The Power of HR Automation
If your HR department isn’t already implementing automation in some form, you’re behind the curve.
As early as 2017, 45% of companies started implementing basic process automation. A 2020 Gartner survey found that 67% of business leaders thought their company would fall behind competitively if they did not become significantly more digitalised that year.
At the same time, we mustn’t leave behind employees in a race to efficiency and cost-cutting. Digitisation means new HR solutions – this means new technologies and ways of working, and people will need new skills and education to take advantage of them.
So why should you care about HR automation?
The Cost of Repetitive Tasks
For starters, HR managers say they, on average, lose 14 hours a week to complete basic tasks manually. That’s a lot of time that could go towards more beneficial work. A multi-national research study by Unit 4 found that office workers spend almost 69 days per year on simple administrative tasks. This represents over £3.5 trillion in lost productivity globally.
It’s not all about productivity, either. Most studies have found that repetitive, tedious tasks lead to more mistakes. Interestingly, the more people perform these tasks, the slower their output becomes as they become increasingly inattentive. That’s not to mention the reduction in job satisfaction and motivation.
“Companies that have automated the payroll process managed to reduce payroll costs by 80%. In a majority, it is the result of fewer errors in invoices and issued checks.” - American Payroll Association (APA)
So, it’s vital to lessen this sort of mundane workload. Not only will it save money and reduce errors, but it will also bolster your employees' health and happiness. Improving your processes through HR automation is not just about the direct benefit of better HR tools but also performance reviews showing the indirect benefits of happier, healthier, and higher-skilled people.
Finding the Time for Transformative Work
HR shines brightest when it can inspire changes that secure your company’s long-term success. However, if all that lack of automation leaves your HR department in a bog of repetitive tasks, then there are fewer opportunities to realise this vision fully.
We can see this transformative approach in the ‘Global Lighthouse Network‘. This is a group of organisations whose HR departments show that the benefits of digitally infused processes go beyond productivity. More than that, they provide a foundation for sustainable and profitable growth.
“The HR profession is at its best when we come together to share effective practices and collective wisdom, raise the standards of human resource management, and advance HR to its rightful place in leading business.” - Henry G. Jackson, CEO of SHRM.
For example, lighthouse organisations prioritise the upskilling and reskilling of their workforce. They are also hot on agile approaches and hybrid work, allowing their people to work freely in a way that best fits their needs. In this way, these organisations make their employees the centre of their transformation to realise their potential and do their best for the customers.
It’s through initiatives like these that HR can help build businesses of the future. But if your existing processes are stuck in the past, it hamstrings their ability to explore these options. There’s little room for the un-automated, gut-feeling HR ways of old. With 80% of U.S. small businesses using or planning to use HR software, the time for change is now.
Keeping your data safe
Human resources directly deal with your organisation’s most private data. The strictest data protection rules guard this personal and identifying employee information, and a breakdown in security can be disastrous.
High-end software products have rigorous security measures. For example, PayReview software includes:
Separate databases for each customer.
The highest level of encryption for all personal data, including at rest.
Two-factor authentication as standard.
Granular user access rights management.
Hosting on UK-based data centres that are ISO certified, PCI DSS compliant and secured to UK government IL4 standards.
Penetration testing by an independent third party.
The thought of storing such important data in the cloud can seem unnerving. Software products generally have security considerations leagues above anything an in-house team can build. That’s not to mention that many HR departments rely on spreadsheets shared via email, which is an incredibly insecure practice.
The Path to Digitisation
If this is your first step on the path, understand that this isn’t a process that can happen overnight. But as they say, the best time to plant a tree was ten years ago; the second-best time is now.
Assign an Expert Guidance
If this is unfamiliar territory for your organisation, ensure you have someone on the team who is knowledgeable in the field.
The array of options is vast, and the type of software suitable for your company can be complex. For example, do you want an all-in-one solution or a suite of different products? If you go for the latter, how do you integrate them? Do you need the enterprise version, or will a lower level be sufficient?
These are the questions that an expert can help you breeze through.
Implement Correctly
This point is vital. You need to ensure that you plan an effective implementation process. The best software in the world is useless if no one knows how to use it to its full potential.
Here is a brief summary on implementing software:
Choose a strategy – There are a few different approaches to implementation, whether at once or in phases. Each has pros and cons, so take some time to consider the best approach.
Assign a champion – Have a passionate leader be the face of the launch. They should have a deep understanding of the software and be able to infuse others with positivity.
Train staff properly – Make sure that you have a robust training program in place. This should not only describe the software but also explain the reason for its existence. Also, remember that not everyone learns in the same way.
Monitor your KPIs – Have clear, quantitative measures to assess the performance of your new software and processes. This will allow you to get the complete picture of its effectiveness.
Adopt an agile mindset
In the software world, ‘agile’ is an approach to project management that focuses on constant iteration. Instead of spelling everything out at the start and then linearly sticking to that specification, agile teams deliver projects in small batches and constantly evaluate requirements and results.
This allows the team to be, well, agile. The world of software develops so fast and can take many unexpected turns. You need to be flexible and ready to change at a moment’s notice; sticking to the traditional way of working doesn’t cut it for new tools and technologies.
HR Automation: The Time is Now
So, how much of your work can you automate? And what transformational work could you do with all that saved time and money?
It’s easy to look at HR automation and think it’s about doing less work. But actually, it’s about working better. It’s about giving HR the freedom to focus on the work that matters. In the process, it also ensures that outdated working practices don’t lead to critical mistakes.
It can seem daunting if you’re on the first steps of this journey, but with a thorough, agile approach, you can find your way to a better place. If you would like to talk about automating your pay review, job grading or benchmarking processes, please don’t hesitate to get in touch.