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According to McKinsey, 50% of current work activities can be technically automated by leveraging currently demonstrated technologies. By automating repetitive manual procedures and business processes, resources may be focused on value-added tasks that help the organization expand directly or indirectly. And experts advise that a company interested in digital transformation should start by automating the Human Resources department.
The HR team is essential to the success of every business. Human resource professionals have several responsibilities, including but not limited to hiring and onboarding new employees; administering benefits; managing training and development programs; and more. HR automation has become increasingly popular in recent years.
What is HR Automation?
Human resources automation refers to the use of software to speed up and standardize manual tasks. It's a win-win for HR professionals in many ways: more time for strategic work, less stress, and fewer administrative tasks.
What are the Benefits of HR Automation?
There are many benefits to automating human resources processes. Some of the most common benefits include:
Cost-effectiveness: HR automation software is now more affordable than ever. And the appropriate HR automation solution may free up your HR team's time so they can focus on high-impact initiatives by automating routine tasks, streamlining paperwork, and ensuring compliance.
Accuracy: Manual intervention and the complexity of workflows are the primary causes of errors in human resources procedures. Human resources automation simplifies the process by removing unnecessary steps. As a result, there is less room for human error and less need for manual labor.
Time-saving: Human resources process automation streamlines and expedites manual processes, saving time and effort. Employees no longer have to waste time with administrative duties like manual documentation. Employees in human resources and elsewhere will now have more time to focus on high-value work.
Efficiency: Human resources automation eradicates bottlenecks and opens up the process to greater scrutiny. The streamlined user interface makes cross-departmental collaboration a breeze. Automation generates useful insights and assists organizations in making more informed decisions.
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Consistency: HR process automation ensures that all jobs, regardless of their complexity, are completed consistently. Process abnormalities and output variances can be avoided if the defined procedure is followed consistently.
Some HR management tasks that can be automated include the following:
- Recruitment & Applicant Tracking
Automation can assist in sourcing candidates, screening resumes, scheduling interviews, and managing applicant data, streamlining the recruitment process.
- Employee Self-service
HR automation can provide service portals for employees, allowing them to access and update personal information, view payslips, and submit requests.
- Payroll management
HR automation is highly beneficial and time-saving when it comes to managing payroll. It can seamlessly handle the disbursement of paychecks, salary modifications, and responsibilities linked to employee pay and benefits management.
- Employee Separation
Automation can help with virtual employee offboarding, which includes terminating access, scheduling exit interviews, and getting feedback without having a dedicated HR person assigned to this task.
- Tax management
HR automation can enhance the tax filing process which includes a lot of tedious tasks, such as compiling and processing tax forms, contracts, and confidentiality agreements;
- Attendance Tracking & Timekeeping
Automation can help HR teams with timekeeping including keeping track of hours worked, sick days, vacation, and personal time off.
- Employee training
HR automation can help HR teams conduct training and development based on automated schedules, also tracking employee training and skill set management progress to understand the employee's potential as and when required.
- Administrative Tasks
HR teams can significantly benefit from automation with seamless job categorization and organizational restructuring, expense report submission, and approval. These administrative tasks consume a lot of time and effort which can be saved with HR automation tools.
How to Choose the Right HR Automation Solution?
When choosing an HR automation solution, there are a number of factors to consider. Some of the most important factors include:
- Based on your organization's capacity: HR automation solutions are available for businesses of all sizes. It is critical to select a solution that is appropriate for your organization's size.
- Based on your company's unique challenges: Every organization has unique HR requirements. It is critical to select an HR automation solution that can satisfy your organization's specific needs.
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Automation Features to Look for in HR Software
Although some automation tasks are more beneficial than others depending on the demands of the organization, there are some major automation components that an organization should look for when investing in HR technology, which includes the following:
- Recruiting and onboarding software includes the capacity to automate the collection and analysis of employee data, including new hires or candidates. They include tools for determining compensation structures, applicant monitoring systems, and tools for approving or rejecting candidates based on specific criteria.
- Tools for an Employee Portal - Employees can access a dashboard with crucial data and useful tools through an employee portal that is both intuitive and easy to use. Employees have the freedom to submit leave requests, make benefit changes, and monitor their own professional development.
- Software for handling payroll and benefits- HR department employees can use HR automation software for things like calculating income and benefits, keeping track of direct deposits, and printing out pay slips and other salary-related documents. Payroll software streamlines the payroll process by integrating pay data with other employee data to increase payroll accuracy and timeliness. Software for managing employee benefits can be used to keep tabs on things like raises, bonuses, health insurance, and salary.
- Time & Attendance tracking tools can be used for keeping track of time off and working hours. These tools include features to track shift scheduling, time allocation, paid time off, and overtime are included.
- Tools to evaluate performance - Using such tools can help identify both low performance and trends in employee turnover.
- Employee training tools - These tools help to manage training opportunities, keep tabs on employee competencies, and check up on their progress.
- Methods for retaining and developing top talent- These tools can be used to gauge worker contentment, identify problem areas, and prevent employee turnover. Early departure, disengagement, and a loss of interest in the company's long-term goals are all red flags that can be spotted with the use of retention features.
- Analytics and data management tools- Included analytics tools in HR automation software can examine any data set to reveal patterns or trends that can then be used to assist with business decisions. Easy data collection, detailed report preparation, and data visualization are only some of the advanced features of data management tools.
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