HR Automation: The Next Frontier For Your Business

June 13, 2018 2:16 pm

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“If your HR processes aren’t automated, you’re already behind.” Charlie Judy, Chief HR Officer, Baker Tilly.

Human Resource Management

Image Credits: Digitalist Magazine

Mention the abbreviations HR (Human Resource) to any business owner, and you’re sure to conjure mental images of dreary employees hunched over excel spreadsheets, furiously scouring for minute details which their bosses demanded from them. Unfortunately, that stereotype runs true for many companies who swear by the age-old method of entrusting their human resource database to outsourced employees, thinking that this seemingly tried and tested formula will last the test of time. They couldn’t have been more wrong.

 

In this article, we will expound on the numerous benefits of automating your HR functions and convince you why taking this step might eventually have profound benefits for your business.

 

  1. Cost Savings and Less Time Wastage

The notion of saving costs comes almost synonymously with automating HR functions. The traditional method of handling HR related matters relied exceedingly heavy on human effort which in turn, costs a sizeable amount of money to sustain.

 

A well-designed payroll software allows your business to reduce the costs of hiring HR specific employees by simplifying the common technical terminologies, even extending to possibilities where managers will be able to handle HR matters for employees under their charge.

 

Time wastage from manual HR functions come in the form of leakages where you least expect it. Here’s a great analogy: For an annual review, should the managers from various departments need to create summaries using the employee database, presumably from an Excel spreadsheet, they might face difficulties because they are not well acquainted with the necessary processes. This is further exacerbated by the fact that such reports are likely done after a period of time and hence, there are minimal opportunities for these managers to familiarise themselves with the task at hand.

 

  1. Employee Satisfaction

“Companies like Google have invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37 percent; they know what they are talking about. Under scientifically controlled conditions, making workers happier pays off.”

                                                                                                                                                  -Andrew Oswald

Happier employees have a compelling correlation to employee productivity. An automated human resource management system (HRMS) maximises employee utility by ensuring that leaves and entitlements are appropriately dispensed.

Imagine a situation where a manager has no clue when his employees are applying for their leaves. Workforce planning and shift scheduling will be in jeopardy because of imperfect information on the managerial level. This could create manpower issues on days where the company is understaffed due to poor leave planning, radically overworking employees or even coercing them to cancel their leaves.

 

  1. Improved Security

By using a compliant human resource software, your database is primarily backed up to cloud services. This acts as a vital back-up for your business in the unlikely event your systems are infected by malware or any cataclysmic event which causes you to lose data.

It also reduces human error, which is commonplace in any manual process, which can have dire consequences ranging from tax to even legal disputes.

 

  1. Consistency in all branches

Should your business grow in volume and you eventually decide to franchise, you will assuredly face the issue of centralizing HR functions. Getting every aspect on the same page be it in values or goals is integral to the success of a business, and this also extends to getting everyone accosted to similar HR processes.

By having a centralised online HRMS, your employees from various branches will be updated on the latest human resource updates without having to go through the mind-numbing process of having to contact other offices (which still might not have updated their manual systems on their side).

 

  1. Customizable to your business’ policies while retaining governmental policies

Well-designed payroll softwares will create options for your business to implement in-house policies while ensuring that you do not infringe on any manpower legislations.

A great sign of an exceptional software is one which caters for modification of your business’ policies. An example would be the inclusion of varying types of holidays your company wishes to add on top of the existing official holidays. Even setting customized pay schemes which are available to different groups of employees is a possible venture. All these while automatically juggling your preferences together with legislative regulations so you do not incur substantial penalties.

 

Growing a business is a monumental concept to realise and successful entrepreneurs seek out novel alternatives to automate common processes which require excess human resources. Online payroll systems have grown astronomically in the past few years and manually managing human resource functions seem like the next new frontier for automation. Refusing to acknowledge this impending change would be akin to robbing yourself of added productivity.

Let people like these guys handle the boring stuff and focus on what truly matters: your business.

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