HR management is more than payroll and recruitment. Small businesses with limited resources can be time-consuming and difficult to manage recruitment, onboarding, and benefits management. It can also be difficult to keep up with the constantly changing laws and regulations.
The automation of processes involves the redesigning of manual processes using technology. Companies are increasingly interested in artificial intelligence and robotics in the digital age. The interest in repetitive tasks and processing large amounts of data has diminished.
It is important to reorient your efforts to create value, innovate, offer better products and managed services to customers, enhance talent, increase productivity, and generate more profits. As technology advances, leaders in different business sectors are encouraged to automate the processes that fall under their remit.
HR Management is not left behind in this trend. Companies are turning to software providers to find solutions allowing HR teams to be more productive and make better decisions supporting their business goals.
As an HR professional, I am often asked for tips on elevating your HR function to build a successful company where employees strive to do their best.
Automation is the first step in any HR strategy. It may seem counterintuitive, but it’s the most important.
You might not have considered the benefits of HR automation. Still, with time off management, onboarding, and other daily tasks, you can spend much more time than you would like.
What is an HR Process?
Human resources processes are a great way to bring consistency and visibility into a common HR function. This consistency allows employees to communicate with their HR team more easily. It allows HR managers to respond to employees promptly and accurately. It also makes it easier for HR professionals who are used to receiving requests by email.
It is the responsibility of HR specialists or managers to improve these processes. This improvement involves adapting the process to:
- Positive employee experiences
- Improve accuracy and reduce errors
- Improved response times
- Improve visibility and control
- Making the process more user-friendly
- Reduce friction in the process
HR managers can use common tools to improve their processes in human resources, such as forms, visualizations (flowcharts or supporting documents), or software that automates a part or all of a process. It is important to connect processes and integrate tools to achieve the goals listed above.
What is HR Automation (Human Resources)?
Human Resource Management’s priority is to ensure that employees are trained, developed, and grow to contribute to achieving company objectives. HR professionals can streamline their work and maximize their potential by delegating repetitive HR tasks to software.
HR automation streamlines repetitive functions in HCM software, such as employee onboarding and offboarding. It also simplifies payroll and benefits administration. HR automation is a process that uses technology to automate and digitalize time-consuming, repetitive tasks within the HR department.
Gartner’s Artificial Intelligence Survey shows that businesses using AI-powered automation tools to automate repetitive HR tasks are improving employee satisfaction and making informed decisions. It’s true:
- 51% of companies use HR automation to save money.
- Over 56% who have deployed AI-powered tools for HR automation seek to automate repetitive or time-consuming tasks and improve the customer experience.
- 62% of those who have deployed AI-powered tools for HR automation seek to improve their decisions’ accuracy.
Automating HR processes can be a great asset to organizations of any size, reducing employee turnover and increasing productivity. This guide was created to help organizations understand the benefits of automation in HR and to identify common HR workflows that can be automated.
How does HR Software for Small Businesses Work?
The HR software has tools to automate HR tasks such as tracking time and attendance and onboarding. It will help you identify issues and manage your HR functions more efficiently.
The software can be used independently or integrated into a larger HR solution.
Some platforms provide a wide range of HR tools, while others focus on one specific area, like payroll or time tracking. The flexibility of HR software makes it possible for businesses of any size to save time and eliminate mistakes.
Why Automate?
Automated processes are used in the day-to-day operations of organizations, from onboarding employees to accounts payable procedures. It reduces the paperwork employees have to move from one place to another.
Automating processes and procedures is a must to achieve consistency in your organization.
Here are five of the most important reasons to automate your processes.
Happy Employees
Software applications can eliminate tedious tasks, allowing employees to focus on more interesting aspects of their work. This will improve employee satisfaction and increase business output.
Employees who are unhappy or dissatisfied in their job will be unable to perform their tasks at their best.
Unsurprisingly, employee turnover is a major concern for many companies today.
Improved Efficiency
Automation can help you achieve better results.
Minimize Manual Errors
Manual error is one of the worst things that can happen to a business, especially regarding finances or marketing. For example, one manual error in data entry can lead to inaccurate financial predictions.
By automating your processes, you can reduce the need to manually enter data, thereby reducing errors.
Improve Scalability
Automating your processes will increase the efficiency of your business and reduce costs. This leads to a more scalable business model that can be multiplied to meet the increased demand.
Reduce Costs
Automating tasks will reduce the need for manual intervention and increase the efficiency of your company. It will also reduce overhead costs, eliminate waste and minimize unnecessary spending.
Who Automates their Business Processes?
Automation is a powerful tool that virtually any type of business can use. We’ll look at how companies have implemented BPA into their processes.
Manufacturing and Trading
Why wait for approvals manually on each process when an automated check will suffice? BPA can be used to increase production speed for document flow management and procurement activities.
Automating stock control processes, for example, would speed up production if custom orders were filled instead of manually checking available materials.
Banking
Banking is a highly complex industry with a wide range of customers. How long does it take for international payments?
Automation has changed everything. Customers can now get their approvals faster and without having to wait days.
Telecommunications
Automation can be used for customer service, database updates, technical support, or updating billing systems. Customers in the telecoms industry are always on the move, and they don’t want to wait for anything, whether it is renewing their subscriptions, managing their orders, queries, or profile updates. The telecoms industry needs to embrace automation.
Healthcare
A second loss or incorrect input could be fatal in the healthcare industry. Project management, electronic signing, quality control, record management, and procurement have all been automated.
Imagine you missed an appointment or prescribed medication that was recalled. Automation will remind you before it is too late.
Internet Businesses
Online businesses can reach more customers and cover a larger geographical area. Your 24/7 customer service and marketing are automated, so you can respond to any challenges they may have.
Customers can order your products online from anywhere in the world.
Automation can improve your lead management, sales, marketing, and social media management processes.
7 Practical Scenarios for Applying Business Process Automation
Not all business processes are automatable. Organizations must determine which processes can be automated and which require human interaction.
Experts advise that organizations aim to automate time- and resource-intensive processes. Automating business processes prone to human error is also a good idea.
Here are some practical examples of BPA application:
- Repetitive and Routine Tasks: These are manual procedures that can be automated to minimize the risk of human error. The human resources can be diverted into other areas which require critical thinking or analysis.
Some examples of rote and repetitive processes include software status updates, inventory management and monitoring, and automated task management.
- Tracking and Alerts Based on Sensors: Organizations that require constant monitoring, such as production line quality checks or safety compliance processes, can use automation using sensors and alerts. The sensor raises the alarm when it detects abnormal cases. This is an improved solution, as it eliminates the need for a person to be stationed at a specific location.
- Self-service employee portals: apply to departments such as HR. Employees who wish to advance their careers can do so through online courses while the system monitors and keeps track of their progress. It is possible to do this without having an HR person or trainer follow the process.
- Manual Tasks that may be Hazardous or cause Injury: Companies are constantly looking for ways to reduce the number of employees required to perform dangerous manual tasks.
The jobs are assigned to robots, crewless trucks, and motorized aerial vehicles without crews. Automated machines can handle dangerous tasks, such as entering radioactive facilities or working at heights.
- IT Back Office Processes: In most organizations, batch processing and nightly data center operations are automated. This eliminates the need for IT night operations staff. Staff should be called in only when an auto alert is triggered that requires human intervention.
- Research: Automated databases make research and management of information easier for organizations that rely on big data.
- Document Management: In this case, business processes are extended from purchasing and processing orders to budget approval. The workflow is organized to include electronic requests, approvals, signatures, and archiving.
Automate Common HR Processes by Using
Automating HR workflows and functions is common for recruitment, development, and payroll. Other areas include employee relations, retention, and tax compliance. We’ll take a closer look at some of them below.
Recruiting efforts
The recruitment process includes several steps, including recruitment planning and strategy development, the search for ideal candidates, screening candidates, and evaluation.
An HR automation software can improve the productivity of recruiters and reduce the cost per hire by removing the need for human intervention in the following recruitment processes:
- Candidates sourcing and engagement.
- You can screen resumes using various parameters, such as qualifications, experience, salary expectations, and skills.
- Updates on the status of candidates throughout their recruitment journey.
- Schedule interviews.
Employee Onboarding
In a recent survey, 36% of HR executives blamed their inability to streamline employee onboarding for the lack of technology. An HR automation software can improve the new hire onboarding experience by eliminating the need to manually interfere in activities like:
- Pre-boarding workflows include sending welcome emails to users and creating accounts.
- Scheduling orientation meetings.
- Documentation for employee onboarding.
- Collecting feedback about the recruitment and onboarding processes.
Are you unsure where to begin? Our guide on automating the employee onboarding procedure is a must-read.
Employee Offboarding
Employee offboarding is the process of separating the employer from the employee. It involves several activities that lead to the separation. Organizations need to streamline their offboarding processes to meet compliance standards, reduce legal risks, and give the departing employee the best experience. Offboarding activities can be automated by HR automation software.
- Resetting shared passwords
- Create a backup of your data or documents.
- Revocation of access controls
- Signing non-disclosure contracts is important.
- Exit surveys are a great way to gauge the satisfaction of your customers.
Employee Benefits and Payroll
Manually managing payroll can be time-consuming, error-prone, and labor-intensive. Lack of automation can lead to employees receiving their salaries and benefits later than expected or making difficult mistakes.
Automating payroll and employee benefit tasks is possible in the following ways:
- Timekeeping and time tracking
- Calculate your wages using the hours worked, overtime, and holidays.
- Process direct deposit and send notifications to employees regarding their salary deposits.
- Manage deductions for employee benefits.
- Filling out and filing the relevant paperwork
Claims for Expenses
Employees can submit expense claims to their employers as reimbursement requests for the expenses they have paid. The HR team receives expense claims for mileage, travel, and food expenses each month. A recent survey revealed that 43% still manage expense reports manually. 82% of those who have implemented automation software said they wanted to simplify the expense report process for employees and managers.
An HR automation software can streamline the expense claim process by:
- Eliminating the need for paper documents/reports.
- Employees can scan and upload claims reports.
- You can get the manager’s approval through electronic signatures.
- Payouts are automatic and timely.
Routine Data Entry
Did you know HR professionals waste over 14 hours per week performing repetitive and manual data entry tasks? These tasks could be automated. HR teams in most organizations must perform routine data entry tasks for HR processes, such as payroll, attendance, employee data recording, personal and medical, and taxes. An HR automation software eliminates human intervention in routine data entry tasks such as:
- Entering employee information
- Identifying incorrect, irrelevant, and incomplete data.
- Validating and verifying data.
- Update the database
Tax Filing
Businesses are most concerned about staying compliant with employment tax laws. Manual HR processes make it difficult for HR to stay up-to-date with tax laws and deadlines.
Deloitte estimates that organizations can save 15-90 percent on taxation activities if they automate them.
HR automation software can automate the following activities to help businesses comply with tax laws and streamline their filing.
- Data validation and collection from employees.
- Calculating adjustments and running reports.
- Filing Income Tax Returns
- Keep tax reports to comply with compliance standards.
Performance Reviews
91% of companies that adopted continuous performance management are making informed people decisions and removing biases in promotion and advancement. Automation software allows HR teams to streamline the feedback process and spend less on administrative tasks such as:
- Employees can self-report their feedback.
- We are getting feedback from colleagues and managers.
- They are reminding employees and managers to take action.
- Implementing Objectives & Key Results (OKR Framework) (OKR framework is used by organizations to set SMART goals and monitor their results.
What to Look For In an HR Software for Small Businesses
There are a lot of options available for HR software. A few key features distinguish the best HR software options.
- Employee Information Management: Search for software that will allow you to manage employee data such as contact information, job information, and HR documents.
- Self-Service tools for Employees: Your HR app should allow staff to see the total number of hours they have logged during a pay period and how much pay is due. The app should allow employees to access company information, update personal details, and request paid time off and sick leave.
- Features for performance Management: Choose software that allows you to track the growth of employees throughout their lifecycle and provide feedback to them.
- Tools for Training and Onboarding: Effective software allows you to easily create onboarding courses, add quizzes and forms, and reinforce important points.
- Document Management Tools: Your app for HR should make document management simple. Prioritize software that lets you set expiration dates and get automatic alerts when your documents are about to expire. This will help you stay compliant with all laws and regulations.
- Surveys & polls: Easily gather feedback, gauge worker satisfaction, and motivate your team.
- Employee Recognition and Rewards Features: Boost your employee’s satisfaction and retention by rewarding and recognizing your team’s hard work. Staff rewards like tokens or products that can be traded for them can help your employees feel appreciated.
- Payroll Integrations: Integrating your HR platform with payroll software can save you time and headaches.
When is it Time to Automate HR?
First, it is important to remember that both productivity and quality of work are directly related to talent. Good human resource management is, therefore, essential for achieving this. In many companies, HR management has become increasingly automated.
Below, we will review how to determine when to implement Human Resources Automation tools.
- Reducing Budgets is Important for all Companies: HR technology has advanced to the point of driving down costs. Automating HR processes simplifies documentation, ensures regulatory compliance, and allows the HR team to focus on strategic and relevant tasks.
- The Time Required for Hiring and Onboarding must be Reduced: Automating the hiring process will allow onboarding to occur efficiently and in less time.
- Time Management is difficult for HR Teams and Employees: Time Management is difficult if you constantly call and email employees to obtain the necessary information. An automated tool will enable quick information uploading, data integration, and reporting.
- An Unfriendly Process for evaluating Performance: To avoid employee rejection, the performance tracking tool should collect, measure, monitor, and scale performance.
- Complex Approval Processes: Excel sheets and emails for leave management and approval reduce efficiency, timeliness, satisfaction, and productivity. The communication between the supervisor, human resources manager, and work team is improved for the approvals of permits and procedures.
HR Applications for Small Businesses: Benefits
Small businesses can benefit from HR software. These tools can be helpful:
Simplify Recruiting
Planning and managing campaigns without HR automation tools cannot be easy. This is especially true for small businesses with limited time and resources to recruit. You can use software for HR and payroll to better understand what types of candidates are interested in your jobs and which types apply. These insights will help you improve the recruitment process.
Make Onboarding Easier
Share videos and documents to update new employees on company policies and procedures. You can create quizzes, questionnaires, and orientation forms to reinforce important information. These documents are accessible on any device, so onboarding is easier.
Support Employee Development
You can create and administer your training programs and add quizzes and surveys to make the learning process more interesting. They also add transparency to the standards used in promotions and staff evaluations.
Promote Business Growth
HR tools can create performance reports, monitor employee time, and process payroll. This information is important and can help you make better decisions.
How to Communicate with your Team
Real-time chat features in HR software allow you to instantly communicate with your team about updates on progress, answer questions, and resolve attendance issues.
Benefits from Automated HR Systems
Automating your HR processes and systems can bring you several benefits, including:
Increased Efficiency has a Positive Impact on Operations
HR teams waste a lot of time performing repetitive and unproductive tasks, such as scheduling orientation meetings and manually entering data about employees into spreadsheets or timesheets.
Software that automates processes in HR systems improves the efficiency of HR departments by allowing them to focus on strategic tasks, such as recruitment and succession planning, rather than repetitive and unproductive tasks. This efficiency can be transferred to other departments, resulting in a positive impact on revenue-generating departments.
Less Dependence on Paper Documents
HR is a department that relies heavily on documents. Paper-based processing can be time-consuming and expensive. U.S. businesses waste more than $8 billion a year managing paper. They also spend, on average, $120 per document to locate it and $220 for a duplicate. HR automation software can reduce the reliance on paper documents while increasing the productivity of HR departments by digitizing activities like onboarding, offboarding, and tax filing.
Reduced Clerical Mistakes that cause Financial Losses
In a recent study, 97% of employees said that automation could help their company reduce human errors and improve productivity. HR and workforce management software can help reduce the number of clerical mistakes that result in financial losses.
Enhance the Experience of Job Candidates.
When they do not receive regular updates from the HR department, job candidates can feel anxious. HR staff struggles to update job candidates regularly when manual processes are used and risks losing potential new employees. It can lead to a poor recruitment experience and reflect poorly on an organization.
The following are some ways that an HR automation tool can enhance the experience of job applicants:
- Regular updates on the recruitment journey.
- Chatbots can answer repetitive questions regarding the job.
- Push notifications can streamline the employee evaluation process.
- Pre-boarding workflows can be streamlined.
Prioritize your Employees! Existing Employees will have a Better Experience.
An HR automation program allows you to prioritize your employees and give them a better experience at work. Often, this leads to higher retention rates of employees and improved organizational performance. Additionally, organizations whose HR departments promote a positive experience for employees report 1.3 times higher organizational performance.
Conclusion
Automation, simplification, and facilitation of HR operations in small and medium businesses (SMBs) is a transformative strategy with numerous benefits. Technology integration in HR processes has been a game changer, allowing for streamlined operations, improved efficiency, and increased productivity. SMBs that embrace automation and simplification can better manage their human resources and focus on strategic initiatives.
Reducing administrative burden is one of the main advantages of automating human resources operations. Automating time-consuming tasks like payroll management, onboarding employees, and benefits administration will free up valuable resources. HR professionals can devote more time to strategic activities such as employee development, talent acquisition, and cultivating a positive corporate culture.
The risk of human errors is reduced by replacing manual data entry systems with automated ones. Compliance with labor laws, taxes regulations, and other legal obligations becomes more efficient. This reduces the risk of costly audits and penalties.
Simplifying HR operations leads to a better employee experience. Employees can access information, update their data and solve routine HR questions independently using self-service portals. Self-service encourages employees to feel empowered and take ownership of their work while reducing their dependency on HR personnel.
Furthermore, automation facilitates data-driven decision-making. With streamlined HR operations, businesses can analyze and collect vast amounts of information about employee engagement, performance, and retention. These insights allow SMBs to make informed decisions regarding talent management strategies. They can also identify areas of improvement and implement targeted interventions that will drive organizational success.