The role of human resources (HR) has significantly evolved over the years. Gone are the days when HR just had to manage extensive paperwork and hectic administrative tasks. HR now plays a critical role in driving organizational success, shaping company culture, enhancing employee engagement, and fostering talent development.
One effective way to enhance HR efficiency is through automation. HR automation involves using technology to simplify core HR functions, from payroll to performance management. Adapting to these changes is essential for HR professionals to stay relevant and avoid being left behind in a rapidly evolving business landscape.
In this blog, we will delve into the world of HR automation, discussing its benefits, implementation strategies, and real-life examples.
HR workflow automation can be referred to as the use of technology to streamline repetitive and tedious manual tasks. Workflow automation enhances employee efficiency by allowing them to focus on important tasks like strategizing and decision-making. By automating repetitive processes, companies can save time and reduce costs associated with manual HR processes.
Robotic Process Automation (RPA) is a common method for digitizing time-consuming tasks using robotic automation tools. This technology mimics human actions to efficiently manage repetitive tasks through onboarding software, as well as payroll, benefits administration, offboarding, and timekeeping. By automating these processes with HR technology, you minimize the potential for human errors and enhance the company's value.
HR Processes That Can Be Automated
You might be wondering how HR can be automated. With the right HR automation tools, you can undergo a seamless digital transformation, whether for onboarding, talent management, or time tracking. Here are some of the HR operations that can be automated:
Employee Onboarding
Traditionally, employee onboarding feels like navigating a maze of paperwork and endless tasks, including document collection for verification, granting necessary access or permissions, and arranging workspace essentials. However, automation tools can help create an easy-to-follow checklist for all users involved in the process. You can electronically collect and store documents, and grant access in hours instead of weeks.
Recruiting
Recruiting can feel like juggling a dozen balls at once – posting job ads, tracking responses, screening CVs, conducting pre-employment assessments, and managing candidate communications. Automating these tasks can save significant time and effort. Recruiting tools can manage job postings, track applications, screen candidates based on set criteria, and handle email communications, allowing HR staff to focus on the strategic aspects of recruitment.
Payroll
Manually calculating hours worked, sick leave, and vacation days for payroll can result in errors and discrepancies. HR professionals often find themselves bogged down by this tedious task, spending countless hours verifying every detail. Automating payroll is beneficial as it ensures accurate tracking and calculation of all relevant data. The payroll software simplifies payments and makes it easier to retrieve information for compliance audits or other requirements.
Tax Filing
Filing taxes can be notoriously challenging, especially with ever-changing tax laws. One error can lead to multiple complications and penalties. Automating payroll taxes in accordance with relevant regulations ensures that employees and contractors receive the correct forms to complete. It also provides a digital filing system that is easy to access during audits, streamlining the tax filing process and reducing undue stress.
Employee Benefits
We all know how challenging it can be to manage employee benefits manually. Mostly, the employees have little insight into their available benefits such as health insurance, retirement plans, paid time off, wellness programs, and educational assistance. With the help of automation, you can track employee situations and display their benefits, including changes in circumstances.
Time Management
There is no doubt that manual time tracking can be inefficient and prone to errors. An automated timesheet app allows for digital storage of employee profiles, attendance records, and other information, making the month-end evaluation processes faster and more accurate.
Performance Management
Performance management involves tracking and analyzing employee performance to assess alignment with business goals. Using performance management software, you can streamline this process, ensuring it is unbiased and accurate. With clear performance metrics and feedback, the software facilitates better decision-making and enhances the overall experience for both employers and employees.
If HR automation is implemented in the right way, you can reap indispensable benefits, such as:
- Increased Productivity: Streamlined HR processing and efficient data sharing enhance overall productivity
- Cost Savings: Reduces printing and storage costs associated with paper-based processes
- Improved Talent Management: Facilitates hiring, training, and retaining skilled employees
- Reduced Employee Turnover: Enhances employee engagement, leading to lower turnover rates
- Regulatory Compliance: Helps maintain compliance and avoid policy violations
- Organizational Growth: Supports efficient hiring practices at optimal operational costs, promoting overall growth
HR automation can boost efficiency, lowers expenses, and allows your HR team to focus on more critical tasks. Here’s a step-by-step guide to help you get started:
Step 1: Identify The Manual Processes For Automation
Evaluate your HR processes to determine the time-consuming and repetitive tasks that would benefit from automation. Consider focusing on areas such as talent management, benefits administration, payroll processing, and onboarding.
Step 2: Choosing HR Automation Tools
Pick out an automation platform that aligns with your organization's needs. Conduct thorough research and establish a budget. Consider factors such as ease of integration with existing systems, scalability, and user-friendliness. Popular options to explore include Paycor, Bamboo HR Payroll, and HiBob.
Step 3: Create An Implementation Plan
Next step is to have a clear outline of the expected outcomes or your goals for the project. You will have to set a realistic deadline for every phase of the implementation process to ensure smooth progress. Assign responsibilities for different tasks to team members based on their expertise to promote accountability. Clear communication and collaboration are important for successfully executing the plan.
Step 4: Create Proof Of Concept (POC)
It is a smart move to start with a pilot project to assess the feasibility and benefits of automation. You can choose a certain process, such as managing onboarding reminders, and automate it as a Proof of Concept (POC). Once you have a successful POC, you can explore various tools to expand your automation efforts. For instance, if you are looking for tools to help with recruitment, ‘Applicant Starter’ can help you with that. Alternatively, if you want to evaluate the performance of your employees, ‘Criterion HCM’ might be the right choice.
The main purpose is to test it in a controlled environment to track the performance of the automated process, identify issues, and areas for improvement.
Step 5: Scale Up The Automation
Gradually expand the automation solution to other HR functions. It is better if you continuously monitor the overall performance of the newly implemented HR processes, to adjust it as the need arises. You should also review the impact on efficiency and employee satisfaction to ensure it aligns with your goals.
Step 6: Provide Training And Support
Once you have implemented the automation process, it is essential to provide necessary training and support to the professional as needs arise. Having a Robotic Process Automation (RPA) manager can be beneficial in addressing any concerns and providing guidance on optimizing the system.
Step 7: Measure And Evaluate Success
The last step is to track key performance indicators (KPIs) such as cost reduction, time savings, and employee satisfaction. These will help identify improvement areas, early warning signs, and measure return-on-investment (ROI). It ensures that HR automation efforts are effective and continuously improving.
It is no surprise that HR automation is revolutionizing how organizations manage their workforce. Here are some real-life examples that illustrate the effective implementation of automation in various HR functions:
Case Study: Coca Cola
Coca-Cola faced challenges in determining how much Robotic Process Automation (RPA) could be applied to its HR processes. They used a heat mapping tool to assess 85% of their HR processes, gaining insights into automation potential. As a result, they implemented a workforce management tool to automate over 50 processes in SAP systems. This shift enables them to operate around the clock without additional staff, significantly cutting costs and enhancing productivity.
Coca-Cola’s HR automation journey highlights the importance of assessing processes to identify automation potential, choosing the right technology, and strategically implementing RPA.
Case Study: Dell
Dell Technologies, with over 160,000 employees, implemented Robotic Process Automation (RPA) to streamline its high-volume, repetitive HR processes. The company used bots to manage offer letters, requisition processes, and reporting, significantly improving efficiency and reducing manual effort.
Dell’s RPA Ambassador group helped promote automation internally, leading to a cultural shift towards automation-first thinking. In just one year, Dell deployed approximately 30 HR automations, achieving an 85% efficiency gain.
We can learn from Dell that automation of routine tasks can enhance efficiency and enable employees to focus on higher-value activities. By promoting an automation first mindset and having support groups, we can drive a cultural shift with the organization.
Whether it’s onboarding, payroll, performance management, or recruitment, HR automation offers a myriad of benefits that can drive organizational growth and improve employee experiences. As we’ve explored, HR automation isn’t just about simplifying tasks, it is about revolutionizing the way your HR team works. By choosing HR tools for growth, companies can minimize errors, boost efficiency, and empower HR professionals to focus on mission-driven plans that drive growth.
There's no denying that automation is a continuous journey, constantly emerging with new technologies and innovations. It’s essential to stay updated with the latest trends and tools to ensure your HR processes remain cutting-edge.
Ready to transform your HR processes with automation? We’ve got the perfect tools to help you get started. Contact Software Finder today and take your HR operations to the next level!