Recent research shows that HR professionals spend nearly 8 hours a week on routine, administrative tasks. With the proliferation of AI, barriers to automation are falling rapidly, and HR leaders need to take advantage of automation tools that enhance efficiency and save precious time and resources. While automation can streamline HR operations, it can also improve the employee experience and boost retention by providing employees with the resources and tools they need to reduce workloads and focus on complex tasks. The cost savings from integrating automation in your business can also provide you with extra funds required to develop high-quality growth and development programs that ultimately boost employee retention.
Jessica Kozak, CHRO at apexanalytix, believes that automation plays a crucial role in fostering workforce development and retaining employees by providing different avenues for businesses to grow in quality and quantity.
In this week’s HR Query, Kozak shares why it’s important to prioritize automation in HR, and how HR leaders can leverage the extra time and cost savings to grow talent from within.
Why is it important for HR professionals to invest in automation tools? What are the major benefits?
JK: Recent research shows that HR professionals spend nearly 8 hours a week on tedious, administrative tasks. With the proliferation of AI, barriers to automation are falling rapidly, and HR teams need to take advantage of automation tools that enhance efficiency and save precious time and resources. Not only can automation accelerate tasks that are time-consuming and susceptible to human error, but it can also provide a competitive edge in today’s business environment. Automation frees HR from repetitive, tedious tasks and enables them to focus more of their time on strategic initiatives that continue to improve the employee experience.
What specific HR processes or tasks do you believe could benefit most from automation, and why?
JK: A few of the biggest areas for automation to benefit HR include:
Hiring and Onboarding: Hiring managers and HR teams face many challenges in the hiring process, from sorting through resumes to scheduling interviews. Automation can alleviate these burdens by streamlining tasks and automating repetitive processes. By digitizing and automating new hire paperwork, HR teams can significantly reduce onboarding time and ensure consistency throughout the process.
Benefits Administration: Open Enrollment can be a challenging time for HR departments, with employees needing to assess and update their benefits amidst a flurry of paperwork and data entry. Automation can streamline this process by providing employees with a self-service portal to make their selections electronically. Integration with existing HR software also eliminates the need for manual data entry, which improves efficiency and reduces administrative burden.
Payroll Processing: Automation minimizes payroll errors by centralizing data and preventing mistakes in spreadsheets or manual entries. Faster payroll processes free up HR managers’ time for more critical tasks, reducing operating costs and increasing efficiency.
Increased Security: Employee payroll data is highly sensitive and must be safeguarded from unauthorized access. Digitized, automated payroll processes mitigate security risks posed by printed spreadsheets or physical copies of payment details. Automated payroll systems encrypt confidential data and track processes securely, reducing the risk of unauthorized access.
What are the hurdles preventing HR professionals from taking advantage of automated tools?
JK: The main challenge HR teams face with automation is learning how to properly balance technology with the human touch. Personal interactions are integral to the HR function, so automation may not always be the best approach. HR leaders must carefully evaluate which situations would benefit from automation, and which require a human touch. A lack of education or training can also prevent HR teams from fully embracing automation. They may be unsure of how to properly implement automation, or they might have fears that automation will replace their jobs. By educating HR teams on the capabilities and advantages of automation, they can feel more confident in implementing automation where it makes sense.
In your experience, what are the potential risks or drawbacks associated with implementing automation in HR operations?
JK: AI systems are trained in historical data for predictions and decisions, but this data may contain biases. For example, algorithms may favor candidates from specific schools or with particular work experience, inadvertently discriminating against certain groups, which can result in unfair practices and potential legal consequences, as well as reputational damage. This is why it’s crucial to ensure you curate diverse and representative datasets and continuously monitor and update AI models to address any biases. Additionally, AI handles vast amounts of sensitive data, requiring strict privacy and security measures. Data breaches and cyberattacks can happen if businesses don’t have the proper guardrails in place to protect this data.
Employee retention is a key concern for many organizations. How can organizations leverage automation to boost employee retention rates?
JK: While automation can streamline HR operations, it can also improve the employee experience and boost retention by providing employees with the resources and tools they need to reduce workloads and focus on complex tasks. Employees often resign due to a lack of engagement or feeling overworked, particularly in sectors burdened with tedious and repetitive tasks. These tasks can lead to frustration, demotivation, and a lack of fulfillment among workers, contributing to high turnover rates. By automating these time-intensive tasks, employees are empowered to concentrate on more creative and meaningful work.
Investing in automation can result in significant cost and time savings. How can organizations re-invest these savings to grow talent from within?
JK: The cost savings from integrating automation into your HR processes can provide teams with the extra funds required to develop high-quality learning and development programs that ultimately boost employee performance and retention. By providing opportunities for employees to acquire new skills and qualifications in emerging technologies, employers demonstrate a strong investment in employee growth and advancement. This investment can enhance productivity levels, foster increased job satisfaction, and consequently, reduce turnover rates.
How can HR professionals communicate the benefits of automation to employees and ensure their buy-in during the implementation process?
JK: Before implementing automation software, it’s critical to consider the impact it will have on the broader team. While support from leadership and IT teams is crucial, employees’ buy-in is just as important. Effective communication is essential to address concerns about access to benefits, privacy, and utilization of personal information. Highlighting the advantages of automation, such as speeding up services and providing professional development opportunities, can facilitate acceptance. Offering guided training and multiple learning resources also ensures employees are equipped to use the new system effectively, allowing the company to fully reap the benefits of automation.
How will automation and other emerging technologies shape the role and responsibilities of HR professionals, and how can they adapt to these changes effectively?
JK: Automation is shaping the future of Human Resources, enhancing rather than replacing the role of HR professionals. By leveraging these technologies, HR teams can become even better strategic partners in achieving organizational goals. Embracing automation and other emerging technologies is crucial for businesses to stay competitive, agile, and adaptive in today’s dynamic work environment. As HR evolves, embracing technological advancements will be vital for attracting, retaining, and developing top talent.
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