HR Automation- A Reduced Human Intervention

Feb 26, 2019

Posted by Ranu Lohiya in Uncategorized | 22 comments

In today’s competitive world, every organizational function is dependent on technology and HR is no exception to this. Managers are moving towards better ideas and ways to enhance productivity of human resource in the organization. Decisions are now being taken more strategically. HR Automation has entered into the picture.

Advancement in the technology has enhanced the management and working of human resource. All HR functions are now more or less automated. For e.g. Talent acquisition, decision making, employee can update his data at his own, leave request can be submitted, allowances can be claimed. Employee feels more responsible and motivated which helps in retaining and developing them. This practice is making growth of the organization faster and more profitable. Employer and employee relationship has become more transparent.
 

In previous decades, managers were restricted to limited areas that too performing few duties. HR duties were connected to more of admin work. But with the changing work culture and market scenario, importance of HR has increased. Now days, HR is seen performing almost in every department. HR Automation has made HR functions more simple and effective. Many big giants are in the race of adopting HR Automation and some are ready to enter the race. In coming future, HR would be holding one of the most important posts in any organization due to the emergence of HR Automation. This adoption is surely going to affect market at the large extent in positive sense.
 

HR Automation

HR Automation is the process of storing all sorts of data related to finance, marketing, customer service, employee details, etc. in very systematic way in computer based online system. It is made with the concept of self service. Main goal of HR Automation is the accessibility of data at one’s convenience. Managers need to take strategic decisions at different point of time related to past data. Physical storage of data makes it very difficult to review it. It consumes lots of time and energy to get relevant data at right time.
 

HR Automation has eliminated this chaos by providing relevance of data for taking decisions, actions and making reports on stipulated given time. HR Automation has made the communication transparent between employers and employees. For e.g. Employees can check their pay slip, leave data, incentive calculations, they can also update their personal information many more. This ensures the motivating work environment which leads to huge returns on investment. Self service helps employers in keeping track of salary, performance, competencies, and target achievements.
 

Evolution of HR in Digital Era

HR has been playing vital role in development of organization since decades. HR has been boosting up organizations’ competitive capabilities to enjoy fruitful results of competitive advantage over rivals from beginning.

• HR before Adoption of Automation
  The last few decades have witnessed the presence of complex reporting and decision systems to carry out every possible function in organization. Earlier HR was liable to access historic data and act accordingly in order to take profitable and more strategic decisions. Due to physical storage of information, reviewing of data was not very effective and error free. Managers needed to spend lots of time to make data available as and when required that too error free. Due to this repetitive procedure, all other areas were getting affected such as finance, marketing and functions such as employee engagement, employee retention and employee growth. On reviewing the history, it can be noticed that the main function of HR was acting as “caretaker “of data rather than accessing it for decision making. The work of HR was being seen more of administrative nature.

 

• HR after Adoption of Automation
  With the technological development and intense increase in market competition, roles of HR have become wider. It is not anymore limited to administration department. In today’s era, HR has become the core area which plays big roles in development of the organization. HR is responsible for recruiting, managing and developing employees for the betterment of the organization. HR is responsible for linking individual goals with organizational goals to develop both. HR needs to take strategic decisions related to every field such as marketing, finance, customer service, employee development, achievement of goals and so on. With the increasing demand of digitization, adoption of HR Automation has turned the table around. HR is now merged with artificial intelligence. Today’s technological era demands real time information to create interactive and positive work environment. Adoption of automation of HR function is must for the survival in such cut throat competitive market.

Benefits of HR Automation

Merger of HR and technology has created HR Automation. Organizations are benefited hugely by this merger. Ample of benefits are observed and have chances to be observed in coming future. Some of them are mentioned below:

• HR functions are developing along with the development of technology and digitalization.
• Focus has shifted from Personnel Management to Strategic HR Planning.
• Technologic advances have made HR Automation affordable, simple and accessible for all scales of organization.
• A recent survey has been done by CareerBuilding shows that, around 72% employers are expecting automation of Talent Acquisition and Human Capital Management in coming 10 years.
• HR Automation has benefited number of HR functions. For e.g. Onboarding process is very time consuming as it is done on paper. This creates bundles of paper stuff which is not easy at all to be accessed. With the help of HR Automation, electronic forms can be filled out and forwarded ahead in the flow of process and at last will be stored automatically; this will ensure population of multiple Onboarding forms. Employee data can also be reviewed at faster, clear and east steps from joining till exiting.
• Apart from HR, there are many other processes which are benefited such as expense reporting, maintaining requests and transportation management through electronic forms.
• HR Automation has saved around 93% of time and increased efficiency in Talent Acquisition.
• Applicant tracking software has made electronic communication effective by around 71% and empowered candidates as they can check their application progress and status.
• HR Automation has enhanced productivity of HR Team.
• The online system stores each and every data in systematic manner and has reduced possibilities of error by 69% and helped in keeping them handy. Assistance has been made available at every stage of requirements. Such as entering travel request, updating professional information, etc. Employees can perform all these activities at their own. HR Automation is now almost everywhere in today’s world.
• According to research done by Bersin By Deloitte, around 40% of companies have already adopted HR Automation in HR alone. Around 62% of companies are looking forward for using it in coming year.
• HR Automation is present virtually in major industries such as advertising, transportation, finance, legal, education and inside workplaces at large.
• Many platforms are made for activities such as answering FAQs, coaching and mentoring. The usage of HR Automation would ensure seamless, flexible and user-driven employee experience.
• HR Automation is present in big giants like Google, Paradox Olivia, VCV/robot recruiters, Skype, Amazon, Netflix and many more. It is helping in transforming HR and workforce, reducing human biasness, making better relationships with employees, improving relevance of compliance and lots of benefits which organizations are enjoying.

Future of HR Automation

In coming future, it is certain that demand for organization backed up by technology would be increasing tremendously. HR leaders would be in need of technology acceptance by way of HR Automation for the reason of development of organization. HR leaders would be delivering value services through chatboards for recruitment, employee services, employee development and coaching. Mostly HR Automation has made Talent Acquisition and Recruitment process effective till now. There are lots of startups would be emerging into availability of services for various areas through solution units such as: – Sourcing (Textio), Interviewing (myInterview), Onboarding (Talla), Coaching (Saberr), Employee Service Centers (ServiceNow).

HR Automation is the bridge between AI and human proficiency. Huge investment is expected to be made in HR Automation i.e. $46 billion by 2020 which would impact all business areas in almost every industry, stated by Research Firm IDC. It would be providing more rewarding jobs all together in new dimensions. It can be assumed that more organizations and employees would be affected positively in large extent by this automation.

Every innovation has merits and demerits. But HR Automation has more of merits and even more of demerits if organization gets late in adopting it. Only those companies would be surviving in coming future competition that take this automation seriously and take decision at right time. Mobile HR Strategy would improve employee experience. Organizations would be enjoying smarter HR Strategies. Failure of acceptance of HR Automation would make retention of employees difficult for all organizations. Economic way of communication will be seen in every organization through Chatbot Style. Inspite of having lots of benefits, result of HR Automation is still matter of debate for many companies. It is cost saving and efficient but intangibles would go beyond this.

On the basis of in-depth analysis of all possible factors affecting or getting affected by HR Automation, it can be said that accurate adoption of HR Automation would foster better employee-employer relationship, which would ensure the development of overall organization and ensure the sustainability in the market.