The manual ways of performing specific human resources functions are wasting HR's time that could be better spent on more important matters. By partially or entirely automating HR processes, you can not only save precious time but minimize your errors. As for mundane administrative tasks that can only be partially automated, HR outsourcing can be used for offloading.
In fact, Windward Studios reports that 43% of HR professionals are optimistic about the introduction of automation to their industry. Moreover, automating repeated tasks could save companies as much as $5 trillion annually. If that doesn't make a point, the report also reveals that labor savings from adopting automation in the office can guarantee an organization between 30% and 200% return on investment in the first year.
The benefits of automation are undeniable. But this begs the question of what should be automated.
Automation is taking over many industries and tasks, and human resources is no exception. The truth is, it's faster and more efficient, making it easier for HR to focus more time on important matters like company culture and employee satisfaction and safety.
Here are HR functions you should automate.
There is a long list of benefits of payroll automation through software, but there are a few major benefits to know. For instance, automated payroll saves you as much as 80% in processing costs, eliminates paper in enrollment and manual transfer information, and calculates wages quicker and easier. It is also more accurate at timekeeping and recordkeeping, offers increased security, and is much simpler for tax filing.
There’s also less room for human error. This is especially crucial to eliminate with automation since Tessian reports that 50% of 18 to 30-year-olds say they're prone to making mistakes (10% of 51-year-olds and older), and more than half of respondents (52%) in their survey admitted they're more likely to make mistakes at work if they are stressed.
Automation software also allows employees to check HR information and earning statements without having to request anything from HR. This means employees will be better able to access, manage, and update their personal information, direct deposits, W-2's, etc., without going through human resources first.
Furthermore, employee self-service portals limit the number of human or miscommunication errors made by delegating more control over their information to employees. This means more HR free time because there's less back forth between employees and HR to make corrections, access tax or paystub information, and more.
Hiring talent becomes much easier when you implement an Applicant Tracking System (ATS) into your strategy. ATS software allows you to manage all your recruitment and hiring needs in one place more easily. Some benefits of this software include saving time, improved screening, more collaborative hiring, quicker recruitment and hiring cycles, and enhanced experiences for your candidates.
Time and labor is another area to automate because it reduces unplanned overtime challenges and scheduling conflicts, makes for better job cost analysis, and increases the accuracy of your time and attendance management. This is most effective when integrated with payroll, benefits, and HR — integrating all your HR needs into a single location.
Take, for instance, a case study on Time & Labor software for Golf Resorts. They report reduced overtime, easier job costing, enforced clock-in and breaks, and better insight for workforce deployment following the implementation of the software. Wildcat Cliffs also found it easier to manage multiple locations in real-time, making it possible for managers to spot issues and make adjustments accordingly.
Employee onboarding is another important function of HR that needs to be automated. This is because you can automatically send relevant files to employees and store them in a centralized place when they finish. You can also benefit from a reduced number of forms needed and faster onboarding processes.
Considering a new hire can be expected to complete on average 54 or more onboarding activities, having a smooth onboarding process for new hires and HR is essential to the success of integrating new employees into your workplace. This can cut the time in half on how long it typically takes for new employees to catch of with current staff and their productivity.
You can purchase standalone automation software, but this is expensive and still leaves some HR burdens left. When you partner with comprehensive HR outsourcing services, you gain access to their state-of-the-art automation software, where the modules like payroll and benefits are all integrated with each other. Even more, HR outsourcing solutions complete automation by offloading administrative burdens that cannot be fully automated.
To learn more about HR outsourcing and the benefits of automating all your HR functions, subscribe to our blog.