HR process automation: Examples, tools, and much more

HR process automation is transforming, thanks to disruptions in the human resources world. Knowing how to use new solutions can help you simplify operations and improve collaboration to boost overall efficiency. 

In this article, we'll break down what HR process automation is, why it matters, and best practices for putting it into action.

What is HR process automation?

HR process automation involves using technology to streamline and automate repetitive and time-consuming HR tasks. It allows your HR department to digitize and automate various processes, including payroll, benefits administration, employee onboarding, and timekeeping.

HR automation tools like human resource information systems (HRIS), chatbots, and cloud-based interfaces manage essential yet manual tasks. For HR professionals, automation tools help you concentrate on more strategic work that impacts the bottom line. 

Automation also improves efficiency, collaboration, and communication within your organization. It also helps you provide a better employee experience to ultimately achieve higher levels of productivity and engagement.

Benefits of HR process automation

Using an HR process automation platform offers a variety of benefits for your business. Here are just a few of them.

Increased efficiency

HR automation tools like HRIS digitize and automate payroll processing, benefits administration, and employee onboarding. These tools also help centralize employee data, making it easier to access and manage information.

With saved time, HR professionals can allocate resources to developing training programs, improving company culture, and adjusting employee engagement strategies. 

Accuracy

When HR tasks are completed by hand, the risk of error increases due to possible human oversight or fatigue. This is especially common in manual data entry. 

Automation tools, on the other hand, follow pre-programmed guidelines. This ensures a high level of accuracy, eliminating the chance of mistakes that have costly repercussions. It also keeps practices consistent, which is especially important for businesses with multiple locations.

Cost savings

Your organization can also save money through automation. Automation tools create more efficient processes that require less time and fewer resources to maintain. Adopting this forward-thinking approach leads to substantial cost-effectiveness now and in the long term.

Examples of HR process automation functions

Here are some examples of how HR process automation simplifies your procedures.

Onboarding

HR process automation improves the efficiency and effectiveness of employee onboarding, which is often a complex and time-consuming process.

For example, with automation, official documents like employment contracts and tax forms can be generated with accuracy. Onboarding automation also speeds up equipment distribution by requesting access and setting up devices without the need for IT assistance.

Offboarding

HR process automation makes offboarding more efficient and systematic. For example, you can generate an offboarding checklist that ensures all the necessary steps, like returning company property, are completed. 

Automation tools also handle administrative tasks, like arranging employees’ final paychecks, organizing exit interviews, and submitting required documents. It can remove employees from the company directory and deactivate their access to company systems after their last day, safeguarding sensitive company information.

Screening candidates' resumes/CVs

An effective hiring procedure helps attract the best talent out there. HR automation makes the hiring and resume-scanning process much more manageable. 

For example, automation tools can put job postings on several platforms and gather application data into a single database. Sophisticated algorithms review applications, compare them to preset standards, and create a list of eligible applicants. 

Automation also simplifies candidate evaluation and interview scheduling, offers status updates, and fast-tracks applicant communication.

Payroll

It can be challenging to manually calculate time or days worked, including sick leave and vacation days. HR process automation streamlines payroll management, helping employees receive their earnings faster and more conveniently.

Centralizing payroll information also improves data accessibility, making it easier for your authorized HR staff to access and manage this information.

Employee benefits

Many companies handle employee benefits through professional employer organizations (PEOs), which can increase costs. The problem is that many workers are unaware of the benefits available to them. 

Automation software can monitor and track employee benefits, providing employees with easy access to information about their benefits packages. This self-service functionality empowers employees while reducing the administrative burden on HR staff. 

Employee performance tracking

HR professionals can use automated data to determine bonuses, increases, disciplinary actions, and terminations. Managers can use automated data to prepare for employee performance reviews, and make sure that goals are reached. 

Best HR process automation platforms

There are a variety of HR process automation tools on the market, but not all are created equal. Here are some of the best platforms to consider for your company.

1. Remote HR Management

Remote HR management helps you to manage your global workforce, all in one place. It's a simple solution to managing your international employees from onboarding, payroll, and benefits.

Plus, with integrations with other HR tools at no costs, Remote HR management helps your global team scale compliantly and happily.

2. BambooHR

BambooHR is known for its robust employee self-service features and easy-to-use interface. It works especially well for performance management and onboarding. 

3. HiBob

HiBob helps you focus on improving corporate culture. It offers robust interaction tools and a clean interface, making it an excellent tool for encouraging better collaboration and teamwork.

4. Zoho People

Zoho People helps you handle a variety of key HR tasks, including running performance reviews, tracking leaves, developing custom forms, and managing timesheets.

What are some features to look for in HR process automation software?

The right HR software for you depends on your company’s unique needs. However, certain features are guaranteed to set your organization up for success. 

Here are some helpful capabilities to keep an eye out for as you browse for automation technologies.

Talent acquisition and onboarding

Your HR automation tool should help you integrate talent acquisition and onboarding into one workflow. This covers resume evaluation, applicant tracking, interview scheduling, and automating job advertisements. Smart automation tools also simplify onboarding tasks by generating digital paperwork and orientation schedules.

Integrated payroll system

Choose an HR automation system with an integrated payroll feature for accurate payments and employee compensation management. If you have a distributed team, look for an automation system that can handle global compliance and tax regulations.

A good automated HR platform can also send employees pay stubs so they can have an accurate and up-to-date record of their wages.

Mobile optimization

With so many employees working from home, the HR software you choose must be mobile-friendly. This capability allows your HR managers and employees to access the software from anywhere, giving them more control over their responsibilities.

Analytics and reporting

A good HR automation tool helps you understand the data it collects. It can help you use important HR data, such as employee engagement, hiring efficacy, and turnover.

You can use metrics from reports to make decisions on your HR strategy. For instance, you could find out why turnover is so high and make the necessary adjustments to resolve the issue.

User-friendly interface

You can forget the interface when choosing an HR process automation tool. The platform should be concise and easy-to-understand language. User-friendly software makes it easy for all employees to handle HR responsibilities without having to face technical difficulties.

4 best practices for using HR process automation

If your business is dealing with inefficient processes, HR staffing challenges, or budgeting limitations, then it’s likely time for HR automation. 

When incorporating HR process automation into your workplace, certain strategies are necessary to drive meaningful improvements. Keep these best practices in mind.

1. Identify repetitive tasks that need automation

Determine which HR procedures have the best potential for automation before moving forward with the automation process. This includes figuring out how standardized, repeatable, and rule-based the jobs are and how much judgment or human involvement they need. 

Payroll, benefits administration, and onboarding are often considered high potential for automation. Meanwhile, coaching, employee relations, and performance management are viewed as low potential for automation.

You can use tools like workflow analysis, process mapping, or automation scorecards to assess the potential for automation in your HR procedures.

2. Choose the right automation software

Decide which HR process automation processes are best for you. A variety of solutions are available, including chatbots, business process automation (BPA), robotic process automation (RPA), and artificial intelligence (AI). 

Each tool has its own advantages and disadvantages to consider, so match the size and scope of your HR procedures with the right option. AI can be better for sophisticated and cognitive jobs, like resume screening and sentiment analysis. On the other hand, RPA is ideal for simple and repetitive tasks, like data input and document generation.

Make sure your chosen tool integrates well with your current HR system to make the transaction as smooth as possible.

3. Track each HR automation

Test the software first to confirm that the automation tools and workflows are working as intended and delivering the desired outcomes.

In addition to gathering user and stakeholder feedback, evaluate the automation's effectiveness, quality, and impact. Checking metrics like ROI, compliance, efficiency, accuracy, and satisfaction can help you spot and close any gaps.

4. Revisit your automation regularly

While you may notice the benefits of the tool you choose right off the bat, pay attention to additional areas for improvement over time. 

Enhance your HR automation by adding new stages or strengthening your business logic at particular points. Also, review each automation every once in a while (like once every six months), to identify areas for improvement.

The automation tools and workflows you use should be improved and adjusted to reflect shifting conditions and needs. In addition, aim to broaden the scope of your automation activities by investigating new automation opportunities and use cases.

What does the future of HR process automation look like? 

HR process automation is revolutionizing the way businesses attract, retain, and manage their workforce. As remote work becomes more popular and the demand for flexible HR procedures increases, HR automation will become even more important.

Automation does not mean a lack of human touch. HR professionals will continue to play influential and strategic roles within their organizations, driving employee engagement and satisfaction. HR specialists need to use automations as tools to strengthen human capabilities and pave the way for a more efficient and effective workforce.

HR automation made easy with Remote

HR process automation offers a variety of advantages for businesses, including increased efficiency, accuracy, and cost savings. However, knowing how to choose the right HR automation tool is key to maximizing these benefits. 

Navigating HR data can be especially challenging if you manage a distributed workforce. That’s where a global HR hub comes in.

Remote HR Management is ideal for distributed remote teams, as it helps you manage international employees, approve payroll, and compile HR statistics in one unified platform. 

Chat with us today to learn more about how Remote can help you simplify your HR operations.

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