Hey there! Most growing organizations reach an inflection point when overburdened HR teams struggle with manual and repetitive administrative tasks. As an SMB owner, are you also wishing there were more hours in the day to focus on retaining and nurturing top talent?
If so, it’s probably time to consider HR automation – an approach that is transforming how modern HR teams operate worldwide.
This comprehensive guide will walk you through:
- What HR automation means
- The key ways it benefits an organization
- Processes you can automate to free up your HR capacity
- Tips for implementation success
So let’s get you acquainted with the next stage of HR excellence!
What Does HR Automation Mean?
First things first – HR automation refers to configuring technology to handle high-volume administrative HR tasks automatically.
This includes workforce management duties like:
- Employee record updating
- Payroll processing
- Benefits allocation
- Leave tracking
Software, machine learning, and AI take over these repetitive tasks from HR professionals.
As per GrandView Research, the global HR automation market is projected to grow at a CAGR of 22.9% from 2022 to 2030 to reach a size of USD 56.29 billion. This explosion in adoption is indicative of the value automation unlocks.
Why Automate HR Processes?
HR automation may involve some initial spend, but it pays long-term dividends including:
66% Higher Revenue Per Employee
A study by IBM Smarter Workforce Institute found that companies using automated HR processes had 66% higher revenue per employee compared to those relying fully on manual work.
This massive uplift demonstrates how exponentially greater HR capacity directly fuels business growth. Even just refining workflows around goal alignment and performance management through automation has been found to raise production by over 20% as per Harvard Business Review.
Such striking metrics make a strong case for automation from a revenue standpoint alone for SMBs like yours.
83% Less HR Administration
Now here’s an eye-catching stat for you – automation can remove around 83% of repetitive transactional tasks from your HR workflow based on research by Deloitte.
That means dramatically fewer hours spent on mundane admin work like updating employee records, filing taxes, circulating internal communications and so on.
Instead, your HR manager can redirect their time towards high-value strategic projects like leadership coaching, skill development programs and retention initiatives.
Key HR Processes Being Automated
Wondering which critical HR processes can be automated to magnify your HR capacity? Here are 5 fundamental areas to start with:
1. Recruiting and Hiring
Attracting and onboarding suitable talent is the lifeline of any winning team. HR automation is upgrading this process through:
- Automated resume screening
- One-click scheduling across time zones
- Analytics for sourcing metrics
This delivers over 50% faster time-to-hire as per recent Everest Group research.
What does that translate to for your company?
- Minimal vacancy durations hampering productivity
- Lower rehiring costs from attrition
- Relief for your HR lead from manual screening
2. Employee Onboarding
Another delicate process that impacts new hire retention is onboarding. HR automation enables 50% faster onboarding completion as per a SilkRoad study.
This superior experience when welcoming new employees is enabled through:
- Paperless documentation
- Instant equipment, badge and system access
- Proactive training delivery
The outcome? Greater new starter satisfaction and engagement from day one.
3. Payroll Management
Payroll may be a frequent nuisance plaguing your HR manager. Automating intricate salary and tax calculations saves countless hours every month.
At the same time, built-in country, state and city tax codes ensure 100% compliance – something no manual process can guarantee.
4. Performance Management
Periodic performance evaluations are indispensable for aligning your team behind company objectives.
Automation adds more structure through:
- Automated review scheduling
- Template-based scoring
- Centralized goal setting
- Comparative benchmarking
With these digitized systems, you can spot high performers faster and nurture them into leadership roles.
5. Employee Self Service
Empower your staff with direct access to everyday HR needs like payslips, policy documents and calendar PTO requests via self-service.
Not only does this free your HR personnel from constant inquiries, but also boosts productivity by 4-25% as per Gartner’s analysis.
Now that you’ve seen the critical ways automation amplifies HR capacity, let’s talk implementation.
Getting Started With HR Automation
Transitioning from manual HR operations to optimized digital workflows is an invaluable but tricky transformation.
Here is a structured 4-step approach to sail through it smoothly:
Step 1: Define Your HR Automation Goals
Be clear about the tangible outcomes you want including:
- Saving 10+ hours in admin work weekly
- Improving new hire retention by 20%
- Increasing employee self-service requests by 50%
This gives you a baseline for validating ROI later.
Step 2: Map Processes to Automate
Next, audit your current HR workflows. Make a list of the most repetitive and tedious aspects for automation priortization.
Common top picks include payroll, onboarding, reporting and recruiting.
Step 3: Select User-Friendly Automation Software
With a swarm of technologies flooding the automation space, narrow down vendors fitting your functional needs and ease-of-use standards.
Verify capabilities around:
- Customizable workflows
- Access control
- Mobile optimization
- Scalability
Well-rated platforms like PeopleStrong’s Alt HR and Zoho People meet these prerequisites.
Step 4: Continually Expand Automation
Start small by automating your highest priority HR processes first before expanding automation more widely.
Simultaneously, keep optimizing configurations and access as your programs and tech savviness matures. Soon enough, automation will be elevating HR productivity like clockwork!
Are you now convinced about ushering automation into your HR environment yet apprehensive about executing this digital transformation?
You Don’t Have to Go It Alone!
As HR technology specialists, we can securely and seamlessly fast-track automation for your HR workflows.
Right from platform evaluation, customization, data migration to adoption coaching and beyond – our automation experts will be your trusted implementation partners.
We take care of the whole migration heavy-lifting so you can start reaping ROI within weeks with minimal business disruption.
To explore which areas of your HR process would benefit most from automation, schedule a quick 20 minute consultation now.
Looking forward to helping you empower your HR function digitally!
