Smart HR: The Future is Automated

Hun 3, 2024

benefits HR automation
benefits HR automation
benefits HR automation
benefits HR automation

HR automation helps simplify labor-intensive tasks, allowing businesses to achieve more with fewer resources. As both customer and employee experiences grow in importance, using innovative tools is critical to staying competitive and driving sustainable growth.

Automation's Game-Changing Impact on Processes and Management

HR automation uses digital tools and software to simplify HR tasks. It helps with automating repetitive tasks like data entry, creating job postings, onboarding new hires, offboarding, and handling time off requests.

In 2023, the Harvard Business Review (HBR) published a study on how AI affects talent acquisition and overall business success. Partnered with Paradox, a conversational recruiting software used by companies like Unilever, Nestlé, Pfizer, and General Motors, they found that automation is yielding positive results.

According to the survey, 97% of those using automated hiring technologies reported better hiring effectiveness, faster interview scheduling, and lower candidate drop-off. The report “Transforming Talent Acquisition Through the Power of Automation and Artificial Intelligence” surveyed 326 senior business and HR leaders. It highlighted that 91% of key decision-makers believe automating hiring processes with AI is vital for long-term business success.

Investing in human resources automation is becoming inevitable. A study found that well-run organizations making over $1 billion use automation to reduce HR staff. Top-performing HR teams have 32% fewer staff due to automation. While 12% of workers worry that AI will hurt their jobs, most workers and industry experts are optimistic about the benefits.

However, switching from a manual approach to HR automation requires skill and training to use the technology effectively. The IBM Institute for Business Value (IBV) study revealed that executives estimate that 40% of their workforce will need new skills within the next three years due to AI and automation. According to World Bank data, this could impact 1.4 billion of the 3.4 billion workers worldwide. Respondents also say that developing new skills for current employees is a key talent concern.

Top 5 HR Processes To Automate in 2024

Here are some HR processes that you should consider automating:

1. Recruitment

Automating the recruitment process can help screen resumes more effectively and select suitable candidates from online pools. Key areas that can be automated include creating job descriptions, finding candidates, screening resumes, communicating with applicants, scheduling interviews, and onboarding new hires.

Research shows that using recruitment automation can greatly benefit companies. A Deloitte study found that firms using these tools reduced their time-to-hire by 75% and recruitment costs by 30%. Another study revealed that early AI adopters cut screening costs by 75%, boosted employee revenue by 4%, and decreased turnover by 35%.

2. Onboarding and Offboarding

Onboarding means setting up profiles in HR software, notifying teams about new employees, and giving them access to needed tools. For offboarding, automation helps revoke access, ensure things are properly wrapped up on their last day, and track any data risks.

3. Employee Appreciation and Rewards

HR departments often struggle to manage employee gifting programs effectively. Remembering and organizing appreciation events can be tricky, leading to missed chances for recognition. Additionally, choosing gifts that will be meaningful to employees and sticking to a budget without overspending can be challenging. Tracking and reporting on gifting activities can also be challenging, making it hard for HR teams to gauge their impact.

Trove offers a solution to these problems with its automated employee gifting platform. With Trove, HR professionals can schedule and automate eGift Cards for various occasions, ensuring timely recognition without manual effort. It allows employees to select eGift Cards from their favorite top brands like Grab, Lazada, SM Store, SHEIN and more!

Make the recognition more personal and meaningful. Trove’s easy-to-use budgeting tool helps predict expenses and prevent overspending, maintaining financial discipline. Furthermore, Trove’s dashboard allows for seamless tracking and reporting. HR and management teams can effortlessly monitor spending, scheduled gifts, and eGift Card redemptions, making it easier to analyze and assess the program’s impact on employee engagement and satisfaction.

4. Performance Management

Maintaining employee performance records by receiving inputs from 360-degree feedback surveys and evaluating KPIs is time-consuming and involves sensitive information. Automation would save time for employees, minimize data aggregation mistakes, ensure that sensitive information is touched by as few people as possible, and take proactive action.

5. Payroll Management

Payroll Management can be made much easier with digital tools and software that simplify paying employees. Key areas for automation include tracking employee information, managing time, attendance, and PTO, and taking over tasks like filing taxes, handling direct deposits, and calculating tax withholdings. Without HR automation tools, these tasks would take much longer to complete.

According to Ernst & Young, each payroll error costs an average of $291 to fix. Correcting these errors can take at least 12 hours a month or 18 workdays a year for most companies.

How to Start HR Automation

Identify Processes for Automation

Begin by pinpointing repetitive, time-consuming, and error-prone HR tasks. Critical areas for automation typically include employee onboarding, time and attendance tracking, payroll processing, performance management, and benefits administration.

Set Clear Objectives

Outline clear goals for automating HR processes. Determine what specific results you aim to achieve, such as minimizing manual errors, saving time, improving data accuracy, enhancing employee satisfaction, or reallocating HR resources to strategic projects.

Select the Right Automation Tools

Research and assess automation tools and software specific to HR needs. Look for platforms with features that align with your goals and can easily integrate with your current HR systems. Consider factors like scalability, user-friendliness, customization options, security, and customer support.

Prioritize Security and Compliance

Ensure that the automation tools you choose meet industry data security and privacy standards, especially when managing sensitive employee information. Confirm that the software provider follows strict security protocols and offers regular updates to reduce cybersecurity risks.

Involve Stakeholders

Engage key stakeholders in the automation process, including HR professionals, IT experts, department managers, and employees. Collaborate to gather insights, identify issues, and secure buy-in from everyone affected by the automation effort.

Customize Workflows

Adjust automation workflows to fit your organization’s specific needs and processes. Tailor workflows to accommodate differences in policies, procedures, and roles while optimizing efficiency and accuracy.

Provide Training and Support

Offer extensive training and support to HR staff and employees to ensure a smooth transition to automated processes. Provide hands-on training sessions, user guides, and ongoing support to address questions or concerns and maximize the benefits of automation.

Monitor and Evaluate Performance

Continuously monitor the performance of automated HR processes to find areas for improvement and optimization. Collect user feedback, track key performance metrics, and adjust workflows to enhance effectiveness and achieve desired outcomes.

As we move forward in HR management, one thing is clear: automation is not just a trend but a necessity for organizations striving to stay competitive and agile. Intelligent HR professionals understand the transformative power of automation in streamlining processes, improving efficiency, and enhancing employee experience.

If you’re ready to take the next step towards a more innovative, efficient HR function, why not see what Trove can do for your organization? Book a demo with Trove today and discover how automated employee gifting can transform your HR processes and boost employee engagement.