknesses – streamlining continuous performance management.
Manually tracking performance, scheduling meetings, and following up on development areas is time-consuming. Automated workflows simplify the process.
For example, the system automatically logs completed goals and performance data in employee profiles. This provides insights to guide growth opportunities and succession plans.
4. Error-Free Payroll Processing
Integrating payroll with time tracking and attendance data minimizes mistakes like overtime miscalculations that frustrate employees.
Payroll automation also enables real-time reporting on labor costs, overtime trends, and more – empowering data-driven workforce decisions. Compliance risks are reduced through standardized, automated processes.
5. Manage Paid Time Off Requests Efficiently
Automated tools can instantly approve routine PTO requests while appropriately escalating exceptions – ensuring efficient leave management.
Notifications to employees and managers provide transparency around status, remaining balances, and compliance. Automated reports identify trends that may require policy changes.
This eliminates tedious back-and-forth communication while optimizing leave.
6. Uncover Data-Driven Insights
Analyzing trends in demographics, turnover, compensation, and skills empowers strategic planning and talent investment decisions.
However, compiling this data manually consumes hours. HR automation generates interactive analytics dashboards on demand.
Leaders gain instant visibility into workforce metrics. Combined with benchmarking data, they can spot high-potential employees, diversity gaps, turnover red flags, pay equity issues, and more.
The right technology allows HR to become a true data-driven advisor.
Key Takeaway
Targeting these high-impact use cases will allow your HR team to work more efficiently and drive greater business value.
How to Implement HR Process Automation
Now that we‘ve covered the benefits and use cases, let‘s discuss how to successfully implement automation.
Here are best practices to drive adoption and maximize ROI:
Get Executive Buy-In
Present a strong business case to leadership using compelling data on potential time and cost savings. Having their support is key for investment and change management.
Choose the Right Software
Look for an end-to-end HR automation platform that can handle your key use cases with room to scale. Prioritize ease of use and integration capabilities.
Take a Phased Approach
Start with a pilot focusing on 1-2 priority processes like onboarding. Gather feedback, demonstrate quick wins, and expand automation gradually.
Clean Up Data
For a smooth implementation, audit and organize employee information into a standardized digital system.
Train Employees
Explain how the new tools will benefit employees and walk them through new processes. Ongoing support easies the transition.
Measure Results
Track KPIs like time savings, process efficiency, cost reductions, and user adoption to showcase the benefits.
Communicate Wins
Update leadership and employees regularly on the progress automation is making. This builds ongoing excitement and buy-in.
Start Your HR Automation Journey
The benefits of HR process automation are clear. To begin your journey:
- Document and evaluate current workflows to identify top priorities
- Research vendors that align to your needs, integration requirements, and budget
- Start with a pilot – pick 1 or 2 focused processes to automate initially
- Measure results against KPIs like efficiency, cost, and user satisfaction
The future of HR is digital. Automation provides the tools to transform workforce management – empowering your team to provide strategic value to the business.
Conclusion
HR automation delivers impressive benefits from boosted security and reduced errors to improved efficiency and strategic advisory capabilities.
Target high-impact use cases first, like streamlining onboarding and digitizing records. Follow best practices for change management and training.
Equipping your HR team with automated systems ensures they can drive business results by supporting and developing talent as the organization evolves.