Hanson Cheng discusses automating key HR processes to improve efficiency. The document outlines 7 important HR functions to automate: 1) talent acquisition to streamline screening and improve the candidate experience, 2) onboarding for a smoother process and higher retention, 3) performance management for fair evaluations, 4) analytics to monitor metrics like engagement, 5) payroll to reduce errors, 6) leave calculation/approval for ease of use, and 7) offboarding to protect the organization. The benefits of HR automation include increased productivity, reduced costs and errors, and the ability to focus on more strategic work. Failure to automate risks wasting time and money through inefficiencies.
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May 19, 2021
HR Automation: How to Automate Your Most Important
HR Workflows
process.st/hr-automation
Oliver Peterson
May 19, 2021
Hanson Cheng is the founder of Freedom to Ascend. He empowers online entrepreneurs
and business owners to put the systems in place for growth and 10x their business.
Despite being responsible for managing human resources, the HR department is usually one
of the most understaffed and overworked departments in many companies. This is because
HR involves many manual, repetitive, and monotonous tasksâthese range from recruitment
to pay and benefits to everything else in-between.
Automating your HR processes will help you:
Streamline workflows;
Ensure all your processes are consistent;
Reduce errors.
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Ultimately, HR automation saves you time and money â valuable resources you could better
spend on other pressing HR tasks. Research shows that automation can help decrease
administrative tasks by 49 percent for HR employers and 30 percent for HR professionals.
The same study also revealed that up to 34 percent of HR departments said their
organizations were slow in adopting HR automation.
In this Process Street post, weâll be covering:
Letâs jump right in!
What is HR automation?
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Before we look at the seven key human resources that must be automated, letâs quickly define
HR automation so that weâre on the same page.
HR automation is the process of enhancing your HR departmentâs efficiency by automating
standard and repetitive tasks by using tools. Automation helps free up your HR personnel
from tedious manual tasks and allows them to focus on more complex functions like decision
making and strategizing.
Automating HR activities will help your organization streamline core HR processes. As a
result, you reduce the cost and time youâll spend on manual HR planning and processing.
Besides, in the age of remote work weâre living in, you have no choice but to automate your
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HR processes.
HR automation: How to work smarter
Many organizations prioritize automating departments like marketing and sales because they
can justify the ROI with hard data. While HR automation may not directly impact your
bottom line, it still has many tangible benefits that make it worthwhile. Here are some of the
major advantages you get from automating your HR processes:
Improved productivity đ
HR automationâs most significant selling point is that it helps improve your HR staffâs
productivity. Automating repetitive tasks frees up their hands to handle other duties and
responsibilities, resulting in more work done. Besides enhancing your HR staffâs
productivity, HR automation also helps boost productivity across your organization. This is
thanks to more accurate and data-backed hiring decisions that ensure you hire the best
employees.
Reduced employee turnover đ
Because HR is responsible for employee welfare, your HR departmentâs performance directly
affects employee turnover. For example, nearly 50 percent of Americans say they will switch
employment after two paycheck errors. And a high employee turnover means increased
recruitment costs, especially as replacing an employee costs an average of $4,129.
Better data management and security đ
One of the most significant benefits of HR automation is software that allows you to store
your data securely. Especially if your HR automation platform allows for backing up your
data in the cloud, youâre assured that your information is safe from corruption or loss from
natural disasters. Most importantly, your data is protected from unauthorized access and
use.
Besides the security factor, HR automation makes it easy to manage data. From storage to
analytics to retrieval, managing digital data is way easier than manually going through
spreadsheets and files.
Reduced time to hire â
Another significant advantage of HR automation is that it drastically cuts down the time it
takes to hire an employee. This is because automation reduces the time it takes to screen
candidates, run background checks, onboard employees, and many other tasks involved in
recruiting and hiring a new employee.
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Reducing your time to higher also makes for a good candidate journey, thus ensuring you
donât miss out on top talent.
Accuracy and consistency đŻ
One of the biggest problems with manually processing HR tasks is human error. From bias
during the recruitment process to missing employee files, itâs easy to have a flawed HR
system â if you do things manually.
However, HR automation eliminates most errors. Not only that, but it ensures for
consistency of processes and consistency across all your locations.
Scalability đ±
For recruitment agencies, perhaps one of the most significant benefits of HR automation is
that it allows for easy scalability. With most repetitive tasks automated, you have more time
to take on more clients and recruit talent at scale.
Improved interdepartmental collaboration đ€
HR is a critical department as it interacts with all other departments in your organization.
Manually running from one department to another just doesnât cut it anymore. By
automating your HR and integrating your HR automation tools with other departmentsâ
tools, you can easily and effortlessly collaborate with them.
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However, the bottom line is that automating your HR processes results in improved business
efficiency, resulting in a boost in your bottom line.
Unfortunately, with all these benefits, many organizations are still trailing behind the HR
transformation curve. Thatâs why, when you implement an HR automation strategy, you have
a competitive advantage over your competitors.
Why now is the right time for HR automation
If you havenât yet, this is undoubtedly the best time to automate your HR processes. One of
the main reasons for that is that data security and compliance regulations are becoming more
strict.
Human resources management involves dealing with sensitive candidate and employee data
and information. Because of that, you must adhere to data capture and management best
practices. This ensures that youâre compliant with all data management regulations.
Compliance in recruitment refers to offering equal opportunities to all candidates and fair
treatment in the workplace. It boils down to following standards and regulations that govern
recruitment and labor practices. Failure to comply with regulations could result in sanctions
or financial penalties. It could also tarnish your reputation as an organization, leading to the
loss of business.
In both instances above, automation is the best way to ensure that all your HR processes and
practices are compliant.
Besides compliance, now is the best time for HR automation as the world is at the peak of
digital transformation. With speed and accuracy being ingredients for outperforming your
competitors, you have no choice but to automate your processes. Failure to do so will result
in you losing top talent, particularly as the job market has become fiercely competitive.
Itâs 2021. If youâre still running your HR department on legacy systems and archaic
processes, youâre doing your organization more harm than good. Invest in HR automation
tools. Doing so will help you have not just an efficient HR department but an efficient
organization overall.
7 key HR processes to automate in 2021
Now that weâve established what HR automation is, its advantages, and why itâs essential,
letâs dive into the top seven HR processes you must automate in 2021.
1. Talent acquisition
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One of the primary functions of HR is talent acquisition. Itâs also one of the top HR processes
you must automate. Thanks to recruitment software and tools (like applicant tracking
systems (ATS) and chatbots), and other identifying and acquiring talent doesnât have to be
done manually.
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Automating this part of the recruitment process has several advantages that include:
Improved candidate screening đ
Automating talent acquisition speeds up talent acquisition as it takes care of the most
time-consuming part of the process â candidate screening. Traditionally, a recruiter
had to open each application and go through every single CV to screen them. However,
with an HR automation tool, all a recruiter has to do is set filters using keywords. The
software will automatically filter out irrelevant CVs while selecting those that are
promising.
Better candidate experience â
With the competition for talent being high, recruiters need to provide job seekers with a
good experience during the recruitment process. This helps them acquire top talent.
One way of ensuring that you provide candidates with a positive experience is to
automate the recruitment process. Doing so helps speed up the process and enables
personalized responses.
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Reduced recruiting costs đ°
Thanks to analytics and data functions in recruitment software, HR personnel can
make better decisions regarding their hires. This helps reduce the costs associated with
hiring â especially bad hires.
As you plan on automating your HR processes, ensure that talent acquisition ranks high
among the list.
2. Employee onboarding
Employee onboarding is the second touchpoint youâll have with your recruit after the
recruitment process. Being the process through which you familiarize a (new) employee with
the organizationâs policies, their role in the organization, and the organizationâs culture,
employee onboarding is a critical step in establishing a good relationship with your new
employee.
Because it is so important, there must be no room for errors. And thatâs why you must
automate it. Besides reducing the risk of errors, automating employee onboarding:
Enables a smooth onboarding process. Automation makes the onboarding
process more streamlined, resulting in a smooth transition for both the employer and
employee. You can even use a learning management system (LMS) here to allow your
new hire to take in everything at their own pace.
Higher retention rates. Automating employee onboarding makes for a better
experience for your new hire. An excellent first impression results in employees staying
with you for longer.
Consistent candidate journeys. Consistency is key if youâre to give all new hires a
memorable onboarding experience successfully. And it takes automation to maintain
your high standards consistently.
To successfully automate your onboarding process, map out the process your new hire goes
through and determine which aspects will benefit from automation.
3. Employee performance management
Performance management used to be a one-time event to evaluate how employees performed
during the year. Today, however, itâs a dynamic process that evaluates employeeâs
performance by aligning it with your organizationâs mission and goals.
And this is where automation comes in.
With HR automation tools like performance management software, you can identify,
measure, and improve an employeeâs performance. Unlike traditional manual methods that
were fraught with errors (and at times biases), automation ensures that each employeeâs data
is accurate. This results in every employee being appraised fairly.
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Other advantages of automating employee performance management include:
Helps you set clear performance expectations.
Provides real-time feedback for effective employee development and coaching.
Improves employee performance and productivity.
Helps you identify training and development needs.
Increases employee engagement and retention.
Gives you insights into counter-productive activities.
Employee performance management is one of the most labor-intensive activities of HR as it
involves a lot of employee monitoring and pouring over lots of data. This is why automating
this part of your teamâs tasks is a must. It will save you lots of time and resources, not to
mention the efficiency of automation.
4. HR analytics
Human resources departments collect a lot of data. Unfortunately, most of that data goes
unused due to it being too much to sort through manually. HR analytics solves that
challenge.
HR analytics is the process of collecting and analyzing human resource data to improve your
organizationâs workforce performance. It involves measuring the impact of vital HR metrics
on your businessâ overall performance.
So what are the advantages of automating HR analytics?
It helps you keep an eye on, among other things:
Retention rates â Insights into why staff turnover is on the rise will help you design a
more robust employee retention strategy.
Employee engagement rates â Employee engagement has a huge impact on
productivity. Keeping an eye on engagement rates, therefore, is essential to boosting
productivity.
Absenteeism rates â Monitoring absenteeism rates will help you find out what you
can improve to create a more pleasant environment and workplace culture.
Because of the vast amount of data processed in HR analytics, you must automate your HR
analytics. Automation eliminates any room for error and speeds up the process of data
interpretation.
5. Payroll management
82 million Americans have been affected by payroll problems. And one of the leading causes
of that is the lack of technology to reduce human errors. Payroll errors could lead to
dissatisfied employees and a rise in staff turnover, among other negative ramifications.
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Despite all this, close to 30 percent of organizations are still running their payroll on legacy
solutions. And most are over ten years old). And of those embracing technology, a study by
The American Payroll Association shows that only 40 percent of their members have fully
automated payroll systems.
To avoid unnecessary errors that could frustrate your employees and your HR department,
you must automate payroll management. Besides a reduction in payroll errors, automating
your payroll also has the following benefits:
Helps with compliance;
Improves data security;
Simplifies tax filing;
Makes it easy to create reports;
Streamlines the payroll process;
Creates room for employee self-service, thereby reducing the risk of errors.
Automating payroll management is no longer an option. If you want to increase your
organizationâs efficiency and improve employee satisfaction, you have no choice but to
automate.
6. Leave calculation and approval
Another HR activity that could do with automation is leave calculation and approval.
Calculating and approving leave days is a tedious task that involves:
Calculating the number of leave days an employee has;
Get the managerâs approval;
Record the leave for payroll calculations.
With so many calculations and hands to go through, thereâs plenty of room for error. This is
why your HR automation strategy must include leave calculation and approval.
Some advantages of doing so include:
Reduces administrative burdens;
Easy access to real-time data;
Enables informed decisions for leave approval as well as drafting leave policies;
Easy tracking and approval of leave days.
In times past, the expenses associated with automating leave calculation and approval
outweighed the benefits. However, with advancements in technology, those costs have been
drastically reduced. You have no excuse for not automating this aspect of your HR tasks.
7. Employee offboarding
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One often overlooked HR process that you can automate is offboarding. Itâs equally as
important as the onboarding process.
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When an employee leaves your organization, you must:
Process the employment termination documents.
Ensure all equipment is returned.
Remove the former employee from payroll.
Terminate their access to your organizationâs operational tools and platforms.
Any errors in the offboarding process could put your organization in trouble legally. It could
also open you up to data breaches. And thatâs why you must rely heavily on automation for
this.
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HR automation systems will help you create a standardized, automated workflow that
ensures accuracy and speed without compromising security. It helps make it easier to
complete every step of the onboarding process. And donât worry about signatures, especially
when working remotely as you can simply use electronic signature software.
Creating standardized offboarding processes will help you protect your organization and
ensure the employee leaving is satisfied. And yes, cutting ties amicably is essential as it will
encourage the employee whoâs leaving to give your organization a positive review.
Why not automating HR processes can set you back In 2021
The world is rapidly advancing in terms of technology, and every business in every industry
must do its best to keep up.
Your HR department included.
Thatâs why you must invest in HR automation. Failure to do so could result in:
Inefficiencies. Any slight mistake (from recruitment to performance appraisals)
could lead to wasted time, revenue loss, and even legal repercussions.
Wasted time. HR involves a lot of time-consuming yet repetitive tasks. Failure to
automate your HR processes leads to your HR department wasting time on tasks that
arenât essential.
Loss of revenue. Automating your HR processes eliminates menial tasks and human
errors, among other things. The result is a reduction in operational costs. Failure to
automate, on the other hand, results in you incurring unnecessary costs and losing
revenue.
Not automating your HR processes will cost you more in the long run than automating. As
such, youâre better off footing the expenses of HR automation now than paying a heftier bill
down the road.
HR automation: Itâs not an option anymore
Automating your HR processes is no longer an option. Failure to automate will cost you in
terms of productivity, finances, and even reputation-wise.
Automation, on the other hand, ensures a more efficient HR department. It also ensures that
your employees are more engaged and satisfied with their jobs. When it comes to
recruitment, automation helps create memorable candidate journeys that will help you
source top talent.
The bottom line: you canât ignore HR automation anymore.