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If you have been in the field of HR for some time, you have probably been privy to all the buzz that’s surrounding HR automation.
Surely, HR automation (given the expanse of tasks HR covers) can sound daunting, particularly if you are unfamiliar with the technology. So, while integrating new systems, doing away with redundant tools, and ironing out process inefficiencies can be challenging, the benefits are immense.
As 26% of business owners use AI tools for talent sourcing and recruitment, and the AI market poised to surpass one trillion dollars by 2028, there is no doubt that AI is revolutionizing all corporate areas, and HR is no exception.
HR Automation: Meaning
HR automation is using an HR software to take over routine and repetitive tasks involved in onboarding, time tracking, payroll, benefits management and more. By doing so, HR teams are in a better position to redirect their efforts toward more strategic initiatives that drive value for the company. By automating these functions, organizations improve their operational efficiency, get better security, and reduce the likelihood of errors.
Most importantly, automation in human resources is no more just a good-to-have for any company. It is an essential because of the overwhelming amount of paperwork and time-consuming tasks associated with daily HR processes. Sure, transitioning from manual processes to human resources automation requires some skill and training so that the technology is used to its optimum. However, the advantages of HR automation—for both employees and company’s overall efficiency—far exceed the time, effort, and investment needed to implement it.
Benefits of HR Automation
HR automation offers some superlative benefits in terms of enhancing operations and creating a more agile plus responsive HR department. What human resources automation does is it minimizes all of HR teams’ manual tasks, improves data accuracy, provides real-time insights, in turn, driving overall efficiency.
Here’s a quick glance at some of the key benefits of HR automation:
1. Higher Process Efficiency
Think of tasks like candidate screening and interview scheduling. These seemingly routine (but extremely important) tasks are actually the ones that consume the most time for all HR teams.
Automation streamlines these tasks and frees up a lot of valuable time for the team. This boost in efficiency and productivity is huge. In fact, studies show that AI alone could raise employee productivity by 40% by 2035. With these time savings, HR teams can rather focus on more value-adding tasks like planning and enhancing employee experience.
2. Data-backed Decisions
Once automation in human resources is implemented —such as for hiring processes— it is also important to check if it is meeting goals well. This is where real-time data and analytics come into play. They provide insights and recommendations to fine-tune automated workflows.
Having access to holistic insights into performance metrics, workforce dynamics, and recruitment outcomes helps leaders to spot trends, anticipate needs, and make informed decisions that align with business goals. This data-driven approach improves the organization’s ability to make better choices in terms of talent management initiatives.
3. Reduced Errors
HR automation takes data accuracy and security to the next level. It’s great at detecting and fixing errors automatically, making sure that employee/candidate data is way more reliable than if it was processed manually.
Plus, it helps protect against security slip-ups that could possibly happen due to human errors. With 36% of professionals admitting they have made mistakes that could compromise security, it is no wonder that HR automation is becoming a preferred solution in keeping data safe and sound.
4. Improved Candidate/Employee Experience
Automation in human resources also contributes in elevating the candidate and employee experience by simplifying all steps of the interaction — from application to onboarding processes and enabling personalized communication throughout.
Timely and consistent communication is the key with 62% of candidates losing interest if they don’t receive a response within two weeks which means poor communication can negatively hinder the organization’s ability to attract top talent.
5. Better Security
High-quality HR automation tools centralize all HR data which gives a great boost to the organization’s security measures. In the modern digital landscape, where the average cost of a data breach is $4.45 million, robust security is table-stakes. Automation helps protect data from financial and reputational risks by safeguarding it, managing access controls, and ensuring compliance with privacy regulations.
6. Less Compliance Risk
Each country has its own labor laws, internal policies, and union agreements. And HR automation helps manage all of these regardless of the country the organization is operating.
With companies spending huge amounts of time on compliance, efficient HR solutions are vital. By staying up-to-date with the latest regulations and automatically integrating them into HR processes, these systems help companies avoid compliance issues and costly penalties.
7. Improved Team Collaboration
HR automation tools make teamwork a breeze by offering platforms for information sharing, goal management and project tracking. They help break down tasks into silos and keep communication flowing smoothly, so that employees and managers stay on the same page and get the support they need mutually.
Given that a significant number of employees spend a chunk of their time collaborating, improving efficiency in this area can really make a difference.
Practical and Actionable Examples of HR Automation
Human resources automation covers a gamut of functions, right from recruitment to offboarding. Advanced HR technology platforms that provide inclusive solutions can streamline tasks and reduce the time and effort required for HR operations.
Let’s take a look at how HR automation helps in the real world to enhance practical day-to-day HR functions:
1. Recruiting
Automating the recruiting process not only streamlines workflows but also improves the candidate experience. Modern HR and automation technology, often powered by AI, can manage:
- Candidate sourcing
- Job postings
- CV screening
- Candidate screening questions
- Personalized job recommendations
- Responses to candidate inquiries
- Automated email flows
HR automation software starts the initial outreach and continues with tailored email and SMS campaigns so that appropriate engagement continues for each open position. This allows HR teams to focus more on personalized interactions with top candidates. Besides, analytics features provide detailed insights into recruitment efforts so that it is easy to refine and optimize strategies.
2. Onboarding
Effective onboarding sets the stage for a smooth and rewarding experience for new hires. AI-powered HR automation tools simplify this process by:
- Automating document management and paperwork
- Organizing and scheduling training sessions
- Conducting preliminary evaluations
With these tasks on autopilot, new employees receive everything they need promptly. This ensures a positive onboarding experience that gets them performing in their news roles from the get-go.
3. Offboarding
Along with a smooth onboarding experience, HR automation tools also improve the offboarding process so that employees have a respectful transition from the company. Key tasks handled by these tools include:
- Automating the scheduling and management of exit interviews
- Handling final paycheck calculations and distributions
- Managing the removal of system and facility access
Additionally, these solutions can help identify potential flight risks before offboarding is necessary, which enables proactive retention strategies.
4. Leave Management
Managing paid leave manually can be cumbersome and prone to errors. Automation in human resources makes it easy to manage several tasks on the front like:
- Verifying the employee’s available leave
- Enabling manager approvals for leave requests
- Updating records for payroll processing
If handled by a single person, there’s a high risk of mistakes, missed emails, and disruptions if that person is unavailable. HR automation software simplifies leave management by automating these processes.
5. Performance Tracking
Automating performance tracking provides accessible data for making decisions on raises, bonuses, disciplinary actions, or even terminations. It allows HR to maintain overall performance records, giving managers the tools to:
- Document observations and feedback
- Organize and prepare for performance evaluations
- Monitor progress toward goals
By streamlining this process, HR automation helps remove biases, supports accurate decision-making, and becomes as a valuable reference for both managers and employees.
6. Payroll
Automating payroll simplifies HR work by:
- Automatically recording work hours, sick leave, and vacation days
- Ensuring correct payment calculations
- Simplifying review of data for compliance audits
7. Expense Management
More often than not, employees keep postponing their expenses claim because dealing with the receipts and paperwork is frustrating.
Here’s how HR automation can transform these processes:
- Employees can easily snap and upload photos of receipts directly from their phones
- Software automatically pulls out essential details such as amount, merchant, and VAT.
- Managers receive instant notifications to review and approve or reject expense submissions.
Parting Thoughts
Platforms like Akrivia HCM are tailored to enhance your HR automation experience.
Our AI-powered platform can supercharge your HR workflows, covering everything from hiring to offboarding to talent development. With tools for improved recruitment, onboarding and performance tracking, Akrivia HCM streamlines your HR management for improved workforce outcomes.
