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Defining HR Automation & How It Saves Your Company Money

Defining HR Automation & How It Saves Your Company Money

Human Resources automation is changing the way organizations manage their HR departments. Using Employee Management Software (EMS) allows companies to save money by taking on many of the menial, repetitive tasks that lead to errors and eat up the time of HR professionals.

HR automation eases the burden of ensuring policies and procedures are followed, automatically freeing up time to focus on the more strategic elements of HR roles. Here’s how automating HR processes saves your company money.


How HR Automation Helps

There are several areas HR automation can be applied to help improve efficiencies including:

  • Applicant Tracking
  • New Employee Onboarding
  • Performance Reviews
  • Employee Database Management
  • Training Administration
  • Benefits Management
  • Payroll Error Reconciliation

All the menial tasks payroll departments find themselves performing on a day-to-day basis can be reduced so you can focus on improving cost efficiencies, top talent recruitment and employee retention. 

Employee Management Efficiencies

EMS reduces costs associated with repetitive manual tasks for new hires such as vetting resumes, onboarding, and training. While filters help make a shortlist of eligible candidates during the recruitment process, onboarding and training take on a DIY approach. New employees have the tools to provide the basic information required when hired, while also having access to easy, online training. This frees up time for managers and HR departments. As a result, all existing policies and procedures become more efficient and cost-effective for two reasons:

  1. You are now paying new hires to do their jobs from day one, instead of wasting time and money on costly training hours and
  2. You are no longer wasting money on HR labor for resume vetting, new hire training and onboarding.

You are saving costs associated with both new hires and HR hours with HR automation.

Improved Career Focus and Retention

Your hiring process becomes smarter as your EMS allows you to filter resumes into logical groups, so your recruitment becomes more focused. You no longer sort through resumes manually and instead are sent the candidates best suited to the roles available. You maintain a database of candidates with potential for future job searches allowing you to search prospects before even having to post new positions. Once hired, employees manage their own onboarding and training, following the same procedures for consistency across the board.

As a result, from the first day new hires come onboard, they have more control over their own careers. They offer input from day one on their own career goals, so managers can track and monitor their performance to keep them moving forward. When employees see a commitment to their career aspirations, you can reduce workforce churn.

Data Collection for Valuable Insights

HR automation empowers HR management to make next-level decisions using accurate data. As a result, the entire workforce is managed more efficiently. HR professionals have access to the data required for improved contextualizing and analysis for employee-related forecasting. Your decisions are based on real-time data that offers a clear picture across all departments.

This data provides valuable insights for improved planning and decision-making based on performance reviews and department capacity needs. Decision-making becomes more agile, and you avoid costly mistakes such as over-scheduling, overlooking qualified employees to fill positions that allow them to advance in their careers and even training opportunities.

Improving HR Planning Capabilities

Human resource planning ensures each department, manager and employee has what they need to not just perform their duties effectively, but to also help improve budgets and morale. When your company addresses the needs of the business with the right people in the right roles, productivity improves and opportunities for fulfilling careers increase. HR automation allows managers to assess their capacity and identify shortcomings. You can predict future requirements for effective budgeting, while also looking for opportunities for advancement for current department members. Gaps can be identified within department plans so they can be filled to improve department performance.

Ensuring Your HR Automation Succeeds

The key to EMS success is making the proper adjustments to your workplace so your employees understand the benefits it offers. Therefore choosing an EMS that supports a seamless transition is very important. Your HR team needs proper training, so they understand the benefits of the software. It needs to be implemented by a knowledgeable team that takes time to explain the full functions of the software. 

This way the transition is simplified, and your HR team can improve the onboarding and training process, and remove the tedious tasks that interfere with strategy and planning. You also want software that is easily synced up with existing systems to avoid manual input into the new system.

About The Author

Ingrid Principe

Ingrid is the Content Marketing Manager at Paypro, managing both inbound and outbound marketing initiatives for the company. She has 15+ years’ of extensive marketing communications experience, leveraging brand awareness and strategic partnerships to increase sales revenue for a diverse group of B2B brands.

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